With earnings weighted toward the fourth quarter in FY2026, the focus is on verifying whether the company can meet its full-year forecast after the upward revision

FY2025 results were revenue of ¥2,612 million, operating profit of ¥1,340 million, ordinary profit of ¥1,364 million, and net profit of ¥903 million. In comparison, cumulative third-quarter FY2026 results were revenue of ¥2,203 million, operating profit of ¥1,258 million, ordinary profit of ¥1,281 million, and net profit of ¥889 million, representing year-on-year increases of 111.8%, 485.2%, 470.7%, and 545.1%, respectively. The operating margin, calculated from these figures, was 57.1%, a substantial increase from approximately 20.7% in the same period of the previous year.

However, the original full-year forecast presented in the earnings report was ¥3,600 million in revenue, ¥2,200 million in operating profit, ¥2,200 million in ordinary profit, and ¥1,500 million in net profit. Cumulative third-quarter progress was 61.2% for revenue, 57.2% for operating profit, 58.2% for ordinary profit, and 59.3% for net profit, all below the simple time-based progress rate of 75% after 9 months. The company’s business is characterized by a concentration of new releases and initial sales in the fourth quarter, which needs to be taken into account. Even so, meeting the full-year forecast required the company to generate an additional ¥1,397 million in revenue and ¥942 million in operating profit during the remaining 3 months, relative to the original forecast.

The forecast was revised again on 7 October to ¥4,300 million in revenue, ¥2,800 million in operating profit, ¥2,800 million in ordinary profit, and ¥1,900 million in net profit. The increases from the original forecast were ¥700 million for revenue, ¥600 million for both operating profit and ordinary profit, and ¥400 million for net profit. Based on the difference from cumulative third-quarter actual results, meeting the revised forecast requires fourth-quarter revenue of ¥2,097 million, operating profit of ¥1,542 million, ordinary profit of ¥1,519 million, and net profit of ¥1,011 million. Based on the revised forecast, the increase in operating profit from the previous year’s full-year result would be approximately 108.9%.

At the next FY2026 full-year earnings release, the first point to check will be the variance between actual results and the revised forecast of ¥4.3 billion in revenue, ¥2.8 billion in operating profit, ¥2.8 billion in ordinary profit, and ¥1.9 billion in net profit. It will also be important to determine which titles, product operations, and licensing operations generated fourth-quarter revenue and profit, whether the forecast was revised further after the 7 October upward revision, and whether the next fiscal year will see a reversal in sales or front-loaded development costs.