Marvelous

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Marvelous Q3 FY2026 Financial Results (Fiscal Year Ending March 2026)

Marvelous Inc. provides a comprehensive financial overview of its performance through the third quarter of the fiscal year ending March 31, 2026. As a Tokyo-based entertainment company, its operations span three primary segments: Digital Contents, which develops games for various platforms; Amusement, focused on arcade game machines; and Audio & Visual, covering music, video, and live stage performances. The data reflects a multi-year trajectory of financial results, including consolidated balance sheets, income statements, and segment-specific sales and income. Financial results for the first nine months of the 2026 fiscal year show net sales of 29,121 million yen, surpassing the full-year totals of the previous two fiscal years. Despite this growth in top-line revenue, operating profit for the period stands at 1,776 million yen, reflecting a lower operating profit ratio of 6.1% compared to 17.9% in 2022. The Digital Contents segment remains the largest contributor to revenue, generating 16,896 million yen in the first three quarters, though it recorded a segment loss of 73 million yen. In contrast, the Amusement segment proved highly profitable, contributing 2,558 million yen in income on sales of 9,298 million yen. The company maintains a stable financial position with total assets of 35,669 million yen and an equity ratio of 76.4% as of December 2025. While net income per share has recovered to 25.56 yen from a loss in 2024, profitability metrics such as Return on Equity have fluctuated significantly over the reported periods. The shareholder structure is anchored by Image Frame Investment (HK) Limited, which holds a 20% stake, followed by founder-related holdings. These figures highlight a period of revenue expansion driven by diverse entertainment segments, tempered by rising costs of sales and shifting profitability within the core digital gaming business.

market-analysis investment game-development+1

MarvelousMar 2026

Financial

Consolidated Financial Results for the Nine Months Ended December 31, 2025

Sega Sammy Holdings experienced a period of financial transition during the first nine months of the fiscal year ending March 31, 2026, characterized by modest revenue growth alongside significant bottom-line volatility. Net sales increased by 4.0% to ¥335.2 billion, supported by the successful execution of the Sonic the Hedgehog transmedia strategy and record profits from the Paradise City integrated resort in South Korea. However, the company recorded a net loss of ¥16.9 billion, a sharp reversal from the prior year’s profitability. This downturn was primarily driven by a ¥31.4 billion impairment loss on goodwill and intangible assets associated with the acquisition of Rovio Entertainment, which contributed to a 54.6% decline in operating income. Performance across core business segments remained mixed as the company integrated recent acquisitions. While the Gaming segment saw a 441.6% surge in third-party sales following the consolidation of Stakelogic and GAN, it ultimately recorded an ordinary loss. Meanwhile, ordinary income fell by 34.3% in the Entertainment Contents division and 46% in the Pachislot and Pachinko segment. These operational headwinds, combined with dividend payments and treasury stock acquisitions, led to a reduction in total net assets to ¥360.6 billion. In response to these financial pressures and the impact of the Rovio impairment, a strategic shift in capital allocation has been implemented. The company has formally suspended large-scale M&A activities to prioritize shareholder returns and balance sheet stability. This pivot includes a ¥20 billion treasury stock buyback program scheduled between February and July 2026, intended to acquire and retire up to 5.71% of outstanding shares. By reallocating capital previously reserved for aggressive growth investments, the focus has moved toward optimizing existing assets and enhancing shareholder value through disciplined financial management.

