Nihon Falcom 2025 Fiscal Year Financial Results Supplementary Material

Key insights

6 takeaways

01
Nihon Falcom reported fiscal year 2025 sales of 2,612 million yen (up 3.5%) and an operating profit of 1,340 million yen (up 8.1%).See it on page 2
02
Net income for the fiscal year ending September 2025 reached 903 million yen, reflecting a 6.0% year-over-year improvement.See it on page 2
03
Financial performance remains heavily reliant on the core Trails and Ys intellectual properties, supported by multi-platform releases on PlayStation 5, Nintendo Switch, and Steam.See it on page 17
04
The company projects stable performance for fiscal year 2026, with anticipated sales of 2,600 million yen and an operating profit of 1,300 million yen.See it on page 23
05
Future strategy focuses on the development of 'The Legend of Heroes: Sora no Kiseki the 2nd' and continued international localization of existing titles.See it on page 31
06
Revenue is highly seasonal, with the majority of financial results concentrated in the fourth quarter due to major product launch cycles.See it on page 23

Summary

Nihon Falcom’s financial results for the fiscal year ending September 2025 demonstrate consistent growth, characterized by an increase in both revenue and profit. The company reported annual sales of 2,612 million yen, representing a 3.5% increase over the previous year, while operating profit rose by 8.1% to 1,340 million yen. Net income also saw a positive trend, reaching 903 million yen, a 6.0% improvement. These results reflect the company’s ongoing focus on its core intellectual properties, specifically the Trails and Ys series, which remain the primary drivers of its financial performance.

The 2025 fiscal year was marked by a robust release schedule across multiple platforms, including PlayStation 5, Nintendo Switch, and Steam. Key titles such as The Legend of Heroes: Kai no Kiseki -Farewell, O Zemuria- and various ports and localized versions of the Ys series were central to the company’s strategy. Promotional efforts were extensive, utilizing a mix of digital marketing, physical retail events, live music performances by the Falcom jdk BAND, and presence at major industry events like the Tokyo Game Show to maintain brand engagement and support product launches.

Looking ahead to the 2026 fiscal year, the company projects a stable performance with anticipated sales of 2,600 million yen and an operating profit of 1,300 million yen. The strategic outlook emphasizes a continued commitment to multi-platform expansion, including the development of The Legend of Heroes: Sora no Kiseki the 2nd and further international localization of existing titles. The company intends to leverage its established IP while simultaneously investing in new projects and original content. Given the seasonal nature of its business, where revenue is heavily concentrated in the fourth quarter due to major product releases, the company maintains a cautious but optimistic outlook, supported by a planned dividend structure that includes both ordinary and commemorative payouts.