Key insights
7 takeaways · ~3 min read- 01Nippon One Software reported a 52.5% year-on-year revenue decline to ¥480 million for Q1 2026, with net loss attributable to parent shareholders rising 93.9% to ¥169.2 million.See it on page 1
- 02The company's primary entertainment segment drove the poor performance, recording a ¥59.9 million operating loss on a 54.4% drop in sales.See it on page 4
- 03Total operating loss for the quarter reached ¥174.6 million, while earnings per share fell to ¥–33.43.See it on page 8
- 04Management maintained its full-year fiscal 2026 guidance, projecting total sales of ¥4.77 billion and a net loss of ¥169.2 million.See it on page 8
- 05Balance sheet health saw a slight decline as shareholders’ equity fell to ¥7.53 billion and the equity ratio dropped to 68.6%.See it on page 7
- 06While accounts receivable and contract assets decreased, the company increased its cash and cash equivalents by ¥380 million and raised short-term borrowings by ¥100 million.See it on page 5
- 07The student dormitory and other business segment showed marginal improvement, narrowing its operating loss from ¥9.0 million to ¥3.5 million.See it on page 4
Summary
The quarterly report for the first quarter of fiscal 2026 presents a sharp contraction in revenue and profitability for Nippon One Software. Total sales fell to ¥480 million, a 52.5 % decline from the same period in fiscal 2025, while operating loss widened to ¥174.6 million from a ¥256.1 million loss previously. Ordinary loss reached ¥135.4 million, and net loss attributable to parent shareholders rose to ¥169.2 million, a 93.9 % increase year‑on‑year. Earnings per share declined to ¥–33.43 after potential adjustments.
Balance‑sheet metrics show a modest decline in total assets to ¥10.8 billion, with shareholders’ equity falling to ¥7.53 billion and the equity ratio slipping from 69.6 % to 68.6 %. Cash and cash equivalents increased by ¥380 million, offsetting reductions in accounts receivable and contract assets. Short‑term borrowings rose by ¥100 million, while long‑term debt decreased slightly.
Segment analysis attributes the majority of losses to the entertainment business, which recorded a ¥59.9 million operating loss against sales of ¥450 million (54.4 % drop). The student dormitory and other business, though smaller in revenue, improved its operating loss from ¥9.0 million to ¥3.5 million.
Management forecasts for the remainder of fiscal 2026 remain unchanged, projecting total sales of ¥4.77 billion and a net loss of ¥169.2 million for the year, with no adjustment to guidance. The report notes continued uncertainty in the gaming market due to inflationary pressures and global economic volatility, while highlighting ongoing efforts to strengthen development, sales, and productivity.
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