Universal Entertainment (6425) Q2 2026 earnings summary

Executive summary

• Net sales rose to ¥76,566 million in 2Q FY2026, up 23.1% year-over-year, with operating profit surging to ¥10,219 million from ¥847 million, driven by strong Amusement Equipment performance, while the Integrated Resort (IR) Business faced revenue and profit declines due to intensified competition and external factors.

• Ordinary profit reached ¥3,128 million, reversing a prior loss; net income was ¥62 million, a significant improvement from a loss of ¥9,874 million.

• The second half is expected to see continued strength in Amusement Equipment and a turnaround to profitability for the IR Business through new initiatives and product launches.

• The Amusement Equipments Business drove growth, while the IR Business continued strategic investments despite revenue decline.

Financial highlights

• Net sales rose to ¥76,566 million in 2Q FY2026, up ¥14,391 million year-over-year.

• Operating profit increased sharply to ¥10,219 million from ¥847 million, with margin improving to 13.3%.

• Adjusted EBITDA grew to ¥15,398 million, up ¥4,321 million year-over-year.

• Amusement Equipments Business net sales increased 69.1% year-over-year to ¥45,926 million, with operating profit up 173.7% to ¥14,166 million.

• Integrated Resort (IR) Business net sales fell 13.0% year-over-year to ¥30,126 million, with an operating loss of ¥1,368 million.

Outlook and guidance

• Full-year FY2026 guidance: net sales ¥140,000 million, operating profit ¥16,000 million, adjusted EBITDA ¥29,000 million.

• Full-year forecast remains unchanged: net sales of ¥140,000 million (+13.9% YoY), operating profit of ¥16,000 million, and net income attributable to owners of ¥2,000 million.

• Amusement Equipment Business plans another major title launch in Q4; IR Business focuses on online casino and MICE promotions to drive profitability.

• Amusement Equipments expected to benefit from new IP launches and strong pachislot demand; IR Business to focus on dual online/land-based strategy and cost optimization.