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Japan

Notice Regarding the Disposal of Treasury Shares for Performance-Linked Stock Remuneration

KADOKAWA Corporation has authorized the disposal of treasury shares to support its performance-linked stock remuneration system. This strategic financial move involves the issuance of 903,100 shares of common stock at a price of 3,250 yen per share, totaling approximately 2.94 billion yen. The transaction is scheduled for completion on February 18, 2026, with the shares being allocated to a trust account managed by Sumitomo Mitsui Trust Bank. The primary objective of this disposal is to sustain an incentive program designed for executive officers of KADOKAWA and directors of its subsidiaries, including entities such as Dwango and KADOKAWA Future Publishing. By utilizing a trust-based system established in 2017, the company aims to align executive compensation with shareholder value and long-term corporate growth. The disposal price was determined based on the closing market price of the stock on the Tokyo Stock Exchange on the business day immediately preceding the board's resolution, ensuring an objective and fair valuation. The scope of this action affects the broader KADOKAWA group within the Japanese media and gaming industry. The total number of shares being disposed of represents a dilution of 0.61% relative to the total issued shares and voting rights as of September 30, 2025. Management has concluded that this level of dilution is reasonable and will have a negligible impact on the secondary market. The trust is structured as a third-party managed entity, and notably, the voting rights associated with the shares held within the trust will not be exercised during the trust period, which is currently slated to run through August 2027.

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Kadokawa CorporationJan 2026

Financial

Decision Regarding Stock Acquisition Under Performance-Linked Stock Remuneration Plan

KADOKAWA Corporation has formalized a decision to allocate additional funds to its performance-linked stock remuneration plan, facilitating the acquisition of company shares through an established trust mechanism. This strategic move aims to incentivize executive officers of the parent company and directors of its various subsidiaries, excluding outside directors. By aligning executive compensation with corporate performance and shareholder value, the initiative seeks to foster long-term growth and strengthen the commitment of leadership across the group’s diverse business segments. The transaction involves the acquisition of 903,100 shares of common stock, valued at approximately 2.935 billion yen. These shares will be obtained through the disposal of treasury stock, with the transaction scheduled for completion on February 18, 2026. The trust, originally established in 2017 through the consolidation of previous incentive plans from Dwango and KADOKAWA Future Publishing, serves as the vehicle for this distribution. Under the terms of the trust agreement, voting rights associated with the shares held within the trust will not be exercised, ensuring a neutral impact on corporate governance proceedings during the holding period. This financial arrangement extends the operational timeline of the existing remuneration framework, with the trust period now projected to conclude at the end of August 2027. The management of the trust remains under the oversight of Sumitomo Mitsui Trust Bank and an independent third-party administrator to ensure transparency and adherence to beneficiary requirements. This capital allocation underscores a continued reliance on equity-based incentives to drive executive performance within the Japanese media and entertainment conglomerate.

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Kadokawa CorporationJan 2026

Financial

Consolidated Financial Results for the Nine-Month Period Ending December 31, 2025

Koei Tecmo Holdings Co., Ltd. reports its consolidated financial results for the nine-month period ending December 31, 2025, reflecting a period of slight contraction in sales and profitability compared to the previous year. Net sales reached ¥51,729 million, a 1.6% decrease year-on-year, while operating profit fell 3.3% to ¥14,571 million. Ordinary profit and profit attributable to owners of the parent also saw declines of 6.2% and 5.5% respectively, with the latter totaling ¥23,780 million. Despite these dips in earnings, comprehensive income rose significantly by 52.0% to ¥56,359 million, driven largely by a substantial increase in valuation differences on available-for-sale securities. The company’s financial position strengthened considerably during this period, with total assets increasing from ¥209,828 million at the end of March 2025 to ¥311,492 million by December 31, 2025. This growth was supported by a rise in cash and deposits to ¥51,319 million and a significant expansion in investment securities, which reached ¥127,532 million. Net assets grew to ¥258,716 million, although the equity-to-asset ratio moderated from 89.9% to 82.8%. A notable corporate action during the period included the disposal of over 18 million treasury shares through public and secondary offerings in September 2025, which contributed to the shift in shareholders' equity. Looking ahead to the full fiscal year ending March 31, 2026, the forecast anticipates net sales of ¥92,000 million, representing a 10.6% increase over the previous year. However, profitability is expected to remain under pressure, with projected declines in operating profit (down 3.5%), ordinary profit (down 26.0%), and net profit (down 28.2%). The company maintains a dividend forecast of ¥43.00 per share for the fiscal year-end. These results and projections, prepared under Japanese GAAP, cover the company’s global operations across its various entertainment and investment segments.

