Earnings Results: Q3 Fiscal Year Ending March 2026

KADOKAWA's results for the first nine months of fiscal year ending March 2026 (April–December 2025) show a pronounced profit decline despite broadly stable sales. Net sales slipped 1.7% to ¥203.0B, while operating profit fell 59.7% to ¥6.4B, a 3.1% margin, and net income dropped 70.0% to ¥2.2B. The October–December quarter was weaker still, with operating profit down 84.1% to ¥0.8B. Excluding currency effects of roughly ¥0.8B, revenue declined about 1.3% over the nine months and 1.9% in the third quarter.

The Publishing/IP segment drove most of the deterioration, with operating profit down 90.2% to ¥0.6B on weaker domestic title sales, higher personnel costs, and the absence of last year's e-book revenue recognition boost. Paper books and media were roughly flat in the quarter, led by general books and comics, while e-book revenue fell 3.3% even as overseas e-books rose 19.9%. Anime/Live-action revenue fell 17.2% and Games fell 18.2%, as both lapped strong prior-year results including the ELDEN RING DLC. Overseas sales declined 14.1%. Hit concentration is notable: the top ten titles generate 23% of Anime/Live-action revenue.

Growth came from Web Services, where sales rose 21.5% as the effects of last year's cyberattack faded, and from Education/EdTech, where revenue rose 13.4% and profit 10.9% on higher enrollment at N高 and the launch of ZEN University. The Other segment's revenue fell 12.9%, largely from an internal reclassification with no consolidated impact.

Management anticipates a fourth-quarter recovery through domestic publishing price revisions, promotion optimization, and anime titles such as Oshi no Ko, and it aims to meet its full-year forecast. Further publishing restructuring and anime sequels are planned for next year. The game pipeline includes ELDEN RING Tarnished Edition and the Switch 2 exclusive The Duskbloods in 2026, though no release dates or sales forecasts were given. US tariffs are expected to have a minor effect.