investment mergers-acquisitions market-analysis+1

Sega Sammy HoldingsFeb 2026

Presentation

Results Briefing Materials: Fiscal Year Ending March 2026, Third Quarter

Marvelous Inc. reports a significant increase in financial performance for the first nine months of the fiscal year ending March 2026. Net sales reached 29,121 million yen, a 40.5% year-on-year increase, while ordinary profit grew 28.6% to 2,129 million yen. This growth was primarily driven by the Digital Contents and Amusement segments, alongside foreign exchange gains that bolstered the bottom line. The Digital Contents business saw revenue jump 69.2% following the successful launches of core titles including Rune Factory: Guardians of Azuma, STORY OF SEASONS: Grand Bazaar, and DAEMON X MACHINA TITANIC SCION. While high development costs for these new titles initially pressured margins, strong sales contributed to earnings ahead of schedule, significantly reducing cumulative operating losses in the segment. In the online space, the company launched Browser Sangokushi Ten, though it noted a slow initial start. The Amusement business remained a consistent profit driver, with revenue increasing 25.1% due to the continued popularity of Pokémon kids’ amusement machines, such as Pokémon FRIENDA and the overseas expansion of Pokémon MEZASTAR. Conversely, the Audio & Visual business experienced a revenue decline of 11.3% following the liquidation of unprofitable businesses, though segment profit rose sharply by 306.1% due to high-performing stage productions and secondary usage revenue from anime titles. Geographically, the company is focused on the Japanese, North American, European, and Asian markets across Nintendo Switch, PlayStation 5, and PC platforms. Despite exceeding year-to-date targets for certain profit metrics, the full-year forecast remains unchanged at 35,000 million yen in net sales and 2,000 million yen in operating profit, citing potential future uncertainties in the macroeconomic and industry environment.

market-analysis game-publishing japan

MarvelousJan 2026

Financial

Marvelous Consolidated Financial Results H1 FY2026 (Six Months Ended September 30, 2025)

Marvelous Inc. reported consolidated financial results for the first half of the fiscal year ending March 31, 2026, covering the period from April 1, 2025, to September 30, 2025. The data reveals a significant divergence between top-line growth and operational profitability. Net sales rose sharply by 57.5% year-on-year to 20,281 million yen, driven primarily by the Digital Contents Business, which saw revenues nearly double. Despite this revenue surge, operating profit fell by 61.8% to 226 million yen. This decline was largely due to a segment loss of 1,070 million yen in the Digital Contents division, contrasting with the previous year’s profit. Conversely, the Amusement and Audio & Visual segments showed improved profitability, contributing 1,702 million yen and 483 million yen in segment profit, respectively. The financial position remains stable with total assets of 34,328 million yen and an equity-to-asset ratio of 74.9%. Cash flows from operating activities improved dramatically, shifting from a deficit in the prior year to a surplus of 5,822 million yen, aided by a substantial decrease in inventories. Profit attributable to owners of the parent rose 134.7% to 184 million yen, supported by reduced non-operating expenses compared to the previous year’s foreign exchange losses. Looking ahead, the full-year forecast remains unchanged, projecting net sales of 35,000 million yen and an operating profit of 2,000 million yen. This outlook suggests a heavy reliance on second-half performance to recover the current margin compression. The company plans to increase its annual dividend from 10 yen to 12 yen per share, reflecting confidence in its long-term financial health despite the immediate pressure on operating margins.

investment japan market-analysis

MarvelousOct 2025

Presentation

Results Briefing Materials: Fiscal Year Ending March 2026, First Half (Semi-annual Period)

Marvelous Inc. reported a significant revenue increase for the first half of the fiscal year ending March 2026, covering the period from April to September 2025. Net sales rose 157.5% year-on-year to 20,281 million yen, primarily driven by the launch of three core video games and robust performance in the amusement sector. Despite the revenue surge, operating profit fell 61.8% to 226 million yen due to high development costs for new titles. However, ordinary profit and net income saw modest gains, aided by a shift from foreign exchange losses to gains. The Digital Contents business experienced nearly doubled sales, reaching 12,414 million yen. Key performers included Rune Factory: Guardians of Azuma and Story of Seasons: Grand Bazaar, both of which surpassed half a million units sold and contributed to profits ahead of schedule. Conversely, the segment recorded a loss of 1,070 million yen, and sales for Daemon X Machina: Titanic Scion were characterized as sluggish. The Amusement business remained a strong profit driver, growing 36.3% in revenue and 41.2% in segment profit, fueled by the domestic and international success of Pokémon-themed kids' amusement machines like Pokémon Frienda and Pokémon Mezastar. The Audio & Visual business saw a revenue decline of 16% following the liquidation of unprofitable units, yet segment profit nearly tripled to 483 million yen due to high-performing stage productions and secondary usage of past anime titles. Looking ahead, the company maintained its full-year forecast of 35,000 million yen in net sales and 2,000 million yen in operating profit. Management plans to focus on the continued expansion of its core first-half releases and upcoming titles like The Thousand Musketeers: Rhodoknight for the Nintendo Switch.

