Kadokawa (9468) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, were ¥133,933 million, down 1.8% year-over-year; operating profit fell 47.8% to ¥5,550 million, and net profit dropped 51.8% to ¥1,491 million.

• Q2 net sales decreased 1.9% year-over-year, with operating profit down 29.7% and net profit declining by ¥1,009 million due to lower Animation/Film and Gaming sales, despite recovery from last year's cyberattack impact.

• Extraordinary losses from goodwill amortization of ¥2.7 billion further reduced net profit.

• Comprehensive income decreased 62.8% year-over-year to ¥2,115 million.

Financial highlights

• Q2 net sales: ¥69,088 million (down 1.9% YoY); operating profit: ¥3,232 million (down 29.7% YoY); ordinary profit: ¥4,428 million (up 113.7% YoY); net loss: ¥1,367 million.

• Six-month net sales: ¥133,933 million (down 1.8% YoY); operating profit: ¥5,550 million (down 47.8% YoY); ordinary profit: ¥6,778 million (down 30.6% YoY); net profit: ¥1,491 million (down 51.8% YoY).

• EBITDA for six months: ¥9,976 million (down 30.3% YoY).

• Earnings per share were ¥10.17, compared to ¥23.03 in the prior year period.

• Total assets decreased to ¥384,539 million, and net assets to ¥276,410 million as of September 30, 2025.

Outlook and guidance

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

• Publication/IP Creation and Animation/Film forecasts lowered due to downsizing of titles and delayed releases; Gaming forecast raised on strong ELDEN RING NIGHTREIGN performance.

• Forecasts were revised downward due to lower-than-expected results in key segments and extraordinary losses.