Falcom Revenue Jumps 71% Following Strong Trails in the Sky and Kyoto Xanadu

Nihon Falcom reported a 71.2% increase in revenue for its fiscal year ended September 2026, following strong performances from Trails in the Sky 1st Chapter, Trails in the Sky 2nd Chapter, and Kyoto Xanadu -the Blooming Phantom-. The Japanese developer also recorded substantial profit growth as its international licensing business continued to expand. In case you missed it, check out our review of Trails in the Sky 2nd Chapter.

According to the company’s latest financial report, Falcom generated ¥4.47 billion in revenue, up from ¥2.61 billion during the previous fiscal year. Operating profit increased 113.8% to ¥2.87 billion, while net profit rose 122.2% to ¥2.01 billion.

Falcom’s licensing business was a major contributor to these results, generating ¥3.50 billion in revenue, an 86% increase year over year. The division accounted for approximately 78% of the company’s total revenue and includes international game releases, licensing agreements, merchandise, and other activities involving Falcom’s properties.

The company highlighted overseas releases involving The Legend of Heroes: Trails beyond the Horizon, Trails in the Sky, and Ys X: Proud Nordics as part of its licensing activities. Meanwhile, its product division recorded ¥974 million in revenue, representing a 33.2% increase compared to the previous fiscal year.

Falcom also benefited from its recent Japanese releases, including Kyoto Xanadu -the Blooming Phantom- in July 2026 and Trails in the Sky 2nd Chapter in September 2026. The latter followed the release of Trails in the Sky 1st Chapter in September 2025, continuing the company’s efforts to remake the original Trails trilogy.

Despite the strong results, Falcom expects a quieter fiscal year ending September 2027, forecasting a 33% decline in revenue and a 47.7% decrease in operating profit. The company attributed the outlook to having only one new game planned and expecting sales of the Trails in the Sky titles to settle following their strong performance in 2026.

That upcoming release is a sequel to The Legend of Heroes: Trails beyond the Horizon, currently planned to launch in Japan by September 2027.