SQUARE ENIX HOLDINGS (9684): FY2025 Results Summary — Lower Net Sales but Sharply Higher Profit on Digital Entertainment Margins

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: SQUARE ENIX HOLDINGS labels the fiscal year covered here as “FY2026/3” (the fiscal year ended March 31, 2026); this article follows our site convention of classifying the most recently completed fiscal year as FY2025, while all figures, tables and year labels below are kept exactly as they appear in the company’s materials.

SQUARE ENIX HOLDINGS reported net sales of ¥297.6 billion for the fiscal year ended March 31, 2026, down ¥26.9 billion year on year, while operating income rose ¥14.2 billion to ¥54.7 billion. The company states that operating income increased on improved profitability in the Digital Entertainment segment despite lower net sales year on year. Ordinary income was ¥64.4 billion and profit attributable to owners of parent was ¥29.6 billion. Figures are presented in billions of yen, with amounts under one hundred million yen rounded down.

Consolidated Results (Full-Year Actual)

The operating income margin improved 5.9pt to 18.4% and the ordinary income margin improved 9.1pt to 21.7%. The number of employees declined by 314 to 4,290.

Item (Billions of Yen)	FY Ended March 31, 2026	FY Ended March 31, 2025	Changes
Net Sales	297.6	324.5	(26.9)
Operating Income	54.7	40.5	14.2
Operating Income Margin	18.4%	12.5%	5.9pt
Ordinary Income	64.4	40.9	23.5
Ordinary Income Margin	21.7%	12.6%	9.1pt
Profit attributable to owners of parent	29.6	24.4	5.2
Number of Employees	4,290	4,604	(314)

On a three-year view the materials show net sales of 356.3 in FY2024/3, 324.5 in FY2025/3 and 297.6 in FY2026/3, with operating income of 32.5, 40.5 and 54.7 and profit attributable to owners of parent of 14.9, 24.4 and 29.6 over the same periods (billions of yen).

Segment Results

Digital Entertainment net sales fell ¥33.7 billion to ¥172.8 billion while its operating income rose ¥9.5 billion to ¥43.3 billion, lifting the segment’s operating income margin by 8.7pt to 25.1%. Amusement, Merchandising and the eliminations line are shown alongside below.

Segment (Billions of Yen)	Metric	FY Ended March 31, 2026	FY Ended March 31, 2025	Changes
Digital Entertainment	Net sales	172.8	206.5	(33.7)
Amusement	Net sales	72.1	71.2	0.9
Publication	Net sales	29.7	30.7	(1.0)
Merchandising	Net sales	25.0	19.0	6.0
Eliminations or unallocated	Net sales	(2.1)	(3.0)	0.9
Digital Entertainment	Operating income	43.3	33.8	9.5
Amusement	Operating income	8.8	7.8	1.0
Publication	Operating income	9.8	10.9	(1.1)
Merchandising	Operating income	11.2	6.0	5.2
Eliminations or unallocated	Operating income	(18.5)	(18.1)	(0.4)
Digital Entertainment	Operating income margin	25.1%	16.4%	8.7pt
Amusement	Operating income margin	12.3%	11.0%	1.3pt
Publication	Operating income margin	33.2%	35.7%	(2.5pt)
Merchandising	Operating income margin	44.8%	31.8%	13.0pt

In Amusement, although sales of amusement machines fell year on year, both net sales and operating income increased, driven by higher same-store sales and increased sales of prize items to amusement facilities. Publication net sales and operating income decreased year on year due to a decline in comic book sales; within Publication, digital sales were 16.0 (54%) and printed media sales were 13.7 (46%) in FY2026/3, against 16.8 (55%) and 13.8 (45%) in FY2025/3 (billions of yen). Merchandising net sales and operating income increased year on year, driven by the recognition of royalty income from key IP.

Digital Entertainment: Sub-Business Performance

HD Games profit increased, supported by steady sales of new titles and higher sales of catalogue titles year on year. In MMO, both net sales and operating income decreased year on year due to the release of the “FINAL FANTASY XIV” expansion pack in the previous year. In Games for Smart Devices/PC Browser, operating income increased year on year, driven by improved profitability through diversification of payment methods and optimization of operating costs.

Sub-business	Net Sales (FY2026/3)	Net Sales (Prior FY)	Change	Operating Income / Profit (FY2026/3)	Operating Income / Profit (Prior FY)	Change
HD Games	¥76.5 billion	¥75.1 billion	up ¥1.4 billion YoY	¥14.1 billion	¥3.3 billion	up ¥10.8 billion YoY
MMO	¥41.0 billion	¥55.5 billion	down ¥14.5 billion YoY	¥15.1 billion	¥21.9 billion	down ¥6.8 billion YoY
Games for Smart Devices/PC Browser	¥55.2 billion	¥75.8 billion	down ¥20.6 billion YoY	¥14.0 billion	¥8.5 billion	up ¥5.5 billion YoY

Digital Entertainment: Units Sold by Region

Total units sold rose to 26.68 million from 25.45 million, with North America/Europe accounting for 17.24 million. Units Sold is defined in the materials as Packaged plus Downloads, and the figures cover both HD and MMO titles, as well as games distributed by Square Enix and those sold episodically.

Region (Millions of Units Sold)	Packaged (FY2026/3)	Downloads (FY2026/3)	Total (FY2026/3)	Total (FY2025/3)
Japan	1.81	4.26	6.07	6.42
North America/ Europe	2.76	14.48	17.24	16.04
Asia, etc.	0.40	2.96	3.37	2.98
Total	4.98	21.70	26.68	25.45

Financial Position

Total assets stood at ¥438.0 billion as of March 31, 2026, up ¥21.9 billion from a year earlier. Cash and deposits increased ¥28.3 billion to ¥276.0 billion and the content production account was ¥46.2 billion, down ¥0.7 billion. Total liabilities were ¥88.7 billion, including income taxes payable of ¥16.1 billion (up ¥13.6 billion), and total net assets were ¥349.2 billion, up ¥12.9 billion.

Full-Year Forecast

The Financial Results Briefing Session materials for the fiscal year ended March 31, 2026 do not present an earnings forecast for the following fiscal year. This cannot be confirmed from the materials.

Shareholder Returns

The Financial Results Briefing Session materials for the fiscal year ended March 31, 2026 do not present dividends or other shareholder return measures. This cannot be confirmed from the materials.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.