investment market-analysis japan

Koei TecmoDec 2025

Financial

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.

investment market-analysis japan+1

Nippon Ichi SoftwareNov 2025

Financial

Bushiroad Issues Financial Report for First Quarter of Fiscal 2026

Bushiroad Inc. experienced significant growth in profitability during the first quarter of fiscal year 2026, covering the period from July 1, 2025, to September 30, 2025. Net sales reached 13,766 million yen, representing a 12.2% increase compared to the same period in the previous fiscal year. This revenue growth was accompanied by a substantial surge in operating profit, which rose 226.6% to 1,668 million yen. Ordinary profit and profit attributable to owners of the parent also saw dramatic improvements, reaching 1,932 million yen and 1,663 million yen respectively, rebounding from much lower or negative figures in the prior year. The financial position of the company remains stable, with total assets valued at 47,971 million yen and net assets increasing to 26,844 million yen. This resulted in an improved equity-to-asset ratio of 52.7%, up from 47.7% at the end of fiscal 2025. A notable corporate action during this period was a two-for-one share split effective October 1, 2025. Consequently, profit per share for the quarter was 12.27 yen when calculated on a post-split basis, a sharp increase from the 0.42 yen recorded in the first quarter of fiscal 2025. Despite the strong start to the year, the full-year forecast for fiscal 2026 suggests a more conservative outlook. Management anticipates annual net sales of 56,000 million yen, a slight decrease of 0.3% year-over-year. Operating profit for the full year is projected to decline by 7.6% to 4,500 million yen, while profit attributable to owners of the parent is expected to drop 21.0% to 2,700 million yen. The company plans an annual dividend of 2.50 yen per share on a post-split basis, reflecting a cautious approach to the remainder of the fiscal year ending June 30, 2026.

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BushiroadNov 2025

Financial

Notice Regarding Differences in Earnings Forecasts

The notice serves to inform shareholders of a variance between the company’s actual second‑quarter performance for the fiscal year ending March 2026 and the forecast issued on 20 June 2025. For the consolidated period April 1 to 30 September 2025, net sales reached ¥1,244 million, 10.9 % below the prior estimate of ¥1,396 million, while operating profit fell to a loss of ¥322 million versus the projected ¥264 million loss. Net profit attributable to the parent’s shareholders declined to ¥44 million per share from the forecasted ¥47 million. On a standalone basis, sales were ¥363 million, 15.3 % lower than the ¥429 million expected, and net profit per share slipped to ¥45 million from ¥48 million. The primary driver of the shortfall was weaker domestic demand for newly released titles, which reduced unit sales below expectations. Conversely, a stronger yen depreciation generated foreign‑exchange gains that lifted both ordinary profit and net profit relative to the forecast. Despite the quarterly miss, the company retains its full‑year outlook unchanged. The revised full‑year consolidated forecast anticipates sales of ¥4,774 million, a 9.9 % decline year‑on‑year, with operating profit turning positive to ¥81 million after a prior loss, ordinary profit of ¥154 million, and net profit attributable to shareholders of ¥31 million. On a standalone basis, full‑year sales are projected at ¥1,081 million, down 23.8 % YoY, with ordinary loss of ¥118 million and net loss of ¥121 million. The company commits to updating the outlook promptly should subsequent developments warrant revision.

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Nippon Ichi SoftwareNov 2025

Financial

GREE Holdings FY2026 Q1 Financial Results Briefing (Transcript)

GREE Holdings reported its financial results for the first quarter of fiscal year 2026, highlighting a period of strategic reorganization and disciplined profit management. The company achieved consolidated net sales of ¥12.8 billion and an operating profit of ¥1.1 billion. A significant structural update involved renaming the Metaverse segment to the VTuber Business, now divided into Platform and Production sub-segments to better reflect current activities. While overall sales saw a slight decline due to a slowdown in the Game Business, profits exceeded initial projections across all four core segments due to effective cost controls and reduced variable expenses. The Game Business remains the largest revenue contributor at ¥7.5 billion, though it experienced a decline in momentum from existing titles. To offset this, the company is pivoting toward console development, with one proprietary IP title scheduled for release in FY2026. Conversely, the VTuber Business reached a historical high in operating profit, driven by a 142% year-over-year increase. This growth was attributed to reduced payment processing fees and the narrowing of losses in the Production Business, which is expected to reach monthly profitability within the current fiscal year. The IP and DX Businesses showed mixed results; the IP segment was impacted by delayed revenue recognition in its anime division, while the DX segment benefited from large consulting orders. The Investment Business remained stable, contributing to net profit through foreign exchange gains and securities sales. Geographically focused on the Japanese market with expanding global IP interests, GREE maintains its medium-term target of reaching a profit floor in FY2026 before returning to a growth trajectory in FY2027 and FY2028. Management emphasized a shift toward recurring earnings and high-quality internal IP to drive long-term value.

