Key insights
6 takeaways · ~2 min read- 01Nihon Falcom reported a significant Q1 2026 turnaround, with revenue surging 150.7% to ¥937 million and operating profit jumping 670.4% to ¥685 million.See it on page 1
- 02Licensing revenue was a primary growth driver, increasing 218.3% to ¥888 million due to overseas releases of legacy titles and 'Eiyuu Densetsu: Kuro no Kiseki II – Crimson Sin.'See it on page 4
- 03Strong sales of the flagship 'Trails' title 'Sky: The First' across Nintendo Switch 2, PlayStation 5, and Steam served as the core catalyst for the quarterly performance.See it on page 4
- 04The company executed a capital return strategy during the quarter, totaling ¥608 million in share buybacks and ¥205 million in dividend payouts.See it on page 8
- 05Despite the strong Q1, the company forecasts flat full-year results, projecting revenue of ¥2,600 million and net profit of ¥900 million, both down roughly 0.5% year-over-year.See it on page 5
- 06Total assets decreased by 4.8% to ¥10,947 million, primarily driven by a ¥374 million reduction in cash and deposits, though the company maintains a strong equity ratio of 96.4%.See it on page 6
Summary
Nihon Falcom’s first‑quarter 2026 fiscal results, covering October to December 2025, show a dramatic turnaround from the previous year’s decline. Total revenue surged 150.7 % to ¥937 million, driven by strong sales of the flagship “Trails” series title “Sky: The First” across Nintendo Switch 2, PlayStation 5, and Steam, as well as a new music album. Licensing revenue expanded 218.3 % to ¥888 million, reflecting the release of overseas editions for several legacy titles and new releases such as “Eiyuu Densetsu: Kuro no Kiseki II – Crimson Sin.” Operating profit rose 670.4 % to ¥685 million, and net income climbed 498.8 % to ¥486 million, with earnings per share reaching ¥47.89 after potential dilution adjustments.
Total assets stood at ¥10,947 million, down 4.8 % from the prior year’s end, largely due to a ¥374 million drop in cash and deposits and a ¥190 million decline in accounts receivable. Net assets were ¥10,549 million, a 3.0 % decrease, after accounting for a ¥608 million share buyback and ¥205 million dividend payout. The company’s equity ratio remained robust at 96.4 %.
For the full fiscal year, Falcom forecasts revenue of ¥2,600 million (−0.5 % YoY) and net profit of ¥900 million (−0.4 %). The second‑quarter outlook projects sales of ¥1,200 million and net profit of ¥450 million, reflecting confidence in the continued momentum of “Sky: The First” while acknowledging uncertainties surrounding upcoming projects such as “Kento Zanadu – Sakura Hana Gembu.” The company maintains a single‑segment classification, with no significant changes in accounting policy or material contingencies reported.
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