Financial Results for the Third Quarter of the Fiscal Year Ending May 2026 (Japanese GAAP) (Consolidated)
The Group (CyberStep Holdings,Inc. and its consolidated subsidiaries)
Online crane game Toreba, TERAVIT, online game business, entertainment business, and Other (product planning and wholesale business and telemarketing business)
Delays in releasing new titles and increased development costs resulting from the prolonged development period for new titles in the previous consolidated fiscal year, intensified competition following the entry of other companies into existing titles, and sluggish revenue.
Operating loss: ¥1,170 million; ordinary loss: ¥1,216 million; quarterly net loss attributable to owners of the parent: ¥1,187 million; extraordinary loss: ¥31 million (impairment loss)
Cumulative third-quarter consolidated accounting period of the fiscal year ending May 2026 (1 June 2025 to 28 February 2026)
Whether the most recently announced earnings forecast has been revised: No. The consolidated earnings forecast for the fiscal year ending May 2026 remains undecided because it is currently difficult to calculate a reasonable earnings forecast. The company will promptly disclose the forecast once it becomes possible to calculate an appropriate and reasonable forecast.
Change in voting rights ownership ratio
The voting rights ownership percentage is the proportion of the voting rights exercisable at a shareholders' meeting held by the shareholder.
株式会社３rd: 100% (business combination date: 14 January 2026; deemed acquisition date: 28 February 2026). 株式会社ＴＲＵＸｉＡ: 100% (business combination date: 26 March 2026).
Company response
① Stabilization of the financial base: additional financing, improved profitability, and ongoing cost reductions. ② Improving profitability: improving the profitability of existing titles, measures to differentiate the company from its competitors and expanding services globally, increasing the variety of prizes offered through Toreba and developing new content, expanding TERAVIT's content and strengthening its development structure, and effective promotion and expansion of various content for other titles. ③ Expense reductions: reducing outsourcing costs by reviewing outsourcing providers for Toreba, including prize procurement, advertising and delivery operations; downsizing sales offices; subleasing temporarily unused space; reviewing personnel allocation; and implementing company-wide expense reduction measures. ④ Concentration of management resources: reviewing and selecting businesses and subsidiaries expected to be profitable in the future, selling businesses and reorganizing subsidiaries, and concentrating management resources on businesses expected to be profitable.
The company will proceed with additional financing, improvements to the profitability of existing titles, cost reductions, and consideration of business sales and subsidiary reorganizations. It will promptly disclose a reasonable earnings forecast once it becomes possible to calculate one.
The company will promptly disclose a forecast once it becomes possible to calculate an appropriate and reasonable forecast.
| Item | Details |
|---|---|
| Event name | Financial Results for the Third Quarter of the Fiscal Year Ending May 2026 (Japanese GAAP) (Consolidated) |
| Date of occurrence | 28 February 2026 (end of the third-quarter consolidated accounting period and cumulative period) |
| Subject Entity | The Group (CyberStep Holdings,Inc. and its consolidated subsidiaries) |
| Target Locations / Products | Online crane game Toreba, TERAVIT, online game business, entertainment business, and Other (product planning and wholesale business and telemarketing business) |
| Cause | Delays in releasing new titles and increased development costs resulting from the prolonged development period for new titles in the previous consolidated fiscal year, intensified competition following the entry of other companies into existing titles, and sluggish revenue. |
| Amount of Impact on Business Performance | Operating loss: ¥1,170 million; ordinary loss: ¥1,216 million; quarterly net loss attributable to owners of the parent: ¥1,187 million; extraordinary loss: ¥31 million (impairment loss) |
| Accounting period in which recognized | Cumulative third-quarter consolidated accounting period of the fiscal year ending May 2026 (1 June 2025 to 28 February 2026) |
| Impact on Earnings Forecast | Whether the most recently announced earnings forecast has been revised: No. The consolidated earnings forecast for the fiscal year ending May 2026 remains undecided because it is currently difficult to calculate a reasonable earnings forecast. The company will promptly disclose the forecast once it becomes possible to calculate an appropriate and reasonable forecast. |
| Measures to prevent recurrence | ① Stabilization of the financial base: additional financing, improved profitability, and ongoing cost reductions. ② Improving profitability: improving the profitability of existing titles, measures to differentiate the company from its competitors and expanding services globally, increasing the variety of prizes offered through Toreba and developing new content, expanding TERAVIT's content and strengthening its development structure, and effective promotion and expansion of various content for other titles. ③ Expense reductions: reducing outsourcing costs by reviewing outsourcing providers for Toreba, including prize procurement, advertising and delivery operations; downsizing sales offices; subleasing temporarily unused space; reviewing personnel allocation; and implementing company-wide expense reduction measures. ④ Concentration of management resources: reviewing and selecting businesses and subsidiaries expected to be profitable in the future, selling businesses and reorganizing subsidiaries, and concentrating management resources on businesses expected to be profitable. |
| Voting rights ownership percentage after the change | 株式会社３rd: 100% (business combination date: 14 January 2026; deemed acquisition date: 28 February 2026). 株式会社ＴＲＵＸｉＡ: 100% (business combination date: 26 March 2026). |
| Outlook | The company will proceed with additional financing, improvements to the profitability of existing titles, cost reductions, and consideration of business sales and subsidiary reorganizations. It will promptly disclose a reasonable earnings forecast once it becomes possible to calculate one. |
| Planned follow-up disclosure | The company will promptly disclose a forecast once it becomes possible to calculate an appropriate and reasonable forecast. |
Items this document does not state (13)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The company attributed the decline in profit to delays in releasing new titles and increased development costs resulting from the prolonged development of new titles in the past, intensified competition following the entry of other companies into existing titles, and sluggish revenue. It also stated that losses for 5 consecutive fiscal years have created material concerns regarding its cash flow.