market-analysis investment japan

GREENov 2025

Financial

Summary of Main Supplementary Explanations Q&A at FY2026 First Quarter GREE Holdings Results Briefing, November 6, 2025

GREE Holdings provides a strategic overview of its operational performance and market outlook following the first quarter of fiscal year 2026. The primary focus centers on the structural evolution of the gaming sector and the path to profitability for the VTuber business. While the smartphone game market has reached a plateau characterized by high competition for user installs, the implementation of outside-the-app payment methods across all major titles has successfully bolstered profit margins. To ensure long-term sustainability in gaming, the strategy involves transitioning toward console development and cultivating internal intellectual property that can support multi-title series, though external contractors are currently utilized to bridge expertise gaps in the console segment. The VTuber business represents a significant growth pillar, with the production segment expected to reach monthly profitability within fiscal year 2026 and full-year profitability by fiscal year 2027. This financial turnaround is driven by a shift from high-cost talent acquisition and 3D model production toward high-margin revenue streams, including merchandise, live events, and cross-media collaborations. Although the domestic Japanese market remains the primary revenue driver, there is a strong conviction that international fan bases will eventually surpass the domestic market in scale, mirroring the historical trajectory of the anime industry. Broader corporate initiatives include the integration of generative AI to enhance development efficiency and service quality across the gaming and digital transformation segments. In the investment business, the strategy is adapting to a challenging IPO environment by increasingly targeting M&A as a viable exit path. Overall, the outlook emphasizes a transition from rapid expansion to margin optimization and long-term IP cultivation across both digital entertainment and platform services.

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GREENov 2025

Financial

Consolidated Financial Results for the Six Months Ended September 30, 2025: Japan

TOWA CORPORATION’s consolidated financial results for the six months ended September 30, 2025, reflect a period of significant year-on-year decline in both revenue and profitability. The company reported net sales of 23,449 million yen, a 14.4% decrease compared to the same period in the previous fiscal year. Operating profit fell by 52.6% to 2,493 million yen, while profit attributable to owners of the parent dropped 51.7% to 1,849 million yen. These results were primarily driven by a slowdown in orders that began in the second half of the previous fiscal year, stemming from weak demand in consumer and memory semiconductor markets and the impact of international tariff policies. The semiconductor manufacturing equipment business, which represents the company’s primary segment, saw net sales decline by 14.7% to 21,585 million yen, with operating profit falling 53.6%. The laser processing machine business also struggled, reporting an operating loss of 82 million yen. Conversely, the medical device business showed resilience, achieving an 8.4% increase in net sales to 1,224 million yen. Despite the overall downturn, the company noted a gradual recovery in capital investment during the second quarter, particularly in China, Taiwan, and other Asian markets, which helped profits exceed initial internal expectations. As of September 30, 2025, the company maintained a solid financial position with total assets of 91,013 million yen and an equity-to-asset ratio of 70.1%. Given the ongoing market uncertainties and fluctuating customer investment trends, the company has opted to maintain its previously announced full-year earnings forecast for the fiscal year ending March 31, 2026, which projects net sales of 56,000 million yen and an operating profit of 9,800 million yen.

investment japan market-analysis+1

TowaNov 2025

Financial

Consolidated Financial Statements for the Second Quarter and First Half-Year Period of Fiscal Year Ending March 31, 2026 (Japanese GAAP)

