KADOKAWA Corporation (TSE: 9468) reported consolidated results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose a modest 1.8% to ¥282,908 million, but the earnings picture was markedly weaker: operating profit plunged 51.3% to ¥8,102 million, ordinary profit fell 34.1% to ¥11,701 million, and net profit attributable to owners of the parent collapsed 82.7% to ¥1,278 million. Basic EPS was ¥8.71 (¥53.87 a year earlier), and return on equity fell to just 0.5%. EBITDA declined 29.3% to ¥17,600 million. The operating margin narrowed sharply to 2.9% from 6.0% as the company invested heavily across its publishing, anime, and game businesses. Comprehensive income fell to ¥1,320 million, down 92.0% year on year.
Publishing, anime, and games: broad investment pressure across all segments
KADOKAWA's integrated IP media model spans book and manga publishing (including the Kadokawa and ASCII Media Works imprints), anime production and distribution, and video game development (Acquire, FromSoftware — partial stake — and other studios). The group also operates Niconico (video streaming) and educational services. In FY26, across-the-board content investment in new game titles, anime productions, and overseas expansion drove SG&A and depreciation costs higher, compressing the operating margin. Two new subsidiaries were consolidated into the group: Edizioni BD S.r.l. (Italian manga/comic publisher) and SOZO Pte. Ltd. (Singapore-based EdTech). The standout EBITDA figure of ¥17,600 million reflects ongoing capital intensity in content production amortisation and depreciation.
Balance sheet and cash flow
Total assets declined to ¥394,864 million from ¥410,029 million, while net assets slipped to ¥276,747 million. The equity ratio improved to 62.0% from 60.9%, and book value per share was ¥1,667.01 (down from ¥1,704.48). Operating cash flow recovered modestly to ¥3,424 million from ¥13,841 million in FY25 — a significant step-down reflecting heavy content cash costs. Investing outflows deepened to -¥21,042 million (from -¥8,440 million), reflecting capital deployed into new acquisitions and content infrastructure. Financing activities generated ¥44,117 million (net debt draw-down), boosting cash and equivalents at year-end to ¥90,774 million from ¥129,674 million the prior year after netting debt service.
Dividend held at ¥30; FY27 guided for earnings recovery
KADOKAWA held the full-year dividend at ¥30 per share (¥0 interim + ¥30 year-end) for FY3/2026, the same as FY25, for an elevated payout ratio of 344.5% given the near-breakeven net profit level. The company expects the investment cycle to ease in FY27 and has guided: revenue of ¥300,300 million (+6.1%), operating profit of ¥10,100 million (+24.7%), ordinary profit of ¥12,000 million (+2.6%), net profit of ¥5,800 million (+353.7%), and EPS of ¥39.46. EBITDA is guided to ¥20,100 million (+14.2%). The FY27 dividend is intended to be maintained at ¥30 per share, implying a payout ratio of approximately 76.0%.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 282.9 | 277.9 | +1.8% |
| Operating profit (¥ billion) | 8.1 | 16.7 | -51.3% |
| Ordinary profit (¥ billion) | 11.7 | 17.7 | -34.1% |
| Net profit attrib. to owners (¥ billion) | 1.3 | 7.4 | -82.7% |
| EPS (¥) | 8.71 | 53.87 | -83.8% |
| EBITDA (¥ billion) | 17.6 | 24.9 | -29.3% |
| Operating margin | 2.9% | 6.0% | -3.1pp |
| Equity ratio | 62.0% | 60.9% | +1.1pp |
| Operating cash flow (¥ billion) | 3.4 | 13.8 | -75.3% |
| Annual dividend (¥) | 30.00 | 30.00 | — |
| FY27 operating profit guidance (¥ billion) | 10.1 | — | +24.7% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.