Nihon Falcom reports 111% revenue growth and 485% profit growth in the past three quarters, citing worldwide success of Trails in the Sky 1st Chapter

Nihon Falcom's financial forecast for the full fiscal year remains unchanged, with double-digit growth projected across all profit metrics.

Nihon Falcom has announced its financial results for the first three quarters of the fiscal year (October 2025 – June 2026). According to the report (via GameBiz), the developer saw significant year-on-year growth across all metrics, with net revenue up 111.3%, and operating profit up 485.2%.

According to Nihon Falcom, the strong performance was driven by both international and domestic sales of Trails in the Sky 1st Chapter across Steam, Switch and PS5. The game’s overseas sales appear to be particularly strong, as the company’s licensing division (which accounts for sales via overseas publishers) saw revenue grow 121% year-on-year. Nihon Falcom is actively working on development of the sequel, Trails In The Sky 2nd Chapter, aiming for a simultaneous worldwide release in September 2026.

As for Kyoto Xanadu – the company’s latest and somewhat experimental release – this financial report does not account for its performance as it was released in July. Additionally, there is no release date yet for a global version of the game.

Nihon Falcom’s financial forecast for the full fiscal year remains unchanged, with double-digit growth projected across all profit metrics.

Related: Nihon Falcom is aiming for one flagship IP entry and one younger-staff-led game every year. CEO says the studio needs to cultivate its successors

Amber V
Amber V

Editor-in-Chief since October 2023.

She grew up playing Duke Nukem and Wolfenstein with her dad, and is now enamored with obscure Japanese video games and internet culture. Currently devoted to growing Automaton West to the size of its Japanese sister-site, while making sure to keep news concise and developer stories deep and stimulating.

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