Interim report
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SQUARE ENIX . Consolidated Financial Results for the Three - Month Period Ended June 30 , 2026 ( Japan GAAP ) Company name : SQUARE ENIX HOLDINGS CO . , LTD . https://www.hd.square-enix.com/eng Shares traded : Company code : Tokyo Stock Exchange , Prime Market 9684 Company URL : Contact : Tel : Representative : Takashi Kiryu , President and Representative Director Takayuki Hamada , General Manager Financial Strategy Division ( 03 ) 5292-8000 Cash dividend payment commencement : - Supplementary quarterly materials prepared : Yes Quarterly results presentation held : August 10 , 2026 Yes ( for institutional investors and analysts ) ( Amounts under one million yen are rounded down ) 1. Consolidated Financial Results ( April 1 , 2026 through June 30 , 2026 ) ( 1 ) Consolidated Financial Results Net sales Operating income Ordinary income ( Millions of yen and year - on - year changes in percents ) Profit attributable to owners of parent Three months ended % % % % June 30 , 2026 June 30 , 2025 78,423 32.3 59,275 ( 15.2 ) 17,008 88.6 9,018 ( 16.8 ) 18,766 172.4 6,889 ( 55.0 ) 13,244 175.7 4,804 ( 54.8 ) Note : Three months ended June 30 , 2026 Comprehensive income : 14,369 million yen [ 215.7 % ] Three months ended June 30 , 2025 Comprehensive income : 4,552 million yen [ ( 58.3 % ) ] Earnings per share , basic Earnings per share , diluted Three months ended yen yen June 30 , 2026 June 30 , 2025 36.73 13.33 36.71 13.32 Note : The Company conducted a three - for - one stock split of its common stock , with a record date of September 30 , 2025 and an effective date of October 1 , 2025. The above figures for basic earnings per share and diluted earnings per share are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31 , 2026 . ( 2 ) Consolidated Financial Position Total assets ( Millions of yen , ratios in percents and per share data ) Net assets Equity ratio % 82.2 79.6 As of June 30 , 2026 March 31 , 2026 430,751 354,714 438,018 349,224 Note : Total equity As of June 30 , 2026 : As of March 31 , 2026 : 354,095 million yen 348,583 million yen
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Dividends per share 1Q 2Q 3Q 4Q Total yen yen yen yen yen Fiscal year ended March 31, 2026 － 54.00 － 25.00 － Fiscal year ending March 31, 2027 － Fiscal year ending March 31, 2027 (projection) 18.00 － 25.00 43.00 (Millions of yen, year-on-year changes in percents and per share data) Net sales Operating income Ordinary income Profit attributable to owners of parent Earnings per share, basic ％ ％ ％ ％ yen Fiscal year ending March 31, 2027 298,000 0.1 49,000 △10.5 49,000 △24.0 31,000 4.7 85.99 2. Dividends (Note) 1 No change in Dividend projection from previous announcement. 2 The Company conducted a stock split at a ratio of three shares for one share of common stock, with the record date of September 30, 2025 and the effective date of October 1, 2025. The second-quarter dividend per share for the fiscal year ended March 2026 as above is the actual figure presented before the stock split. The total annual dividend per share for the fiscal year ended March 2026 is not presented due to the stock split, because the interim dividend and the year-end dividend cannot be simply totaled. Note that the second-quarter dividend per share and the total annual dividend per share for the fiscal year ended March 2026 after considering the stock split are 18.00 yen and 43.00 yen, respectively. 3. Consolidated Forecasts (April 1, 2026 to March 31, 2027) (Note) 1 No change in Consolidated forecasts from previous announcement. 2 The Company refrains at this time from disclosing consolidated financial forecasts for the six-month period ending September 30, 2026. For details, please refer to page 4 “1. Consolidated Results for the Three-Month Period Ended June 30, 2026 (3) Qualitative information on consolidated business forecasts.”
