Kadokawa
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Kadokawa (9468) investor relations material

Kadokawa Q3 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2026 earnings summary12 Feb, 2026

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.

Key factors for 59.7% operating profit drop?
Explain the large cash outflow from investing activities.
How do recent acquisitions advance global strategy?
What specific 4Q actions drive profit recovery?
What is the sales strategy for Duskbloods?
How will IP creation profitability be sustained?
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Frequently asked questions

Kadokawa Corporation is a Japan-based company engaged in the planning, production, and distribution of content across various media platforms. The company operates through multiple segments, including publishing, film and video, digital services, and education. Kadokawa produces books, magazines, manga, anime, movies, and games, and also manages digital platforms for e-books and video streaming. The company collaborates with creators and distribution partners both domestically and internationally. Kadokawa Corporation is headquartered in Tokyo, Japan, and its shares are listed on the TSE.

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