Square Enix's revenue has consistently decreased over the last nine months, reaching $1.3 billion

Image credit: Square Enix

For the nine-month period concluding on December 31, 2025, Square Enix reported that its net sales continued to decline. The company attributes this to insufficient earnings from its latest game releases.

Financial Performance

Net sales: ¥215.4 billion ($1.3 billion), reflecting a 13.3% decrease
Profit: ¥25.6 billion ($163.4 million), marking a rise of 3.6%
Digital entertainment net sales: ¥112.3 billion ($717 million), down by 23.7%

Although Square Enix experienced a revenue setback from new games, it enjoyed a boost in operating income by 39%, achieving ¥46.3 billion ($295.7 million), driven by increased sales of its existing game titles. The Digital Entertainment division saw a similar trend: despite a 23.7% reduction in net sales year-over-year, operating income increased by 28.3% to ¥35.5 billion ($226.6 million).

In the massive multiplayer online gaming sector, both revenue and profits declined compared to the previous year when 'Final Fantasy 14: Dawntrail' and its expansion pack were launched. Additionally, revenues from games designed for smartphones and PC browsers decreased due to underperformance of ongoing titles, even though diversification in payment methods led to a rise in operating income.

Square Enix has updated its financial forecast for the fiscal year ending March 31, 2026, as nine-month results surpassed original projections. This adjustment stems from better-than-expected profitability in its Digital Entertainment sector and higher-than-anticipated royalty income in the Rights & Properties division. The company's projection for net sales remains at ¥280 billion ($1.7 billion), but it has revised its profit outlook upward to ¥55 billion ($351 million), surpassing the prior forecast of ¥41 billion ($261.7 million).