Interim report
Page 1
Consolidated Financial Results for the Nine Months Ended December 31, 2025 [IFRS] February 5 , 202 6 Company name: DeNA Co., Ltd. Stock exchange listing: Tokyo Stock Exchange Code number: 2432 URL: https://dena.com/intl/ Representative: Shingo Okamura, President & CEO Contact: Keigo Watanabe, Director and Executive Officer, Head of the Corporate Unit Phone: +81-3-6758-7200 Scheduled date of commencing dividend payments: — Availability of supplementary briefing material on financial results: Yes Schedule of financial results briefing session: Yes (for institutional investors, analysts and the press) (Amounts are rounded to the nearest million yen.) 1. Consolidated Financial Results for the Nine Months Ended December 31, 2025 (from April 1, 2025 to December 31, 2025) (1) Consolidated Operating Results (% changes from the previous corresponding period) Revenue Operating profit Profit before tax Profit for the period Millions of yen % Millions of yen % Millions of yen % Millions of yen % Nine months ended December 31, 2025 114,452 (1.9) 16,895 (19.5) 24,231 5.2 16,297 9.1 Nine months ended December 31, 2024 116,727 12.1 20,979 – 23,031 – 14,944 – Profit for the period attributable to owners of the parent Total comprehensive income for the period Basic earnings per share Diluted earnings per share Millions of yen % Millions of yen % Yen Yen Nine months ended December 31, 2025 16,821 6.8 20,275 (5.8) 150.91 150.54 Nine months ended December 31, 2024 15,755 – 21,518 – 141.48 141.33 (2) Consolidated Financial Position Total assets Total equity Total equity attributable to owners of the parent Ratio of equity attributable to owners of the parent Millions of yen Millions of yen Millions of yen % As of December 31, 2025 374,986 259,688 251,440 67.1 As of March 31, 2025 394,188 252,875 241,734 61.3 The following information was originally prepared and published by the Company in Japanese as it contains timely disclosure materials to be submitted to the Tokyo Stock Exchange. This English translation is for your convenience only. To the extent there is any discrepancy between this English translation and the original Japanese version, please refer to the Japanese version.
Page 2
2. Dividends Dividends per share End of 1st quarter End of 2nd quarter End of 3rd quarter End of year Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 – 0.00 – 65.00 65.00 Fiscal year ending March 31, 2026 – 0.00 – Fiscal year ending March 31, 2026 (Forecast) 66.00 66.00 (Notes) 1. Revisions to recently announced dividend forecast: Yes 2. For details of the revision of the dividend forecast, please see “Notice Regarding Change in the Basic Policy on Dividends and Revision to Dividend Forecast (Dividend Increase)” released today (February 5, 2026). 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (from April 1, 2025 to March 31, 2026) (% changes from the previous corresponding period) Revenue Operating profit Operating profit (Non-GAAP) Millions of yen % Millions of yen % Millions of yen % Full year 146,500 (10.7) 17,000 (41.3) 26,500 (19.5) (Notes) 1. Revisions to recently announced financial results forecast: Yes 2. For details on matters relating to the financial results forecast, please refer to “1. Overview of Operating Results and Financial Position” on page 4 of the Appendix. Non-GAAP operating profit is an indicator adjusted for non-recurring items and other extraordinary items based on a certain set of rules. It represents IFRS-based operating profit from which the effects of one-time expenses and gains relating to acquisitions, business and organizational changes, etc., and corrections and adjustments relating to the timing of accounting recognition have been eliminated.
