[6-K] Sony Group Corporation American Current Report (Foreign Issuer)

Rhea-AI Filing Summary

Sony Group (Q1 FY25: Apr-Jun 2025, IFRS, continuing ops) delivered solid topline and margin expansion while preparing to spin off its Financial Services arm on 1 Oct 2025.

• Sales: ¥2.622 tn, +2.2% YoY.
• Operating income: ¥339.96 bn, +36.5% YoY; margin 13.0% vs 9.7%.
• Net income (cont.): ¥262.82 bn, +22.6%; basic EPS: ¥43.08 vs 34.46.
• Segment highlights: Game & Network Services operating profit nearly tripled to ¥147.96 bn; Imaging & Sensing +48% to ¥54.25 bn. ET&S fell 33% to ¥43.14 bn.
• Balance sheet: Assets ¥35.13 tn (-0.5% QoQ); equity ratio up to 23.6%. Cash & equivalents (ex-FS) ¥1.60 tn.
• Cash flow: Operating cash from continuing ops ¥253.9 bn vs ¥146.9 bn; capex down 41%, supporting improved FCF.
• Dividends: FY26 forecast 25 yen/share (post-split, +25% vs implied 20 yen prior) excluding in-kind SFGI shares.
• Guidance (cont. ops, FY26): Sales ¥11.7 tn (-2.8%), OpInc ¥1.33 tn (+4.2%), Net income ¥970 bn (-9.1%); forecast revised to reflect tariffs and spin-off.
• Spin-off impact: Financial Services reclassified as discontinued; Q1 loss ¥22.1 bn vs profit ¥21.5 bn YoY. Assets of ¥20.9 tn and liabilities of ¥19.8 tn moved to ‘held for distribution’.

Key take-aways: Strong gaming and sensor demand offset softness in consumer electronics and FX-driven OCI drop. Upcoming spin-off simplifies structure but reduces earnings base; management still targets modest operating growth.

Positive

• Operating income surged 36.5% YoY, outpacing modest revenue growth and lifting margin to 13.0%.
• Gaming & Network Services profit nearly tripled, confirming high-margin digital mix shift.
• Free cash flow improved as capex fell and operating cash rose 73%.
• Dividend forecast raised to 25 yen/share post-split, signalling shareholder return commitment.

Negative

• Total comprehensive income fell 45.6% due to adverse FX translation.
• Financial Services posted a ¥22.1 bn loss ahead of spin-off, reversing prior-year profit.
• Entertainment, Technology & Services operating income dropped 33%, reflecting TV and imaging weakness.
• FY26 guidance implies 9.1% net income decline, raising concern over post-spin-off earnings base.

Insights

Equity Analyst

TL;DR—Robust quarter, but softer FY26 net profit outlook tempers enthusiasm.

Q1 showed impressive leverage: sales up 2%, yet operating profit up 37% thanks to soaring PlayStation software mix and higher sensor volumes. EPS rose 25% despite dilutive treasury purchases. Cash generation strengthened and dividend-per-share guidance was lifted. However, the 9% decline projected for FY26 net income, plus OCI hit (-¥200 bn) and loss in Financial Services, signal margin pressure post-spin-off. Overall effect: neutral; the beat offsets a cautious guide.

Industry Specialist – Gaming & Semiconductors

TL;DR—Gaming & sensors momentum validates segment strategy.

PlayStation ecosystem delivered a ¥82.7 bn profit jump on higher digital mix, while Imaging & Sensing rode smartphone inventory restocking. These engines now supply >55% of group operating income, underpinning Sony’s pivot to IP-led and component models. Yet ET&S slump and tariff assumptions highlight exposure to hardware price competition. Post-spin-off, cyclicality of these core segments becomes more pronounced. Impact viewed as strategically positive but financially balanced.

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of August 2025

Commission File Number: 001-06439

SONY GROUP CORPORATION

(Translation of registrant’s name into English)

1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN

(Address of principal executive offices)

The registrant files annual reports under cover of Form 20-F.

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F,

Form 20-F x Form 40-F ¨

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SONY GROUP CORPORATION (Registrant)
	By:	/s/ Lin Tao
		(Signature)
	Lin Tao
	Chief Financial Officer

Date: August 7, 2025

List of Materials

Documents attached hereto:

Press release: Consolidated Financial Summary for the First Quarter Ended June 30, 2025

Consolidated Financial Summary for the First Quarter Ended June 30, 2025

(In accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”))

August 7, 2025
Company name	: Sony Group Corporation
Stock exchange listing	: Tokyo Stock Exchange (“TSE”)
Securities code	: 6758
URL	: https://www.sony.com/en/SonyInfo/IR/
Representative	: Hiroki Totoki, Representative Corporate Executive Officer
Contact person	: Sadahiko Hayakawa, Senior Vice President
Telephone	: +81-3-6748-2111
Scheduled date to commence dividend payment	: -
Preparation of supplementary materials on financial results	: Yes
Holding of financial results briefing	: Yes (for investors and analysts)

(Amounts are rounded to the nearest million yen, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)

(1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

Continuing operations*1	Sales		Operating income		Income before income taxes		Net income		Net income attributable to Sony Group Corporation’s stockholders
Three months ended	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%
June 30, 2025	2,621,615	2.2	339,955	36.5	356,601	24.3	262,820	22.6	259,027	23.3
June 30, 2024	2,565,361	-	249,121	-	286,882	-	214,343	-	210,153	-

