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Financial · November 1, 2025
Published by Akatsuki
Akatsuki Inc. reported its consolidated financial results for the second quarter of the fiscal year ending March 2026, highlighting a period of strategic transition. While overall group sales and operating profits saw year-over-year declines, net income rose by 80% to ¥3,020 million, and adjusted EBITDA increased by 4% to ¥4,015 million. These gains were primarily driven by successful investee exits and a significant reduction in valuation losses for investment securities, which improved other income by ¥1,621 million compared to the previous year. The Games & Comics segment remains the primary revenue driver, though it experienced a 10% decline in quarterly sales to ¥7,248 million. This was attributed to the natural cooling of existing titles and comics compared to a high-performance prior year. However, the August 2025 launch of Kaiju No. 8 The Game provided a significant boost, generating over ¥2 billion in its first month with a 40% overseas sales ratio. Conversely, the Entertainment & Lifestyle segment grew 36% year-over-year, supported by merchandising solutions and recent M&A activity. The financial outlook emphasizes future value creation through recent acquisitions, including PAPABUBBLE and WOWs, which will be integrated into consolidated results starting in the third quarter. Additionally, the company is expanding into AI and DX solutions through the acquisition of Natee and AI Talent Force. Total assets increased to ¥59,400 million by the end of the second quarter, reflecting higher fixed assets following these strategic investments. Operating expenses shifted as R&D costs for new titles were reclassified to cost of goods sold upon release, alongside a one-time reimbursement of R&D expenses for Hyke: Northern Light(s).
November 12, 2025 Akatsuki Inc. Consolidated Results Supplementary Information for Q2 of FYE March 2026 Although sales and profits declined YoY for the group overall, adjusted EBITDA and net income increased with investee exits. New value creation resulting from M&A will become apparent from Q3 1. Summary of Consolidated Financial Results for the Period Q2 Q1-Q2 Cumulative (units: ¥ mm) FY3/26 FY3/25 Change % Chg. FY3/26 FY3/25 Change % Chg. Sales 7,602 8,351 (749) (9%) 9,915 12,483 (2,567) (21%) Games & Comics 7,248 8,041 (792) (10%) 9,257 12,057 (2,800) (23%) Entertainment & Lifestyle 350 256 +93 +36% 649 368 +280 +76% Others 3 53 (50) (94%) 9 56 (47) (84%) Operating Profit (Loss) 3,422 3,766 (344) (9%) 1,724 2,991 (1,267) (42%) Games & Comics 3,467 3,770 (302) (8%) 1,845 3,139 (1,294) (41%) Entertainment & Lifestyle 122 123 (1) (1%) 244 128 +116 +91% Others (15) (58) +42 -% (42) (133) +91 -% Corporate & Eliminations<sup>1</sup> (151) (69) (82) -% (323) (142) (180) -% Other Income (Expense) 603 (1,018) +1,621 -% 945 (317) +1,263 -% Gains (Losses) on Sale of 415 (13) +428 -% 995 674 +320 +48% Investment Securities<sup>2</sup> Others 187 (1,005) +1,193 -% (49) (992) +942 -% Profit Before Income Tax 4,025 2,748 +1,277 +46% 2,669 2,673 (4) (0%) Income taxes, non-controlling (1,004) (1,065) +61 -% (817) (1,263) +445 -% interests Net Income (Loss) 3,020 1,682 +1,338 +80% 1,852 1,410 +442 +31% Adjusted EBITDA<sup>3</sup> 4,015 3,859 +156 +4% 3,624 4,030 (406) (10 %) Games & Comics Kaiju No. 8 The Game<sup>4</sup> was released on August 31, 2025 and had a strong start with sales exceeding ¥2 billion in the first month after release and approximately 40% overseas sales ratio.
410 +442 +31% Adjusted EBITDA<sup>3</sup> 4,015 3,859 +156 +4% 3,624 4,030 (406) (10 %) Games & Comics Kaiju No. 8 The Game<sup>4</sup> was released on August 31, 2025 and had a strong start with sales exceeding ¥2 billion in the first month after release and approximately 40% overseas sales ratio. Conversely, existing titles and comics did not reach the high levels achieved in the prior year period, resulting in a YoY decline for sales and profits. Entertainment & Lifestyle Maintaining steady growth, driven primarily by merchandising solutions. In the Q2 period we conducted two M&A transactions that involved four companies. Of these, PAPABUBBLE and WOWs will be included in consolidated segment results beginning from the Q3 period. Please note that the other two companies, Natee and AI Talent Force, will be included in the AI/DX Solutions segment. Other Income (Expense) With gains resulting from investee exits and a decline in losses for valuation of investment securities, other income (expense) improved by of ¥1,621 million YoY to come in at ¥603 million income for the period.