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As of June 30, 2026 367,594,788 As of March 31, 2026 367,594,788 As of June 30, 2026 6,919,254 As of March 31, 2026 6,975,951 Three-month period ended June 30, 2026 360,639,856 Three-month period ended June 30, 2025 360,378,717 Disclaimer: This document is a translation of the Japanese language “Kessan Tanshin” prepared in accordance with the guidelines of the Tokyo Stock Exchange. The Japanese language document shall prevail in the event any differences or discrepancies exist between this English translation and the original. Notes (1) Significant changes among major subsidiaries during the period: None (2) Adoption of special accounting treatment for quarterly consolidated financial statements: None (3) Changes in accounting policies, procedures, and methods of presentation for consolidated financial statements 1. Changes in accounting policies due to revisions to accounting standards: None 2. Changes other than 1. : None 3. Changes in accounting estimates: None 4. Retrospective restatement: None (4) Outstanding shares (common stock) 1. Number of shares issued and outstanding (including treasury stock): 2. Number of treasury stock: 3. Average number of shares during the period (cumulative): (Note) The company conducted a stock split at a ratio of three shares for one share of common stock, with the record date of September 30, 2025 and the effective date of October 1, 2025. The above figures for outstanding shares (common stock) are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31, 2026. * Review of the quarterly consolidated financial statements by certified public accountants or an audit firm: None * Proper use of earnings forecasts, and other special matters (Cautionary statements with respect to forward-looking statements) The forward-looking statements in this document are based upon the information currently available and necessarily include elements that are not entirely predictable. The achievement is not promised. Actual results may differ from the forward-looking statements in this document. For additional information about forecasts, please refer to “1. Consolidated Results for the Three-Month Period Ended June 30, 2026 (3) Qualitative information on consolidated business forecasts” section on page 4 of Supplemental Information. (Access to supplemental material for the consolidated financial results) The Company posted the supplemental material for the consolidated financial results for the Three-Month ended June 30, 2026, on the Company’s website on August 10, 2026
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Page 1. Consolidated Results for the Three-Month Period Ended June 30, 2026 2 (1) Analysis of consolidated business results 2 (2) Analysis of consolidated financial position 3 (3) Qualitative information on consolidated business forecasts 4 2. Consolidated Financial Statements for the Three-Month Period Ended June 30, 2026 5 (1) Consolidated Balance Sheets 5 (2) Consolidated Income Statement and Consolidated Statement of Comprehensive Income 7 Consolidated Income Statement 7 Consolidated Statement of Comprehensive Income 8 (3) Notes to Consolidated Financial Statements 9 (Note regarding going concern assumptions) 9 (Material changes in shareholders’ equity) 9 (Notes on the Quarterly Consolidated Statement of Cash Flows) 9 (Segment information) 10 Supplemental Information － Index － 1 －
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1. Consolidated Results for the Three-Month Period Ended June 30, 2026 (1) Analysis of consolidated business results The Square Enix group (the “Group”) is continuing determined efforts to strengthen the competitiveness and profitability of its Digital Entertainment, Amusement, Publication and Merchandising business segments. Net sales for the three-month period ended June 30, 2026 totaled ¥78,423 million (an increase of 32.3％ from the same period of the prior fiscal year), operating income amounted to ¥17,008 million (an increase of 88.6％ from the same period of the prior fiscal year), ordinary income amounted to ¥18,766 million (an increase of 172.4％ from the same period of the prior fiscal year), and profit attributable to owners of parent amounted to ¥13,244 million (an increase of 175.7％ from the same period of the prior fiscal year). A discussion of results by segment for the three-month period ended June 30, 2026 follows. □● Digital Entertainment The Digital Entertainment segment consists of planning, development, distribution, and operation of digital entertainment content primarily in the form of games. Digital entertainment content is offered to meet customer lifestyles across a variety of usage environments such as consumer game consoles (including handheld game machines), personal computers, and smart devices. In the HD (High-Definition) Game sub-segment, consolidated net sales and operating income for the three- month period ended June 30, 2026 increased compared with the same period of the previous fiscal year, driven by solid performance from new titles including “FINAL FANTASY VII REBIRTH” for Nintendo Switch™ 2, Xbox Series X|S, and Windows, and “The Adventures of Elliot: The Millennium Tales,” as well as growth in sales of catalog titles. In the MMO (Massively Multiplayer Online) Game sub-segment, net sales increased compared with the same period of the previous fiscal year, reflecting improved user activity following the announcement of the latest expansion pack for “FINAL FANTASY XIV,” while profits increased slightly due to the advance recognition of expenses related