Continuing operations*1	Total comprehensive income		Basic earnings per share*2	Diluted earnings per share*2
Three months ended	Yen in millions	%	Yen	Yen
June 30, 2025	238,401	-45.6	43.08	42.84
June 30, 2024	438,094	-	34.46	34.37

*1 At a meeting of Sony Group Corporation’s Board of Directors held on May 14, 2025, Sony Group Corporation decided on a plan for the execution of a partial spin-off of Sony Financial Group Inc. (“SFGI”), a wholly-owned subsidiary which operates the Financial Services business, as of October 1, 2025 (the “Spin-off”). As a result, the Financial Services business has been classified as a discontinued operation and presented separately from continuing operations, comprised of Sony’s businesses excluding the Financial Services business, from the three months ended June 30, 2025, in accordance with IFRS Accounting Standards. Therefore, the above operating results represent the results for continuing operations. The results for the three months ended June 30, 2024, the comparative period, have been re-presented to conform to the current presentation. On a consolidated basis including the discontinued operation, net income, net income attributable to Sony Group Corporation’s stockholders and total comprehensive income for the three months ended June 30, 2025 were 240,702 million yen, 236,909 million yen and 269,569 million yen, respectively. On a consolidated basis including the discontinued operation, basic earnings per share and diluted earnings per share for the three months ended June 30, 2025 were 39.40 yen and 39.18 yen, respectively. For details of discontinued operations, please refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Discontinued Operations)” on page 13 of the Appendix.

*2 Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. 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, 2025.

(2) Consolidated financial position

	Total assets	Total equity	Equity attributable to Sony Group Corporation’s stockholders	Ratio of equity attributable to Sony Group Corporation’s stockholders to total assets
As of	Yen in millions	Yen in millions	Yen in millions	%
June 30, 2025	35,134,517	8,587,677	8,295,612	23.6
March 31, 2025	35,293,173	8,510,151	8,179,745	23.2

2. Dividends

	Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2025*	-	50.00	-	10.00	-
Fiscal year ending March 31, 2026	-
Fiscal year ending March 31, 2026 (Forecast)		12.50	-	12.50	25.00

Notes:

1 Revisions to the forecast of dividends most recently announced: No

2 The above dividend forecast for the fiscal year ending March 31, 2026 does not include the dividends in kind of the shares of common stock of SFGI from the above-mentioned Spin-off.

* Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above year-end dividend per share for the fiscal year ended March 31, 2025 is based on a number of shares taking into account the stock split. The total annual dividend per share for the fiscal year ended March 31, 2025 is not presented because the total of the interim dividend and the year-end dividend cannot be calculated due to the effect of the stock split. For the fiscal year ended March 31, 2025, taking the stock split into account, the interim dividend per share at the end of the second quarter would be 10 yen and the total annual dividend per share would be 20 yen.

3. Forecast for Consolidated Results for the Fiscal Year Ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

Fiscal year ending March 31, 2026	Sales		Operating income		Income before income taxes		Net income attributable to Sony Group Corporation’s stockholders
	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%
Continuing operations	11,700,000	-2.8	1,330,000	4.2	1,350,000	0.5	970,000	-9.1

Notes:

1 Revisions to the forecast for the fiscal year ending March 31, 2026 most recently announced: Yes

2 The above results forecast represents the forecast for continuing operations. Sony Group Corporation has not included the share of profit or loss of investments accounted for using the equity method in SFGI after the above-mentioned Spin-off in the above results forecast, and does not disclose forecasts for the discontinued operation or for the consolidated results for the fiscal year ending March 31, 2026. Please refer to “Update Regarding Partial Spin-off of Financial Services Business” disclosed on May 14, 2025 for the details of the accounting treatments in connection with the Spin-off.

3 The estimated impact from the series of changes in U.S. tariff policy at this time is reflected in the above forecasts for operating income, income before income taxes and net income attributable to Sony Group Corporation’s stockholders. The estimated impact is calculated based on the tariff rates announced as of August 1, 2025. The actual impact could vary significantly from this estimation if future tariff policy or other factors are changed.

* Notes

(1)	Significant changes in scope of consolidation during the period		: No
(2)	Changes in accounting policies and changes in accounting estimates:
	(i)	Changes in accounting policies required by IFRS Accounting Standards	: No
	(ii)	Changes in accounting policies due to other reasons	: No
	(iii)	Changes in accounting estimates	: No

(3) Number of issued shares (common stock):

(i)  Total number of issued shares at the end of the period (including treasury stock)

As of June 30, 2025	6,149,810,645	shares
As of March 31, 2025	6,149,810,645	shares

(ii)  Number of shares of treasury stock at the end of the period

As of June 30, 2025	145,694,280	shares
As of March 31, 2025	124,806,850	shares

(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2025	6,013,191,432	shares
Three months ended June 30, 2024	6,098,848,413	shares

Notes:

1 Please refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Net Income Attributable to Sony Group Corporation’s Stockholders per Share (“EPS”) and Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)” for number of shares used as basis for calculating consolidated per share data.

2 Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above figures for the number of issued 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, 2025.

