Updated Mar 21, 2026 by Kadokawa Corporation
Kadokawa reported a 59.7% drop in operating profit and a decline in consolidated revenue to 202.9 billion yen for Q3 FY2026, driven by publishing margin compression and difficult year-on-year comparisons in gaming.
The gaming division is pivoting toward next-generation hardware, with development underway for 'Elden Ring Tarnished Edition' and a Nintendo-exclusive title, 'The Duskbloods', for the successor to the Nintendo Switch.
Gaming earnings have normalized following the massive success of 'Elden Ring' in the prior year, though the segment still generated 2.5 million units in repeat sales and DLC volume.
The Education and EdTech divisions provided a financial buffer with 13.4% revenue growth, supported by record student enrollment.
International revenue reached 12.5 billion yen for the quarter, with the United States and Asia accounting for 45.6% and 39.3% of those sales, respectively.
The anime segment maintains a slate of 52 titles, including 'Re:Zero' and 'Oshi no Ko', despite a 22% temporary decline in licensing income.
Kadokawa reported a 59.7% drop in operating profit and a decline in consolidated revenue to 202.9 billion yen for Q3 FY2026, driven by publishing margin compression and difficult year-on-year comparisons in gaming.
The gaming division is pivoting toward next-generation hardware, with development underway for 'Elden Ring Tarnished Edition' and a Nintendo-exclusive title, 'The Duskbloods', for the successor to the Nintendo Switch.
Gaming earnings have normalized following the massive success of 'Elden Ring' in the prior year, though the segment still generated 2.5 million units in repeat sales and DLC volume.
The Education and EdTech divisions provided a financial buffer with 13.4% revenue growth, supported by record student enrollment.
International revenue reached 12.5 billion yen for the quarter, with the United States and Asia accounting for 45.6% and 39.3% of those sales, respectively.
The anime segment maintains a slate of 52 titles, including 'Re:Zero' and 'Oshi no Ko', despite a 22% temporary decline in licensing income.