Talent Force, will be included in the AI/DX Solutions segment. Other Income (Expense) With gains resulting from investee exits and a decline in losses for valuation of investment securities, other income (expense) improved by of ¥1,621 million YoY to come in at ¥603 million income for the period. 1 Includes personnel expense for the Investment & Incubation Business 2 Total amount of gains (losses) on sale of crypto assets (non-operating gains and losses) and of gains (losses) on sale of investment securities (extraordinary gains and losses). 3 Adjusted EBITDA = Operating Profit + Depreciation + Software Amortization + Goodwill Amortization + Lease Deposit Amortization + Patent Rights Amortization + Stock Compensation Expense + Cash Flow Related to Divestments for the Investments & Incubation Business. Note: Past figures have been retroactively restated due to a change in definition effective from Q2 FY3/26 4 ©JAKDF 3rd Division © Naoya Matsumoto/Shueisha ©Akatsuki Games Inc./TOHO CO., LTD./Production I.G ©JAKDE 3r
2. Tables Showing Financial Trends P&L Trends (units: ¥ mm) Q1 Q2 FY3/24 Q3 Q4 Q1 Q2 FY3/25 Q1 Q2 Q1 FY3/26 Q2 Sales 3,610 7,952 5,269 7,140 4,131 8,351 3,678 7,491 2,313 7,602 Games & Comics 3,528 7,716 5,045 6,955 4,016 8,041 3,233 7,083 2,008 7,248 Entertainment & 68 225 214 178 111 256 423 385 298 350 Lifestyle Others 13 10 9 5 3 53 21 22 5 3 Operating Profit (802) 2,783 (419) 1,115 (775) 3,766 (1,571) 2,495 (1,698) 3,422 (Loss) Games & Comics (547) 2,991 (219) 1,417 (630) 3,770 (1,551) 2,543 (1622) 3,467 Entertainment & 11 74 91 73 4 123 190 144 122 122 Lifestyle Others (97) (70) (109) (109) (75) (58) (116) (34) (26) (15) Corporate & (169) (212) (182) (265) (73) (69) (94) (157) (172) (151) Eliminations<sup>1</sup> Other Income 69 (411) (1) (120) 700 (1,018) 1,137 (154) 342 603 (Expense) Gains (Losses) on Sale of Investment 5 28 54 5 687 (13) 335 1,154 580 415 Securities Others 64 (439) (56) (126) 13 (1,005) 802 (1,309) (237) 187 Profit Before (732) 2,371 (421) 994 (74) 2,748 (433) 2,341 (1,355) 4,025 Income Tax Income taxes and 22 (548) (18) (379) (197) (1,065) (240) (1,431) 187 (1,004) others Net Income (709) 1,823 (439) 614 (271) 1,682 (673) 909 (1,167) 3,020 Adjusted EBITDA (727) 2,894 799 1,563 171 3,859 (1,000) 3,934 (391) 4,015 ©JAKDE 3r
Balance Sheet Trends (units: ¥ mm) Q1 Q2FY3/24 Q3 Q4 Q1 Q2FY3/25Q1 Q2 Q1FY3/26Q2 Current Assets 32,690 35,943 34,648 39,383 38,305 40,522 39,110 41,252 37,974 40,801 Cash & 27,450 27,529 27,926 30,970 32,303 31,944 34,338 33,300 33,272 31,801 Equivalents* A/R & Contract 2,345 6,214 3,718 5,024 2,679 6,345 3,077 5,624 1,284 6,007 Assets Fixed Assets 12,633 12,465 12,774 12,659 12,932 12,566 12,992 13,379 13,002 18,599 Total Assets 45,323 48,409 47,423 52,043 51,237 53,089 52,102 54,632 50,976 59,400 Current Liabilities 5,116 6,248 5,527 5,121 6,218 6,370 6,548 7,378 3,806 6,954 Fixed Liabilities 7,055 7,055 7,649 6,710 5,514 5,526 5,533 5,798 6,758 9,450 Total Liabilities 12,172 13,304 13,176 11,832 11,733 11,896 12,081 13,177 10,564 16,404 Net Assets 33,151 35,104 34,246 40,211 39,504 41,192 40,021 41,455 40,411 42,995 *From Q4 of FY3/25, the balance of bank deposits is included in “Cash & Equivalents” and the amounts shown for prior periods has been adjusted accordingly. Expense Trends (units: ¥ mm) Q1 Q2FY3/24Q3 4Q Q1 Q2FY3/25Q3 4Q Q1FY3/26Q2 Personnel 899 970 1,026 1,411 839 826 717 1,237 881 989 Outsourcing 1,409 1,441 1,548 1,489 1,412 1,177 1,209 1,345 1,265 209 Rent 417 511 457 581 456 479 372 501 338 1,342 Depreciation 33 39 48 51 32 23 19 43 18 60 Advertisement 102 424 655 323 80 192 283 389 234 766 R&D 1,072 1,244 1,237 1,190 1,343 1,357 1,426 1,059 778 (293)
717 1,237 881 989 Outsourcing 1,409 1,441 1,548 1,489 1,412 1,177 1,209 1,345 1,265 209 Rent 417 511 457 581 456 479 372 501 338 1,342 Depreciation 33 39 48 51 32 23 19 43 18 60 Advertisement 102 424 655 323 80 192 283 389 234 766 R&D 1,072 1,244 1,237 1,190 1,343 1,357 1,426 1,059 778 (293) Others* 476 536 714 976 741 527 1,221 418 495 1,104 Total Operating 4,412 5,169 5,688 6,025 4,906 4,585 5,249 4,995 4,011 4,179 Expense *Includes transfer to other accounts in COGS. Development and Operating Expenses (Personnel, Outsourcing) Excluding advertising costs, most operating expenses for existing titles under operation are included within personnel and outsourcing costs. Expenses for new game titles are recorded as R&D expenses and, as a general rule, are not capitalized. Regarding R&D Expense in the Q2-FY3/26 Period Upon the release of the new titles, TRIBE NINE and Kaiju No. 8<sup>1</sup> The Game, the expenses that were recorded as R&D for these titles ended and are recorded as part of COGS after release. Additionally, the reimbursement of R&D expenses for Hyke:Northern Light(s)<sup>2</sup> was recorded as a negative cost. 1 ©JAKDF 3rd Division © Naoya Matsumoto/Shueisha © Akatsuki Games Inc./TOHO CO., LTD./Production I.G ©JAKDE 3r