* Review of the attached condensed quarterly consolidated financial statements by certified public accountants or an audit firm: No

* Proper use of earnings forecasts, and other special matters:

Please refer to “Cautionary Statement” on page 15 of the Appendix for assumptions and other matters related to the forecast of financial results.

Supplementary materials on financial results including the presentation material for the earnings announcement are available on Sony Group Corporation’s website along with this document.

(Appendix)

Table of Contents for Appendix

Condensed Quarterly Consolidated Financial Statements (Unaudited)	2
Condensed Quarterly Consolidated Statements of Financial Position	2
Condensed Quarterly Consolidated Statements of Income (Three months ended June 30)	4
Condensed Quarterly Consolidated Statements of Comprehensive Income (Three months ended June 30)	5
Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity (Three months ended June 30)	6
Condensed Quarterly Consolidated Statements of Cash Flows (Three months ended June 30)	7
Notes to Condensed Quarterly Consolidated Financial Statements	9
-      Business Segment Information	9
-      Going Concern Assumption	12
-      Accounting Policy and Other Information	12
Overview of Operating Results	15
Cautionary Statement	15

All financial information is presented on the basis of IFRS Accounting Standards.

Sony Group Corporation and its consolidated subsidiaries are together referred to as “Sony” or “Sony Group.”

- 1 - 

(Unaudited)

Condensed Quarterly Consolidated Financial Statements

Condensed Quarterly Consolidated Statements of Financial Position

		Yen in millions
		March 31, 2025				June 30, 2025				Change from March 31, 2025
ASSETS
Current assets:
Cash and cash equivalents			2,980,956				1,600,109				(1,380,847	)
Investments and advances in the Financial Services segment			453,677				-				(453,677	)
Trade and other receivables, and contract assets			1,943,184				1,687,462				(255,722	)
Inventories			1,310,770				1,464,832				154,062
Other financial assets			145,192				27,161				(118,031	)
Other current assets			621,209				673,138				51,929
Assets classified as held for distribution to owners			-				20,894,090				20,894,090
Total current assets			7,454,988				26,346,792				18,891,804
Non-current assets:
Investments accounted for using the equity method			347,718				365,907				18,189
Investments and advances in the Financial Services segment			18,736,298				-				(18,736,298	)
Property, plant and equipment			1,513,660				1,444,619				(69,041	)
Right-of-use assets			521,685				428,416				(93,269	)
Goodwill			1,508,721				1,476,505				(32,216	)
Content assets			2,249,048				2,249,297				249
Other intangible assets			671,212				595,422				(75,790	)
Deferred tax assets			559,284				487,498				(71,786	)
Other financial assets			1,164,630				1,247,272				82,642
Other non-current assets			565,929				492,789				(73,140	)
Total non-current assets			27,838,185				8,787,725				(19,050,460	)
Total assets			35,293,173				35,134,517				(158,656	)

(Continued on the following page.)

- 2 - 

Condensed Quarterly Consolidated Statements of Financial Position (Continued)

		Yen in millions
		March 31, 2025				June 30, 2025				Change from March 31, 2025
LIABILITIES
Current liabilities:
Short-term borrowings			1,843,959				47,099				(1,796,860	)
Current portion of long-term debt			287,445				214,610				(72,835	)
Trade and other payables			2,100,144				2,050,255				(49,889	)
Deposits from customers in the banking business			3,981,193				-				(3,981,193	)
Income taxes payables			89,485				88,724				(761	)
Participation and residual liabilities in the Pictures segment			236,752				214,460				(22,292	)
Other financial liabilities			110,689				34,488				(76,201	)
Other current liabilities			2,039,121				1,644,827				(394,294	)
Liabilities classified as held for distribution to owners			-				19,813,120				19,813,120
Total current liabilities			10,688,788				24,107,583				13,418,795
Non-current liabilities:
Long-term debt			2,066,842				1,349,673				(717,169	)
Defined benefit liabilities			236,941				198,392				(38,549	)
Deferred tax liabilities			175,228				180,293				5,065
Insurance contract liabilities			12,689,306				-				(12,689,306	)
Participation and residual liabilities in the Pictures segment			188,919				161,059				(27,860	)
Other financial liabilities			574,351				391,557				(182,794	)
Other non-current liabilities			162,647				158,283				(4,364	)
Total non-current liabilities			16,094,234				2,439,257				(13,654,977	)
Total liabilities			26,783,022				26,546,840				(236,182	)
EQUITY
Sony Group Corporation’s stockholders’ equity:
Common stock			881,357				881,357				-
Additional paid-in capital			1,483,527				1,468,420				(15,107	)
Retained earnings			6,678,168				6,855,431				177,263
Accumulated other comprehensive income			(566,447	)			827,654				1,394,101
Accumulated other comprehensive income directly related to the disposal group classified as held for distribution to owners			-				(1,359,517	)			(1,359,517	)
Treasury stock, at cost			(296,860	)			(377,733	)			(80,873	)
Equity attributable to Sony Group Corporation’s stockholders			8,179,745				8,295,612				115,867
Noncontrolling interests			330,406				292,065				(38,341	)
Total equity			8,510,151				8,587,677				77,526
Total liabilities and equity			35,293,173				35,134,517				(158,656	)

