TAY TWO CO.,LTD. Q4 FY2026 earnings call

• Core Business Performance

  • The company has entered its formal "re-growth phase", with full year 2026 February results exceeding the prior year's top and bottom line metrics across all key profit indicators (operating profit, ordinary profit, net profit attributable to parent shareholders), supported by improved cost efficiency that maintained overall profitability.
  • Nintendo's new hardware launch generated more than 2.0 billion yen in one-time special demand that boosted full year results.
  • Excluding this one-time special demand, core in-store sales still show underlying growth compared to the prior fiscal year.

• Retail Store Network Expansion

  • As of April 14, 2026, the total store network (directly operated, subsidiary, and franchise stores) reached 179 locations, with cumulative mall-based locations expanding to 45 stores.

• Multi-track Business Portfolio Diversification

  • Overseas expansion: Opened the first Taiwan store in July 2025, and preparations for the second Taiwan location are currently underway.
  • B2B business: Secured major client contracts for the TAYS trading card scanning and appraisal machine, and is advancing a full restructuring of the AIICO IoT-enabled vending machine business.
  • IP business: Launched a successful NIKKE pop-up shop in Nagoya in February 2026, and secured solid operational results from the test.

• Shareholder Return

  • Plans to pay a total year-end dividend of 5 yen per share, consisting of a 4 yen regular dividend plus a 1 yen special dividend. The special dividend is funded by capital gains from the sale of the company's held marketable securities, to return these gains directly to shareholders.

テイツー operates three core product segments that drove full year performance for the 2026 February period: 1. New and pre-owned games: Generated over 2.0 billion yen in special demand from the launch of Nintendo's new hardware, contributing a large portion of the full year revenue growth. 2. New and pre-owned trading cards: Market pricing has remained on an upward trajectory, supporting core revenue performance. 3. New and pre-owned hobbies: Serves as the third core pillar of the company's core retail business. No absolute segment-level financials or revenue contribution percentages were provided in the transcript. Overall full year company revenue reached 42.2 billion yen, operating cash flow hit 1.9 billion yen, and consolidated operating income grew 51.1% year-over-year.

• Short-term (2027 February full year) guidance: 42.5 billion yen in consolidated revenue, 1.6 billion yen in operating profit. This forecast accounts for the lap of the prior year's Nintendo special demand and represents underlying growth on a core basis. Guidance is maintained at a nearly flat top line relative to the prior year after absorbing the expiration of the one-time special demand.
• Medium-term (2029 February full year) target: 50.0 billion yen in consolidated revenue and 2.5 billion yen in operating profit. The medium-term target is unchanged and maintained. Management notes that the current upward trend in trading card market prices provides favorable tailwinds from the external environment to achieve this medium-term plan.

No explicit discussion of business risks or operational failures was included in the provided transcript.

The full detailed question and answer transcript is not included in the provided summary. The summary notes that key discussed topics relevant to investment decision-making included: (1) the 2027 February period top and bottom line growth outlook, (2) rising new product share and pre-owned product inventory circulation, (3) recent trading card market conditions and future outlook, and (4) performance assessment for the 2026 February full year period.