Akatsuki Inc. experienced a period of strategic transition during the first half of the fiscal year ending March 31, 2025, characterized by a contraction in core gaming revenue alongside aggressive expansion into new business segments. Net sales declined 20.6% year-on-year to ¥9,915 million, while operating profit fell 42.4% to ¥1,724 million. This downturn was primarily driven by a reactionary decline in the performance of existing game titles. However, net income attributable to owners rose 31.4% to ¥1,853 million, bolstered by the successful launch of Kaiju No. 8 The Game and the growing contribution of the Entertainment and Lifestyle segment. The financial structure underwent significant shifts as the company expanded its consolidation scope to include six new entities, most notably CRAYON Inc., Natee, Inc., and PAPABUBBLE JAPAN HD, Inc. These acquisitions, totaling several billion yen, resulted in a provisional goodwill increase of ¥3,352 million and a rise in long-term borrowings to ¥6,763 million. To reflect this evolving business model, the company restructured its reporting segments, merging Games and Comics while elevating the Entertainment and Lifestyle division due to its increased materiality and growth potential. Despite the growth in net income and the expansion of the IP-driven lifestyle business, management has opted not to provide consolidated operating forecasts for the remainder of the fiscal year. This decision stems from high levels of uncertainty within the Games and Comic sectors, where market volatility makes precise projections difficult. The current strategy focuses on balancing the stabilization of the core gaming portfolio with the integration of newly acquired subsidiaries to diversify revenue streams beyond traditional digital entertainment.

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AkatsukiNov 2025

Financial

FY2025 Consolidated Financial Results [Japanese GAAP]

CyberAgent achieved a significant financial recovery during the 2025 fiscal year, characterized by a 9.1% increase in net sales to ¥874,030 million and a 78.9% surge in operating income to ¥71,702 million. This performance was underpinned by the Media & IP segment returning to profitability for the first time in a decade, generating ¥7.29 billion in operating income. The Game Business served as the primary engine for growth, with its operating income nearly doubling to ¥60.06 billion. This success in the gaming sector was attributed to aggressive overseas expansion and the adoption of high-margin external payment methods, which more than offset a ¥727 million extraordinary loss related to a patent infringement settlement between subsidiary Cygames and Konami Digital Entertainment. The company’s financial position strengthened considerably over the period, with net income attributable to the parent doubling to ¥31.67 billion and cash flows from operating activities rising to ¥79,518 million. Strategic capital management included a ¥20,000 million redemption of convertible bonds and the acquisition of subsidiary shares. To better leverage synergies surrounding the ABEMA platform, the corporate structure was reorganized to integrate secondary operations into the newly designated Media & IP Business segment. Looking toward the 2026 fiscal year, the outlook remains cautious despite the recent momentum. While consolidated net sales are projected to grow modestly to ¥880,000 million, operating income is expected to contract to a range between ¥50,000 and ¥60,000 million. This forecast suggests a period of reinvestment or market stabilization following the exceptional gains realized in the gaming and media sectors during the previous year. The results reflect a consolidated Japanese market focus with increasing international contributions from the gaming portfolio.

investment japan market-analysis

CyberAgent, Inc.Nov 2025

Financial

Summary of Financial Results for Third Quarter of Fiscal Year Ended December 31, 2025

KLab Inc. experienced a significant downturn during the third quarter of fiscal year 2025, characterized by an 18.6% year-over-year revenue decline to ¥4.93 billion. This contraction was primarily driven by weakening performance in established titles such as Captain Tsubasa: Dream Team and a general decrease in income from paid users within the game business. Despite aggressive cost-cutting measures and a ¥1.57 billion gain from the sale of investment securities, the company recorded a substantial net loss of ¥3.97 billion. This loss was largely precipitated by a massive ¥4.42 billion impairment charge on software assets related to EA SPORTS FC™ TACTICAL and a reduction in goodwill following the divestment of GlobalGear Co. Ltd. The financial strain resulted in a decrease of over ¥3.1 billion in total net assets, though the company mitigated some impact by raising approximately ¥719 million through the exercise of stock acquisition rights. While four consecutive years of operating deficits have prompted scrutiny regarding the company’s status as a going concern, management asserts that no material uncertainty exists. This confidence is based on steady progress with major intellectual properties, including Dragon Quest and My Hero Academia, alongside a strategic pivot toward generative AI and blockchain ventures to diversify future revenue streams. Operating within the Japanese market during a period of rapid industry volatility, the company has withheld future performance forecasts. The current strategy focuses on maintaining liquidity through strict cost controls and asset sales while transitioning the business model to leverage emerging technologies. Despite the current net losses and the impairment of software in progress, the segment profit of ¥592 million suggests that core operations remain functional as the group attempts to stabilize its capital position and return to long-term profitability.

