The Catch Up

KLab Inc.’s financial results for the first half of the fiscal year ending December 31, 2026, indicate a significant recovery in operating performance compared to the same period in the previous year. The company reported consolidated revenue of 4,969 million yen, representing a 57.2% increase over the first half of 2025. Operating income reached 39 million yen, a notable improvement from the 648 million yen operating loss recorded in the prior year’s first half. Despite these gains, the company remained in a net loss position, reporting a loss attributable to owners of the parent of 125 million yen, though this is a substantial reduction from the 4,748 million yen loss incurred during the first half of 2025.

The company’s financial position remains stable, with total assets increasing to 14,637 million yen as of June 30, 2026, compared to 13,273 million yen at the end of 2025. The equity ratio stands at 78.1%, reflecting a slight increase from 76.9% at the end of the previous fiscal year. The primary business segment, the Game Business, generated 4,551 million yen in revenue, with a segment profit of 1,614 million yen. The company has maintained its full-year earnings forecast for 2026, projecting total revenue of 17,000 million yen and an operating income of 1,000 million yen.

These results were prepared in accordance with Japanese GAAP and cover the consolidated operations of KLab Inc. for the period from January 1, 2026, to June 30, 2026. The financial statements reflect the impact of crypto asset valuation losses and foreign exchange fluctuations, while benefiting from the absence of the significant impairment losses on fixed assets that heavily impacted the previous year’s performance. No changes to accounting policies or significant shifts in the scope of consolidation were reported for this period.

The leadership team of Bain & Company's Global Gaming Sector practice prepared this report, with special direction from Anders Christofferson, partner and Global Gaming Sector lead, and Brandon Rogers, Media practice manager. The authors would like to thank Danielle Schwenker, Aman Sharma, Gunjan Dawar, Shray Arora, Rohan Doomra, Shagun Jain, and Christoffer Karlsmose for their contributions to this work.

The CD PROJEKT RED Group H1 2026 earnings report outlines the company’s financial performance and strategic roadmap, emphasizing the continued commercial success of its two primary intellectual properties: The Witcher and Cyberpunk 2077. The company reports a strong financial position, characterized by a 23% increase in sales revenue compared to the first half of 2025, reaching 435 million PLN. Net profit from continuing operations rose by 37% to 249 million PLN, reflecting a net profitability margin of 57.2%.

Key operational highlights include the sustained lifecycle performance of Cyberpunk 2077, which has reached 40 million units sold, alongside 15 million copies of the Phantom Liberty expansion. The Witcher franchise remains a cornerstone of the company’s portfolio, with 90 million total units sold across the series, including 65 million for The Witcher 3: Wild Hunt. The company is actively expanding its IP through licensing agreements for trading card games and the upcoming return of the Edgerunners animated series.

Development efforts are heavily focused on the future of The Witcher franchise, with a commitment to releasing a major title annually through 2028, starting with The Witcher 3: Wild Hunt Remastered in late 2026. As of July 2026, the company’s development headcount reached 1,045, with the largest portion of staff dedicated to the next installment of The Witcher. Financial data indicates a significant increase in capitalized development expenditures, which grew by 32% to over 1.5 billion PLN, signaling substantial ongoing investment in the company’s future product pipeline. The report concludes by reinforcing the company's focus on long-term franchise growth and operational efficiency.

COLOPL, Inc. reported its consolidated financial results for the nine-month period ending June 30, 2026, reflecting a strategic shift toward cost optimization and improved profitability despite a decline in top-line revenue. The company operates primarily within the Japanese entertainment and investment sectors, focusing on smartphone game development and IT-related investments.

Financial performance for the period showed net sales of 15,700 million yen, a 17.4% decrease compared to the same period in the previous year. Despite this revenue contraction, the company achieved a significant turnaround in profitability, with operating profit rising 116.7% to 1,320 million yen and ordinary profit increasing 135.7% to 2,533 million yen. Profit attributable to owners of the parent reached 1,504 million yen, recovering from a 601 million yen loss in the prior year. This improved bottom-line performance was largely driven by a group-wide reduction in advertising and operational expenses within the Entertainment Business, which offset the impact of declining sales from legacy titles.

The Entertainment Business, anchored by the title Dragon Quest Walk, generated 14,676 million yen in sales. Meanwhile, the Investment and Development Business recorded 1,023 million yen in sales, a 52.2% decline attributed to the absence of large-scale deals that occurred in the previous year and the recognition of impairment losses on certain securities. As of June 30, 2026, the company maintained a strong financial position with total assets of 72,248 million yen and an equity ratio of 92.9%. Due to the volatility of the current business environment, the company has opted not to disclose specific earnings forecasts for the remainder of the fiscal year.

