Bandai Namco Holdings Consolidated Financial Report: Third Quarter Fiscal Year Ending March 31, 2026

Key insights

7 takeaways

01
The Toys and Hobby Business achieved net sales of 503,658 million yen, a 8.5% year-on-year increase, driven by strong performance in mature-fan products like Gundam model kits, collectible figures, and trading card games.
02
Total assets reached 1,169,415 million yen as of December 31, 2025, reflecting a 66,778 million yen increase from the end of the previous fiscal year, primarily due to growth in trade receivables and contract assets.
03
The company maintains a strong financial position with an equity ratio of 73.1%, up from 71.9% at the end of the previous fiscal year, and total net assets of 855,136 million yen.
04
Digital Business segment profit grew by 3.8% year-on-year to 2,176 million yen, supported by the success of new titles like 'ELDEN RING NIGHTREIGN' and stable performance from major app franchises including 'DRAGON BALL' and 'ONE PIECE'.
05
Bandai Namco has initiated a new three-year Mid-term Plan focused on 'Creative Quality,' 'Expansion,' 'Growth,' and 'Strengthen,' which includes the establishment of a new 'CW360' division to foster deeper connections with global fans and partners.
06
The company is expanding its Visual and Music Business through a new North American operating company, which has entered full-scale production on a live-action 'Mobile Suit Gundam' film in collaboration with Legendary Entertainment.
07
As of February 5, 2026, the Board of Directors approved a new resolution to purchase treasury shares to improve capital efficiency and implement a flexible capital policy.

Summary

Bandai Namco Holdings demonstrates a resilient financial trajectory for the first nine months of the fiscal year ending March 31, 2026, characterized by a 4.9 percent increase in net sales to 1,002.2 billion yen. Despite this top-line growth, operating profit contracted by 12.2 percent to 157.4 billion yen, largely due to performance fluctuations within the Digital Business and Visual and Music segments. The Toys and Hobby division remains a primary driver of stability, helping to offset broader market volatility. Reflecting confidence in its operational pipeline, the company has revised its full-year projections upward, targeting 1.3 trillion yen in net sales and 181 billion yen in operating profit.

The organization maintains a robust balance sheet with total assets of 1,169,415 million yen and an equity ratio of 73.1 percent. This fiscal foundation supports a strategic shift toward long-term value creation under a new three-year Mid-term Plan. Centered on the "Connect with Fans" vision, this initiative prioritizes the maximization of intellectual property through global alliances and data-driven engagement. To facilitate this, the company has committed 600 billion yen toward growth investments, complemented by a 30 billion yen share buyback program designed to enhance capital efficiency and shareholder returns.

Geographically focused on the Japanese market with a significant global footprint, these results underscore a transition toward a 360-degree investment model. Management and the Audit and Supervisory Committee have confirmed that all financial reporting adheres to rigorous regulatory standards, with independent auditors finding no material issues regarding the company’s status as a going concern. By balancing aggressive investment in creative quality with disciplined financial oversight, the company aims to sustain its competitive position across its diverse portfolio of digital, toy, and entertainment segments.