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KLabNov 2025

Financial

FY2026 First Quarter Financial Results

The first quarter of FY2026 reflects a period of strategic transition and resilient profitability, with consolidated net sales reaching ¥12.8 billion and operating profit totaling ¥1.1 billion. While these figures represent a sequential decline in sales, they exceeded internal expectations and demonstrate a 63% year-over-year increase in operating profit. The current fiscal year is positioned as a foundational "bottom" year for earnings due to aggressive investments in a new console title, with a return to significant growth projected for FY2027. Management has revised full-year estimates upward to ¥56.4 billion in sales, anticipating a smaller profit decline than originally forecasted. The Game segment remains the primary revenue driver at ¥7.5 billion, benefiting from overseas outsourced development and reduced advertising expenses following the wind-down of major promotions. Simultaneously, the newly rebranded VTuber Business achieved record quarterly operating profit of ¥0.4 billion, supported by steady live streaming growth and effective cost controls. While the Production and IP sub-segments currently face temporary losses due to heavy investment and delayed revenue cycles in anime, they are expected to reach profitability in the second half of the year. The DX Consulting Business emerged as a high-growth pillar, reaching record quarterly sales of ¥1.9 billion through large-scale digital marketing projects. The Investment Business continues to provide significant financial upside, reporting a substantial year-over-year increase in operating profit to ¥1.4 billion driven by management fees and success fees from a ¥53 billion asset pool. Despite some valuation losses in specific funds, the segment maintains a high unrealized portfolio value of ¥38.9 billion. Across all segments, the group is targeting a medium-term profit CAGR of 20% to 25% through FY2028, supported by a strong 70% equity ratio and a diversified portfolio spanning gaming, virtual entertainment, and digital transformation services.

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GREENov 2025

Financial

Consolidated Results Supplementary Information for Q2 of FYE March 2026

Akatsuki Inc. reported its consolidated financial results for the second quarter of the fiscal year ending March 2026, highlighting a period of strategic transition. While overall group sales and operating profits saw year-over-year declines, net income rose by 80% to ¥3,020 million, and adjusted EBITDA increased by 4% to ¥4,015 million. These gains were primarily driven by successful investee exits and a significant reduction in valuation losses for investment securities, which improved other income by ¥1,621 million compared to the previous year. The Games & Comics segment remains the primary revenue driver, though it experienced a 10% decline in quarterly sales to ¥7,248 million. This was attributed to the natural cooling of existing titles and comics compared to a high-performance prior year. However, the August 2025 launch of Kaiju No. 8 The Game provided a significant boost, generating over ¥2 billion in its first month with a 40% overseas sales ratio. Conversely, the Entertainment & Lifestyle segment grew 36% year-over-year, supported by merchandising solutions and recent M&A activity. The financial outlook emphasizes future value creation through recent acquisitions, including PAPABUBBLE and WOWs, which will be integrated into consolidated results starting in the third quarter. Additionally, the company is expanding into AI and DX solutions through the acquisition of Natee and AI Talent Force. Total assets increased to ¥59,400 million by the end of the second quarter, reflecting higher fixed assets following these strategic investments. Operating expenses shifted as R&D costs for new titles were reclassified to cost of goods sold upon release, alongside a one-time reimbursement of R&D expenses for Hyke: Northern Light(s).

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AkatsukiNov 2025

Financial

FY2026 1Q Financial Results Briefing Material

Bushiroad’s financial performance for the first quarter of fiscal year 2026 reflects a period of significant expansion and profitability, characterized by a 12.2% increase in net sales to 13,766 million yen and a 227% surge in operating profit. This growth was primarily catalyzed by the trading card game segment, which benefited from the successful launches of the Godzilla and hololive official card games. Strategic shifts, including the transition to a single reporting segment and reduced research and development costs within the digital games unit, further bolstered the operating profit margin to 12.1%. The geographic scope of operations has shifted increasingly toward international markets, with overseas sales reaching a record 44.5% of total revenue. This global momentum is supported by the strong performance of established titles like Weiß Schwarz and the release of Hunter × Hunter NEN×IMPACT. While merchandise sales saw a slight year-on-year decline due to high prior-year comparisons, the live entertainment division maintained positive momentum through sold-out events in Shanghai and Japan. The company has already achieved 37.1% of its full-year operating profit target, positioning it well to meet annual forecasts. Future growth is anchored in an integrated "IP Developer" and "One-Stop Media Mix" strategy, which seeks to synchronize anime, digital games, and live events to maximize brand value. Key initiatives include the global expansion of the PalVerse brand, strategic investments in production partners like YUHODO and SANZIGEN, and large-scale events such as Bushiroad EXPO 2026. By leveraging cross-company alliances and high-profile intellectual properties like BanG Dream!, the organization aims to solidify its role as a global platform company capable of scaling both internal and third-party content across the entertainment landscape.

