Nihon Falcom Semi-Annual Report (25th Fiscal Period)

Key insights

6 takeaways

01
Nihon Falcom achieved significant financial growth for the period ending March 31, 2026, with total revenue reaching 1,535 million yen, a 153.9% increase year-over-year.See it on page 4
02
Operating profit surged by 1,216.4% to 969 million yen, while net profit rose by 1,454.3% to 689 million yen compared to the same period in the previous year.See it on page 13
03
The licensing segment was the primary driver of financial performance, generating 1,419 million yen in revenue—a 194.8% increase—fueled by the international expansion of the 'Trails' and 'Ys' series.See it on page 16
04
The company maintains a robust balance sheet with total assets of 11,524 million yen and a high liquidity position of 10,722 million yen in cash and cash equivalents.See it on page 12
05
The product segment underperformed relative to licensing, recording a slight decline in revenue to 116 million yen.See it on page 16
06
Future development efforts are focused on upcoming titles including 'Tokyo Xanadu -Ouka Genbu-' and the sequel to 'Trails of the Sky the 1st'.See it on page 6

Summary

Nihon Falcom Corporation’s semi-annual report for the 25th fiscal period, covering October 1, 2025, to March 31, 2026, details the company’s financial performance and operational status as a game content developer. The report confirms that the company continues to focus on creating original game content and services, distributing these products across various global platforms. The financial statements were subject to a review by Sanyu Audit Corporation, which concluded that the documents fairly represent the company’s financial position and results for the period.

The company experienced significant growth during this fiscal half-year, reporting a total revenue of 1,535 million yen, a 153.9% increase compared to the same period in the previous year. Operating profit rose to 969 million yen, reflecting a 1,216.4% increase, while net profit for the period reached 689 million yen, up 1,454.3%. This performance was primarily driven by the licensing segment, which generated 1,419 million yen in revenue—a 194.8% increase—largely due to the international expansion of titles such as the "Trails" series and "Ys" series across Nintendo Switch, PlayStation, and PC platforms. Conversely, the product segment saw a slight decline, with revenue totaling 116 million yen.

As of March 31, 2026, the company maintained a strong financial position with total assets of 11,524 million yen and cash and cash equivalents of 10,722 million yen. The report notes that the company is actively developing upcoming titles, including "Tokyo Xanadu -Ouka Genbu-" and the sequel to "Trails of the Sky the 1st." The company operates as a single segment focused on game development and sales, and there were no significant changes to its business risks or operational structure during this period.