Nihon Falcom Q3 2026 Financial Results

Key insights

6 takeaways

01
Nihon Falcom reported significant growth for the first nine months of fiscal year 2026, with net sales reaching 2,203 million yen (up 111.8% YoY) and operating profit rising to 1,258 million yen (up 485.2% YoY).See it on page 1
02
The licensing division was the primary growth driver, generating 1,909 million yen in sales—a 121.0% increase compared to the same period last year—fueled by international releases of titles like 'Trails through Daybreak' and 'Ys X -Nordics-'.See it on page 4
03
The product division contributed 294 million yen in sales, a 66.8% increase, driven by the release of 'Trails in the Sky the 1st' and 'Ys X -Proud NORDICS-' across multiple platforms including Nintendo Switch, PS5, and Steam.See it on page 4
04
The company maintained its full-year fiscal 2026 forecast, projecting 3,600 million yen in sales and 2,200 million yen in operating profit, with performance heavily weighted toward the fourth quarter.See it on page 5
05
Nihon Falcom executed a share buyback of 412,500 shares during the period, resulting in a 608 million yen increase in treasury stock as of June 30, 2026.See it on page 1
06
The company is currently developing 'Trails in the Sky the 2nd' for a scheduled worldwide release in September 2026, while continuing to prioritize the expansion of its IP across global platforms.See it on page 4

Summary

Nihon Falcom’s financial results for the third quarter of the fiscal year ending September 2026 demonstrate significant growth in both revenue and profitability compared to the same period in the previous year. The primary objective of this report is to outline the company’s financial performance, driven by a robust release schedule of new titles and the expansion of its intellectual property across multiple global platforms, including Nintendo Switch, PlayStation 5, and Steam.

Key financial indicators show substantial year-over-year gains. Net sales reached 2,203 million yen, representing a 111.8% increase, while operating profit surged by 485.2% to 1,258 million yen. Ordinary profit and quarterly net profit followed similar upward trajectories, rising 470.7% and 545.1%, respectively. This performance was bolstered by the product division, which generated 294 million yen, and a highly successful licensing division, which contributed 1,909 million yen—a 121.0% increase over the prior year. The licensing growth was largely fueled by the international release of titles such as the Trails and Ys series.

The company maintains a strong financial position with total assets of 11,711 million yen and a high equity ratio of 93.5%. While the company executed a share buyback of 608 million yen during this period, it remains committed to its previously announced full-year earnings forecast, which anticipates 3,600 million yen in sales and 2,200 million yen in operating profit. Management notes that the company’s business model is characterized by revenue concentration in months when new products are launched, with significant activity expected in the fourth quarter as it prepares for the release of The Legend of Heroes: Trails in the Sky the 2nd.