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BushiroadNov 2025

Financial

Consolidated Financial Results: FY3/26 Q2

Akatsuki Inc. achieved consolidated sales of ¥7,602 million and a net income of ¥3,020 million during the second quarter of the fiscal year ending March 2026, representing an 80% year-over-year increase in profitability. This financial performance was primarily bolstered by strategic investment exits and the successful launch of Kaiju No. 8 The Game, which secured over 5 million downloads and generated more than ¥2 billion in its debut month. While the core Games & Comics segment experienced a 10% decline in sales compared to the previous year’s high benchmarks, the company maintained strong operational momentum through established titles like Dragon Ball Z Dokkan Battle and a significant 40% overseas sales ratio for new releases. The strategic focus has shifted toward a reorganized three-segment business model designed to diversify revenue streams beyond traditional mobile gaming. This evolution includes the expansion of the Entertainment & Lifestyle pillar, highlighted by the acquisition of the candy brand PAPABUBBLE, and the establishment of an AI/DX Solutions division. Total assets rose to ¥59.4 billion as a result of aggressive M&A activity, which added substantial goodwill and software assets to the balance sheet despite a corresponding decrease in cash equivalents used for these acquisitions. Human capital remains a priority, with permanent staff increasing to 561 to support new business ventures, even as the core gaming division saw a slight contraction in headcount. The company is positioning itself for long-term growth by leveraging investment exit gains, which totaled approximately ¥400 million in the second quarter, to fund its transition into a broader entertainment conglomerate. These structural changes and recent product successes suggest a pivot toward a more diversified portfolio intended to mitigate the volatility of the gaming market while capitalizing on global intellectual property.

investment market-analysis japan

AkatsukiNov 2025

Financial

Fiscal Year Ending March 2026: Second Quarter Interim Financial Results (Japanese Standards) (Consolidated)

Nippon Ichi Software reported a significant downturn in its consolidated financial results for the first half of the fiscal year ending March 2026, covering the period from April 1, 2024, to September 30, 2024. Net sales fell by 49.2% year-over-year to 1.24 billion yen. The company recorded an operating loss of 322 million yen and a net loss attributable to owners of the parent of 224 million yen, deepening the losses compared to the same period in the previous fiscal year. The entertainment segment, which constitutes the core of the business, saw sales drop by 50.6% to 1.18 billion yen, resulting in a segment loss of 95 million yen. This decline occurred despite the release of titles such as Fuuraiki 5 and Renju, alongside ongoing localization and global distribution efforts on platforms like PlayStation Network, Nintendo eShop, and Steam. The company also operates a smaller student dormitory business in Gifu Prefecture, which saw a 25.1% increase in sales but remained unprofitable with an 8 million yen operating loss. The financial position remains stable with a 67.2% equity ratio and total assets of 11.2 billion yen. Cash and cash equivalents decreased by 1.54 billion yen during the period, primarily due to significant outflows for time deposits and investments in tangible fixed assets. Despite the weak interim performance, the company maintained its full-year forecast for the fiscal year ending March 2026, projecting 4.77 billion yen in sales and a return to profitability with 31 million yen in net income. The dividend forecast remains unchanged at 5 yen per share.

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Nippon Ichi SoftwareNov 2025

