Nippon Ichi Software Semi-Annual Report: 33rd Period (FY2026)

Nippon Ichi Software, Inc. reports its consolidated financial results for the first half of the 33rd fiscal period, covering April 1, 2025, through September 30, 2025. The primary purpose of the disclosure is to provide a semi-annual update on the group’s financial standing, operational performance, and cash flow status. The scope of the report encompasses the core entertainment business, centered on video game development and global publishing, as well as a secondary segment involving the management of student dormitories in Gifu Prefecture.

Financial data indicates a challenging period for the group. Net sales fell to 1,244 million yen, representing a 49.2% decrease compared to the same period in the previous year. This decline contributed to an operating loss of 322 million yen and a net loss attributable to owners of the parent of 224 million yen. The entertainment segment specifically saw a transition from a prior-year profit to an operating loss of 95 million yen, despite the release of titles such as Fuuraiki 5 and Renju. The report attributes the overall performance to the timing of software releases and ongoing development costs for upcoming titles like Kyoran Makaism.

The group maintains a solid capital position with a self-equity ratio of 67.2% and total assets valued at 11.2 billion yen. Cash and cash equivalents decreased by approximately 1.5 billion yen during the period, largely driven by investment activities, including 2.05 billion yen placed into time deposits. Management emphasizes a strategy focused on strengthening development capabilities and expanding global localization efforts across platforms including PlayStation Network, Nintendo eShop, and Steam to return to profitability. The financial statements were prepared in accordance with Japanese accounting standards and underwent an interim review by Tokai Kaikeisha Audit Corporation.