Kadokawa Corporation

Game Co.

6 documents

Media company, parent of FromSoftware (Elden Ring, Dark Souls, Sekiro, Armored Core). Also anime, manga, publishing.

Documents

Financial

Earnings Results: FY2026 Q3

KADOKAWA’s financial performance through the third quarter of fiscal year 2026 reflects a period of transition characterized by a slight consolidated revenue decline to 202.9 billion yen and a sharp 59.7% drop in operating profit. This contraction stems primarily from profit margin compression in the publishing sector due to rising labor costs and smaller title scales, alongside difficult year-on-year comparisons in the gaming and anime divisions. While the previous fiscal year benefited from the massive global success of Elden Ring, current results show a normalization of earnings despite steady contributions from downloadable content and repeat sales totaling 2.5 million units. The gaming segment remains a focal point for future growth, with a strategic shift toward next-generation hardware. Development is currently underway for multiple titles for the successor to the Nintendo Switch, including Elden Ring Tarnished Edition and a platform-exclusive title, The Duskbloods, co-published with Nintendo. Although specific release dates and financial guidance for these projects remain undisclosed, they represent a core pillar of the long-term recovery strategy. Meanwhile, the anime segment continues to leverage a robust slate of 52 titles, including popular franchises like Re:Zero and Oshi no Ko, even as licensing income saw a temporary 22% decline. Geographically, international markets continue to play a vital role, with overseas revenue reaching 12.5 billion yen for the quarter. The United States and Asia remain the dominant territories, accounting for 45.6% and 39.3% of international sales, respectively. Positive momentum in the Education and EdTech divisions, which achieved 13.4% revenue growth through record student enrollment, provides a stabilizing counterweight to the volatility in entertainment software. Moving into the final quarter, recovery efforts will focus on strategic price revisions in publishing and a strong lineup of anime sequels to offset earlier margin pressures.

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Kadokawa CorporationFeb 2026

Financial

Kadokawa Q3 FY2026 Financial Results (Japanese GAAP)

This financial report details the consolidated results for KADOKAWA Corporation during the first nine months of the fiscal year ending March 31, 2026, covering the period from April 1, 2025, to December 31, 2025. The data reflects a challenging period for the Japanese media conglomerate, characterized by significant declines in profitability despite relatively stable net sales. Net sales reached 202.9 billion yen, a slight 1.7% decrease year-on-year, while operating profit plummeted 59.7% to 6.3 billion yen. Net income attributable to owners of the parent fell 70.0% to 2.2 billion yen. Performance varied significantly across industry segments. The Publication and IP segment saw a 90.2% drop in operating profit due to smaller-scale domestic hits and rising personnel costs, despite growth in overseas markets like the U.S. and Asia. The Animation and Live-Action segment transitioned to an operating loss of 904 million yen, attributed to a higher ratio of new, less established titles compared to the previous year’s major hits. The Game segment, led by FromSoftware, reported an 11.6% revenue decline; while the new title Elden Ring Nightreign performed well, it could not match the high bar set by the previous year’s Elden Ring expansion and repeat sales. Conversely, the Web Services and Education/EdTech segments showed resilience, with Web Services recovering from prior cyberattack impacts to post a 21.5% increase in sales. Strategically, the company continued its "Global Media-Mix with Technology" initiative, expanding its international footprint through the acquisition of Edizioni BD in Italy and SOZO Pte. Ltd. in Singapore. These moves aim to strengthen IP recognition and D2C capabilities in Europe and Southeast Asia. Despite the quarterly downturn, the company maintained its full-year forecast, projecting 278.2 billion yen in net sales and 10.3 billion yen in operating profit, while confirming a planned annual dividend of 30 yen per share.

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Kadokawa CorporationFeb 2026

Financial

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

Report

Earnings Results: Q3 Fiscal Year Ending March 2026

1. 2026 年3 月期第 3四半期連結実績サマリ P3 2. 2026 年3 月期第 3四半期連結実績（セグメント別） P10 3. Appendix P19 Q12 20263ThDuloos①#H3-A? A 2025年3月期 2026年3月期前年同期比 2025年3月期 2026年3月期前年同期比 (単位：百万円) 4-12月実績 4-12月実績（増減額） 10-12月実績 10-12月実績（増減額）売上高 206,587 202,991 ▲1.7% 70,267 69,058 ▲1.7% Q12 (▲3,595) (▲1,208) ③ ▲59.7% ...

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Kadokawa Corporation

Report

Consolidated Financial Results: Q3 Fiscal Year Ending March 2026

Kadokawa Corporation reported a decline in its third‑quarter consolidated results for the fiscal year ending March 2026. Total sales fell 1.7 % to ¥20,299 billion, while operating profit dropped 59.7 % to ¥637 million and ordinary profit fell 47.1 % to ¥910 million, leading to a parent‑shareholder net loss of ¥221 million. EBITDA contracted 39.0 % to ¥1,314 million, and the diluted earnings per share fell from ¥54.79 to ¥15.07. Net assets decreased modestly, with total assets at ¥394 billion and equity at ¥277 billion; the equity ratio remained healthy at 62.4 %. Cash and cash equivalents ended the quarter at ¥73 billion after significant outflows from investment activities (¥5.2 billion) and financing (¥5.0 billion). Segment performance varied: the publishing/IP creation unit posted a 90.2 % drop in operating profit to ¥623 million despite flat sales, whereas the web services segment achieved a 21.5 % revenue increase and an operating profit of ¥2187 million. The animation/film segment recorded a loss of ¥940 million, and the game unit saw an 11.6 % revenue decline with a modest operating profit of ¥8050 million. Education and other segments delivered modest gains. The company added two subsidiaries—Edizioni BD S.r.l. in Italy and SOZO Pte. Ltd. in Singapore—to its consolidation, increasing goodwill by ¥2,427 million and ¥1,846 million respectively. A significant system‑failure expense of ¥2,338 million related to a cyberattack on the Niconico service was recorded as a special loss. Dividend policy remained unchanged, with no dividends declared for the current year and a forecast of ¥30 million per quarter. The report covers Japan, the United States, Asia and other regions for the period April 1 2025 to March 31 2026, using Japanese GAAP and a survey of consolidated financial statements.

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Kadokawa Corporation