Marvelous Inc. forecasts a sharp revenue rebound for fiscal 2026 after withdrawing its medium-term targets following a disappointing year marked by underperforming game releases.
The Tokyo-based entertainment company projects sales of ¥35 billion ($233 million) for the year ending March 2026, representing a 25.2% increase that would set a new company record. Operating profit is expected to rise a modest 10% to ¥2 billion ($13.3 million), while net income could surge 71% to ¥1.4 billion ($9.3 million).
The optimistic outlook follows a challenging fiscal 2025 that saw sales drop 5.2% and operating profit tumble 24.7%, primarily due to poor reception of titles like “Farmagia.” The company’s stock has declined roughly 30% over the past year.
Marvelous plans to release three major consumer game sequels, including new entries in the “Rune Factory” and “Story of Seasons” franchises, alongside “DAEMON X MACHINA TITANIC SCION.” The company will also launch online game “Browser Sangokushi Ten” and multiple indie titles.
Despite the revenue surge projection, profit growth remains constrained as development costs hit margins upfront. Management expects stronger profit contributions only in the second half, creating a back-loaded earnings profile. The company recently abandoned its medium-term guidance, citing difficulty achieving longer-term targets under current market conditions.
