Summary of Financial Results for First Quarter: Fiscal Year Ended December 31, 2026

KLab Inc.’s financial results for the first quarter of the fiscal year ending December 31, 2026, reflect a period of strategic transition characterized by declining core game revenues offset by growth in new business initiatives. The company’s primary objective remains the stabilization of its revenue base through the development of new titles, such as DRAGON QUEST Smash/Grow and My Hero Academia UNITED SURVIVAL, alongside efforts to diversify operations beyond its traditional gaming portfolio.

Financial performance for the first quarter of 2026 shows total revenue of 1,705 million yen, a 4.3% increase compared to the same period in 2025. This growth was driven by expansion in non-gaming segments, specifically GPU server sales, which helped mitigate a 15.7% decline in the game business segment. Despite the revenue increase, the company reported an operating loss of 453 million yen and a net loss attributable to owners of the parent of 509 million yen. These losses were exacerbated by increased costs of goods sold, higher selling, general, and administrative expenses, and non-operating losses, including a 55 million yen valuation loss on crypto assets.

The company maintains a solid financial position with total assets of 12,889 million yen and an equity ratio of 79.8%. While cash and deposits decreased during the quarter, the company saw an increase in investment securities and software in progress, signaling continued capital allocation toward future growth. KLab has moved to provide a full-year earnings forecast for 2026, projecting revenue of 17,000 million yen and an operating income of 1,000 million yen. The results were prepared in accordance with Japanese GAAP, and the company continues to focus on cost control while actively investing in new business ventures to establish long-term growth engines.