Nihon Falcom reports 113.8% profit growth. Full-year results at an all-time high thanks to the success of Trails in the Sky 2nd Chapter and Kyoto Xanadu

Trails series developer Nihon Falcom published its full-year financial results for the fiscal year ended September 2026. The company reported a record-high increase in both revenue and profit, driven by the success of Trails in the Sky 2nd Chapter and KYOTO XANADU -the Blooming Phantom-, both of which released this year. According to the company’s presentation, both revenue and profit metrics have reached an all-time high.

Falcom’s sales went up by 71.2% compared to the previous fiscal year, with operating profit and ordinary profit seeing a 113.8% and 113.1% increase respectively. Likewise, net profit went up by 122.2% year-on-year. Additionally, the company’s licensing division, which handles multi-platform expansion as well as overseas releases of its games, reported an 86.0% rise in revenue compared to the previous year.

While the extremely positive results in the past two years were driven by the success of Trails in the Sky 1st Chapter and Trails in the Sky 2nd Chapter, as well as Kyoto Xanadu, Falcom expects things to cool off a bit as they enter the new fiscal year (October 2026 – September 2027).

According to its earnings forecast for the fiscal year ending September 2027, Falcom expects sales to go down by 32.9% and operating profit to go down by 47.7%, year-over-year, largely due to fewer new releases

As for its plans for the new fiscal year, Falcom announced that it would be releasing the sequel to The Legend of Heroes: Trails Beyond the Horizon by September 2027. Furthermore, the company plans to move forward with the production of new titles, including a new IP. There are currently no announcements regarding a potential global release for Kyoto Xanadu.