Consolidated Financial Results: Q3 Fiscal Year Ending March 2026

Kadokawa Corporation reported a decline in its third‑quarter consolidated results for the fiscal year ending March 2026. Total sales fell 1.7 % to ¥20,299 billion, while operating profit dropped 59.7 % to ¥637 million and ordinary profit fell 47.1 % to ¥910 million, leading to a parent‑shareholder net loss of ¥221 million. EBITDA contracted 39.0 % to ¥1,314 million, and the diluted earnings per share fell from ¥54.79 to ¥15.07. Net assets decreased modestly, with total assets at ¥394 billion and equity at ¥277 billion; the equity ratio remained healthy at 62.4 %. Cash and cash equivalents ended the quarter at ¥73 billion after significant outflows from investment activities (¥5.2 billion) and financing (¥5.0 billion).

Segment performance varied: the publishing/IP creation unit posted a 90.2 % drop in operating profit to ¥623 million despite flat sales, whereas the web services segment achieved a 21.5 % revenue increase and an operating profit of ¥2187 million. The animation/film segment recorded a loss of ¥940 million, and the game unit saw an 11.6 % revenue decline with a modest operating profit of ¥8050 million. Education and other segments delivered modest gains.

The company added two subsidiaries—Edizioni BD S.r.l. in Italy and SOZO Pte. Ltd. in Singapore—to its consolidation, increasing goodwill by ¥2,427 million and ¥1,846 million respectively. A significant system‑failure expense of ¥2,338 million related to a cyberattack on the Niconico service was recorded as a special loss. Dividend policy remained unchanged, with no dividends declared for the current year and a forecast of ¥30 million per quarter. The report covers Japan, the United States, Asia and other regions for the period April 1 2025 to March 31 2026, using Japanese GAAP and a survey of consolidated financial statements.