Nihon Falcom has reported record financial results for the fiscal year ending September 30, 2026, driven by strong sales of its Trails in the Sky remakes and continued international expansion. The Japanese RPG developer recorded net sales of ¥4.47 billion, an increase of 71.0% year over year, while operating profit more than doubled to ¥2.87 billion.
Ordinary profit climbed 113.1% to ¥2.91 billion, while net income increased 122.2% to ¥2.01 billion. Despite the strong performance, Falcom expects both revenue and profitability to decline during the next fiscal year.
The company’s License Department accounted for most of its revenue, generating ¥3.50 billion, up 86.0% compared with the previous year.
Falcom attributed the growth to its continued expansion across multiple platforms and international markets. Key contributors included English releases of Ys vs. Trails in the Sky: Alternative Saga and The Legend of Heroes: Trails Beyond the Horizon, alongside multilingual editions of Ys X: Proud Nordics.
The company also highlighted English editions of Ys Memoire: The Oath in Felghana and Celceta, as well as Chinese and Korean localizations of Kyoto Xanadu: The Blooming Phantom.
Smartphone RPGs, including The Legend of Heroes: Gagharv Trilogy, and overseas digital downloads also contributed to the division’s performance.
Meanwhile, Falcom’s Product Department recorded a 33.2% increase in sales to ¥974 million. The division benefited from The Legend of Heroes: Trails in the Sky the 1st, along with physical releases of Ys X: Proud Nordics for PlayStation 5 in February 2026 and Kyoto Xanadu in July.
The simultaneous worldwide launch of Trails in the Sky the 2nd on September 17, 2026, provided another boost, alongside sales of the company’s music albums.
Falcom also confirmed that cumulative sales of the Trails franchise have surpassed 10 million units worldwide.
To commemorate the milestone and the release of Trails in the Sky the 2nd, the company announced a special dividend of ¥30 per share. Combined with its regular ¥30 dividend, shareholders will receive a total of ¥60 per share.
However, Falcom’s outlook for the fiscal year ending September 30, 2027, is considerably more conservative.
The company forecasts net sales of ¥3.00 billion, representing a 33.0% decline, while operating profit is expected to fall 44.7% to ¥1.50 billion.
Falcom attributed the projected slowdown to a smaller release schedule, with only one major new game planned for the fiscal year: the sequel to The Legend of Heroes: Trails Beyond the Horizon.
The company also expects sales of the Trails in the Sky remakes to normalize following their recent peak, with financial performance likely to be concentrated in the fourth quarter of fiscal 2027.