to its planned release in early 2027. In the Games for Smart Devices/PC Browser sub-segment, net sales and profits increased compared with the same period of the previous fiscal year, mainly due to contributions from “DISSIDIA DUELUM FINAL FANTASY” and “DRAGON QUEST Smash/Grow.” Net sales and operating income in the Digital Entertainment segment totaled ¥49,960 million (an increase of 51.8％ from the same period of the prior fiscal year), and ¥15,583 million (an increase of 91.8％ from the same period of the prior fiscal year), respectively. □● Amusement The Amusement segment consists of the operation of amusement facilities, as well as of the planning, development, and distribution of arcade game machines and related products for amusement facilities. Net sales and operating income for the three-month period ended June 30, 2026 increased compared with the same period of the previous fiscal year due to year-on-year increases in same-store sales and sales of prize items to amusement facilities. Net sales and operating income in the Amusement segment totaled ¥17,088 million (an increase of 3.8％ from the same period of the prior fiscal year), and ¥1,913 million (an increase of 7.8％ from the same period of the prior fiscal year), respectively. － 2 －
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□● Publication The Publication segment consists of publication and licensing of comic magazines, comic books, and game- related books. Net sales and operating income for the three-month period ended June 30, 2026 increased compared with the same period of the previous fiscal year due to higher sales of comic books. Net sales and operating income in the Publication segment totaled ¥7,261 million (an increase of 11.0％ from the same period of the prior fiscal year) and ¥2,509 million (an increase of 17.7％ from the same period of the prior fiscal year), respectively. □● Merchandising The Merchandising segment consists of planning, production, distribution, and licensing of derivative products of IPs owned by the Group. Net sales and operating income for the three-month period ended June 30, 2026 increased compared with the same period of the previous fiscal year partly due to higher sales of new merchandise featuring key characters from the Group’s IP portfolio. Net sales and operating income in the Merchandising segment totaled ¥4,611 million (an increase of 22.3％ from the same period of the prior fiscal year), and ¥1,559 million (an increase of 28.7％ from the same period of the prior fiscal year), respectively. (2) Analysis of consolidated financial position □● Assets As of June 30, 2026, total current assets were ¥363,332 million, a decrease of ¥5,061 million compared to March 31, 2026. This was mainly due to a decrease in cash and deposits of ¥16,362 million, while notes and accounts receivable - trade increased by ¥5,330 million and content production account increased by ¥4,110 million. As of June 30, 2026, total non-current assets were ¥67,418 million, a decrease of ¥2,205 million compared to March 31, 2026. As a result, total assets were ¥430,751 million, a decrease of ¥7,267 million compared to March 31, 2026. □● Liabilities As of June 30, 2026, total current liabilities were ¥61,541 million, a decrease of ¥13,188 million compared to March 31, 2026. This was mainly due to decreases in income taxes payable of ¥12,101 million and provision for bonuses of ¥3,540 million, while notes and accounts payable - trade increased by ¥2,099 million. As of June 30, 2026, total non-current liabilities were ¥14,495 million, an increase of ¥431 million compared to March 31, 2026. As a result, total liabilities were ¥76,036 million, a decrease of ¥12,757 million compared to March 31, 2026. □● Net assets As of June 30, 2026, net assets were ¥354,714 million, an increase of ¥5,489 million compared to March 31, 2026. This was mainly owing to profit attributable to owners of parent of ¥13,244 million and dividend payments of ¥9,015 million. As a result, the consolidated equity ratio stood at 82.2％ (79.6％ as of March 31, 2026). － 3 －
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(3) Qualitative information on consolidated business forecasts There are no changes to consolidated full-year forecasts for the fiscal year ending March 31, 2027 as announced on May 14, 2026. － 4 －
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(Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 276,054 259,691 Notes and accounts receivable - trade 30,482 35,812 Merchandise and finished goods 5,924 6,570 Work in process － 1 Raw materials and supplies 519 902 Content production account 46,258 50,368 Other 9,423 10,227 Allowance for doubtful accounts (267) (241) Total current assets 368,393 363,332 Non-current assets Property, plant and equipment 27,409 26,884 Intangible assets 4,256 4,106 Investments and other assets 37,958 36,427 Total non-current assets 69,624 67,418 Total assets 438,018 430,751 2. Consolidated Financial Statements for the Three-Month Period Ended June 30, 2026 (1) Consolidated Balance Sheets － 5 －
