Toei Animation (4816) Q1 2026 earnings summary

Executive summary

• Net sales for the first quarter ended June 30, 2025, were ¥19,488 million, the third highest ever for the period, but down 15.5% year-over-year, with operating profit at ¥6,578 million, down 1.6% year-over-year, supported by strong overseas licensing despite a reactionary decline from last year's exceptional streaming rights sales in Japan.

• Profit attributable to owners of parent was ¥5,229 million, a 1.4% decline year-over-year.

• Both sales and profits declined sequentially from the previous quarter due to reduced impact from new home console game releases and a less favorable currency environment.

Financial highlights

• Net sales: ¥19,488 million, down 15.5% year-over-year and down 30.7% sequentially.

• Operating profit: ¥6,578 million, down 1.6% year-over-year and down 27.4% sequentially.

• Net profit: ¥5,229 million, down 1.4% year-over-year and down 22.1% sequentially.

• Ordinary profit for the quarter was ¥7,141 million, down 0.6% from the previous year.

• Gross profit margin improved to 53.3% from 44.3% year-over-year.

• Extraordinary gain from sale of investment securities recorded.

• Comprehensive income for the quarter was ¥5,030 million, compared to ¥7,357 million last year.

• Basic earnings per share for the quarter were ¥25.57, compared to ¥25.95 a year ago.

• Total assets as of June 30, 2025, were ¥184,364 million, with net assets of ¥149,838 million.

• Capital adequacy ratio stood at 81.3% as of June 30, 2025.

Outlook and guidance

• Full-year forecasts are maintained despite only 22% progress in net sales, as delays in revenue recognition are expected to resolve in subsequent quarters.

• Major streaming rights sales for China are anticipated in the second quarter and beyond.

• Operating profit and net profit are tracking at 25.3% and 27.4% of full-year estimates, respectively.

• Full-year net sales forecast for FY ending March 31, 2026, is ¥88,000 million, down 12.7% year-over-year.

• Operating profit for the full year is projected at ¥16,200 million, a 4.7% decrease year-over-year.

• Profit attributable to owners of parent is forecast at ¥19,100 million, down 19.1% year-over-year.

• Basic earnings per share for the full year are expected to be ¥93.40.