Nippon Ichi Software Financial Results: Fiscal Year Ended March 2025

Key insights

6 takeaways

01
Nippon Ichi Software reported a net loss of 157 million yen for the fiscal year ended March 2025, a significant decline from the 593 million yen profit recorded in the previous fiscal year.See it on page 1
02
Annual net sales fell slightly by 0.8% to 5.299 billion yen, while the company shifted from an operating profit of 401 million yen in the prior year to an operating loss of 274 million yen.See it on page 8
03
The core entertainment segment saw sales decline by 1.0% to 5.202 billion yen, with operating profit dropping 77.7% to 207 million yen.See it on page 4
04
The company released four domestic titles during the fiscal year, including 'Disgaea 7: Complete' and 'Phantom Brave: The Lost Hero,' the latter of which marked the group's first simultaneous domestic and international release.See it on page 4
05
Despite the fiscal year's losses, the company maintained an annual dividend of 5.00 yen per share and projects a return to profitability in the fiscal year ending March 2026, forecasting a net profit of 188 million yen.See it on page 1
06
As of March 31, 2025, the company held 4.746 billion yen in cash and cash equivalents, supported by a 395 million yen increase in short-term borrowings during the fiscal year.See it on page 7

Summary

Nippon Ichi Software’s financial results for the fiscal year ended March 31, 2025, reflect a challenging period characterized by a transition from profitability to a net loss. The company reported consolidated net sales of 5.299 billion yen, a slight decrease of 0.8% compared to the previous fiscal year. Profitability metrics declined significantly, with the company recording an operating loss of 274 million yen, compared to an operating profit of 401 million yen in the prior year. Consequently, the company reported a net loss attributable to owners of the parent of 157 million yen, a sharp reversal from the 593 million yen profit achieved in the fiscal year ended March 2024.

The entertainment segment, which serves as the company's core business, generated 5.202 billion yen in sales—a 1.0% year-over-year decline—and an operating profit of 207 million yen, representing a 77.7% decrease. During this period, the company released four domestic titles, including the first simultaneous domestic and international launch for the Phantom Brave series, while continuing to focus on digital distribution and global localization efforts. The student dormitory and other business segment saw a 13.9% increase in sales to 97 million yen but remained unprofitable, recording an operating loss of 34 million yen.

As of March 31, 2025, the company maintained a solid financial position with total assets of 11.154 billion yen and an equity ratio of 69.6%. Cash and cash equivalents stood at 4.746 billion yen. Looking ahead to the fiscal year ending March 2026, the company forecasts a return to profitability with projected net sales of 4.947 billion yen and a net profit of 188 million yen. The company continues to prioritize the strengthening of development and sales capabilities while exploring future transitions to International Financial Reporting Standards (IFRS).