market-analysis game-publishing japan

MarvelousOct 2025

Report

Consolidated Financial Results for the Nine Months Ended December 31, 2025

Marvelous Inc. reported consolidated financial results for the nine‑month period ending December 31, 2025 (April 1 – December 31). Net sales rose 40.5 % to ¥29,121 million from ¥20,720 million in the same period of 2024. Operating profit increased 13.4 % to ¥1,776 million, ordinary profit grew 28.6 % to ¥2,129 million, and profit attributable to owners of parent climbed 50.4 % to ¥1,548 million. Comprehensive income for the period reached ¥1,713 million, a 47.9 % increase over the prior year’s ¥1,158 million. Total assets expanded to ¥35,669 million, with net assets at ¥27,292 million and an equity‑to‑asset ratio of 76.4 %. Shareholders’ equity rose to ¥25,830 million, driven by retained earnings of ¥15,214 million. Cash and deposits grew from ¥7,880 million to ¥16,146 million, while current liabilities increased to ¥8,212 million. The company maintained a stable capital structure with 62,216,400 common shares issued and 1,643,241 treasury shares outstanding. Cash dividends were declared at ¥10.00 per share for the third quarter, with a forecast of ¥12.00 per share for the fiscal year ending March 31 2026; no revisions to dividend or earnings forecasts were announced. The company’s operating segments—Digital Amusement, Audio & Visual Business, and Visual Total Income—contributed ¥29,121 million in sales, with segment profits of ¥1,776 million after corporate expense adjustments. Methodologically, the figures are prepared under Japanese GAAP with no changes in accounting policies or estimates. The company’s forward‑looking statements remain unchanged despite exceeding forecasted performance, citing ongoing uncertainty in foreign exchange and market conditions.

market-analysis investment japan+3

Marvelous

Report

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

Marvelous Inc. reports a strong first‑half performance for the period ending September 30, 2025, driven by a 57.5 % rise in net sales to ¥20.281 billion from ¥12.877 billion a year earlier. Operating profit fell to ¥226 million, reflecting higher costs and a 61.8 % decline from the prior year’s ¥592 million, yet ordinary profit improved to ¥380 million, up 2.0 % from ¥373 million. Profit attributable to owners of parent reached ¥184 million, a 134.7 % increase over the previous year’s ¥78 million. Comprehensive income swung from a loss of ¥80 million to a gain of ¥176 million, largely due to favorable foreign‑currency translation adjustments. Total assets grew to ¥34.328 billion, with net assets at ¥25.755 billion and an equity‑to‑asset ratio of 74.9 %. Cash and cash equivalents rose to ¥12.386 billion, supported by a net cash inflow of ¥5.822 billion from operating activities, offset by significant outflows for dividends and capital expenditures. Segment analysis shows digital amusement sales of ¥12.414 billion, audio & visual content at ¥5.982 billion, and business services at ¥1.883 billion. Segment profits shifted from a combined loss of ¥888 million in the prior period to a net operating profit of ¥226 million, after allocating corporate expenses. For FY 2026, the company forecasts net sales of ¥35.000 billion and operating profit of ¥2.000 billion, projecting a 25.2 % YoY increase and an ordinary profit of ¥2.000 billion (10.0 % growth). Dividend policy remains unchanged, with a forecast of ¥12 per share for the fiscal year ending March 31, 2026. The financial statements are prepared under Japanese GAAP and include no significant changes in consolidation scope or accounting policy.