Page 3
* Notes (1) Significant Changes in the Scope of Consolidation during the Period: Yes Newly included: One company (Delight Ventures Builder III Investment Limited Partnership) Excluded: — (2) Changes in Accounting Policies and Changes in Accounting Estimates 1) Changes in accounting policies required by IFRS: No 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No (3) Number of Shares Issued (common stock) 1) Total number of shares issued at the end of the period (including treasury stock): As of December 31, 2025 122,145,545 shares As of March 31, 2025 122,145,545 shares 2) Total number of shares of treasury stock at the end of the period: As of December 31, 2025 10,646,913 shares As of March 31, 2025 10,746,088 shares 3) Average number of shares during the period: Nine months ended December 31, 2025 111,466,616 shares Nine months ended December 31, 2024 111,356,235 shares (Note) The 125,778 shares of the Company’s stock owned by the Stock Grant ESOP Trust account are included in the “Total number of shares of treasury stock at the end of the period” as of December 31, 2025, and the 160,073 shares of the Company’s stock owned by the same trust account are included in the “Total number of shares of treasury stock at the end of the period” as of March 31, 2025. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: No * Explanation of the Proper Use of Financial Results Forecast and Other Notes (1) Consolidated Financial Results Forecast and Dividend Forecast The forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable as of the date of publication of this document. They are not intended as the Company’s commitment to realize such forecasts, and actual results may differ significantly from these forecasts due to a wide range of factors. (2) Method of Obtaining Supplementary Briefing Material on Financial Results The Company is planning to hold a briefing session for institutional investors, analysts and the press on February 5, 2026. The briefing materials for this session are scheduled to be posted on the Company’s website after the timely disclosure of the Consolidated Financial Results for the Nine Months Ended December 31, 2025. In addition, English transcript and primary Q&A of the briefing session are scheduled to be posted on the Company’s website at a later date shortly thereafter.
Page 4
- 1 - Appendix 1. Overview of Operating Results and Financial Position 2 (1) Overview of Operating Results 2 (2) Overview of Financial Position and Cash Flows 3 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information 4 (4) Basic Policy for Distribution of Profit and Dividends for Fiscal 2025 4 2. Condensed Consolidated Financial Statements and Principal Notes 5 (1) Condensed Consolidated Statement of Financial Position 5 (2) Condensed Consolidated Income Statement 7 (3) Condensed Consolidated Statement of Comprehensive Income 8 (4) Condensed Consolidated Statement of Changes in Equity 9 (5) Condensed Consolidated Statement of Cash Flows 10 (6) Notes on Going Concern Assumption 11 (7) Notes to Condensed Consolidated Financial Statements 11 1. Segment information 11 2. Earnings per share 14 3. Impairment of assets 15 4. Significant subsequent events 15
Page 5
- 2 - 1. Overview of Operating Results and Financial Position (1) Overview of Operating Results The Group is engaged in various businesses across the entertain and serve approaches . With the aim to enhance corporate value, the Group has been working to form an earnings base by taking advantage of the strengths of each approach, developing business groups that are set to structurally and sustainably grow, and encouraging synergies between businesses. During the nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025), revenue was ¥114,452 million, down 1.9% year-on-year. The factors for the year -on-year fluctuations are explained below in business performance by segment. Cost of sales was ¥51,130 million, down 4.6% year-on-year. While expenses increased in line with the growth of the Sports Business, c ommission fees declined, reflecting the trends and performance of the Live Streaming and Game Businesses. Selling, general and administrative expenses were ¥ 37,472 million, down 10.2% year-on-year. In addition to a decrease in sales promotion expenses, commission fees also declined, reflecting the performance of the Game and Live Streaming Businesses. In terms of other income (expenses), impairment losses of ¥ 9,912 million were recorded under other expenses. For details, please refer to “ 2. Condensed Consolidated Financial Statements and Principal Notes, (7) Notes to Condensed Consolidated Financial Statements, 3. Impairment of assets.” Finance income was ¥ 1,643 million, down 36.2% year-on-year. Finance costs were ¥584 million, down 26.7% year-on-year. Share of profit of associates accounted for using the equity method was ¥6,277 million, up 2,201.4% year-on- year. The main factors of the year-on-year fluctuation included the performance trends of Cygames, Inc. and GO Inc., both major associates accounted for using the equity method. As a result, revenue of the DeNA Group was ¥ 114,452 million, down 1.9% year-on-year, operating profit was ¥16,895 million, down 19.5% year-on-year, profit before tax was ¥24,231 million, up 5.2% year-on-year, and profit for the period attributable to owners of the parent was ¥16,821 million, up 6.8% year-on-year. Business performance by segment is as follows. 1) Game Business Revenue of the Game Business was ¥ 48,295 million, down 4.5 % year -on-year, and segment profit was ¥23,303 million, up 10.8% year-on-year. Revenue decreased and segment profit increased year-on-year, as the reaction from the initial performance of Pokémon Trading Card Game Pocket continued to contribute, which was newly released on October 30, 2024, and other factors. 2) Live Streaming Business Revenue of the Live Streaming Business was ¥30,325 million, down 2.0% year-on-year, and segment profit was ¥3,302 million, compared with segment loss of ¥376 million for the same period of the previous fiscal year. Although marketing initiatives including TV commercials for Pococha in Japan were carried out in the first half of the fiscal year ended March 31, 2025, business operations that prioritized improving profitability have been implemented from the second half of the fiscal year onward. IRIAM continued to perform steadily. 3) Sports Business Revenue of the Sports Business was ¥28,208 million, up 6.6% year-on-year, and segment profit was ¥5,604 million, up 11.1% year-on-year. YOKOHAMA DeNA BAYSTARS BASEBALL CLUB, INC. , continued to perform solidly, as the number of spectators at its home games recorded the highest number duting the 2025 season, and with various revenues growing.