- 3 - 

Condensed Quarterly Consolidated Statements of Income

		Yen in millions
		Three months ended June 30
		2024				2025				Change
Continuing operations
Sales			2,565,361				2,621,615				56,254
Costs and expenses:
Cost of sales			1,784,389				1,775,067				(9,322	)
Selling, general and administrative			543,414				514,802				(28,612	)
Other operating (income) expense, net			(9,907	)			(9,920	)			(13	)
Total costs and expenses			2,317,896				2,279,949				(37,947	)
Share of profit (loss) of investments accounted for using the equity method			1,656				(1,711	)			(3,367	)
Operating income			249,121				339,955				90,834
Financial income			53,230				51,654				(1,576	)
Financial expenses			15,469				35,008				19,539
Income before income taxes			286,882				356,601				69,719
Income taxes			72,539				93,781				21,242
Net income from continuing operations			214,343				262,820				48,477
Discontinued Operations
Net income (loss) from discontinued operations			21,485				(22,118	)			(43,603	)
Net income			235,828				240,702				4,874
Net income attributable to
Sony Group Corporation’s stockholders			231,638				236,909				5,271
Net income from continuing operations			210,153				259,027				48,874
Net income (loss) from discontinued operations			21,485				(22,118	)			(43,603	)
Noncontrolling interests			4,190				3,793				(397	)

		Yen
		Three months ended June 30
		2024				2025				Change
Per share data:
Net income (loss) attributable to Sony Group Corporation’s stockholders
- Basic			37.98				39.40				1.42
Continuing operations			34.46				43.08				8.62
Discontinued operations			3.52				(3.68	)			(7.20	)
- Diluted			37.89				39.18				1.29
Continuing operations			34.37				42.84				8.47
Discontinued operations			3.52				(3.66	)			(7.18	)

- 4 - 

Condensed Quarterly Consolidated Statements of Comprehensive Income

		Yen in millions
		Three months ended June 30
		2024				2025				Change
Net income			235,828				240,702				4,874
Other comprehensive income, net of tax -
Items that will not be reclassified to profit or loss
Changes in equity instruments measured at fair value through other comprehensive income			(15,586	)			(802	)			14,784
Remeasurement of defined benefit pension plans			(758	)			0				758
Share of other comprehensive income of investments accounted for using the equity method			(1,140	)			(41	)			1,099
Other comprehensive income from discontinued operations			495				(16	)			(511	)
Items that may be reclassified subsequently to profit or loss
Cash flow hedges			(2,277	)			(944	)			1,333
Exchange differences on translating foreign operations			239,701				(22,301	)			(262,002	)
Share of other comprehensive income of investments accounted for using the equity method			3,811				(331	)			(4,142	)
Other comprehensive income from discontinued operations			(82,193	)			53,302				135,495
Total other comprehensive income, net of tax			142,053				28,867				(113,186	)
Comprehensive income			377,881				269,569				(108,312	)
Total Comprehensive income
Comprehensive income from continuing operations			438,094				238,401				(199,693	)
Comprehensive income from discontinued operations			(60,213	)			31,168				91,381
Comprehensive income attributable to
Sony Group Corporation’s stockholders			372,839				266,888				(105,951	)
Comprehensive income from continuing operations			433,052				235,720				(197,332	)
Comprehensive income from discontinued operations			(60,213	)			31,168				91,381
Noncontrolling interests			5,042				2,681				(2,361	)

- 5 - 

Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity

		Yen in millions
			Common stock				Additional paid-in capital				Retained earnings				Accumulated other comprehensive income				Treasury stock, at cost				Sony Group Corporation’s stockholders’ equity				Noncontrolling interests				Total equity
Balance at April 1, 2024			881,357				1,483,410				6,002,407				(376,063	)			(403,934	)			7,587,177				168,928				7,756,105
Comprehensive income:
Net income											231,638												231,638				4,190				235,828
Other comprehensive income, net of tax															141,201								141,201				852				142,053
Total comprehensive income											231,638				141,201								372,839				5,042				377,881
Transfer to retained earnings											(25,338	)			25,338								-								-
Transactions with stockholders and other:
Stock issued under stock-based compensation transactions							(1	)			(642	)							2,417				1,774								1,774
Compensation expenses related to stock-based compensation transactions							5,504																5,504								5,504
Dividends declared											(54,965	)											(54,965	)			(2,076	)			(57,041	)
Purchase of treasury stock																			(51,255	)			(51,255	)							(51,255	)
Reissuance of treasury stock							1												3				4								4
Cancellation of treasury stock							(839	)			(127,738	)							128,577				-								-
Transactions with noncontrolling interests shareholders and other							(3,626	)															(3,626	)			119,613				115,987
Balance at June 30, 2024			881,357				1,484,449				6,025,362				(209,524	)			(324,192	)			7,857,452				291,507				8,148,959