market-analysis investment japan+1

Marvelous

Report

Results Briefing Materials: Fiscal Year Ending March 2026, First Half

The briefing presents the first‑half financial performance of Marvelous Inc. for the fiscal year ending March 2026, covering April–September 2025. Net sales surged 157.5 % to ¥20,281 million, driven by the launch of three core video‑game titles—“Rune Factory: Guardians of Azuma,” “STORY OF SEASONS: Grand Bazaar,” and “DAEMON X MACHINA TITANIC SCION”—and robust sales of Pokémon‑branded amusement machines. Segment analysis shows Digital Contents Business revenue rising 198.7 % to ¥12,414 million, while Amusement Business increased 136.3 % to ¥5,982 million; Audio & Visual Business declined 84.0 %. Operating profit fell 38.2 % to ¥226 million due to elevated development costs, yet ordinary and net income rose 102.0 % and 234.7 %, respectively, largely from a shift to foreign‑exchange gains. The company forecasts full‑year net sales of ¥35,000 million (125.2 % of FY2025), operating profit of ¥2,000 million (110.0 % increase), and a dividend uplift to ¥12 million per share, maintaining the initial earnings outlook. Cash flow improved markedly: operating cash inflows rose from a negative ¥786 million to ¥5,822 million, and net cash increased by ¥5,274 million to ¥12,386 million. Asset growth was modest, with total assets rising by ¥1,424 million and net assets slightly declining due to higher liabilities. Methodologically, figures derive from consolidated financial statements for the semi‑annual period; no survey data are cited. The report covers Japan, North America, Europe, and Asia for game sales, and includes detailed segment‑level performance. The outlook remains unchanged, with emphasis on sustaining momentum from the newly released titles and existing online properties.

market-analysis game-publishing game-development+2

Marvelous

Report

Results Briefing Materials: Third Quarter Fiscal Year Ending March 31, 2026

The briefing outlines Daemon Machina’s third‑quarter performance for the fiscal year ending March 2026, highlighting a 140.5 % jump in net sales to ¥29,121 million driven by the launch of three core titles—Rune Factory: Guardians of Azuma, Story of Seasons: Grand Bazaar, and Browser Sangokushi Ten—and robust amusement‑machine sales. Operating profit rose modestly to ¥1,776 million (6.1 % YoY) as high development costs offset gains; ordinary profit and owners’ attributable profit grew faster, largely due to foreign‑exchange gains. Segment analysis shows Digital Contents Business sales at ¥9,985 million (169.2 % YoY) and Amusement Business at ¥7,435 million (125.1 % YoY), while Audio & Visual Business declined by 88.7 %. The company’s balance sheet strengthened, with total assets increasing to ¥35,669 million and net assets rising by ¥1,104 million. Strategic initiatives include scheduled releases of Rune Factory on PlayStation 5 and Xbox Series X|S in February 2026, a postponed launch of The Thousand Musketeers: Rhodoknight to June 2026, and ongoing promotion of new online titles. The amusement segment continues to expand overseas, with Pokémon‑branded machines generating significant revenue growth. Full‑year forecasts remain unchanged: net sales projected at ¥35,000 million (125.2 % YoY), operating profit at ¥2,000 million (110 % YoY), and owners’ attributable profit at ¥1,400 million (171 % YoY). Dividend guidance is raised to ¥12 per share. The company acknowledges potential uncertainties that could affect future performance.

market-analysis game-publishing investment+2

Marvelous

Report

Factbook: Third Quarter of Fiscal Year Ending March 31, 2026

Marvelous Inc., listed on Tokyo’s Prime Market, released its third‑quarter financial results for the fiscal year ending March 31 2026. The company’s core business spans digital content, amusement, audio‑visual production and live entertainment, with a focus on original IPs and collaborations. Revenue rose to ¥29.1 billion in Q3, up 4.5% from the prior quarter and 10.6% year‑on‑year, driven primarily by digital content sales of ¥7.2 billion and amusement revenue of ¥3.0 billion. Gross operating profit reached ¥10.4 billion, a 12% increase over Q2 and a 9% rise versus the same period last year, reflecting improved cost control in production and marketing. Operating profit fell to ¥1.8 billion, a 12% decline from Q2, largely due to higher selling‑general‑administrative expenses of ¥8.6 billion compared with ¥7.9 billion in Q2. Net income attributable to shareholders was ¥1.5 billion, down 18% from Q2, with a net profit margin of 5.3%. The company’s cash‑flow position remained solid, with operating cash flow of ¥2.8 billion and a cash‑equivalent balance of ¥16.4 billion at quarter end. Geographically, the report covers Japan and overseas markets where Marvelous operates. The data derive from consolidated financial statements prepared under Japanese GAAP, covering all subsidiaries and affiliates. Key metrics such as return on equity (13.7%) and asset turnover (0.82) indicate healthy profitability, while dividend payout remained at 52% of net income. Overall, the quarter shows revenue growth but margin pressure from higher operating costs, prompting management to focus on cost efficiency and portfolio diversification.

market-analysis game-publishing game-development+3

Marvelous