Financial Results Presentation Note: This document is a translated version for reference purposes only. Therefore, any discrepancy may occur with the Japanese original version. Please refer to the Japanese version if you find anything unclear. COLOPL, Inc. takes no responsibility for any problems of translation.

COLOPL’s financial results for the third quarter of the fiscal year ending September 30, 2026, demonstrate a successful turnaround to profitability, driven by robust performance in its core mobile gaming portfolio and strategic exits within its investment arm. The company reported consolidated sales of 5.6 billion yen, representing a 13.2% year-on-year increase, and an operating profit of 0.7 billion yen. This financial recovery was supported by disciplined cost optimization, particularly in advertising expenditures, and significant gains from the secondary sale of shares in an investee company.

The Entertainment Business remains the primary revenue driver, contributing 4.8 billion yen in sales. Performance was bolstered by sustained engagement with major mobile titles, including DRAGON QUEST WALK and Shironeko Project, the latter of which celebrated its 12th anniversary during the quarter. The Investment and Development Business also saw substantial growth, with sales rising by 600.2% year-on-year to 0.7 billion yen, largely due to the divestment of SALOWIN Co., Ltd. The company maintains a strong financial position, characterized by an equity ratio of 92.9% and a stable balance of operational investment securities totaling 8.8 billion yen.

Looking forward, the company is executing a mid-term management strategy aimed at achieving "Global Top 20" status in the mobile game market, targeting 100 billion yen in sales and 50 billion yen in operating profit. Future growth initiatives include the development of new location-based games, the upcoming release of the "Active Cinema RPG 369," and the expansion of its console footprint with the 2027 launch of Shironeko Project INFINITY. Additionally, the company continues to leverage its XR and digital twin technologies through its subsidiary, 360Channel, to diversify its service offerings beyond traditional gaming.

COLOPL’s third-quarter fiscal year 2026 performance reflects a strategic stabilization in mobile game revenue, signaling that long-running titles have successfully reached a performance floor. This trend is attributed to sustained efforts in user engagement and content longevity, which have mitigated the typical revenue decay associated with aging mobile portfolios. Profitability saw a substantial increase during this period, driven primarily by a disciplined reduction in advertising expenditures and a company-wide initiative to scrutinize operational costs. The absence of new title launches in the third quarter further contributed to this lean expenditure profile.

The company’s content strategy is bifurcated into two distinct pillars: leveraging third-party intellectual property for global market penetration and developing innovation-focused titles to serve as future growth catalysts. The upcoming Active Cinema RPG 369 represents the latter category, characterized by a condensed development cycle and an emphasis on experimental gameplay experiences. Simultaneously, the company is expanding its pipeline with multiple location-based games designed to secure sustainable, long-term growth.

Strategic expansion into the console market is also underway, marked by the announcement of Shironeko Project INFINITY. This project represents a departure from simple porting, as the company has invested in a bespoke development approach tailored to console hardware capabilities. Supported by an optimized personnel structure and advancements in development technology, the title is currently slated for a 2027 release. These initiatives collectively underscore a shift toward balancing the maintenance of established mobile assets with targeted investments in new platforms and innovative gaming experiences.

Bushiroad’s financial performance for the fiscal year ending June 30, 2026, reflects steady top-line growth alongside significant improvements in bottom-line profitability. The company achieved net sales of 57,823 million yen, representing a 2.9% increase over the previous fiscal year. While operating profit saw a slight contraction of 2.3% to 4,754 million yen, ordinary profit grew by 22.4% to 5,930 million yen. Most notably, profit attributable to owners of the parent surged by 33.6% to 4,565 million yen, resulting in a profit per share of 33.64 yen.

The company’s financial position strengthened during this period, with total assets rising to 61,641 million yen from 49,797 million yen in the prior year. Net assets also increased to 29,720 million yen, maintaining an equity-to-asset ratio of 46.5%. These results incorporate the impact of a 2-for-1 share split executed on October 1, 2025, which was accounted for in the calculation of per-share metrics to ensure consistency across reporting periods.

Looking ahead to fiscal 2027, the company projects continued stability with forecasted net sales of 58,000 million yen, a marginal increase of 0.3%. Management anticipates an 11.5% rise in operating profit to 5,300 million yen, though profit attributable to owners of the parent is expected to decline by 8.0% to 4,200 million yen. The company remains committed to shareholder returns, projecting an annual dividend of 3.00 yen per share for the upcoming fiscal year, up from the 2.50 yen distributed in fiscal 2026. These figures are prepared in accordance with Japanese GAAP and reflect the consolidated operations of the organization.