		Yen in millions
		Common stock				Additional paid-in capital				Retained earnings				Accumulated other comprehensive income				Accumulated other comprehensive income directly related to disposal groups classified as held for distribution to owners				Treasury stock, at cost				Sony Group Corporation’s stockholders’ equity				Noncontrolling interests				Total equity
Balance at April 1, 2025			881,357				1,483,527				6,678,168				(566,447	)			-				(296,860	)			8,179,745				330,406				8,510,151
Comprehensive income:
Net income											236,909																236,909				3,793				240,702
Other comprehensive income, net of tax															(57,601	)			87,580								29,979				(1,112	)			28,867
Total comprehensive income											236,909				(57,601	)			87,580								266,888				2,681				269,569
Transfer to retained earnings											604				(619	)			15								-								-
Transactions with stockholders and other:
Stock issued under stock-based compensation transactions							491																12,466				12,957								12,957
Compensation expenses related to stock-based compensation transactions							4,662																				4,662								4,662
Dividends declared											(60,250	)															(60,250	)			(18,283	)			(78,533	)
Purchase of treasury stock																							(93,339	)			(93,339	)							(93,339	)
Reissuance of treasury stock							0																0				0								0
Transfer to held for distribution to owners															1,447,112				(1,447,112	)							-								-
Transactions with noncontrolling interests shareholders and other							(20,260	)							5,209												(15,051	)			(22,739	)			(37,790	)
Balance at June 30, 2025			881,357				1,468,420				6,855,431				827,654				(1,359,517	)			(377,733	)			8,295,612				292,065				8,587,677

- 6 - 

Condensed Quarterly Consolidated Statements of Cash Flows

		Yen in millions
		Three months ended June 30
		2024				2025
Cash flows from operating activities:
Income before income taxes from continuing operations			286,882				356,601
Adjustments to reconcile income before income taxes from continuing operations to net cash provided by (used in) operating activities:
Depreciation and amortization, including amortization of contract costs			261,674				274,399
Other operating (income) expense, net			(9,907	)			(9,920	)
Gain on securities, net			(31,406	)			(30,092	)
Share of loss of investments accounted for using the equity method, net of dividends			5,160				7,689
Changes in assets and liabilities:
Decrease in trade receivables and contract assets			187,050				105,820
Increase in inventories			(123,840	)			(156,435	)
Increase in content assets			(257,588	)			(148,883	)
Increase in trade payables			111,542				90,138
Increase (decrease) in taxes payable other than income taxes, net			(3,966	)			8,260
Increase in other financial assets and other current assets			(37,706	)			(54,560	)
Decrease in other financial liabilities and other current liabilities			(112,302	)			(187,582	)
Income taxes paid			(97,862	)			(53,374	)
Other			(30,809	)			51,820
Total net cash provided by operating activities from continuing operations			146,922				253,881
Net cash used in operating activities from discontinued operations			(273,207	)			(176,552	)
Net cash provided by (used in) operating activities			(126,285	)			77,329

(Continued on the following page.)

- 7 - 

Condensed Quarterly Consolidated Statements of Cash Flows (Continued)

		Yen in millions
		Three months ended June 30
		2024				2025
Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets			(204,167	)			(120,094	)
Proceeds from sales of property, plant and equipment and other intangible assets			5,617				1,809
Payments for investments and advances			(15,747	)			(36,683	)
Proceeds from sales or return of investments and collections of advances			30,896				4,415
Payments for purchases of businesses and other			(169,794	)			(12,217	)
Proceeds from sales of businesses			1,609				-
Other			259				74
Total net cash used in investing activities from continuing operations			(351,327	)			(162,696	)
Net cash used in investing activities from discontinued operations			(7,795	)			(10,622	)
Net cash used in investing activities			(359,122	)			(173,318	)
Cash flows from financing activities:
Increase (decrease) in short-term borrowings, net			24,764				(46	)
Proceeds from issuance of long-term debt			6,275				5,792
Payments of long-term debt			(27,257	)			(25,067	)
Dividends paid			(54,451	)			(59,870	)
Payments for purchases of treasury stock			(51,255	)			(93,339	)
Capital contribution from non-controlling interests			109,527				-
Other			(3,575	)			(37,371	)
Total net cash provided by (used in) financing activities from continuing operations			4,028				(209,901	)
Net cash used in financing activities from discontinued operations			(2,496	)			(2,718	)
Net cash provided by (used in) financing activities			1,532				(212,619	)
Effect of exchange rate changes on cash and cash equivalents			53,860				(45,854	)
Net decrease in cash and cash equivalents			(430,015	)			(354,462	)
Cash and cash equivalents at beginning of the fiscal year			1,907,113				2,980,956
Cash and cash equivalents at end of the period			1,477,098				2,626,494
Cash and cash equivalents included in assets held for distribution to owners			-				1,026,385
Cash and cash equivalents in the Condensed Quarterly Consolidated Statements of Financial Position			1,477,098				1,600,109

- 8 - 

Notes to Condensed Quarterly Consolidated Financial Statements

Business Segment Information

At a meeting of Sony Group Corporation’s Board of Directors (the “Board”) held on May 14, 2025, Sony Group Corporation decided the plan regarding the execution of a partial spin-off (the “Spin-off”) of Sony Financial Group Inc. (“SFGI”), a wholly-owned subsidiary which operates the Financial Services business. As a result, the Financial Services business was classified as a discontinued operation. Due to the classification of the Financial Services business as a discontinued operation, the Financial Services business has been excluded from the reporting segments since the three months ended June 30, 2025. Consequently, the figures for comparative periods have been re-presented. For further information on discontinued operations, refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Discontinued operations).”

