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Financial
Consolidated Financial Results for FY 2025: Supplementary Material
GungHo Online Entertainment reported a significant decline in financial performance for the fiscal year ending December 31, 2025. Consolidated net sales fell 10.0% year-on-year to 93,242 million yen, while operating profit plummeted 71.1% to 5,056 million yen. The downturn was primarily driven by a slowdown in non-consolidated sales from the flagship title Puzzle & Dragons, which suffered from fewer high-profile character collaborations compared to the previous year. Profitability was further pressured by rising labor costs following the full acquisition of Alim Co., Ltd. and increased bonus payments in the fourth quarter, leading to a quarterly operating loss of 811 million yen in the final period. The geographic scope of operations remains centered in Japan, though subsidiary Gravity Co., Ltd. provided a strategic buffer through successful releases in Southeast Asia, Taiwan, Hong Kong, and China. While Puzzle & Dragons remains the company’s core asset with 63 million downloads in Japan as of April 2025, newer titles like Ragnarok M: Classic and Ragnarok: Twilight contributed to Gravity’s year-on-year revenue growth. Additionally, the company expanded its multi-platform presence with the December 2025 global launch of LET IT DIE: INFERNO on PlayStation 5 and PC. Methodologically, the findings are based on consolidated financial statements and internal download tracking data. The results highlight a transition period for the company, characterized by a shifting sales mix and higher fixed costs. Despite the decline in annual net profit attributable to owners—which dropped 87.4% to 1,407 million yen—the company maintains a strong liquidity position with 130,474 million yen in cash and deposits, supporting continued investment in its long-term service titles and new global releases.
GungHo Online EntertainmentFeb 2026
Financial
Kadokawa Q3 FY2026 Financial Results (Japanese GAAP)
This financial report details the consolidated results for KADOKAWA Corporation during the first nine months of the fiscal year ending March 31, 2026, covering the period from April 1, 2025, to December 31, 2025. The data reflects a challenging period for the Japanese media conglomerate, characterized by significant declines in profitability despite relatively stable net sales. Net sales reached 202.9 billion yen, a slight 1.7% decrease year-on-year, while operating profit plummeted 59.7% to 6.3 billion yen. Net income attributable to owners of the parent fell 70.0% to 2.2 billion yen. Performance varied significantly across industry segments. The Publication and IP segment saw a 90.2% drop in operating profit due to smaller-scale domestic hits and rising personnel costs, despite growth in overseas markets like the U.S. and Asia. The Animation and Live-Action segment transitioned to an operating loss of 904 million yen, attributed to a higher ratio of new, less established titles compared to the previous year’s major hits. The Game segment, led by FromSoftware, reported an 11.6% revenue decline; while the new title Elden Ring Nightreign performed well, it could not match the high bar set by the previous year’s Elden Ring expansion and repeat sales. Conversely, the Web Services and Education/EdTech segments showed resilience, with Web Services recovering from prior cyberattack impacts to post a 21.5% increase in sales. Strategically, the company continued its "Global Media-Mix with Technology" initiative, expanding its international footprint through the acquisition of Edizioni BD in Italy and SOZO Pte. Ltd. in Singapore. These moves aim to strengthen IP recognition and D2C capabilities in Europe and Southeast Asia. Despite the quarterly downturn, the company maintained its full-year forecast, projecting 278.2 billion yen in net sales and 10.3 billion yen in operating profit, while confirming a planned annual dividend of 30 yen per share.
Kadokawa CorporationFeb 2026
Financial
Consolidated Financial Results: FY3/26 – 3rd Quarter
Akatsuki Inc. achieved a significant financial turnaround in the third quarter of the fiscal year ending March 2026, characterized by a 79% year-over-year increase in consolidated sales to ¥6,581 million and a return to profitability with net income reaching ¥1,003 million. This performance was underpinned by a strategic reorganization into three core segments: Games & Comics, Entertainment & Lifestyle, and AI/DX Solutions. Growth was primarily catalyzed by the successful launch of Kaiju No. 8 The Game and the sustained operational efficiency of legacy titles such as Dragon Ball Z Dokkan Battle, which continues to drive revenue despite inherent seasonal fluctuations tied to major anniversary events. The company’s operational structure has shifted toward a model of selection and concentration, marked by strategic M&A activity and a reduction in research and development spending as major projects moved into the operational phase. While personnel and outsourcing costs rose due to the integration of new subsidiaries like PAPABUBBLE and Akatsuki AI Technologies, the core gaming workforce saw a downward trend in permanent staff. Investment activities remain a vital component of the corporate value proposition, with ¥2.2 billion in proceeds realized from exits, including one IPO and two M&A transactions, during the cumulative nine-month period. Future strategy focuses on global IP expansion and optimized capital allocation, supported by a strategic alliance and a commitment to shareholder returns. The company has established a plan to return between ¥10 billion and ¥15 billion to shareholders through fiscal year 2028, utilizing a progressive dividend policy. Despite a slight decrease in total assets to ¥57,687 million due to lower accounts receivable, the group maintains a robust financial position intended to support long-term growth across its diversified entertainment and technology portfolio.
AkatsukiFeb 2026
Financial
Consolidated Results Supplementary Information for Q3 of FYE March 2026
Akatsuki Inc. reported substantial year-over-year growth in sales and profitability for the third quarter of the fiscal year ending March 2026. Consolidated sales for the quarter reached ¥6,581 million, a 79% increase compared to the same period in the previous year, while operating profit rose to ¥1,338 million, reversing a loss from the prior year. This financial improvement was driven by the successful release of Kaiju No. 8 The Game, the continued performance of Dragon Ball Z Dokkan Battle, and the strategic consolidation of four acquired companies. The Games & Comics segment remains the primary revenue driver, contributing ¥5,225 million in quarterly sales. Profitability in this sector improved significantly due to a rigorous business portfolio review and enhanced operational efficiency for existing titles, which led to a large-scale reduction in expenses. Beyond gaming, the company expanded its scope through M&A activity, establishing a new AI / DX Solutions segment and bolstering the Entertainment & Lifestyle division. These new segments reflect the inclusion of acquired entities such as PAPABUBBLE, WOWs, Natee, and Akatsuki AI Technologies. Geographically, the company noted strong global performance for its legacy titles, specifically reaching top store rankings in five regions, including Japan and France. Financial data indicates a robust balance sheet with cash and equivalents totaling ¥33,266 million. The methodology for these results involves consolidated accounting of various subsidiaries and the use of Adjusted EBITDA to measure performance, which accounts for depreciation, amortization, and investment-related cash flows. Overall, the findings suggest a successful transition toward a more diversified and cost-efficient corporate structure.
AkatsukiFeb 2026