Page 6
- 3 - 4) Healthcare & Medical Business Revenue of the Healthcare & Medical Business was ¥6,065 million, down 5.9% year-on-year, and segment loss was ¥2,539 million, compared with segment loss of ¥ 3,545 million for the same period of the previous fiscal year. In the Healthcare & Medical Business, the Company continues to carefully examine and promote initiatives for future growth. In the Healthcare area, revenue increased year-on-year for data use business, and data health business also performed steadily. In the Medical area, the focus is on three initiatives; the expansion in Japan of the medical professional communication app “ Join,” its global expan sion, and the Join Mobile Clinic, which combines Join with portable medical devices. The reduction of fixed costs is also being promoted. 5) New Businesses and Others Revenue of the New Businesses and Others was ¥1,906 million, down 25.4% year-on-year, and segment loss was ¥1,977 million, compared with segment loss of ¥776 million for the same period of the previous fiscal year. This section includes initiatives involving AI, as well as various initiatives that aim to reinforce the Group’s growth and business portfolio over the medium to long term, etc. (2) Overview of Financial Position and Cash Flows 1) Financial Position Total assets at the end of the nine months ended December 31, 2025 decreased by ¥19,202 million compared to the end of the previous fiscal year to ¥374,986 million. Total current assets decreased by ¥15,798 million compared to the end of the previous fiscal year to ¥126,889 million. This was due mainly to a decrease in trade and other current receivables by ¥21,021 million. Total non-current assets decreased by ¥3,403 million compared to the end of the previous fiscal year to ¥248,097 million. This was due mainly to a decrease in goodwill by ¥9,614 million and an increase in other non-current financial assets by ¥5,247 million. Total liabilities at the end of the nine months ended December 31, 2025 decreased by ¥26,014 million compared to the end of the previous fiscal year to ¥115,298 million. Total current liabilities decreased by ¥24,070 million compared to the end of the previous fiscal year to ¥64,725 million. This was due mainly to a decrease in other current liabilities by ¥9,409 million and a decrease in trade and other current payables by ¥6,610 million. Total non-current liabilities decreased by ¥1,945 million compared to the end of the previous fiscal year to ¥50,573 million. This was due mainly to a decrease in deferred tax liabilities by ¥1,242 million. Total equity at the end of the nine months ended December 31 , 2025 increased by ¥6,813 million compared to the end of the previous fiscal year to ¥259,688 million. This was primarily attributable to an increase in retained earnings by ¥10,489 million. In terms of liquidity, the liquidity ratio and ratio of equity attributable to owners of the parent were 196.0% and 67.1%, respectively, at the end of the nine months ended December 31, 2025. 2) Cash Flows Cash and cash equivalents (collectively, “cash”) at the end of the nine months ended December 31, 2025 increased by ¥4,729 million compared to the end of the previous fiscal year to ¥97,531 million. Cash flows in each area of activity and their respective contributing factors are as follows. (Operating activities) Net cash provided by operating activities for the nine months ended December 31, 2025 was ¥26,137 million, compared to a cash inflow of ¥14,283 million in the same period of the previous fiscal year. The principal cash inflow factor was ¥24,231 million in profit before tax.
