Financial · August 7, 2025

Summary of Financial Results for Second Quarter (First Half) of Fiscal Year Ended December 31, 2025

Published by KLab

Summary

KLab Inc. experienced a challenging first half of the fiscal year ending December 31, 2025, characterized by a 12.9% year-over-year revenue decline to 3,161 million yen and a substantial net loss of 4,748 million yen. This loss was primarily driven by a 4.43 billion yen impairment on software in progress, which contributed to a sharp reduction in total assets from 15.7 billion yen to 10.9 billion yen. Despite these pressures, the game business segment achieved a profit of 313 million yen, and operating losses showed slight improvement compared to the previous year. Due to ongoing volatility and the difficulty of projecting future performance, no full-year forecast has been provided, and interim dividends have been suspended. To stabilize its financial position and pivot its corporate strategy, the firm executed several capital-raising and restructuring initiatives. These included the sale of the subsidiary GlobalGear for 1.1 billion yen and the issuance of new stock acquisition rights. These rights are tied to rigorous performance hurdles, requiring the company to achieve over 1,000 million yen in non-game revenue and a market capitalization exceeding 10 billion yen before they can be exercised. These measures are designed to incentivize a recovery in market value and diversify revenue streams beyond traditional mobile gaming. Management remains focused on achieving profitability through aggressive cost-cutting, workforce optimization, and a refined development pipeline. While the company has faced four consecutive years of operating deficits and delays in the release of EA SPORTS FC™ TACTICAL, it maintains that there is no material uncertainty regarding its status as a going concern. Future growth is predicated on the successful launch of new projects, including a My Hero Academia title and an expansion into the hybrid casual gaming market. This strategic shift aims to balance the high-risk nature of major game development with more sustainable, diversified business operations.

From the report

Summary of Financial Results for Second Quarter (First Half) of Fiscal Year Ended December 31, 2025 (Japanese GAAP) (Consolidated) evail. This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. August 7, 2025 Name of listed company: KLab Inc. Stock exchange listing: Tokyo Stock Exchange Prime Market Securities code: 3656 URL: https://www.klab.com/en/ Representative: [Name] Tetsuya Sanada [Title] Representative Director and President Contact: [Name] Kazuyuki Takata [Title] Director TEL: +81-3 -5771-1100 Scheduled filing date for securities report: August 7, 2025 Scheduled date for dividends payment: － Supplementary information for quarterly results: Yes https://www.klab.com/en/ir/library/ Information meeting for quarterly financial report: Yes *Institutional investors and analysts only

dends payment: － Supplementary information for quarterly results: Yes https://www.klab.com/en/ir/library/ Information meeting for quarterly financial report: Yes *Institutional investors and analysts only (Amounts of less than one million yen are rounded down unless otherwise stated.) 1. Consolidated Operating Performance for First Half of FY2025 (January 1, 2025 – June 30, 2025 ) (1) Consolidated Operating Results (year-to-date) (% represents rate of increase or decrease over same period of previous fiscal year) Revenue Operating income Ordinary income Profit attributable to owners of parent Million yen % Million yen % Million yen % Million yen % First half of FY2025 3,161 (12.9) (648) － (830) － (4,748) － First half of FY2024 3,629 (32.4) (1,024) － (821) － (1,341) － Note: Comprehensive income First half of FY2025: (4,889) million yen ―% First half of FY2024: (1,202) million yen ―%

(1,024) － (821) － (1,341) － Note: Comprehensive income First half of FY2025: (4,889) million yen ―% First half of FY2024: (1,202) million yen ―% Net income Diluted net income per share per share Yen Yen First half of FY2025 (90.96) － First half of FY2024 (32 .47 ) － (2) Consolidated Financial Status Total assets Net assets Equity ratio Million yen Million yen % First half of FY2025 10,935 6,855 62.6 FY2024 15,784 10,371 65.6 Reference: Shareholders’ equity First half of FY2025: 6,843 million yen FY2024: 10, 360 million yen 2. Dividends Annual dividends End of Q1 End of Q2 End of Q3 Year End Total

65.6 Reference: Shareholders’ equity First half of FY2025: 6,843 million yen FY2024: 10, 360 million yen 2. Dividends Annual dividends End of Q1 End of Q2 End of Q3 Year End Total Yen Yen Yen Yen Yen FY2024 ― 0.00 ― 0.00 0.00 FY2025 ― 0.00 FY2025 (Forecast) ― 0.00 0.00 Note: Revisions to the most recently announced dividend forecast: No 3. Consolidated Operating Performance Forecasts for FY2025 (January 1, 20 25 – December 31, 2025 ) The consolidated operating performance forecasts for FY2025 will not be disclosed due to difficulty in reasonably calculating forecasts. It is company policy to disclose calculations as soon as possible based on future progress.

■ Explanatory Notes (1) Changes to major subsidiaries during the first half of FY2025: No (2) Application of Special Accounting Treatment Specific to Preparation of First Half Consolidated Yes Financial Statements: Note: Refer to “1. First Half Consolidated Financial Statements and Related Notes” in section “(3) Notes Related to First Half Consolidated Financial Statements (Application of Special Accounting Treatment Specific to Preparation of First Half Consolidated Financial Statements)” on page 5 of Supporting Information. (3) Changes to accounting policies, estimates, and restatements ① Changes to accounting policies due to revision of accounting standards: Yes ② Changes other than ①: No ③ Changes to accounting estimates: No ④ Restatements: No

No ③ Changes to accounting estimates: No ④ Restatements: No (4) Number of outstanding shares (common shares) ① Period end outstanding shares First half of 60, 392, 300 shares FY2024 48, 502, 300 shares (including treasury shares) FY2025 ② Period end treasury shares First half of 641, 617 shares FY2024 641, 605 shares FY2025 ③ Average outstanding shares First half of 52, 206, 093 shares First half of 41, 332, 296 shares during the period (first half) FY2025 FY2024 ■ The first half financial statements are not subject to audits by certified public accountants or audit firms. ■ Note regarding the appropriate usage of forecasts and other special instructions (Notes on forward-looking statements) The earnings forecast and other forward-looking statements contained in this report are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual results may differ materially from these forecasts for various of reasons.

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Words: 8,956
Format: PDF
Type: Financial

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