Worth reading
48Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
405
JPY million (year-on-year decrease in operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsFiscal year ending August 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,316 million-4.8%
Operating profit¥284 million-58.8%
Ordinary income¥332 million-50.9%
Net income¥717 million+186.7%
Operating profit margin4.5 %
Selling, general and administrative expenses¥1,149 million
Results for the three months of the current quarter
Fourth quarter of the fiscal year ending August 2026
Net Sales
¥1,494 million
Operating profit
¥4 million
Full-year earnings forecast
Fiscal year ending August 2027
Net Sales
¥6,000 million
Operating profit
¥415 million
Ordinary income
¥423 million
Net income
¥280 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Temporary suspension of a large overseas development projectImpactSubstantial excess staff capacity arose from the third quarter onward, lowering the gross profit margin
- Decline in revenue share from the previous fiscal year's high levelImpactFactors reducing operating profit
- Decline following the completion of education-related content developmentImpactRevenue decline in the Other business
- Sale of land in Nagaokakyo, KyotoImpact748
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Expansion of Nintendo Switch 2 adoption, completion of major projects, launch of new projects, improved staff utilization, lower outsourcing costs, and concerns about rising building material costs. Numerical assumptions: Not disclosedNew initiatives
- Launch in October 2026 of a learning support tool for pharmacy students jointly developed with Kobe Gakuin University
- Promotion of a game publishing business with non-gaming companies
- Development of new titles and remasters for multiple platforms, including Nintendo Switch 2
- Consolidation of the headquarters and Kyoto bases in a new office building in Nagaokakyo
- Use of AI and promotion of digital transformation, along with stronger internal training and mid-career hiring
Key KPIsA metric the company considers important as a management benchmark.
- Indicative core-business ROE8 %
- Core-business ROE for the fiscal year ended August 2026Below 8.0%
- Number of major development projects (as listed)7 Engagements
- Threshold of contracted projects expected to generate revenue of at least ¥500 million5 Hundreds of millions of yen
- PBR1 times
Segment results
- Gaming BusinessNet Sales¥5,879 millionYear-on-Year Change in Revenue (%)-2.7Operating profit¥247 millionOperating profit year-on-year_pct-60.2
- Other BusinessesNet Sales¥437 millionYear-on-Year Change in Revenue (%)-26Operating profit¥37 millionOperating profit year-on-year_pct-45.5
Medium-term management plan targets
Growth and improved profitability in the games business, creation of new growth pillars in non-gaming businesses, improved development technology and productivity, and expansion of human capital. Specific target years and figures: Not disclosedFinancial targets
Core-business ROE
TargetAt least 8.0% on a sustained basis
Actual results8.0% for the fiscal year ended August 2025; below 8.0% for the fiscal year ended August 2026
Number of stores and locations
Number at period-endKyoto headquarters, 3 development bases in Kyoto Prefecture, the Tokyo Development Center, etc. The Kyoto bases are scheduled to be consolidated in a new office building
Number of employees
Number of Employees592 on a consolidated basis; 550 at TOSE standalone (as of the end of August 2026)
Headcount by locationApproximately 75 at Kyoto headquarters, approximately 180 at the Nishiōji Development Center, approximately 95 at the Nagaokakyo Development Center, approximately 140 at the Yamazaki Development Center, and approximately 60 at the Tokyo Development Center
Changes during the period and hiring planThe company mentioned strengthening mid-career hiring. Hiring target: Not disclosed
Capital expenditures
¥2,830 million construction costs for the new office building
Annual Dividend
Forecast for the fiscal year ending August 2027
Annual¥25 per share
Interim¥12.5 per share
End of period¥12.5 per share
Payout ratio
67.7 %
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Fiscal year ending August 2026 |
| Net Sales | ¥6,316 million (YoY -4.8%) |
| Operating profit | ¥284 million (YoY -58.8%) |
| Ordinary income | ¥332 million (YoY -50.9%) |
| Net income | ¥717 million (YoY +186.7%) |
| Operating profit margin | 4.5 % |
| Selling, general and administrative expenses | ¥1,149 million |
| Results for the three months of the current quarter | Fourth quarter of the fiscal year ending August 2026 Net Sales ¥1,494 million / Operating profit ¥4 million |