(Business Segments)

Segment sales

		Yen in millions
		Three months ended June 30
		2024				2025				Change
Sales:
Game & Network Services -
Customers			844,288				912,810				68,522
Intersegment			20,623				23,723				3,100
Total			864,911				936,533				71,622
Music -
Customers			435,726				458,952				23,226
Intersegment			6,296				6,389				93
Total			442,022				465,341				23,319
Pictures -
Customers			336,556				326,206				(10,350	)
Intersegment			790				898				108
Total			337,346				327,104				(10,242	)
Entertainment, Technology & Services -
Customers			594,179				518,677				(75,502	)
Intersegment			6,736				15,581				8,845
Total			600,915				534,258				(66,657	)
Imaging & Sensing Solutions -
Customers			333,308				385,464				52,156
Intersegment			20,172				22,726				2,554
Total			353,480				408,190				54,710
All Other -
Customers			18,933				16,239				(2,694	)
Intersegment			2,157				3,091				934
Total			21,090				19,330				(1,760	)
Corporate and elimination			(54,403	)			(69,141	)			(14,738	)
Consolidated total			2,565,361				2,621,615				56,254

Note:

Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with the Entertainment, Technology & Services (“ET&S”) segment. ET&S intersegment amounts primarily consist of transactions with the G&NS segment. Imaging & Sensing Solutions (“I&SS”) intersegment amounts primarily consist of transactions with the G&NS segment and the ET&S segment. Corporate and elimination includes certain brand and patent royalty income.

Intersegment amounts in each segment, as well as Corporate and elimination, include transaction amounts with discontinued operations.

- 9 - 

Segment profit (loss)

		Yen in millions
		Three months ended June 30
		2024				2025				Change
Operating income (loss):
Game & Network Services			65,209				147,957				82,748
Music			85,893				92,807				6,914
Pictures			11,308				18,665				7,357
Entertainment, Technology & Services			64,083				43,143				(20,940	)
Imaging & Sensing Solutions			36,647				54,251				17,604
All Other			1,275				(4,968	)			(6,243	)
Total			264,415				351,855				87,440
Corporate and elimination			(15,294	)			(11,900	)			3,394
Consolidated operating income			249,121				339,955				90,834

Operating income (loss) is sales less costs and expenses, and includes the share of profit (loss) of investments accounted for using the equity method.

Operating income (loss) in each segment, as well as Corporate and elimination, include transaction amounts with discontinued operations.

- 10 - 

(Sales to Customers by Product Category)

The following table is a breakdown of sales to external customers by product category for each segment. Sony management views each segment as a single operating segment.

		Yen in millions
		Three months ended June 30
Sales:		2024				2025				Change
Game & Network Services
Digital Software and Add-on Content			432,752				492,147				59,395
Network Services			159,346				172,648				13,302
Hardware and Others			252,190				248,015				(4,175	)
Total			844,288				912,810				68,522
Music
Recorded Music - Streaming			196,663				196,016				(647	)
Recorded Music - Others			102,616				105,473				2,857
Music Publishing			96,676				98,685				2,009
Visual Media and Platform			39,771				58,778				19,007
Total			435,726				458,952				23,226
Pictures
Motion Pictures			133,034				107,133				(25,901	)
Television Productions			94,285				121,627				27,342
Media Networks			109,237				97,446				(11,791	)
Total			336,556				326,206				(10,350	)
Entertainment, Technology & Services
Imaging			207,025				187,299				(19,726	)
Sound			74,067				65,871				(8,196	)
Network Services			44,638				45,597				959
Displays			137,227				101,263				(35,964	)
Other			131,222				118,647				(12,575	)
Total			594,179				518,677				(75,502	)
Imaging & Sensing Solutions			333,308				385,464				52,156
All Other			18,933				16,239				(2,694	)
Corporate			2,371				3,267				896
Consolidated total			2,565,361				2,621,615				56,254

Note:

Sony has realigned its product categories in the ET&S segment due to changes in business categories from the first quarter of the fiscal year ending March 31, 2026. In accordance with this realignment, results for the three months ended June 30, 2024 in the table above have been reclassified to conform to the current presentation.

In the G&NS segment, Digital Software and Add-on Content includes distribution of software titles and add-on content through the network; Network Services includes network services relating to game, video and music content; Hardware and Others includes home gaming consoles, packaged software, game software sold bundled with home gaming consoles, peripheral devices and first-party software for third-party platforms. In the Music segment, Recorded Music - Streaming includes the distribution of digital recorded music by streaming; Recorded Music - Others includes the distribution of recorded music by physical media and digital download as well as revenue derived from artists’ live performances and merchandising; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes the production and distribution of animation titles and game applications, and various service offerings for music and visual products. In the Pictures segment, Motion Pictures includes the worldwide production, acquisition and distribution of live-action and animated motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television networks and direct-to-consumer streaming services worldwide. In the ET&S segment, Imaging includes image and video content creation products and solutions including interchangeable lens cameras and interchangeable lenses; Sound includes headphones and wireless speakers; Network Service includes internet-related services; Displays includes display products such as LCD and OLED televisions as well as projectors; Other includes smartphones, home audio products and medical equipment, as well as sports officiating support and content production support services.

