[In-Depth Earnings Report] Bushiroad (7803) FY2026 Full-Year Results and the Full Scope of Business Portfolio Restructuring

Bushiroad Inc. (Securities Code: 7803) announced its FY2026 full-year financial results , reporting consolidated net sales of 57,823 million yen (+2.9% YoY) , marking a record-high annual revenue . Regarding profitability, while operating profit saw a slight decline to 4,754 million yen (-2.3% YoY) , the company recorded a significant increase in bottom-line profit. Ordinary profit reached 5,930 million yen (+22.4% YoY) , bolstered by non-operating income such as interest received (154 million yen) and foreign exchange gains (68 million yen), while net profit attributable to owners of the parent surged to 4,565 million yen (+33.5% YoY) , driven by an extraordinary gain from the sale of affiliate stocks (1,384 million yen).

This report extracts 10 key topics from the earnings materials—including the achievement of record sales, the recovery of core TCG titles, expansion of overseas revenue, strong performance across MD, live entertainment, and media content units, the transfer of New Japan Pro-Wrestling shares, the integration of Stardom into the live entertainment unit, the launch of the Palworld TCG, the FY2027 earnings forecast, dividend increase policy, and share buybacks—and provides a detailed analysis of the background and future growth story.

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1. Overview of Full-Year Results and Detailed Income Statement

Bushiroad’s performance for the fiscal year ending June 2026 clearly reflects both top-line growth and shifts in its financial structure.

As shown in the summary income statement slide above, the achievement of 57,823 million yen in net sales (an increase of 1,648 million yen YoY) underscores the resilience of the group's content development capabilities. While R&D expenses were contained at 811 million yen (-686 million yen YoY) , advertising and sales promotion expenses increased to 5,627 million yen (+373 million yen YoY) , indicating active investment in IP (Intellectual Property) promotion and large-scale events.

Looking at the fourth quarter (4Q) in isolation, net sales were 15,467 million yen (-1,336 million yen YoY) and operating profit was 752 million yen (-1,237 million yen YoY). This is attributed to the reactionary effect of a concentration of major title releases in the same period of the previous year and timing differences in project releases; however, the company successfully met its targets on a full-year basis. In particular, the ordinary profit margin of 10.3% and net profit of 4,565 million yen demonstrate how non-operating and extraordinary gains strongly bolstered the final bottom line.

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2. Revenue Trends by Unit and Key Segment Developments

Bushiroad’s business portfolio is diversified across various entertainment sectors, centered on its core TCG (Trading Card Game) unit . The revenue trends and highlights for each unit in FY2026 are as follows:

• TCG Unit : Net sales of 26,850 million yen (46.4% of consolidated sales) After overcoming an adjustment period in the third quarter, core products such as "Weiss Schwarz" (18th anniversary) and "Cardfight!! Vanguard" (15th anniversary) recovered steadily. The newly introduced "hololive OFFICIAL CARD GAME" also contributed to revenue.
• MD (Merchandising) Unit : Net sales of 6,718 million yen (11.6% of sales) Achieved record-high annual sales . The original figure brand "PalVerse" grew rapidly, while capsule/boxed toys and live event merchandise maintained strong performance.
• Live Entertainment Unit : Net sales of 6,845 million yen (11.8% of sales) Achieved record-high annual sales . The "BanG Dream!" project’s live events and CD sales performed well, and the overseas outdoor joint concert in Taipei (attracting approximately 26,000 people over two days) was a major success.
• Media Content Unit : Net sales of 1,955 million yen (3.4% of sales) Achieved record-high annual sales . Growth in e-books within the publishing business, along with the release of the 24th volume of the hit comic "The Ancient Magus' Bride" and other new hits, contributed to the results.
• Digital Game Unit : Net sales of 5,990 million yen (10.4% of sales) In addition to the global simultaneous release of "HUNTER×HUNTER NEN×SURVIVOR" in February 2026, the existing "BanG Dream! Girls Band Party!" celebrated its 9th anniversary with stable performance.
• Sports Unit : Net sales of 6,718 million yen (11.6% of sales) The unit achieved high results in event operations, with New Japan Pro-Wrestling drawing 6,890 people to Osaka-jo Hall and Stardom drawing a record-high 8,015 people to Yokohama Arena.

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3. Global Strategy for the TCG Business and Future Growth Drivers

In the TCG business, the company’s largest growth engine, the development of overseas markets is progressing rapidly.