Financial

Consolidated Financial Results for the Six Months Ended September 30, 2025

MIXI, Inc. reported consolidated financial results for the first half of fiscal year 2026, covering the period from April 1, 2025, to September 30, 2025. The data reveals a slight contraction in overall performance, with net sales decreasing 2.0% year-over-year to ¥67,428 million. Operating income fell 17.5% to ¥7,214 million, while profit attributable to owners of the parent declined 6.2% to ¥4,902 million. Despite these decreases, the company maintained a strong equity ratio of 70.5% and committed to a stable dividend forecast of ¥120 per share for the full year. Performance varied significantly across industry segments. The Digital Entertainment Business, anchored by the mobile game Monster Strike, saw an 11.1% decline in sales due to lower monthly active users, though segment profit rose 2.5% to ¥16,571 million through improved cost efficiencies. The Sports Business experienced 20.5% revenue growth driven by online betting services and spectator growth at Chiba Jets, but segment profit dropped 38.6% due to costs associated with the acquisition of PointsBet Holdings Limited. The Lifestyle Business achieved a turnaround, reaching profitability with ¥72 million in segment profit on 30.0% sales growth, fueled by the FamilyAlbum app. Conversely, the Investment Business saw a 46.8% drop in sales as it lacked the large-scale share sales recorded in the previous year. The financial position was notably impacted by the acquisition of PointsBet, which added six companies to the scope of consolidation and generated ¥19,831 million in provisional goodwill. This expansion contributed to a significant increase in non-current assets and short-term borrowings. Cash and cash equivalents decreased by ¥22,883 million during the period, primarily due to ¥25,533 million in acquisition payments and ¥6,061 million in treasury share repurchases. Based on these mid-year results, the company issued a revised full-year forecast projecting net sales of ¥168,000 million and a 26.1% year-over-year decline in net income.

investment japan market-analysis+1

MIXI, Inc.Nov 2025

Financial

Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2025

Koei Tecmo Holdings Co., Ltd. reported its consolidated financial results for the first six months of fiscal year 2025, covering the period from April 1, 2025, to September 30, 2025. Prepared under Japanese GAAP, the data reveals a year-on-year decline across primary profitability metrics. Net sales fell 11.2% to ¥31.27 billion, while operating profit decreased 25.2% to ¥7.96 billion. Ordinary profit and profit attributable to owners of the parent also saw double-digit declines of 15.3% and 15.7%, respectively. Despite these drops in operational earnings, comprehensive income surged by 256.4% to ¥46.41 billion, primarily driven by a significant ¥32.4 billion valuation difference on available-for-sale securities. The consolidated balance sheet shows a substantial increase in total assets, rising from ¥209.8 billion at the end of March 2025 to ¥314.2 billion by September 30, 2025. This growth is largely attributed to a rise in investment securities and cash holdings. On the liabilities side, the company recorded ¥35 billion in short-term borrowings. Shareholders' equity improved to ¥214.9 billion, supported by the disposal of treasury shares through a public offering in September 2025, which reduced treasury share holdings from ¥37.7 billion to ¥3.7 billion. Looking ahead to the full fiscal year ending March 31, 2026, the company maintained its previous forecasts. It expects net sales to reach ¥92 billion, representing a 10.6% increase over the prior year, though it anticipates year-on-year declines in operating profit (down 3.5% to ¥31 billion) and ordinary profit (down 26% to ¥37 billion). The projected annual dividend is set at ¥43 per share. These forecasts account for the increased number of outstanding shares following the recent public and secondary offerings.

investment market-analysis japan

Koei TecmoOct 2025

Report

Integrated Report: Value Creation Story

DeNA entered a transformative "Second Founding" phase in FY2024, marked by a significant financial recovery and a strategic pivot toward company-wide AI integration. Revenue reached 164.0 billion yen with a Non-GAAP operating profit of 32.9 billion yen, driven primarily by the global success of Pokémon Trading Card Game Pocket. While the Game Business remains the core profit engine, the organization is diversifying its portfolio across Live Streaming, Healthcare, and a record-performing Sports segment to mitigate the volatility of hit-driven cycles. The company has established a FY2026 Non-GAAP operating profit target of 15.0 billion yen, emphasizing sustainable, structural growth over short-term gains. Central to this evolution is the "AI-ALL-IN" strategy, which aims to double productivity and launch approximately 10 AI-native products. This transition is supported by a robust human capital framework, including the DeNA AI Readiness Score (DARS) to track employee literacy and a shift toward market-linked, performance-based compensation. To manage development risks, the Game Business has adopted a "soft launch strategy" focused on iterative testing. Meanwhile, the Sports segment achieved 40 billion yen in revenue, and the Healthcare division is pivoting toward medical digital transformation despite facing recent impairment losses. Governance and sustainability are integrated into this value creation story through a board composed of 50% independent directors and a rigorous risk management framework. DeNA maintains high standards for data security and has committed to a 58.8% reduction in Scope 1 and 2 emissions by FY2033. By balancing aggressive AI adoption with disciplined capital allocation—including strategic share sales and increased dividends—the organization seeks to harmonize social value with long-term profitability across its diverse digital and physical business ecosystems.

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DeNA Co.Oct 2025