Summary of Financial Results for Third Quarter of Fiscal Year Ended December 31, 2025: Japan

KLab Inc. reported consolidated financial results for the third quarter of fiscal year 2025, covering January through September 2025. Revenue declined by 18.6 % to ¥4,933 million from ¥6,059 million in the same period of fiscal 2024, driven mainly by lower performance of the Captain Tsubasa: Dream Team title and weaker content revenue. Cost of sales fell 18.8 % to ¥4,342 million, reflecting reduced commission payments and a comprehensive reduction in labor, outsourcing, and subcontracting costs. Selling, general and administrative expenses decreased 20.3 % to ¥1,453 million. The company recorded a gain on sale of investment securities of ¥1,578 million as extraordinary income but incurred an impairment loss of ¥4,427 million on software assets for EA SPORTS FC™ TACTICAL. Operating loss narrowed to ¥860 million from ¥1,113 million year‑on‑year. Ordinary loss improved to ¥1,046 million from ¥1,182 million, yet net loss attributable to owners of parent widened to ¥3,975 million from ¥1,757 million. Total assets contracted to ¥10,461 million, with net assets falling to ¥7,195 million and equity ratio at 68.5 %. The company disclosed no dividend payments for FY2024 or FY2025 and declined to provide a fiscal‑year forecast due to market volatility. KLab highlighted ongoing concerns, citing four consecutive operating deficits and negative cash flows, while outlining strategic initiatives in AI, blockchain, and entertainment to restore profitability. The report covers Japan‑based operations under Japanese GAAP for the first nine months of FY2025, with data derived from consolidated financial statements and accompanying notes.