Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2027: Japan

Akatsuki Inc. achieved a robust financial turnaround during the first quarter of the fiscal year ending March 31, 2027, characterized by a 121.6 percent year-on-year increase in net sales to ¥5,126 million. This performance marks a return to profitability, with the company recording an operating profit of ¥693 million, a significant improvement over the losses sustained in the prior year. The primary drivers for this growth include the successful commercial launch of Kaiju No. 8 THE GAME, enhanced operational efficiencies within the core Games and Comics segment, and the integration of strategic acquisitions.

The company is currently undergoing a period of aggressive structural expansion, highlighted by the ¥4.5 billion acquisition of Groove Holdings, Inc. to strengthen IP merchandising capabilities and the purchase of SUNNY SIDE UP Group, Inc. While these investments have bolstered the company’s asset base, they have also introduced increased liabilities and necessitated ongoing capital expenditure. Consequently, the newly established AI solutions and marketing division reported a segment loss of ¥98 million, reflecting its status as an active investment phase.

To improve market liquidity and broaden the investor base, a 3-for-1 stock split is scheduled for October 1, 2026. Despite the positive quarterly momentum, management has declined to issue full-year earnings forecasts, citing persistent market volatility and the unpredictable nature of long-term investment requirements. The current strategy remains focused on balancing rapid portfolio diversification through M&A activity with the stabilization of core gaming operations within the Japanese market.