FinancialNippon Ichi Software
Reiwa 8 Fiscal Year Q3 Consolidated Financial Results (Japanese GAAP)
1 Feb 202613 pages~5 min full read
Nippon Ichi Software reported a 39.9% year-over-year decline in net sales to 2,221 million yen for the nine-month period ending December 31, 2025.
The company shifted to a loss-making position, recording an operating loss of 257 million yen and a quarterly net loss of 164 million yen.
The core entertainment segment drove the downturn with a 41.2% revenue decline to 2,132 million yen, despite the release of Disgaea 7 Complete for the Nintendo Switch 2 in Western markets.
Management has revised full-year forecasts downward, now projecting a 34.4% annual sales decrease to 3,475 million yen and a net loss of 296 million yen for the fiscal year ending March 2026.
The company’s secondary business, a dormitory operation in Gifu Prefecture, grew sales by 24.0% but failed to reach profitability at the operating level.
Despite the financial contraction, the company maintains a stable balance sheet with total assets of 11.6 billion yen and an equity ratio of 67.1%.
Nippon Ichi Software’s consolidated financial results for the third quarter of the fiscal year ending March 31, 2026, reveal a period of significant financial contraction and operational transition. Covering the nine-month period from April 1, 2025, to December 31, 2025, the data shows net sales fell 39.9% year-over-year to 2,221 million yen. The company reported an operating loss of 257 million yen and a quarterly net loss attributable to the parent of 164 million yen, representing a marked downturn compared to the previous year’s performance.
The entertainment segment, which accounts for the vast majority of revenue, saw sales decline by 41.2% to 2,132 million yen. Despite the downturn, the company continued development on several 2026 titles, including Kyouran Makaism and Curse Warrior, while releasing Disgaea 7 Complete for the Nintendo Switch 2 in Western markets through its subsidiary, NIS America. A smaller secondary segment involving the operation of student dormitories in Gifu Prefecture saw a 24.0% increase in sales but remained loss-making at the operating level.
The financial position remains stable with a 67.1% equity ratio and total assets of 11.6 billion yen, though the company has revised its full-year forecasts downward. Projections for the fiscal year ending March 2026 now anticipate a 34.4% decrease in annual sales to 3,475 million yen and a net loss of 296 million yen. These results are attributed to a challenging consumer environment and shifting release schedules. The methodology follows Japanese GAAP, and the figures have undergone a voluntary quarterly review by independent auditors.