Page 7
- 4 - (Investing activities) Net cash used in investing activities for the nine months ended December 31 , 2025 was ¥7,285 million, compared to a cash outflow of ¥7,098 million in the same period of the previous fiscal year. The principal cash outflow factor was ¥5,066 million in acquisition of property and equipment and investment property. (Financing activities) Net cash used in financing activities for the nine months ended December 31 , 2025 was ¥14,210 million, compared to a cash outflow of ¥5,171 million in the same period of the previous fiscal year. The principal cash outflow factor was ¥7,244 million in cash dividends paid. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information In light of recent business performance trends, the consolidated financial results forecast has been revised to reflect the latest forecast. The consolidated financial results for the nine months ended December 31, 2025 indicate that the Game Business progressed steadily toward the upper end of the range of the previously announced financial results forecast (forecast range). The Live Streaming Business achieved steady results through operations prioritizing improving profitability, and the Sports Business performed well. Meanwhile, operating profit ( IFRS) takes into account the impact of the aforementioned impairment losses recorded in the nine months ended December 31, 2025. Non-GAAP operating profit excludes this impairment losses. (4) Basic Policy for Distribution of Profit and Dividends for Fiscal 2025 The Company regards continuing enhancement of its corporate value through business growth , strengthening of the management structure, and improving capital efficiency, etc. and contributing to shareholders’ interest to be important management priorities. With respect to allocating profit to shareholders through dividends, even while it is essential to consider business attributes such as volatility as well as investments toward achieving growth in the medium to long term, in an effort to secure medium to long term support, we will target a DOE (ratio of dividend to equity attributable to owners of parent on a consolidated basis) of approx. 3%, and continue to pay stable dividends. As one approach to respond ing flexibly to changes in the Company’s stock price and business environment, managing capital policies, and returning profits to shareholders, the Company will also consider such means as the purchase of its own shares from the market. Regarding retained earnings, the Company’s objective is to maximize corporate value by making effective investments into strengthening the existing earnings base and the establishment of a business portfolio that realizes medium to long term growth. Based on the basic principle described above, the Company is scheduled to pay a regular cash dividend for its common stock of ¥66 per share for the fiscal year ending March 31, 2026. The basic policy regarding the payment of dividends from surplus is to pay a year-end dividend once a year. For details, please see the “Notice Regarding Change in the Basic Policy on Dividends and Revision to Dividend Forecast (Dividend Increase)” announced today (February 5, 2026).
Page 8
- 5 - 2. Condensed Consolidated Financial Statements and Principal Notes (1) Condensed Consolidated Statement of Financial Position (Millions of yen) As of March 31, 2025 As of December 31, 2025 Assets Current assets Cash and cash equivalents 92,803 97,531 Trade and other current receivables 44,543 23,522 Income taxes receivable 596 29 Other current financial assets 287 489 Other current assets 4,459 5,317 Total current assets 142,688 126,889 Non-current assets Property and equipment 9,581 9,839 Investment property – 4,197 Right-of-use assets 22,794 22,922 Goodwill 30,361 20,747 Intangible assets 19,919 20,043 Investments accounted for using the equity method 59,506 55,868 Other non-current financial assets 108,473 113,720 Deferred tax assets 830 731 Other non-current assets 37 30 Total non-current assets 251,500 248,097 Total assets 394,188 374,986
Page 9