| Full-year earnings forecast | Fiscal year ending August 2027 Net Sales ¥6,000 million / Operating profit ¥415 million / Ordinary income ¥423 million / Net income ¥280 million |
| Segment results | Segment Gaming Business / Net Sales ¥5,879 million / Year-on-Year Change in Revenue (%) -2.7 / Operating profit ¥247 million / Operating profit year-on-year_pct -60.2, Segment Other Businesses / Net Sales ¥437 million / Year-on-Year Change in Revenue (%) -26 / Operating profit ¥37 million / Operating profit year-on-year_pct -45.5 |
| Breakdown of Factors Affecting the Change | Factors Temporary suspension of a large overseas development project / Impact Substantial excess staff capacity arose from the third quarter onward, lowering the gross profit margin, Factors Decline in revenue share from the previous fiscal year's high level / Impact Factors reducing operating profit, Factors Decline following the completion of education-related content development / Impact Revenue decline in the Other business, Factors Sale of land in Nagaokakyo, Kyoto / Impact 748 Extraordinary gain in ¥ million |
| Key KPIs | Indicator name Indicative core-business ROE / Value 8 %, Indicator name Core-business ROE for the fiscal year ended August 2026 / Value Below 8.0%, Indicator name Number of major development projects (as listed) / Value 7 Engagements, Indicator name Threshold of contracted projects expected to generate revenue of at least ¥500 million / Value 5 Hundreds of millions of yen, Indicator name PBR / Value 1 times |
| Number of stores and locations | Number at period-end Kyoto headquarters, 3 development bases in Kyoto Prefecture, the Tokyo Development Center, etc. The Kyoto bases are scheduled to be consolidated in a new office building / Number of store openings and closures during the period Not disclosed |
| Number of employees | Number of Employees 592 on a consolidated basis; 550 at TOSE standalone (as of the end of August 2026) / Headcount by location Approximately 75 at Kyoto headquarters, approximately 180 at the Nishiōji Development Center, approximately 95 at the Nagaokakyo Development Center, approximately 140 at the Yamazaki Development Center, and approximately 60 at the Tokyo Development Center / Changes during the period and hiring plan The company mentioned strengthening mid-career hiring. Hiring target: Not disclosed |
| Assumptions Underlying the Business Outlook | Expansion of Nintendo Switch 2 adoption, completion of major projects, launch of new projects, improved staff utilization, lower outsourcing costs, and concerns about rising building material costs. Numerical assumptions: Not disclosed |
| Medium-term management plan targets | Growth and improved profitability in the games business, creation of new growth pillars in non-gaming businesses, improved development technology and productivity, and expansion of human capital. Specific target years and figures: Not disclosed |
| Financial targets | Core-business ROE Target At least 8.0% on a sustained basis / Actual results 8.0% for the fiscal year ended August 2025; below 8.0% for the fiscal year ended August 2026 |
| Annual Dividend | Forecast for the fiscal year ending August 2027 Annual ¥25 per share / Interim ¥12.5 per share / End of period ¥12.5 per share |
| Payout ratio | 67.7 % |
| Capital expenditures | ¥2,830 million (construction costs for the new office building) |
| New initiatives | Launch in October 2026 of a learning support tool for pharmacy students jointly developed with Kobe Gakuin University, Promotion of a game publishing business with non-gaming companies, Development of new titles and remasters for multiple platforms, including Nintendo Switch 2, Consolidation of the headquarters and Kyoto bases in a new office building in Nagaokakyo, Use of AI and promotion of digital transformation, along with stronger internal training and mid-career hiring |
Items this document does not state (9)
Gross Profit MarginProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The company explained that revenue and earnings declined because a large development project for an overseas client was temporarily suspended at the end of February 2026, creating substantial excess development staff capacity from the third quarter onward, revenue share income declined from the previous year's high level, and development of education-related content that contributed to earnings in the previous year was completed. The increase in net income was due to an extraordinary gain of approximately ¥748 million from the sale of land in Nagaokakyo, Kyoto. For the fiscal year ending August 2027, the company expects its gross profit margin to improve as a result of better staff utilization and lower outsourcing costs.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.