This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated version and the original Japanese version, the latter shall prevail. For prompt disclosure, this document is translated Japanese to English based on machine translation, and some parts of this document may be written in Japanese or other languages without translation.

Q1 for the Fiscal Year Ending March 2027 The market forecasts, performance outlooks, plans, strategies, and other forward-looking statements contained in this document are based on information available to the Company and the judgment of its management at the time this material was created. They do not constitute a guarantee of future performance.

The financial results briefing for the first quarter of the fiscal year ending March 2027 outlines the performance of Sega Sammy Holdings across its core business segments. The primary objective of the session was to address analyst inquiries regarding the company’s financial outperformance, which saw consolidated operating income exceed initial expectations by more than 7.0 billion yen. This growth was driven by strong results in the Entertainment Contents and Pachislot & Pachinko Machines segments, alongside a narrower-than-anticipated operating loss in the Gaming Business.

Key findings indicate that the Entertainment Contents Business benefited from robust sales of arcade hardware and strong performance in downloadable content, despite a year-over-year decline in operating income due to the absence of one-time licensing revenue recorded in the previous year. The company is currently transitioning toward a unified global marketing structure and a simultaneous multi-platform release strategy for new titles. Meanwhile, the Pachislot & Pachinko Machines segment saw improved profit margins attributed to high demand for specific titles and increased sales of reel units. Management noted that while regulatory shifts regarding machine features are unlikely to impact short-term performance, they are expected to support long-term industry revitalization.

The Gaming Business, which operates primarily in the North American market, reported a smaller operating loss than projected, largely due to a higher-than-expected proportion of outright machine sales compared to the anticipated lease-based model. Regarding capital allocation, the company maintains its commitment to a 50% total payout ratio and a 3% dividend on equity (DOE), prioritizing a balance between growth investments and shareholder returns. The company continues to pursue a transmedia strategy, leveraging its intellectual property across games, video adaptations, and merchandise to maximize brand value globally.

2027年3月期 Q1 決算補足データ集 Data Appendix (FY2027/3 Q1) 2026/8/7 （十億円 Billion yen） FY25/3 FY25/3 FY26/3 FY27/3 FY26/3 FY27/3 Q2累計 Q3累計 通期実績 Q2累計 ...

Marvelous Inc. has finalized the terms of a cash-settled forward transaction involving its own common shares, a strategic financial arrangement initially authorized by the Board of Directors on July 31, 2026. This transaction involves a forward contract with SBI SECURITIES Co., Ltd. acting as the forward seller. The agreement covers 4,736,300 underlying shares, which accounts for 7.79% of the company’s total voting rights as of March 31, 2026.

The financial parameters of the agreement establish a forward price of JPY 501 per share. The contract is set to mature on July 31, 2028, though the parties retain the flexibility to extend this date upon mutual consultation. Settlement will be conducted on a cash basis, with the specific maturity settlement date determined by the completion of share sales by the counterparty or through a mark-to-value settlement method, depending on the circumstances at the time of maturity.

This transaction represents a significant capital management initiative for the Tokyo-listed entertainment company. By utilizing a cash-settled forward structure, Marvelous Inc. manages its equity position without immediate physical share transfer, providing a mechanism to influence or hedge its own share value over a two-year horizon. The finalization of these details confirms the operational framework for the transaction, ensuring that the company’s treasury management remains aligned with the previously disclosed board resolutions.

Marvelous Inc. has finalized the cancellation of 5,003,341 common shares, a strategic corporate action executed under Article 178 of the Companies Act. This reduction, which took effect on August 6, 2026, represents 8.04% of the company’s total issued shares prior to the cancellation. The move follows a formal resolution passed by the Board of Directors on July 31, 2026, and serves to adjust the company’s capital structure by permanently removing these treasury shares from circulation.

The scope of this action is limited to the Japanese market, specifically impacting the equity structure of the Tokyo Stock Exchange Prime Market-listed entity. Following the completion of this cancellation, the total number of issued shares, excluding remaining treasury holdings, stands at 56,213,059. The company retains a balance of 1,000,000 treasury shares following the transaction.

This corporate restructuring reflects a standard administrative procedure for managing share capital and optimizing shareholder value. By eliminating a significant portion of its treasury stock, the company effectively reduces its total share count, which typically serves to increase earnings per share for remaining stakeholders. The data provided confirms the successful execution of the board’s mandate, marking the conclusion of this specific capital management initiative.