- 6 - (Millions of yen) As of March 31, 2025 As of December 31, 2025 Liabilities and equity Liabilities Current liabilities Trade and other current payables 23,609 16,999 Borrowings 31,024 30,720 Lease liabilities 1,602 2,511 Income tax payables 8,619 3,290 Provisions 5,728 1,816 Other current financial liabilities 1,232 1,818 Other current liabilities 16,981 7,572 Total current liabilities 88,795 64,725 Non-current liabilities Borrowings 5,125 4,485 Lease liabilities 10,655 10,342 Provisions 329 621 Other non-current financial liabilities 237 298 Deferred tax liabilities 35,842 34,600 Other non-current liabilities 329 226 Total non-current liabilities 52,517 50,573 Total liabilities 141,312 115,298 Equity Common stock 10,397 10,397 Capital surplus 14,796 11,398 Retained earnings 184,544 195,033 Treasury stock (20,653) (20,416) Other components of equity 52,651 55,028 Total equity attributable to owners of the parent 241,734 251,440 Non-controlling interests 11,142 8,248 Total equity 252,875 259,688 Total liabilities and equity 394,188 374,986
Page 10
- 7 - (2) Condensed Consolidated Income Statement (Millions of yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Revenue 116,727 114,452 Cost of sales (53,599) (51,130) Gross profit 63,128 63,322 Selling, general and administrative expenses (41,733) (37,472) Other income 942 1,837 Other expenses (1,358) (10,792) Operating profit 20,979 16,895 Finance income 2,576 1,643 Finance costs (796) (584) Share of profit (loss) of associates accounted for using the equity method 273 6,277 Profit before tax 23,031 24,231 Income tax expense (8,087) (7,934) Profit for the period 14,944 16,297 Attributable to: Owners of the parent 15,755 16,821 Non-controlling interests (811) (525) Profit (loss) for the period 14,944 16,297 (Yen) Earnings per share attributable to owners of the parent: Basic earnings per share 141.48 150.91 Diluted earnings per share 141.33 150.54
Page 11
- 8 - (3) Condensed Consolidated Statement of Comprehensive Income (Millions of yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Profit for the period 14,944 16,297 Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss, net of tax Gains (losses) from investments in equity instruments, net of tax 6,584 4,328 Total other comprehensive income that will not be reclassified to profit or loss, net of tax 6,584 4,328 Components of other comprehensive income that may be reclassified to profit or loss, net of tax Foreign currency translation adjustments, net of tax (14) (316) Cash flow hedges 3 (34) Other (0) 1 Total other comprehensive income that may be reclassified to profit or loss, net of tax (11) (349) Other comprehensive income, net of tax 6,574 3,978 Total comprehensive income for the period 21,518 20,275 Attributable to: Owners of the parent 22,365 20,130 Non-controlling interests (847) 145 Total comprehensive income for the period 21,518 20,275
Page 12
- 9 - (4) Condensed Consolidated Statement of Changes in Equity For the nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) (Millions of yen) Equity attributable to owners of the parent Non- controlling interests Total equity Common stock Capital surplus Retained earnings Treasury stock Other components of equity Total As of April 1, 2024 10,397 15,750 162,578 (20,757) 41,237 209,204 10,821 220,025 Profit (loss) for the period - - 15,755 - - 15,755 (811) 14,944 Other comprehensive income - - - - 6,610 6,610 (36) 6,574 Total comprehensive income for the period - - 15,755 - 6,610 22,365 (847) 21,518 Dividends recognized as distributions to owners - - (2,227) - - (2,227) (63) (2,290) Increase (decrease) through treasury stock transactions - (24) - 44 (6) 15 - 15 Increase (decrease) through share- based payment transactions - 39 - - 30 68 - 68 Transfer to capital surplus from retained earnings - 10 (10) - - - - - Acquisition, disposal and other changes of non-controlling interests - (79) - - - (79) 80 0 Increase (decrease) through transfers and other changes - 115 - - (129) (14) (38) (52) As of December 31, 2024 10,397 15,811 176,096 (20,713) 47,741 229,332 9,952 239,284 For the nine months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) (Millions of yen) Equity attributable to owners of the parent Non- controlling interests Total equity Common stock Capital surplus Retained earnings Treasury stock Other components of equity Total As of April 1, 2025 10,397 14,796 184,544 (20,653) 52,651 241,734 11,142 252,875 Profit (loss) for the period - - 16,821 - - 16,821 (525) 16,297 Other comprehensive income - - - - 3,309 3,309 670 3,978 Total comprehensive income for the period - - 16,821 - 3,309 20,130 145 20,275 Dividends recognized as distributions to owners - - (7,241) - - (7,241) (42) (7,283) Increase (decrease) through treasury stock transactions - (79) - 237 (63) 95 - 95 Increase (decrease) through share- based payment transactions - 17 - - 79 97 - 97 Acquisition, disposal and other changes of non-controlling interests - (3,455) - - - (3,455) (1,238) (4,693) Changes resulting from loss of control of subsidiaries - - - - - - (1,673) (1,673) Increase (decrease) through transfers and other changes - 118 909 - (947) 80 (86) (5) As of December 31, 2025 10,397 11,398 195,033 (20,416) 55,028 251,440 8,248 259,688