The slide above highlights the most critical topic in Bushiroad’s future TCG strategy. Of particular note is the launch of the "Palworld Official Card Game," leveraging a globally massive IP. Released simultaneously worldwide in Japanese, English, and Simplified Chinese on July 30, 2026, the initial shipment of the first booster pack exceeded 3.5 million packs . The company successfully acquired an initial global customer base by conducting trial events and pre-sales at approximately 400 stores across more than 20 regions worldwide.

Furthermore, the company has set a target for the overseas TCG revenue ratio to exceed 50% in FY2027 . To achieve this, it has established new local subsidiaries in Malaysia (established March 2026) and China (established July 2026), building a manufacturing and distribution network across seven global locations . By shifting from the traditional Asia/North America-centric model to local manufacturing and distribution, the company aims to shorten lead times, optimize costs, and dramatically enhance its global competitiveness.

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4. Business Portfolio Restructuring: Transfer of New Japan Pro-Wrestling and Reorganization of Stardom

One of the most significant management decisions in the FY2026 results is the drastic structural reform of the sports unit .

As noted above, Bushiroad transferred all shares of its consolidated subsidiary, New Japan Pro-Wrestling Co., Ltd., to TV Asahi and CyberAgent (completed June 30, 2026). Since the acquisition in 2012, the company has enhanced corporate value through management renewal and athlete development; however, it was determined that transferring ownership to these companies, which possess strong media foundations, is optimal for maximizing future video and digital strategies. Following this share transfer, an extraordinary gain of 1,384 million yen from the sale of affiliate stocks was recorded.

Meanwhile, the women’s professional wrestling organization World Wonder Ring Stardom was integrated into the Live Entertainment Unit starting July 2026. By fusing Stardom’s powerful event expertise—which hosts over 100 events annually—with Bushiroad’s know-how in media mix, merchandise development, and overseas expansion, the company aims to evolve into "ultimate live entertainment" that transcends mere wrestling events. This is a highly rational reorganization that concentrates management resources on the company’s core strength: live entertainment.

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5. FY2027 Earnings Forecast and Shareholder Returns (Dividend Increase & Share Buyback)

Despite the revenue-reducing factor of deconsolidating New Japan Pro-Wrestling, the consolidated earnings forecast for FY2027 indicates sustained growth:

• Net Sales : 58,000 million yen (+0.3% YoY)
• Operating Profit : 5,300 million yen (+11.5% YoY)
• Ordinary Profit : 6,000 million yen (+1.2% YoY)
• Net Profit Attributable to Owners of the Parent : 4,200 million yen (-8.0% YoY, due to the absence of the previous year's stock sale gain)

The fact that the company expects 58 billion yen in sales despite the loss of New Japan Pro-Wrestling revenue is due to the incorporation of growth from new major titles such as the "Palworld" TCG and the new mobile game "BanG Dream! Our Notes" (which has already surpassed 1.1 million pre-registrations). These forecasts for new titles are estimated conservatively, leaving room for potential upside.

Furthermore, the shareholder return policy has been strengthened. The company expects to increase the dividend to 3.00 yen from the previous year’s 2.50 yen (adjusted for stock splits). Additionally, it has decided to implement a share buyback of up to 2 billion yen (8,000,000 shares, 5.89% of total shares outstanding) (acquisition period: July 1, 2026, to December 31, 2026), demonstrating a strong management commitment to improving capital efficiency and maximizing shareholder value.

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6. Renewal of Management Structure and Summary of the Mid-to-Long-Term Growth Story

This announcement also unveiled a new executive structure designed to strengthen governance and management speed. Founder Takaaki Kidani is set to become Representative Director and Chairman , while Yuki Nemoto will assume the role of Representative Director and President . This clarifies a functional division of roles, with Mr. Kidani focusing on the front lines of IP creation and content development, while Mr. Nemoto drives operations and organizational management.

In summary, FY2026 was a pivotal turning point for Bushiroad, during which it achieved record-high sales while simultaneously divesting non-core/unprofitable businesses (transfer of New Japan Pro-Wrestling) . Looking toward FY2027, the company has established a solid framework for further profitability, armed with global TCG expansion leveraging its seven-base network, the transformation of Stardom into a live entertainment powerhouse , and a strong IP pipeline including "Palworld" and new "BanG Dream!" developments.