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Consolidated Financial Results Briefing Materials: FY3/26 Q1

1 August 202537 pages5,134 words

Summary

Akatsuki Inc. experienced a challenging start to the fiscal year ending March 2026, reporting a 44% year-over-year decline in consolidated sales to ¥2,313 million and an operating loss of ¥1,698 million for the first quarter. This downturn was primarily driven by a 52% revenue contraction in the core Games business, resulting from a reactionary fall following a strong prior quarter, strategic title withdrawals, and heightened development costs associated with the upcoming global launch of Kaiju No. 8 The Game. While total operating expenses decreased by 18% due to a 42% reduction in research and development spending and a streamlined portfolio, these savings were insufficient to offset the revenue decline and typical seasonal fluctuations. Despite the volatility in gaming, the IP Solutions and Comics segments demonstrated robust growth. IP Solutions sales surged 168% to ¥298 million, bolstered by the consolidation of CRAYON, Inc. and the rapid expansion of the Slash Gift online lottery service. Simultaneously, the Comics segment broadened its international footprint through the MANGA MIRAI service in the United States, integrating high-profile titles such as One Piece and Naruto. The company also accelerated its expansion into new business domains through the full acquisition of the creator agency Natee Co., Ltd. and realized ¥1.2 billion in investment proceeds following the IPO of LIFE CREATE Co., Ltd. The financial position remains liquid with ¥33.2 billion in cash and deposits, providing a stable foundation for ongoing strategic investments despite a slight decrease in total assets to ¥50.9 billion. The current fiscal trajectory reflects a transition period as the company rebalances its portfolio, shifting focus toward high-potential global IP launches and diversified digital entertainment services to mitigate the inherent cyclicality of the mobile gaming market.

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Consolidated Financial Results Briefing Materials: FY3/26 Q1

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