Updated Mar 23, 2026 by Nihon Falcom
Nihon Falcom reported a significant Q1 2026 turnaround, with revenue surging 150.7% to ¥937 million and operating profit jumping 670.4% to ¥685 million.
Licensing 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.'
Strong 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.
The company executed a capital return strategy during the quarter, totaling ¥608 million in share buybacks and ¥205 million in dividend payouts.
Despite 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.
Total 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%.
Nihon Falcom reported a significant Q1 2026 turnaround, with revenue surging 150.7% to ¥937 million and operating profit jumping 670.4% to ¥685 million.
Licensing 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.'
Strong 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.
The company executed a capital return strategy during the quarter, totaling ¥608 million in share buybacks and ¥205 million in dividend payouts.
Despite 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.
Total 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%.