Page 13
- 10 - (5) Condensed Consolidated Statement of Cash Flows (Millions of yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Operating activities Profit before tax 23,031 24,231 Depreciation and amortization 3,696 5,151 Loss (gain) on sale of shares of subsidiaries and associates – (1,344) Impairment loss 230 9,912 Increase (decrease) in provision for bonuses (774) (3,914) Loss (gain) on investments in securities (41) 319 Interest and dividend income (1,707) (1,207) Interest expenses 193 265 Share of loss (profit) of associates accounted for using the equity method (273) (6,277) Decrease (increase) in trade and other current receivables (8,125) 20,551 Increase (decrease) in trade and other current payables (5,880) (6,547) Increase (decrease) in accrued consumption taxes 1,694 (2,962) Increase (decrease) in advances received (6,205) (6,584) Other, net 2,511 637 Subtotal 8,349 32,230 Interest and dividends received 1,611 9,646 Interest paid (117) (163) Income tax paid (1,420) (15,766) Income tax refund 5,860 191 Net cash flows from (used in) operating activities 14,283 26,137 Investing activities Proceeds from sales of subsidiaries or other businesses – 318 Sales of subsidiaries or other businesses, net of cash acquired (27) (728) Proceeds from sales of shares of associates – 823 Purchase of shares of associates (601) (725) Proceeds from sales and redemption of investment securities 320 1,639 Purchases of investment securities (1,250) (1,266) Acquisition of property and equipment and investment property (1,886) (5,066) Acquisition of intangible assets (3,611) (4,243) Proceeds from distribution of residual assets – 1,419 Other, net (43) 544 Net cash flows from (used in) investing activities (7,098) (7,285) Financing activities Net increase (decrease) in short-term borrowings (1,592) (300) Proceeds from long-term borrowings – 30 Repayments of long-term borrowings (94) (635) Repayments of lease liabilities (1,295) (1,435) Cash dividends paid (2,229) (7,244) Proceeds from share issuance to non-controlling interests 20 653 Cash dividends paid to non-controlling shareholders (20) (121) Proceeds from disposition of treasury stock 39 201 Payments for acquisition of interests in subsidiaries from non - controlling interests (0) (5,359) Other, net (0) (0) Net cash flows from (used in) financing activities (5,171) (14,210) Net increase (decrease) in cash and cash equivalents 2,014 4,642 Cash and cash equivalents at beginning of period 71,396 92,803 Effect of exchange rate changes on cash and cash equivalents 266 87 Cash and cash equivalents at end of period 73,677 97,531
Page 14
- 11 - (6) Notes on Going Concern Assumption Not applicable. (7) Notes to Condensed Consolidated Financial Statements 1. Segment information 1) Outline of reportable segments The Group principally provides Internet services for mobile and PC users and organizes business divisions by type of service. Each of these business divisions formulates comprehensive business strategies for the services it provides, and undertakes related business activities. Therefore, the Group is composed of operating segments classified by the types of services provided. The four reportable segments of the Group are classified as the “Game Business,” “Live Streaming Business,” “Sports Business” and “Healthcare & Medical Business.” The types of services provided by each segment classification are shown in the table below: Segment classification Type of service Game Business Game for mobile devices-related services (provided in Japan and internationally) Principal services: Distribution of game apps, Mobage, etc. Live Streaming Business Live streaming-related services (provided in Japan and internationally) Principal services: Pococha, IRIAM, etc. Sports Business Sports-related services (provided in Japan) Principal services: Yokohama DeNA BayStars Baseball Club, operation of the Yokohama Stadium, Kawasaki Brave Thunders, S.C. Sagamihara, etc. Healthcare & Medical Business Healthcare and medical-related services (provided in Japan and internationally) Principal services: Provision of health big data-related services, Join and other medical digital transformation-related services, etc. New Businesses and Others New businesses and other services (provided in Japan) Principal business domains: New businesses, etc.
