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Revision of earnings forecasts9468KADOKAWA CORPORATIONInformation and Communications, Services and Others

Notice Regarding the Recognition of Income Taxes—Deferred (Expense) and the Difference Between the Full-Year Consolidated Forecast and Actual Results for the Fiscal Year Ending March 2026

For the full fiscal year ending March 2026, consolidated net sales exceeded the previous forecast, while operating profit, ordinary profit and net income fell short. In addition, the Company recognized a ¥2,868 million loss on adjustment to income taxes in the fourth quarter following a review of the recoverability of deferred tax assets.

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-3621
¥ million
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Revised forecast

Fiscal year ending March 2026 · Full yearPrevious forecast published 6 November 2025
Net Sales278,200→282,908million
+1.7%
Operating profit10,300→8,102million
-21.3%
Ordinary income12,400→11,701million
-5.6%
Profit attributable to owners of the parent4,900→1,278million
-73.9%
Net income per share33.34→8.71yen
-73.9%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

In the domestic publishing business, the deterioration in contribution margin in the third quarter could not be fully offset by business structural reforms in the fourth quarter. In the anime business, sales per title fell short of expectations, making it impossible to absorb the increase in operating expenses. In the game business, valuation losses were recorded on certain titles. Net income was significantly affected by the increase in the adjustment to income taxes resulting from the review of the recoverability of deferred tax assets.

Previous-period resultsNet sales: ¥277,915 million; operating profit: ¥16,651 million; ordinary profit: ¥17,742 million; net income attributable to owners of the parent: ¥7,392 million; earnings per share: ¥53.87 (fiscal year ended March 2025)
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net Sales¥278,200 million → ¥282,908 million(+1.7%)
Operating profit¥10,300 million → ¥8,102 million(-21.3%)
Ordinary income¥12,400 million → ¥11,701 million(-5.6%)
Profit attributable to owners of the parent¥4,900 million → ¥1,278 million(-73.9%)
Net income per share33.34 yen → 8.71 yen
Fiscal Period CoveredFiscal year ending March 2026
Period CoveredFull year
Publication date of previous forecast6 November 2025
Previous-period resultsNet sales: ¥277,915 million; operating profit: ¥16,651 million; ordinary profit: ¥17,742 million; net income attributable to owners of the parent: ¥7,392 million; earnings per share: ¥53.87 (fiscal year ended March 2025)
Reason for the revisionIn the domestic publishing business, the deterioration in contribution margin in the third quarter could not be fully offset by business structural reforms in the fourth quarter. In the anime business, sales per title fell short of expectations, making it impossible to absorb the increase in operating expenses. In the game business, valuation losses were recorded on certain titles. Net income was significantly affected by the increase in the adjustment to income taxes resulting from the review of the recoverability of deferred tax assets.
Consolidated / non-consolidatedConsolidated
Items this document does not state (2)
Details and amount of extraordinary lossDividend forecast revision

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.

In the domestic publishing business, the deterioration in contribution margin in the third quarter could not be fully offset by business structural reforms in the fourth quarter. In the anime business, sales per title fell short of expectations, making it impossible to absorb the increase in operating expenses. In the game business, valuation losses were recorded on certain titles. In addition to these factors, net income was significantly affected by the increase in the adjustment to income taxes resulting from the review of the recoverability of deferred tax assets.

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Notice Regarding the Recognition of Income Taxes—Deferred (Expense) and the Difference Between the Full-Year Consolidated Forecast and Actual Results for the Fiscal Year Ending March 2026 | KADOKAWA CORPORATION (9468) timely disclosure | Komori