FY2026: Losses widen amid lower revenue, potentially delaying improvements in the going-concern outlook

Revenue for the nine months ended FY2026 Q3 was ¥1,937 million, down ¥178 million, or 8.4%, from ¥2,115 million in the same period of FY2025. In contrast, the operating loss widened by ¥100 million, from ¥357 million to ¥457 million, indicating that operating profitability deteriorated by more than the rate of revenue decline. The ordinary loss also widened from ¥337 million to ¥483 million, while the quarterly loss attributable to owners of the parent increased from ¥338 million to ¥555 million.

In the most recent interim period, the operating loss was ¥287.135 million and the interim loss attributable to owners of the parent was ¥355.817 million, both worse than the operating loss of ¥235.105 million and interim loss attributable to owners of the parent of ¥221.396 million in the same period a year earlier. As the operating loss had expanded to ¥457 million for the nine months, the likelihood of a full-year loss is high unless sales of existing titles recover or new titles contribute in Q4.

The company stated that operating losses, ordinary losses and losses attributable to owners of the parent had continued for 12 consecutive periods through FY2025. It also recorded an operating loss of ¥287.135 million and other losses in the FY2026 interim period, and continues to recognize material uncertainty related to the going-concern assumption. At the next earnings release, it will be important to review full-year operating income or loss, ordinary income or loss and net income or loss, as well as the cash-flow outlook based on continued losses and whether the notes on the going-concern assumption remain unchanged.