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(Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable-trade 17,192 19,291 Income taxes payable 16,128 4,026 Provision for bonuses 5,357 1,816 Provision for office relocation 310 284 Refund liabilities 2,132 2,068 Asset retirement obligations 459 457 Other 33,150 33,595 Total current liabilities 74,730 61,541 Non-current liabilities Net defined benefit liability 4,417 4,486 Asset retirement obligations 5,642 5,745 Provision for loss on litigation 60 － Other 3,943 4,262 Total non-current liabilities 14,063 14,495 Total liabilities 88,793 76,036 Net assets Shareholders' equity Capital stock 24,039 24,039 Capital surplus 55,213 55,334 Retained earnings 283,430 287,659 Treasury stock (7,130) (7,072) Total shareholders' equity 355,553 359,962 Accumulated other comprehensive income Valuation difference on available-for-sale securities (11) (92) Foreign currency translation adjustment (8,068) (6,776) Remeasurements of defined benefit plans 1,110 1,002 Total accumulated other comprehensive income (6,969) (5,866) Subscription rights to shares 293 249 Non-controlling interests 346 369 Total net assets 349,224 354,714 Total liabilities and net assets 438,018 430,751 － 6 －
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(Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 59,275 78,423 Cost of sales 25,823 34,267 Gross profit 33,451 44,156 Selling, general and administrative expenses 24,433 27,147 Operating income 9,018 17,008 Non-operating income Interest income 318 706 Dividend income 0 184 Foreign exchange gains － 766 Miscellaneous income 37 125 Total non-operating income 356 1,782 Non-operating expenses Interest expenses 15 5 Foreign exchange losses 2,147 － Loss on valuation of crypto assets 15 13 Office transfer related expenses 108 － Miscellaneous loss 197 5 Total non-operating expenses 2,484 23 Ordinary income 6,889 18,766 Extraordinary income Reversal of provision for loss on litigation － 60 Gain on reversal of subscription rights to shares 22 42 Gain on sales of non-current assets － 0 Total extraordinary income 22 103 Extraordinary losses Loss on sale of non-current assets 51 0 Loss on retirement of non-current assets 40 14 Loss on liquidation of subsidiaries and associates 17 － Total extraordinary losses 109 14 Profit before income taxes 6,802 18,856 Income taxes-current 753 4,029 Income taxes-deferred 1,237 1,571 Total income taxes 1,991 5,601 Profit 4,811 13,254 Profit attributable to non-controlling interests 7 10 Profit attributable to owners of parent 4,804 13,244 (2) Consolidated Income Statement and Consolidated Statement of Comprehensive Income Consolidated Income Statement － 7 －
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(Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 4,811 13,254 Other comprehensive income Valuation difference on available-for-sale securities 319 (81) Foreign currency translation adjustment (485) 1,303 Remeasurements of defined benefit plans (93) (107) Total other comprehensive income (259) 1,114 Comprehensive income 4,552 14,369 (Breakdown) Comprehensive income attributable to owners of parent 4,560 14,347 Comprehensive income attributable to non-controlling interests (8) 22 Consolidated Statement of Comprehensive Income － 8 －
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Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 1,967 million yen 2,085 million yen (3) Notes to Consolidated Financial Statements (Note regarding going concern assumptions) None (Material changes in shareholders’ equity) None (Notes on the Quarterly Consolidated Statement of Cash Flows) There is no Quarterly Consolidated Statement of Cash Flows for the three months ended June 30, 2026. Depreciation (including amortization of intangible assets) for the three months ended June 30, 2026 is as follows: － 9 －
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(Millions of yen) Reporting Segments Digital EntertainmentAmusement PublicationMerchandising Total Adjustment (Note 1) Consolidated total (Note 2) Sales and operating income Net sales Domestic 18,674 15,209 5,920 1,888 41,692 － 41,692 Overseas 14,235 1,050 623 1,664 17,574 － 17,574 Revenue from contracts with customers 32,910 16,260 6,543 3,552 59,267 － 59,267 Other revenue 8 － － － 8 － 8 Sales to external customers 32,918 16,260 6,543 3,552 59,275 － 59,275 Intersegment sales 0 201 0 219 420 (420) － Total 32,918 16,461 6,544 3,771 59,696 (420) 59,275 Segment operating income 8,126 1,775 2,131 1,211 13,244 (4,225) 9,018 (Millions of yen) Reporting Segments Digital EntertainmentAmusement PublicationMerchandising Total Adjustment (Note 1) Consolidated total (Note 2) Sales and operating income Net sales Domestic 26,413 16,239 6,172 2,426 51,252 － 51,252 Overseas 23,547 796 1,040 1,787 27,171 － 27,171 Revenue from contracts with customers 49,960 17,036 7,212 4,213 78,423 － 78,423 Other revenue 0 － － － 0 － 0 Sales to external customers 49,960 17,036 7,212 4,213 78,423 － 78,423 Intersegment sales 0 51 48 397 498 (498) － Total 49,960 17,088 7,261 4,611 78,921 (498) 78,423 Segment operating income 15,583 1,913 2,509 1,559 21,566 (4,557) 17,008 (Segment information) I. Outline of reporting segments for the three months ended June 30, 2025 Information on sales and income or loss and disaggregated revenue disclosures by reporting segment Notes: 1. Segment adjustments (¥4,225) million include unallocated corporate operating expenses (¥4,235) million. 2. Segment operating income is adjusted in operating income on the consolidated income statement. 3. Disaggregated revenue disclosures are distinguished between Domestic and Overseas. II. Outline of reporting segments for the three months ended June 30, 2026 Information on sales and income or loss and disaggregated revenue disclosures by reporting segment Notes: 1. Segment adjustments (¥4,557) million include unallocated corporate operating expenses (¥4,566) million. 2. Segment operating income is adjusted in operating income on the consolidated income statement. 3. Disaggregated revenue disclosures are distinguished between Domestic and Overseas. － 10 －