Tecmira Holdings reports Q2 profit decline amid game sales drop, AI investment

Tecmira Holdings reported a 12% year-on-year decrease in net sales to JPY 4,875m for the second quarter of the fiscal year ending February 2026. Adjusted EBITDA fell sharply by 82% to JPY 94m, primarily due to the natural decline in sales of new game titles and increased R&D investment in AI. Operating income also declined.

Ordinary profit was negatively impacted as last year's foreign exchange gains turned into losses, resulting in a JPY 180m loss compared to a JPY 65m profit in the prior year. However, net profit attributable to parent company shareholders improved to a loss of JPY 206m from a loss of JPY 66m, as stock valuation losses significantly reduced.

Looking ahead, the company projects a full-year net sales increase of 3% to JPY 11,500m for FY2025. Ordinary profit is forecast to rebound by 95% to JPY 200m, while net profit attributable to parent company shareholders is expected to increase by 240% to JPY 100m, driven by the strong performance of in-house businesses excluding games and the monetization of AI-related investments.