- 11 - 

Going Concern Assumption

Not Applicable

Accounting Policy and Other Information

(Net Income Attributable to Sony Group Corporation’s Stockholders per Share (“EPS”) and Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)

		Yen in millions
		Three months ended June 30
		2024				2025
Net income (loss) attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation			231,638				236,909
Continuing operations			210,153				259,027
Discontinued operations			21,485				(22,118	)

		Thousands of shares
		Three months ended June 30
		2024				2025
Weighted-average shares outstanding for basic EPS computation			6,098,848				6,013,191
Effect of dilutive securities:
Stock options			13,937				24,729
Restricted stock units			1,248				8,990
Weighted-average shares for diluted EPS computation			6,114,033				6,046,910

Note:

As of October 1, 2024, Sony Group Corporation conducted a five-for-one stock split of its common stock. Basic and diluted EPS are calculated assuming that the stock split was implemented at the beginning of the fiscal year ended March 31, 2025.

(Segmentation)

The G&NS segment includes the network services businesses, the manufacture and sales of home gaming products and the production and sales of digital software and add-on content. The Music segment includes the Recorded Music, Music Publishing and Visual Media and Platform businesses. The Pictures segment includes the Motion Pictures, Television Productions and Media Networks businesses. The ET&S segment includes the Imaging business, the Sound business, the Network Services business and the Displays business. The I&SS segment includes the image sensors business. All Other consists of various operating activities, including the disc manufacturing and recording media businesses. Sony’s products and services are generally unique to a single operating segment.

At a meeting of the Board held on May 14, 2025, Sony Group Corporation decided the plan regarding the execution of the Spin-off. As a result, the Financial Services business was classified as a discontinued operation. Due to the classification of the Financial Services business as a discontinued operation, the Financial Services business has been excluded from the reporting segments since the three months ended June 30, 2025. Consequently, the figures for comparative periods have been re-presented. For further information on discontinued operations, refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Discontinued operations).”

(Change in presentation)

At a meeting of the Board held on May 14, 2025, Sony Group Corporation decided the plan regarding the execution of the Spin-off. As a result, the Financial Services business has been classified as a discontinued operation since the three months ended June 30, 2025. Income and losses related to business classified as a discontinued operation are separately presented, net of income taxes, following net income from continuing operations, in the condensed quarterly consolidated statements of income. In accordance with the classification of the Financial Services business as a discontinued operation, the condensed quarterly consolidated statements of income, condensed quarterly consolidated statements of comprehensive income, condensed quarterly consolidated statements of cash flows, and related notes to the condensed quarterly consolidated financial statements for comparative periods have been re-presented separately for continuing operations and discontinued operations. In the condensed quarterly consolidated statements of cash flows, cash flows from operating, investing and financing activities are presented separately for continuing operations and discontinued operations. The balance of cash and cash equivalents at end of the period is presented separately as cash and cash equivalents included in assets held for distribution to owners and cash and cash equivalents in the condensed quarterly consolidated statements of financial position. For further information on discontinued operations, refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Discontinued operations).”

- 12 - 

(Discontinued operations)

At a meeting of the Board held on May 14, 2025, Sony Group Corporation decided to submit a resolution for the execution of the Spin-off, as of October 1, 2025, to the Board in early September 2025. In the Spin-off, Sony Group Corporation plans to distribute slightly more than 80% of the shares of common stock of SFGI (“SFGI share(s)”) to shareholders of Sony Group Corporation through dividends in kind. As a result of the Board resolution on May 14, 2025 on the plan for the execution of the Spin-off, Sony Group Corporation determined that the distribution of SFGI shares is highly probable and the Financial Services business was classified as a discontinued operation, in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations,” during the three months ended June 30, 2025. As a result, in the condensed quarterly consolidated statements of income, condensed quarterly consolidated statements of comprehensive income and condensed quarterly consolidated statements of cash flows; revenue, expenses, other comprehensive income and cash flows of the Financial Services business, among other items, are separated from continuing operations, comprised of Sony’s businesses excluding the Financial Services business, and presented as net income or loss from discontinued operations, other comprehensive income from discontinued operations, and net cash from discontinued operations, respectively. Additionally, in the condensed quarterly consolidated statements of financial position, assets and liabilities of the Financial Services business were classified as a disposal group held for distribution to owners. Accumulated other comprehensive income directly related to the disposal group was classified as held for distribution to owners.

For the disposal group classified as held for distribution to owners, as of June 30, 2025, its fair value less the incremental costs directly attributable to the distribution of the disposal group, excluding finance costs and income tax expense, is more than the carrying amount, so they are measured using the carrying amount.

