Nihon Falcom has reported a sharp increase in sales and profit for the first nine months of fiscal year 2026, with overseas licensing activity and releases from The Legend of Heroes and Ys franchises contributing to the company’s results.
For the period covering October 1, 2025 through June 30, 2026, Nihon Falcom recorded net sales of ¥2.203 billion, representing a 111.8% increase year over year. Operating income reached ¥1.258 billion, up 485.2%, while ordinary income increased 470.7% to ¥1.281 billion. Net income rose 545.1% to ¥889 million.
The company’s operating margin also benefited significantly from the stronger results, with net income per share reaching ¥88.83 compared with ¥13.41 during the same period of the previous fiscal year.
Licensing Provides The Majority Of Revenue
Nihon Falcom’s licensing segment generated ¥1.909 billion in sales during the nine-month period, an increase of 121.0% year over year. The company continued expanding overseas versions of its games across Nintendo Switch 2, Nintendo Switch, PlayStation 5, PlayStation 4 and PC.
The Legend of Heroes: Trails in the Sky the 1st received overseas releases during the period, while English versions of The Legend of Heroes: Kai no Kiseki -Farewell, O Zemuria- and Ys X: Proud Nordics also launched across multiple platforms.
The company additionally released the English version of Ys Memoire: The Celceta Sea on Nintendo Switch in April 2026. Kyoto Xanadu -the Blooming Phantom- received Simplified Chinese, Traditional Chinese and Korean versions in July.
Nihon Falcom also continued distributing English digital PC versions of older titles, including games from the Trails and Ys series.
Trails And Ys Releases Support Product Segment
The company’s Products segment generated ¥294 million in sales, up 66.8% year over year.
During the period, Nihon Falcom released The Legend of Heroes: Trails in the Sky the 1st for Nintendo Switch 2, Nintendo Switch, PlayStation 5 and Steam. Ys X: Proud Nordics followed on PlayStation 5 in February, while Kyoto Xanadu -the Blooming Phantom- launched for Nintendo Switch 2, Nintendo Switch, PlayStation 5 and Steam in July.
The company also released music products including The Legend of Heroes: Trails in the Sky the 1st Original Soundtrack and Falcom Acoustics 3.
Trails In The Sky The 2nd Arrives In September
Nihon Falcom is currently developing The Legend of Heroes: Trails in the Sky the 2nd, the sequel to Trails in the Sky the 1st. The game is scheduled for release in September 2026.
The sequel is planned for a simultaneous global launch on Nintendo Switch 2, Nintendo Switch, PlayStation 5 and Steam. The company has also confirmed that overseas versions are part of its licensing plans.
For the full fiscal year ending September 30, 2026, Nihon Falcom is maintaining its forecast of ¥3.6 billion in net sales, ¥2.2 billion in operating income, ¥2.2 billion in ordinary income and ¥1.5 billion in net income.
The company has forecast a ¥10 per share year-end dividend for FY2026, compared with a total ¥20 per share dividend for FY2025, which included both an ordinary dividend and a commemorative dividend.
