Q1 2026 Fiscal Financial Results: Nihon Falcom

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.