Financial Results for the 3rd Quarter of Fiscal Year Ending December 31, 2025 [Japanese GAAP] (Consolidated)
November 7, 2025
Name of listed company: GungHo Online Entertainment, Inc.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3765
URL: https://www.gungho.co.jp/en/
Representative: Kazuki Morishita, Representative Director & President, CEO
Contact: Kazuya Sakai, Director & CFO, Executive General Manager of Finance Accounting Division
TEL: 03-6895-1650
Dividend payment date: -
Supplemental information for quarterly financial statements: Yes
Quarterly financial results briefing session: Yes (For institutional investors and analysts)
(Amounts are rounded off to the nearest million yen)
Consolidated financial results for the 3rd quarter of fiscal year ending December 31, 2025 (January 1, 2025 through September 30, 2025)
Consolidated operating results (accumulated) (Percentages indicate the changes from previous year)
Net sales
Operating profit
Ordinary profit
Quarterly net profit
Nine months ended September 30, 2025 Nine months ended September 30, 2024
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
73,595
76,484
(3.8)
(21.8)
5,868
15,822
(62.9)
(32.8)
6,968
17,247
(59.6)
(31.0)
2,892
9,691
(70.2)
(29.0)
(Note) Comprehensive
Nine months ended
4,552 millions of yen
Nine months ended 12,445 millions of yen
income
September 30, 2025
(63.4%)
September 30, 2024
(39.8%)
Quarterly net profit
per share
Diluted quarterly
net profit per share
Nine months ended September 30, 2025
Yen
52.92
Yen
52.33
Nine months ended
September 30, 2024
160.99
159.32
Consolidated financial position
Total assets
Net assets
Shareholder's
equity ratio
Millions of yen
167,909
175,464
Millions of yen
149,870
153,535
%
Nine months ended
September 30, 2025
72.6
Fiscal year ended
December 31, 2024
72.6
(Note) Shareholder's equity
Nine months ended September 30, 2025
121,921 millions of yen Fiscal year ended
December 31, 2024
127,311 millions of yen
Dividends
Dividends per share
1st quarter
2nd quarter
3rd quarter
4th quarter
Total
Fiscal year ended December 31, 2024 Fiscal year ending December 31, 2025
Yen
Yen
Yen
Yen
Yen
-
-
0.00
0.00
-
-
60.00
60.00
Fiscal year ending December 31, 2025
(Forecast)
-
-
(Note1) Revision of forecasts for dividends most recently announced: No
(Note2) Dividend forecasts for the fiscal year ending December 31, 2025 have yet to be determined.
Consolidated Earnings Forecast for the Fiscal Year Ending December 31, 2025(From January 1, 2025 to December 31, 2025)
The GungHo Group engages in the content business that is highly novel in nature and is subject to facing sudden, short-term changes in the operating environment. Since this makes it difficult to calculate proper and rational earnings forecasts, the Company adopts the policy of providing timely disclosure of financial results and summary of operations on a quarterly basis while refraining from disclosing its full-year consolidated earnings forecast.
*Notes
Changes in significant subsidiaries during the period : No
Adoption of any particular accounting methods for the preparation of quarterly consolidated financial statements
Changes in accounting policies, changes in accounting estimates and restatements
: No
Changes in accounting policies due to revisions of accounting standards : Yes
Changes in accounting policies due to reasons other than 1) : No
Changes in accounting estimates : No
Restatements : No
As of September 30, 2025
69,161,416
shares
Fiscal year ended December 31, 2024
83,161,416
Shares
As of September 30, 2025
14,818,252
shares
Fiscal year ended December 31, 2024
27,341,332
shares
As of September 30, 2025
54,656,507
shares
As of September 30, 2024
60,201,227
shares
Number of shares of common stock issued
Number of shares of common stock outstanding at the end of the period (including treasury shares)
Number of treasury shares at the end of the period
Average number of shares during the 3rd quarter
Review of the attached quarterly consolidated financial statements by a certified public accountant or an auditing firm: No.
* Appropriate use of earnings forecast and other matters to note
・This document contains forward-looking statements including forecasts in relation to the results of operations and they are based on information available to the Company at the time of preparing the document along with certain assumptions that are deemed to be rational. Actual results may differ materially from those expressed or implied by the statements due to various factors. For the assumptions underlying the earnings forecast presented and other information regarding the use of such forecasts, please refer to "Information Related to the Consolidated Earnings Forecast and Other Future Projections" on page 2 of the Appendix.