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.
Akatsuki Inc. achieved consolidated sales of ¥7,602 million and a net income of ¥3,020 million during the second quarter of the fiscal year ending March 2026, representing an 80% year-over-year increase in profitability. This financial performance was primarily bolstered by strategic investment exits and the successful launch of Kaiju No. 8 The Game, which secured over 5 million downloads and generated more than ¥2 billion in its debut month. While the core Games & Comics segment experienced a 10% decline in sales compared to the previous year’s high benchmarks, the company maintained strong operational momentum through established titles like Dragon Ball Z Dokkan Battle and a significant 40% overseas sales ratio for new releases. The strategic focus has shifted toward a reorganized three-segment business model designed to diversify revenue streams beyond traditional mobile gaming. This evolution includes the expansion of the Entertainment & Lifestyle pillar, highlighted by the acquisition of the candy brand PAPABUBBLE, and the establishment of an AI/DX Solutions division. Total assets rose to ¥59.4 billion as a result of aggressive M&A activity, which added substantial goodwill and software assets to the balance sheet despite a corresponding decrease in cash equivalents used for these acquisitions. Human capital remains a priority, with permanent staff increasing to 561 to support new business ventures, even as the core gaming division saw a slight contraction in headcount. The company is positioning itself for long-term growth by leveraging investment exit gains, which totaled approximately ¥400 million in the second quarter, to fund its transition into a broader entertainment conglomerate. These structural changes and recent product successes suggest a pivot toward a more diversified portfolio intended to mitigate the volatility of the gaming market while capitalizing on global intellectual property.
Akatsuki Inc. reported its consolidated financial results for the fiscal year ended March 2025, highlighting a period of strategic "selection and concentration" that led to a significant increase in profitability. While total annual sales remained relatively flat at ¥23.65 billion, a 1% decrease year-over-year, consolidated operating profit jumped 46% to ¥3.91 billion. This growth was driven by the stabilization of the core Games segment and the successful transition of the Comics and IP Solutions divisions into profitable entities. The Games segment, which accounts for the vast majority of revenue, generated ¥21.24 billion in sales. Performance was bolstered by the 10th anniversary of Dragon Ball Z Dokkan Battle, which achieved record-high overseas sales and operating profit. These gains effectively offset revenue losses from withdrawn titles and increased research and development spending for upcoming projects like TRIBE NINE and Kaiju No. 8 The Game. Meanwhile, the Comics segment saw a 50% surge in annual sales to ¥1.14 billion, achieving full-year profitability due to strong external sales of original works, successful media dramatizations, and a strategic partnership with NTT Docomo for the MANGA MIRAI service in the United States. Geographically, the results reflect a strong emphasis on global expansion, particularly through simultaneous worldwide game campaigns and international comic distribution. Financial data indicates a robust balance sheet with ¥33.3 billion in cash and total assets of ¥54.6 billion. The company also benefited from a substantial increase in gains from the sale of investment securities, which rose over 700% to ¥2.16 billion. Overall, the fiscal year concluded with a net income of ¥1.65 billion, representing a 28% increase over the previous year, supported by improved operational efficiency across all business pillars.
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.