Financial Results: Fiscal Year 2026 Second Quarter (Japan)

Fiscal year 2026, second‑quarter results for Falcom Corporation show a dramatic rebound from the previous quarter. Total sales rose 153.9 % to ¥1,535 million, driven by a 194.8 % increase in licensing revenue and a modest 5.5 % decline in product sales, reflecting strong performance of the “Sora no Kiseki” series and new releases across Nintendo Switch 2, PlayStation 5, Steam, and mobile platforms. Operating profit surged 1,216.4 % to ¥969 million, and ordinary profit climbed 997.7 % to ¥994 million, largely due to higher gross margins and favorable foreign‑exchange gains. Net profit for the interim period reached ¥689 million, a 1,454.3 % jump from the prior year’s quarter.

Balance‑sheet strength remained robust: total assets increased 0.3 % to ¥11,524 million, with cash and deposits up by ¥372 million. Net equity stood at ¥10,752 million, a 1.1 % decline mainly from share buybacks of ¥608 k and dividend payouts of ¥205 million. The equity ratio remained high at 93.3 %. Cash flow from operations grew to ¥1,186 million, supported by strong sales and efficient working‑capital management.

For the full fiscal year, Falcom forecasts revenue of ¥3,600 million (up 37.7 %), operating profit of ¥2,200 million (up 64.0 %), ordinary profit of ¥2,200 million (up 61.2 %), and net income of ¥1,500 million (up 65.9 %). Earnings per share are projected at ¥145.91. The company attributes the upward revision to continued momentum in its flagship titles and expanding international licensing, while noting that future results may vary with market conditions.