Tose Nine-Month Operating Profit Falls 45% to ¥280m as Game-Development Revenue Dips

Tose, a Kyoto-based contract developer of video games and digital content, said nine-month operating profit fell 44.8% to ¥280 million as sales slipped 0.8% to ¥4.82 billion, though net profit attributable to owners rose 61.0% to ¥200 million.

A video-game development studio Tose · TSE

Tose (TSE: 4728), a Kyoto-based contract developer of video games and digital content that works largely on a behind-the-scenes, OEM basis for publishers, reported results for the first nine months of the fiscal year ending August 2026 — the period from September 1, 2025 to May 31, 2026. Sales edged down 0.8% to ¥4,822m, operating profit fell 44.8% to ¥280m and ordinary profit fell 35.9% to ¥322m, while net profit attributable to owners rose 61.0% to ¥200m. Nine-month EPS was ¥26.46, up from ¥16.43.

Profit retreats from a strong prior year

Operating and ordinary profit fell sharply against an unusually strong prior-year period, when nine-month sales had surged nearly 50% and operating profit reached ¥507m. Measured against that high base, the current nine-month operating profit of ¥280m represents a 44.8% decline, and ordinary profit of ¥322m a 35.9% drop. Net profit nonetheless rose 61.0% to ¥200m, helped by lower tax and improved non-operating and extraordinary items, and comprehensive income jumped 146.9% to ¥284m.

Balance sheet and dividend

Total assets stood at ¥7,751m and net assets at ¥6,256m, lifting the equity ratio to 80.2% from 78.1% — a notably strong capital position for a company of its size. Tose left its dividend plan unchanged, guiding a full-year FY8/26 payout of ¥25.00 (an interim ¥12.50 plus a year-end ¥12.50), unchanged from FY8/25.

Full-year outlook

For the full year to August 2026, Tose guides sales of ¥6,510m (−1.9%), operating profit of ¥405m (−41.3%) and ordinary profit of ¥410m (−39.5%). Net profit is nonetheless expected to jump 215.7% to ¥790m, reflecting an anticipated extraordinary gain, for EPS of ¥104.23.

Tose — 9M FY8/2026 Key Financials (J-GAAP, consolidated)
Metric9M FY8/269M FY8/25YoY
Sales (¥m)4,8224,863−0.8%
Operating profit (¥m)280507−44.8%
Ordinary profit (¥m)322503−35.9%
Net profit attrib. (¥m)200124+61.0%
EPS (¥)26.4616.43+61.0%
Equity ratio80.2%78.1%+2.1pp

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.