Financial Results for the Second Quarter: Japan (FY 2026/03)

The second‑quarter financial results for the fiscal year ending March 2026 show a sharp contraction in revenue and profitability. Consolidated sales fell 49.2 % to ¥1,244 million, while operating loss widened to ¥322 million from a ¥206 million loss the prior year. Ordinary loss increased to ¥189 million, and net loss attributable to equity holders reached ¥225 million. The company’s total assets rose modestly to ¥11,203 million, with equity declining to ¥7,635 million and the equity ratio falling from 69.6 % to 67.2 %. Cash balances dropped by ¥1,544 million to ¥3,652 million, reflecting significant outflows in investing activities (¥1.48 billion) and modest financing inflows (¥290 million).

Segment analysis indicates that the entertainment business, which includes game development and digital distribution, posted a 50.6 % decline in sales to ¥1,184 million and an operating loss of ¥96 million. The student‑dormitory and other services segment grew sales by 25.1 % to ¥60 million but still incurred an operating loss of ¥8 million. Cash‑flow statements reveal that operating activities generated a negative cash flow of ¥306 million, while investing activities consumed ¥1.48 billion mainly due to deposits and asset purchases.

The company forecasts a full‑year revenue of ¥4,774 million, representing a 9.9 % decline from the previous year, with operating and ordinary losses expected to widen further. No changes are anticipated in dividend policy for the year, and no material accounting policy adjustments were made during the period. The results reflect broader industry pressures such as inflation‑driven consumer restraint and competitive dynamics in the gaming market.