GREE Nine-Month Net Profit More Than Doubles to ¥1.9 Billion Despite 11% Revenue Decline

GREE Holdings, Inc. (TSE: 3632) reported consolidated results for the first nine months (July 1, 2025–March 31, 2026) of the fiscal year ending June 30, 2026 (FY6/2026) under Japanese GAAP. Revenue fell 10.9% year-on-year to ¥38,444 million and operating profit dropped 34.7% to ¥2,420 million as the mobile-games business contracted. Yet the bottom line moved sharply the other way: ordinary profit rose 11.1% to ¥3,210 million and net profit attributable to owners of the parent more than doubled, climbing 112.4% to ¥1,912 million from ¥900 million a year earlier. Basic earnings per share came to ¥11.14, up from ¥5.26, and comprehensive income was ¥1,900 million.

Operating profit falls as games shrink, but recurring profit rises

The divergence between operating and ordinary profit is the story of the quarter. While the operating line carries the weight of a smaller games business — revenue down nearly 11% and operating profit off more than a third — ordinary profit sits above operating profit, at ¥3,210 million versus ¥2,420 million. The gap reflects non-operating income, chiefly investment-related and other gains from GREE's expanding venture and fund activities, which more than offset the operational decline and lifted recurring profit by 11.1% year-on-year. The same dynamic carried through to the bottom line, where net profit attributable to owners more than doubled to ¥1,912 million.

Investment business expands with six newly consolidated entities

GREE materially broadened its investment footprint during the period, newly consolidating six entities. Five are U.S. venture-fund vehicles — GREE Capital US Holdings, GREE LP Fund US, GREE Capital Partners, GFR Fund I GP, and GFR Fund I L.P. — alongside a domestic GREE LP Fund JP No.2 partnership; one entity was removed from the scope of consolidation. The build-out underscores GREE's pivot from a games-led model toward a hybrid of mobile games, the "REALITY" metaverse/avatar-live service, advertising and media, and a growing venture/fund investment arm whose gains increasingly shape the group's earnings.

Solid balance sheet; equity ratio at 75%

The balance sheet remained robust. Total assets stood at ¥123,698 million and net assets at ¥94,463 million, with owners' equity of ¥92,770 million and an equity ratio of 75.0% — a comfortably capitalized base that gives the group room to fund its expanding investment and fund commitments without strain.

Dividend forecast raised to ¥21.50; full-year guidance withheld

GREE raised its FY6/2026 dividend forecast to an annual ¥21.50 per share (paid at year-end), up from the prior ¥14.50 plan — a 48.3% increase to the forecast. At the same time, management again declined to disclose full-year consolidated guidance, citing the difficulty of forecasting its market-sensitive investment business, whose gains and losses swing with valuations. The result is a company delivering more than double last year's nine-month net profit on a shrinking top line, with shareholder returns rising even as the headline guidance picture stays deliberately blank.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.