Tose’s consolidated financial results for the first quarter of the fiscal year ending August 2025 show that the company has turned profitable again, successfully overcoming the unprecedented losses it saw last year (source: GameBiz).
As Tose is a prolific developer that has over four decades’ worth of experience working on games for major companies like Nintendo and Square Enix, news of its financial struggle hit the industry hard. However, Tose has made a big turnaround. In its first quarter (September 1 to November 31, 2024), the company saw operating profit reach 296 million yen, exceeding its target for the full year.
According to Tose, this is the result of multiple development projects (including an unspecified large-scale project with a major overseas game company) progressing smoothly and achieving stable profit margins. The company’s PC and console game sector was particularly successful, with sales increasing by 160.9% compared to last year.
On the other hand, Tose has not made any revisions to its full-year earnings forecast, despite the better-than-expected performance. The company does not seem to be anticipating any major negative impacts on its performance, but remains wary about the future of some of its projects that are still in their prototype stages. Considering that the main cause of Tose’s losses last year was its partners’ abrupt cancellations of in-progress games, this stance is to be expected.
Tose’s metrics for the first quarter of the fiscal year ending August 2025 are as follows:
Net sales: 1,719 million yen (up by 83.5% year-on-year)
Operating profit: 296 million yen (compared to a 212-million-yen loss in the same period last year)
Ordinary profit: 294 million yen (compared to a 206-million-yen loss in the same period last year)
Net profit: 213 million yen (compared to a 139-million-yen loss in the same period last year)
The large-scale turnaround has favorably impacted Tose’s share price, which temporarily hit its upper limit on January 10.
