Nihon Falcom FY 2025 Financial Results

Key insights

7 takeaways

01
Nihon Falcom reported FY 2025 net sales of 2,612 million yen (up 3.5% YoY) and an operating profit of 1,340 million yen (up 8.1% YoY).See it on page 1
02
The company achieved a net profit of 903 million yen, representing a 6.0% increase compared to the previous fiscal year.See it on page 9
03
Product segment revenue grew by 13.2% to 731 million yen, driven by multiple title releases including 'Ys X -Proud NORDICS-' and the global simultaneous launch of 'Trails in the Sky the 1st'.See it on page 4
04
Licensing revenue remains the primary income driver at 1,881 million yen, accounting for approximately 72% of total sales.See it on page 19
05
The company maintains a strong financial position with 10,350 million yen in cash and deposits and a high equity ratio of 94.6%.See it on page 5
06
FY 2026 projections are conservative, with forecasted net sales of 2,600 million yen and net profit of 900 million yen, reflecting a focus on multi-platform expansion and new project development.See it on page 6
07
Major revenue concentration persists, with four key partners—Konami Digital Entertainment, NIS America, Clouded Leopard Entertainment, and GungHo Online Entertainment—accounting for a significant portion of total sales.See it on page 19

Summary

Nihon Falcom’s financial results for the fiscal year ending September 30, 2025, demonstrate steady growth and continued profitability. The company reported total sales of 2,612 million yen, representing a 3.5% increase over the previous fiscal year. Operating profit rose by 8.1% to 1,340 million yen, while ordinary profit and net profit grew by 9.7% and 6.0%, respectively. This performance reflects the company’s focus on its core intellectual properties, including the "Trails" (Kiseki) and "Ys" series, alongside a strategic shift toward global multi-platform releases.

The company operates through two primary segments: Product and Licensing. The Product division saw a 13.2% increase in revenue, reaching 731 million yen, driven by the release of multiple titles across PlayStation 5, Nintendo Switch, and Steam, including the global simultaneous launch of "Trails in the Sky the 1st." The Licensing division, which remains the company's largest revenue contributor at 1,881 million yen, maintained stable performance with a 0.2% increase, supported by international distribution of localized versions of its back catalog and ongoing collaborations.

Financially, the company maintains a robust balance sheet with total assets of 11,495 million yen and a high equity ratio of 94.6%. Cash and cash equivalents increased to 10,350 million yen, supported by strong operating cash flows of 1,013 million yen. Looking ahead to the fiscal year ending September 2026, the company projects sales of 2,600 million yen and a net profit of 900 million yen. Future growth strategies center on expanding the "Trails" series with the upcoming "Trails in the Sky the 2nd," continued multi-platform porting, and the development of new, unannounced projects to diversify its IP portfolio.