Nippon Ichi Software Q1 2026 Financial Results

Key insights

7 takeaways

01
Nippon Ichi Software reported a Q1 net loss of 169 million yen for the period ending June 30, 2025, compared to a 93 million yen loss in the same period last year.See it on page 9
02
Quarterly revenue fell 52.5% year-over-year to 480 million yen, driven by a 54.4% decline in the entertainment business segment.See it on page 4
03
Operating loss for the first quarter was 174 million yen, an improvement from the 256 million yen operating loss recorded in the first quarter of the previous fiscal year.See it on page 8
04
The company maintained its full-year fiscal 2026 forecast, which projects 4.77 billion yen in revenue and 81 million yen in operating profit.See it on page 8
05
The student dormitory and other business segment saw a 25.4% revenue increase to 30 million yen, though it remained at a 3.5 million yen operating loss.See it on page 4
06
As of June 30, 2025, the company held 5.57 billion yen in cash and deposits, representing a slight increase from the 5.19 billion yen reported at the end of the previous fiscal year.See it on page 7
07
On July 22, 2025, the company issued 1,882 stock options (covering 188,200 shares) to directors, employees, and subsidiary staff with an exercise price of 896 yen.See it on page 12

Summary

Nippon Ichi Software’s financial results for the first quarter of the fiscal year ending March 2026 (covering April 1, 2025, to June 30, 2025) reflect a challenging period characterized by significant revenue contraction and continued operating losses. The company reported net sales of 480 million yen, representing a 52.5% decrease compared to the same period in the previous fiscal year. Operating losses reached 174 million yen, while the net loss attributable to owners of the parent company totaled 169 million yen.

The company operates primarily within the entertainment sector, focusing on the development and distribution of game software across platforms such as PlayStation Network, Nintendo eShop, and Steam, alongside international localization efforts. The entertainment segment saw sales decline by 54.4% to 450 million yen, though operating losses within the segment narrowed compared to the prior year. A secondary business segment involving the operation of student dormitories in Gifu Prefecture reported modest growth, with sales increasing by 25.4% to 30 million yen.

Financial stability remains intact, with a capital adequacy ratio of 68.6% and total assets of 10.8 billion yen. Despite the quarterly losses, the company has maintained its full-year earnings forecast, anticipating a total annual revenue of 4.77 billion yen. Management continues to prioritize the strengthening of development and sales capabilities alongside productivity improvements. The company also noted the issuance of stock options to directors, executive officers, and employees in July 2025 as part of its ongoing corporate strategy. The results were prepared in accordance with Japanese accounting standards and were subject to a voluntary review by Tokai Accounting Firm.