FinancialKLab
Summary of Financial Results for Fiscal Year Ended December 31, 2025 (Japanese GAAP)
1 Feb 202619 pages~28 min full read
The company reported a net loss of ¥4.18 billion and an operating loss of ¥1.30 billion for the fiscal year ended December 31, 2025, driven by a 17.5% revenue decline to ¥6.86 billion.
See it on page 10A substantial ¥4.43 billion impairment loss on software assets related to EA SPORTS FC™ TACTICAL significantly impacted the annual financial results.
See it on page 5Core mobile titles, including BLEACH Brave Souls and Captain Tsubasa: Dream Team, underperformed, contributing to a decline in mobile gaming segment profits from ¥1.13 billion to ¥830.5 million.
See it on page 5Financial stability is being maintained through ¥4.79 billion in proceeds from new share issuances and the sale of investment securities, which helped increase cash and cash equivalents to ¥5.21 billion.
See it on page 14The company is undergoing a structural transition that includes workforce reductions, office relocations, and the divestment of GlobalGear Co. Ltd. to mitigate operational volatility.
See it on page 18A strategic pivot toward high-growth technology is underway, with the new GPU AI Cloud business generating ¥490.7 million in initial sales to diversify revenue away from traditional gaming.
See it on page 5Fiscal performance for the year ended December 31, 2025, reflects a period of significant structural transition as the organization grapples with a 17.5% year-on-year revenue decline to ¥6.86 billion. This downturn was primarily driven by the weakening performance of core mobile titles such as BLEACH Brave Souls and Captain Tsubasa: Dream Team, alongside a substantial ¥4.43 billion impairment loss on software assets related to EA SPORTS FC™ TACTICAL. These factors culminated in an operating loss of ¥1.30 billion and a net loss of ¥4.18 billion, a marked increase from the previous year’s deficit.
Despite these operational challenges, the financial position remains stabilized through aggressive capital management and strategic divestment. Total net assets held steady at ¥10.30 billion, supported by ¥4.79 billion in proceeds from new share issuances and the sale of investment securities. Cash and cash equivalents rose to ¥5.21 billion, providing a necessary buffer as the company implements cost-cutting measures, including workforce reductions, office relocations, and the divestment of GlobalGear Co. Ltd. These actions aim to mitigate the volatility of the traditional mobile gaming segment, which saw profits drop from ¥1.13 billion to ¥830.5 million over the fiscal year.
The strategic focus is now shifting toward the emerging GPU AI Cloud and AI Entertainment sectors to diversify revenue streams. The new GPU AI Cloud Business demonstrated promising initial growth, contributing ¥490.7 million in sales and signaling a pivot away from total reliance on the game business. While the adoption of revised accounting standards for income taxes had no material impact on the results, the massive impairment losses and subsequent net loss of ¥73.53 per share underscore the urgency of this pivot toward high-growth technology infrastructure and AI-driven entertainment.
