Kadokawa (9468) investor relations material

Executive summary

• Net sales for the nine months ended December 31, 2025, were ¥202,991 million, down 1.7% year-over-year, with operating profit at ¥6,377 million, down 59.7%, and net profit at ¥2,211 million, down 70.0%.

• Third quarter net sales were ¥69,058 million, down 1.7% year-over-year, with operating profit dropping 84.1% and net profit down 83.1%.

• Comprehensive income dropped 87.4% year-over-year to ¥1,411 million.

• The impact of prior year cyberattacks disappeared, but ongoing challenges in domestic paper-based books and e-books, as well as fewer hit titles, led to lower profitability.

Financial highlights

• Third quarter net sales: ¥69,058 million (-1.7% YoY); operating profit: ¥826 million (-84.1% YoY); ordinary profit: ¥2,329 million (-68.8% YoY); net profit: ¥720 million (-83.1% YoY); EBITDA: ¥3,167 million (-56.2% YoY).

• Nine-month net sales: ¥202,991 million (-1.7% YoY); operating profit: ¥6,377 million (-59.7% YoY); ordinary profit: ¥9,107 million (-47.1% YoY); net profit: ¥2,211 million (-70.0% YoY); EBITDA: ¥13,144 million (-39.0% YoY).

• Earnings per share were ¥15.07, compared to ¥54.79 in the prior year period.

• Total assets as of December 31, 2025, were ¥394,716 million, with net assets at ¥276,872 million and an equity ratio of 62.4%.

• Cash and cash equivalents at period end were ¥73,065 million, down from ¥129,674 million at the start of the period.

Outlook and guidance

• Full-year net sales forecast is ¥278,200 million (up 0.1% YoY), with operating profit of ¥10,300 million (down 38.1%), and profit attributable to owners of parent of ¥4,900 million (down 33.7%).

• Recovery efforts in publication and animation businesses are planned for 4Q to achieve full-year forecasts.

• Publication/IP Creation segment expects improvements from price revisions, media mix effects, and cost optimization in 4Q and beyond.

• Animation business anticipates stronger performance in 4Q and next fiscal year with sequels to major titles and focus on secondary utilization.

• Gaming segment has multiple new titles in development, including major releases for 2026.