Page 15
- 12 - 2) Revenue, profit or loss, and other items by reportable segment Accounting policies for reportable segments are identical to those of the Group in the consolidated financial statements for the previous fiscal year. Intersegment revenue is calculated based on external market prices. Revenue, profit or loss, and other items of the Group’s reportable segments are as follows: For the nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) (Millions of yen) (Notes) 1 Segment profit (loss) is calculated by deducting cost of sales and selling, general and administrative expenses from revenue. 2 “New Businesses and Others” refer to operating segments that do not fall into any of the reportable segments, including E-commerce business and other new businesses. 3 Adjustments in segment profit (loss) represent corporate expenses, which primarily include general and administrative expenses not attributable to any of the reportable segments. Game Business Live Streaming Business Sports Business Healthcare & Medical Business New Businesses and Others *2 Adjustments *3 Total Revenue Revenue from external customers 50,496 30,935 26,329 6,418 2,548 – 116,727 Intersegment revenue 85 – 121 29 6 (241) – Total 50,581 30,935 26,450 6,447 2,555 (241) 116,727 Segment profit (loss) *1 21,026 (376) 5,044 (3,545) (776) 22 21,395 Other income (expenses), net (416) Operating profit 20,979 Finance income (costs), net 1,779 Share of profit (loss) of associates accounted for using the equity method 273 Profit before tax 23,031
Page 16
- 13 - For the nine months ended December 31, 2025 (From April 1, 2024 to December 31, 2025) (Millions of yen) (Notes) 1 Segment profit (loss) is calculated by deducting cost of sales and selling, general and administrative expenses from revenue. 2 “New Businesses and Others” refer to operating segments that do not fall into any of the reportable segments, including new businesses. 3 Adjustments in segment profit (loss) represent corporate expenses, which primarily include general and administrative expenses not attributable to any of the reportable segments. Game Business Live Streaming Business Sports Business Healthcare & Medical Business New Businesses and Others *2 Adjustments *3 Total Revenue Revenue from external customers 48,157 30,325 28,102 6,045 1,823 – 114,452 Intersegment revenue 139 – 106 20 83 (348) – Total 48,295 30,325 28,208 6,065 1,906 (348) 114,452 Segment profit (loss) *1 23,303 3,302 5,604 (2,539) (1,977) (1,842) 25,850 Other income (expenses), net (8,955) Operating profit 16,895 Finance income (costs), net 1,059 Share of profit (loss) of associates accounted for using the equity method 6,277 Profit before tax 24,231
Page 17
- 14 - 2. Earnings per share The basis for calculating earnings per share attributable to owners of the parent for the nine months ended December 31, 2024 and 2025 are as follows: Nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) Nine months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) Profit for the period attributable to owners of the parent (Millions of yen) Profit for the period adjustments Adjustments for dilutive shares issued by subsidiaries 15,755 – 16,821 – Profit for the period used to calculate diluted earnings per share 15,755 16,821 Weighted average number of common shares outstanding during the period—basic (Shares) 111,356,235 111,466,616 Effect of dilutive potential common shares: Stock options, etc. (Shares) 124,091 272,934 Weighted average number of common shares outstanding during the period—diluted (Shares) 111,480,326 111,739,550 Earnings per share attributable to owners of the parent (Yen) Basic earnings per share 141.48 150.91 Diluted earnings per share 141.33 150.54
Page 18
- 15 - 3. Impairment of assets The Group recognized impairment losses, which are recorded under “other expenses ” in the condensed consolidated income statement. The breakdown of the impairment losses is as follows: Nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) Nine months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) Other current assets Advance payments to suppliers (113) – Property and equipment Tools, furniture and fixtures (1) – Goodwill – (9,614) Intangible assets Software (7) (298) Other non-current assets Long-term prepaid expenses (109) – Total (230) (9,912) The Group organizes its assets into the smallest group of assets that generates identifiable independent cash flows. Idle assets are organized individually. Future cash flow is estimated on the basis of past results and management evaluation of future forecasts, using external and internal information. For the nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) There are no impairment losses to be stated from the standpoint of materiality. For the nine months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) The Group carried out impairment tests, because it identified signs of impairment losses on goodwill in the following cash generating units. (a) Allm Inc. included in the Healthcare & Medical Business During the nine months ended December 31, 2025, the Group carried out an impairment test based on the revised future cash flow forecast, as it could no longer expect to generate the initially anticipated revenue from the unit. In the impairment test, future cash flows were estimated based on the business plan for the next five years approved by management during the nine months ended December 31, 2025. The primary assumptions used in estimating future cash flows were the estimated growth of revenue (especially the estimated growth of medical digital transformation) in the future business plan, the growth rate after the period of the future business plan, and the discount rate. The recoverable amount is based on value in use, discounted to present value at a pre-tax discount rate of 24.1%, calculated based on the weighted average cost of capital. As a result of the impairment test, the Group recorded an impairment loss of ¥9,614 million (goodwill), as the recoverable amount fell below the book value of fixed assets including goodwill. Individual impairment losses for other cash generating units are not stated from the standpoint of materiality. 4. Significant subsequent events Not applicable.