The Company plans on holding a financial results briefing session for investors as follows. All documents etc. distributed at the briefing session will be posted on the company's website after the briefing session is held.
Financial results briefing session for institutional investors and analysts: Friday, November 7, 2025
Table of Contents for Appendix
Qualitative Information Concerning Consolidated Financial Results
for the Quarter Under Review 2
Description of Operating Results 2
Description of Financial Position 2
Information Related to the Consolidated Earnings Forecast and Other Future Projections 2
Quarterly Consolidated Financial Statements and main notes 3
Quarterly Consolidated Balance Sheets 3
Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income 5
Quarterly Consolidated Statements of Income (Nine-months Period) 5
Quarterly Consolidated Statements of Comprehensive Income (Nine-months Period) 6
Notes to the Quarterly Consolidated Financial Statements 7
(Notes on the Going-concern Assumption) 7
(Notes on Any Significant Changes to the Amount of Shareholders' Equity) 7
(Change in Accounting Policy) 7
(Segment Information) 7
(Notes on Quarterly Consolidated Cash Flow Statements) 7
(Significant Subsequent Events) 8
1
1. Qualitative Information Concerning Consolidated Financial Results for the Quarter
Description of Operating Results
Regarding the economic circumstances in the fiscal year under review, strong inflationary pressure continued, and various costs, including outsourcing expenses, were on an upward trend. As for the domestic gaming market, although the size of the mobile gaming sector has generally remained flat since 2021, the ways smartphone users spend their leisure time are becoming more diversified than before along with the expansion of the video content and e-comic markets.
Against this backdrop, our company continued to concentrate on game development with a focus on global distribution, and we have worked to maintain and expand MAU (Monthly Active User: the number of users who log into the game at least once a month) and have made efforts to strengthen the brands of each of our games to maximize the value of existing games.
We have continued to service "Puzzle & Dragons ZERO" launched in May, 2025, for global, and also regarding "Puzzle & Dragons" (referred to as "P&D" henceforth), we have continued to hold various events such as seasonal events and collaboration with famous characters from other companies, for ensuring players continue to enjoy the game over the long term. In addition, we have continued initiatives to broaden our P&D user base, including the offline event "Gungho Tour 2025," which was held in six cities nationwide from August 2025, and e-sports initiatives such as the "P&D Premier Series 2025" and "The National Prefectural Competitive Esports Championship 2025 SHIGA P&D Division."
We announced "LET IT DIE: INFERNO," a new title in the "LET IT DIE" series, at the "TOKYO GAME SHOW 2025," held from September 25, 2025, and also set up a test booth ahead of the global release scheduled for December 4. Looking at "Ragnarok" related titles, which subsidiary Gravity Co., Ltd. and its consolidated subsidiaries are operating, it continued to contribute to the consolidated financial result due to the global expansion of new titles, "Ragnarok: Twilight" and "Ragnarok Zero" launched in Taiwan, Hong Kong, and Macau on July 3, 2025, and "Ragnarok Idle Adventure Plus" launched in South Korea on August 28, 2025.
As a result, the Company's consolidated results of operations for the period under review were as follows. Net sales decreased 3.8% year-on-year to JPY73,595 million, operating profit decreased 62.9% year-on-year to JPY5,868 million, ordinary profit decreased 59.6% year-on-year to JPY6,968 million, and quarterly net profit attributable to owners of parent company decreased 70.2% year-on-year to JPY2,892 million.
The GungHo Group is a single-segment company; therefore, no segment information is disclosed.
Description of Financial Position
Total assets for the period under review stood at JPY167,909 million, a decrease of JPY7,554 million from the end of the previous fiscal year. This was mainly attributable to a decrease in cash and deposits.
Total liabilities amounted to JPY18,039 million, a decrease of JPY3,890 million from the end of the previous fiscal year. This was primarily attributable to a decrease in income taxes payable etc. resulting from payment of income taxes etc. Total net assets came to JPY149,870 million, a decrease of JPY3,664 million from the end of the previous fiscal year. This was mainly due to a decrease in shareholders' equity resulting from payment of dividends and the acquisition of treasury shares.
Information Related to the Consolidated Earnings Forecast and Other Future Projections
The GungHo Group engages in content business that is highly novel in nature and is subject to facing sudden, short-term changes in the operating environment. Since this makes it difficult to calculate proper and rational earnings forecasts, the Company adopts the policy of providing timely disclosure of financial results and a summary of operations on a quarterly basis while refraining from disclosing its full-year-consolidated earnings forecast.
2