(1) Disposal group classified as held for distribution to owners

		Yen in millions
		June 30, 2025
Assets classified as held for distribution to owners
Cash and cash equivalents			1,026,385
Investments and advances in the Financial Services business			19,145,448
Others			722,257
Total assets			20,894,090
Liabilities classified as held for distribution to owners
Short-term borrowings			1,727,076
Deposits from customers in the banking business			4,267,796
Long-term debt			688,136
Insurance contract liabilities			12,782,356
Others			347,756
Total liabilities			19,813,120
Accumulated other comprehensive income directly related to the disposal group classified as held for distribution to owners
Changes in equity instruments measured at fair value through other comprehensive income			(4,911	)
Changes in debt instruments measured at fair value through other comprehensive income			(1,479,357	)
Insurance finance income (expenses)			125,607
Others			(856	)
Total accumulated other comprehensive income			(1,359,517	)

- 13 - 

(2) Results of discontinued operations

		Yen in millions
		Three months ended June 30
		2024				2025
Financial services revenue			446,288				208,256
Financial services expenses			416,254				239,933
Other income (expenses), net			(49	)			(122	)
Income (loss) before income taxes from discontinued operations			29,985				(31,799	)
Income taxes			8,500				(9,681	)
Net income (loss) from discontinued operations			21,485				(22,118	)
Other comprehensive income from discontinued operations			(81,698	)			53,286
Items that will not be reclassified to profit or loss
Changes in equity instruments measured at fair value through other comprehensive income			524				35
Remeasurement of defined pension plans			(29	)			(51	)
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income			(432,256	)			(132,899	)
Insurance finance income (expenses)			350,402				186,291
Others			(339	)			(90	)
Comprehensive income from discontinued operations			(60,213	)			31,168

- 14 - 

Overview of Operating Results

For the overview of operating results for the three months ended June 30, 2025, including the forecast for the fiscal year ending March 31, 2026, please refer to “Q1 FY2025 Consolidated Financial Results” (the presentation material for the earnings announcement) disclosed on the same date as this document on the TDnet of the TSE, the EDGAR system of the U.S. SEC and the website of Sony Group Corporation.

Cautionary Statement

Statements made in this material with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to:

(i)	Sony’s ability to maintain product quality and customer satisfaction with its products and services;
(ii)	Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including image sensors, game and network platforms, smartphones and televisions, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing customer preferences;
(iii)	Sony’s ability to implement successful hardware, software, and content integration strategies, and to develop and implement successful sales and distribution strategies in light of new technologies and distribution platforms;
(iv)	the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures, investments, capital expenditures, restructurings and other strategic initiatives;
(v)	changes in laws, regulations and government policies in the markets in which Sony and its third-party suppliers, service providers and business partners operate, including those related to taxation, as well as growing consumer focus on corporate social responsibility;
(vi)	Sony’s continued ability to identify the products, services and market trends with significant growth potential, to devote sufficient resources to research and development, to prioritize investments and capital expenditures correctly and to recoup its investments and capital expenditures, including those required for technology development and product capacity;
(vii)	Sony’s reliance on external business partners, including for the procurement of parts, components, software and network services for its products or services, the manufacturing, marketing and distribution of its products, and its other business operations;
(viii)	the global economic and political environment in which Sony operates and the economic and political conditions in Sony’s markets, particularly levels of consumer spending;
(ix)	Sony’s ability to meet operational and liquidity needs as a result of significant volatility and disruption in the global financial markets or a ratings downgrade;
(x)	Sony’s ability to forecast demands, manage timely procurement and control inventories;
(xi)	foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony’s assets, liabilities and operating results are denominated;
(xii)	Sony’s ability to recruit, retain and maintain productive relations with highly skilled personnel;
(xiii)	Sony’s ability to prevent unauthorized use or theft of intellectual property rights, to obtain or renew licenses relating to intellectual property rights and to defend itself against claims that its products or services infringe the intellectual property rights owned by others;
(xiv)	the impact of changes in interest rates and unfavorable conditions or developments (including market fluctuations or volatility) in the equity and bond markets on the revenue and operating income of the Financial Services business;
(xv)	shifts in customer demand for financial services such as life insurance and Sony’s ability to conduct successful asset liability management in the Financial Services business;
(xvi)	risks related to catastrophic disasters, geopolitical conflicts, pandemic disease or similar events;
(xvii)	the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information and the personally identifiable information of its employees and customers, potential business disruptions or financial losses; and
(xviii)	the outcome of pending and/or future legal and/or regulatory proceedings.

Risks and uncertainties also include the impact of any future events with material adverse impact. The continued impact of developments relating to the situations in Ukraine and Russia and in the Middle East, as well as the series of changes in U.S. tariff policy, could heighten many of the risks and uncertainties noted above. Important information regarding risks and uncertainties is also set forth in Sony’s most recent Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

- 15 - 

FAQ

How did SONY's Q1 FY25 sales and profit perform?

Sales were ¥2.622 tn (+2.2%); operating income ¥339.96 bn (+36.5%); net income from continuing ops ¥262.82 bn (+22.6%).

What is Sony's outlook for FY26 after the Financial Services spin-off?

Management guides sales of ¥11.7 tn (-2.8%), operating income ¥1.33 tn (+4.2%), and net income ¥970 bn (-9.1%) for continuing operations.

When will Sony spin off Sony Financial Group Inc. (SFGI)?

The partial spin-off is scheduled for 1 Oct 2025, with >80% of SFGI shares distributed to Sony shareholders.

What dividend does SONY forecast for FY26?

Sony projects a total dividend of 25 yen per share (12.5 yen interim, 12.5 yen year-end), excluding the in-kind SFGI share distribution.

Which segment drove the largest profit increase?

The Game & Network Services segment, whose operating profit jumped from ¥65.21 bn to ¥147.96 bn.

How did currency movements impact results?

Exchange translation losses cut total comprehensive income by 45.6% YoY, despite higher operating earnings.