COLOPL (3668): FY2025 Results Summary — Operating Profit Turns Positive on DRAGON QUEST WALK and Investment Gains

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: COLOPL’s fiscal year ends in September. In this article, FY2025 refers to the fiscal year ended September 30, 2025 (Oct.2024-Sep.2025), which the company labels “FY Sep.2025” / “FY2025” in its results presentation dated November 5, 2025.

COLOPL, Inc. reported FY2025 sales of 25,933 million JPY (YoY -0.2%) and an operating profit of 1,002 million JPY, compared with an operating loss of -1,208 million JPY in FY2024. According to the company, full-year operating profit turned positive, up 1.1 billion yen YoY, with contributions from “DRAGON QUEST WALK” and the Investment and Development Business, along with cost management, driving the results. Net profit remained negative at -306 million JPY, reflecting extraordinary losses of 1,454 million JPY.

Consolidated Results (Full-Year Actual)

The company states that each profit item improved by over 1 billion yen YoY. Cost fell 8.3% to 24,930 million JPY, and the operating profit margin was 3.9% (FY2024: -4.7%). Ordinary profit was 1,805 million JPY (FY2024: -947 million JPY) and profit before income taxes was 353 million JPY (FY2024: -1,244 million JPY).

Item (Million JPY)	FY2025 (Oct.2024-Sep.2025)	FY2024 (Oct.2023-Sep.2024)	YoY
Sales	25,933	25,975	-0.2%
Cost	24,930	27,183	-8.3%
Operating profit	1,002	-1,208	–
Operating profit margin	3.9%	-4.7%	–
Non-operating income	855	720	+18.7%
Non-operating expenses	52	460	-88.6%
Ordinary profit	1,805	-947	–
Extraordinary income	2	–	–
Extraordinary losses	1,454	276	+426.2%
Profit before income taxes	353	-1,244	–
Total income taxes	659	642	+2.7%
Net profit	-306	-1,866	–
Net profit margin	-1.2%	-7.2%	–

In the fourth quarter (Jul.-Sep. 2025), sales were 6,934 million JPY (YoY -9.6%) and operating profit was 392 million JPY, compared with -512 million JPY in 4Q FY2024; the company notes that 4Q operating profit turned positive, up 0.9 billion yen compared to the same quarter of the previous year. The 4Q operating profit margin was 5.7%, ordinary profit was 730 million JPY and net profit was 294 million JPY.

On the balance sheet, total assets were 75,742 million JPY at the end of September 2025, and the equity ratio was 91.0%. Cash and deposits stood at 50,273 million JPY.

Item (Million JPY)	FY2025 (Sep.2025)	FY2024 (Sep.2024)	Change vs. previous term-end
Current assets	64,271	67,267	-4.5%
Cash and deposits	50,273	50,250	+0.0%
Operational investment securities	8,720	10,166	-14.2%
Non-current assets	11,470	12,537	-8.5%
Total assets	75,742	79,805	-5.1%
Total liabilities	6,801	8,417	-19.2%
Shareholders’ equity	67,295	70,128	-4.0%
Net assets	68,940	71,387	-3.4%

Segment Results

COLOPL reports two segments. The Entertainment Business posted sales of 23,264 million JPY (YoY -4.9%) and narrowed its operating loss to -180 million JPY from -1,302 million JPY, as cost declined 9.0%. The Investment and Development Business increased sales by 77.8% to 2,668 million JPY, and its operating profit rose to 1,180 million JPY from 91 million JPY, with an operating profit margin of 44.2%.

Segment	Metric (Million JPY)	FY2025	FY2024	YoY
Entertainment Business	Sales	23,264	24,474	-4.9%
Entertainment Business	Cost	23,445	25,776	-9.0%
Entertainment Business	Operating profit	-180	-1,302	–
Entertainment Business	Operating profit margin	-0.8%	-5.3%	–
Investment&Development Business	Sales	2,668	1,500	+77.8%
Investment&Development Business	Cost	1,488	1,409	+5.6%
Investment&Development Business	Operating profit	1,180	91	+1,187.7%
Investment&Development Business	Operating profit margin	44.2%	6.1%	–

Entertainment Business: 4Q sales were 6.4 billion yen (YoY -2.6%, QoQ +32.2%). In smartphone games, “DRAGON QUEST WALK” held its 6th anniversary event and implemented new features, “Shironeko Project” began the main story commemorating its 11th anniversary and ran a collaboration with the anime “Frieren: Beyond Journey’s End”, and “FESBA+” celebrated its first anniversary. For the blockchain game, Brilliantcrypto, Inc. reported annual sales of 0.36 billion yen, cost of 1.52 billion yen and an operating profit of -1.15 billion yen, with advance received (future earnings) of 1.2 billion yen. In XR, part of the content used in NTT Group’s XR haptic demo was produced by 360Channel, Inc.

Investment and Development Business: 4Q sales were 0.5 billion yen (YoY -51.6%, QoQ +387.6%). The balance of operational investment securities was 8.7 billion yen at the end of the period (YoY -14.2%, QoQ -7.1%). The company also highlighted the sale of a portion of its BitStar Inc. shares and its approach of having diverse exit strategies to aim for stable revenue generation.

Outlook and FY2026 Policy

A numerical full-year earnings forecast for the next fiscal year is not presented in the results presentation. This cannot be confirmed from the materials.

As its policy for the game domain for FY2026, COLOPL lists advancing development of “Location-based games x Powerful IPs” targeting global hits, adding an AI-powered “Generative Game” pipeline, exploring new experiences through cutting-edge technology, collaboration with other companies utilizing its own assets, and development of adventure games leveraging the strengths of its group companies. The company has added two Location-based games to its pipeline, which now stands at 4 mobile games and 11 PC/console games (contract development projects and ported titles are not included in the PC/console count).

On the resource side, the company revamped its personnel system under a new HR policy and is implementing a Career Transition Support Program with approximately 70 positions available, with the impact on employee count from the 2Q of FY2026.

Shareholder Returns

COLOPL plans to pay a dividend of 20 yen per share for FY2025, unchanged from the previous four years, for a total dividend of 2,569 million JPY and a DOE of 3.7%. The FY2025 dividend will be decided at the annual meeting of stockholders planned for December 2025.

Item	FY2025	FY2024	FY2023	FY2022	FY2021
Dividend per share (JPY)	20.00	20.00	20.00	20.00	20.00
Total dividend (Million JPY)	2,569	2,567	2,565	2,564	2,559
DOE	3.7%	3.5%	3.4%	3.4%	3.4%

Mid-Term Management Policy

Under its mid-term management policy, COLOPL has set the goal of becoming one of the “Global Top 20 in the Mobile Game Market”, with guideposts of consolidated sales of over 100 billion yen and consolidated operating profit of over 50 billion yen. Its strategies are active expansion into overseas markets, leveraging powerful IP, and the provision of new UX, supported by clarifying its content strategy and the optimal allocation of management resources. Beyond games, the company aims to combine technologies such as XR, AI, location information and Web3 with entertainment, citing recently released services “FANPARK” and “360maps”.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.