Business Performance (Japan GAAP)

Here we breakdown our consolidated business results for the three months ended June 30, 2026 with graphs and diagrams.

In the three months ended June 30, 2026, Capcom Co., Ltd. (the "Company") pursued investments for growth aimed at the ongoing enhancement of digital sales to further advance and expand within the global market. In addition, the Company actively promoted growth investments by strengthening its development capabilities with the aim of ensuring stable and sustainable growth; this included enhancing its development infrastructure as well as carrying out research and development of cutting-edge technologies, such as AI and its proprietary game development engine. Furthermore, as part of its human resources investment strategy, which is one of the Company’s top priorities, the Company continued its efforts to secure and foster human resources to support the future while refining the workplace environment so that employees can perform to the best of their abilities, and worked to enhance corporate value over the medium to long term.

Regarding business performance, the Company worked to increase global unit sales in its core Digital Contents business through the release of all-new IP PRAGMATA and by strengthening sales of catalog titles, primarily its flagship series. As a result, in the three months ended June 30, 2026, the Digital Contents business contributed to earnings with sales of 256 titles in 236 countries and regions and total unit sales of 23.81 million units, up from 14.16 million units sold in the same period of the previous fiscal year.

The Company also aimed to enhance the value of its brands by coordinating the activities of its eSports, Media, and Character Licensing businesses with the content of its major intellectual properties (IPs). Further, to increase earnings the Company continued to pursue sound store operations while opening locations in new formats in Arcade Operations, while in Amusement Equipments it continued to release smart pachislo machines and utilize its popular IPs.

As a result, for the three months ended June 30, 2026, consolidated net sales were 70,410 million yen (up 54.7% year on year), operating profit was 41,054 million yen (up 66.9% year on year), ordinary profit was 41,452 million yen (up 81.1% year on year), and profit attributable to owners of the parent was 29,159 million yen (up 69.2% year on year).

In the Digital Contents business, the Company released all-new IP PRAGMATA (for PlayStation 5, Xbox Series X|S, PC, and Nintendo Switch 2) in April, representing a new type of science-fiction action-adventure game. The Company built a fanbase for the game through robust promotional activities and other measures, leading to a favorable performance of over 2.5 million units sold worldwide. In addition, the Company released Devil May Cry 5 Devil Hunter Edition for Nintendo Switch 2 in June, further expanding multi-platform support for its major Devil May Cry series.

Regarding catalog titles, Resident Evil Requiem, a title from the flagship Resident Evil series that was released in February of the previous fiscal year, continued garnering popularity from a wide range of global users, and due to active pricing measures cumulative sales of the game surpassed 8 million units. Additionally, ongoing sales growth for titles in the same series supported earnings, led by Resident Evil 4 and Resident Evil 2. Unit sales of past titles in the Monster Hunter series also increased after the Company announced a 2027 release window for Monster Hunter Wilds: Ascendance, a massive expansion for Monster Hunter Wilds, which is a major title in the same flagship series that was released in 2025. Furthermore, cumulative unit sales of Devil May Cry 5, which was released in 2019, surpassed 14 million units. This was supported by the game’s rollout to new hardware as well as pricing strategies carried out together with the launch of animated content for the series and efforts to enhance brand value through enhancing awareness of the IP. Regarding Street Fighter 6, the Company continued efforts to bolster coordination between its games and esports activities in pursuit of wider brand recognition and an expanded user base. Due to these efforts, unit sales of catalog titles altogether reached 21.26 million units, exceeding the 13.36 million units recorded in the same period of the previous fiscal year, contributing to earnings.

As a result, the segment earned net sales of 54,648 million yen (up 83.0% year on year) and operating profit of 37,597 million yen (up 87.5% year on year).

In Arcade Operations, amidst changing consumer habits, disciplined operations of existing stores alongside store openings in new formats contributed to earnings expansion. Moreover, the Company held live events and other activities to maximize the appeal of its physical locations and create synergies with its other businesses.

During the three months ended June 30, 2026, the Company opened Chara Cap/Capsule Lab Hanyu (Saitama Prefecture) in April, a character merchandise and capsule toy specialty store, bringing the total number of stores to 62.

In addition, the Company continued taking various measures aimed at enhancing the in-store experience at existing stores, including Capcom Store Taipei (Taiwan), its first directly operated store outside Japan, and CAPCOMIX Abeno Hoop store (Osaka Prefecture), which features Capcom character-themed attractions, both of which opened in March of the previous fiscal year.

As a result, the segment earned net sales of 6,762 million yen (up 20.6% year on year) and operating profit of 899 million yen (down 4.4% year on year).

Regarding the Amusement Equipments business, the pachislo market has been characterized by stable demand due to the ongoing spread of smart pachislo machines. In May, the Company released Biohazard RE:3, a new smart pachislo model that leverages the Company’s major Resident Evil series IP. This model sold 17 thousand units, contributing to revenue.

As a result, the segment earned net sales of 7,097 million yen (down 9.1% year on year) and operating profit of 4,045 million yen (down 17.6% year on year).

In the Media business, as part of its Single Content Multiple Usage strategy, which promotes the multifaceted development of the Company’s popular content (IP), the Company strove to expand recognition of its major IP through film and television adaptations. This included Season 2 of the Netflix animated series Devil May Cry, which began streaming worldwide in May and has been met with acclaim following the success of Season 1, which began streaming in 2025. Other efforts focused on building excitement for the live-action Street Fighter movie, which is scheduled for worldwide release in October 2026.

In the eSports business, the Capcom Pro Tour 2026 international tournament began in May and features Street Fighter 6, the latest title in the same series. Through such activities, the Company worked to further promote esports and expand the user base on a global scale.

In the Character License business, the Company focused on merchandise for its popular titles and on various event initiatives.

As a result, the segment earned net sales of 1,902 million yen (down 14.6% year on year) and operating profit of 1,266 million yen (down 7.5% year on year).

Total assets as of the end of the first quarter increased by 2,004 million yen from the end of the previous fiscal year to 341,312 million yen. The primary increases were 13,206 million yen in cash and deposits, 1,881 million yen in work-in-progress for game software, 1,182 million yen in buildings and structures, net, 964 million yen in property, plant and equipment, other, net, due to an increase of land assets, etc., and 708 million yen in current assets, other due to an increase of prepaid expenses etc. The primary decrease was 15,774 million yen in accounts receivable – trade.

Total liabilities as of the end of the first quarter decreased by 17,203 million yen from the end of the previous fiscal year to 54,387 million yen. The primary decreases were 8,467 million yen in deferred revenue, 5,545 million yen in provision for bonuses, and 3,094 million yen in income taxes payable.

Net assets as of the end of the first quarter increased by 19,208 million yen from the end of the previous fiscal year to 286,924 million yen. The primary increases were 29,159 million yen in quarterly profit attributable to owners of parent, and 785 million yen in foreign currency translation adjustment. The primary decrease was 10,655 million yen in dividends from retained earnings.

The forecast for the consolidated business results for the current fiscal year ending March 31, 2027, remains the same as what was projected at the financial results announcement on May 13, 2026.