Achieving an operating profit in Q4 will require a substantial improvement in earnings, with no numerical target provided

Revenue for the nine months through the third quarter of the fiscal year ending August 2026, from September 2025 through May 2026, was ¥1,448.131 million, down 11.8% year on year. The operating loss was ¥167.956 million, the ordinary loss was ¥183.977 million and the net loss for the quarter was ¥291.962 million. The operating loss narrowed slightly from ¥174.594 million in the same period of the previous year, while the net loss widened due to an impairment loss of ¥81.666 million related to the operating rights for Crash Fever. As a result, both recovery in revenue and the profitability of each title, as well as the possibility of further extraordinary losses, will be important.

On a quarterly basis, revenue improved from ¥477 million and an operating loss of ¥114 million in Q1 to revenue of ¥505 million and an operating loss of ¥27 million in Q2. In Q3, however, revenue was ¥465 million and the operating loss was ¥25 million. Although the operating loss continued to narrow, revenue fell below the Q2 level. It will therefore be necessary to assess, based on both quarterly revenue and operating profit, whether the contribution from the new title in Q2 continued into Q4 and expanded enough to exceed the decline in revenue from older titles.

In its Q3 presentation materials, the company stated that it aims to achieve an operating profit for the full year through the effects of initiatives for its operated titles and improved profitability in Q4. At the same time, the company has not disclosed a full-year FY2026 forecast, stating that it is difficult to make a precise forecast of the competitive environment in the global mobile game market and the performance trends of individual titles. To simply offset the ¥167.956 million operating loss for the nine months through Q3, Q4 alone would need to generate operating profit of at least ¥167.956 million, requiring a substantial improvement in Q4 revenue, gross margin and cost levels.

At the next results announcement, it will not be sufficient simply to determine whether full-year operating profitability was achieved. It will be necessary to separately examine the increase or decrease from Q3 revenue of ¥465 million, the absolute amount of operating profit, the contribution from HUNTER×HUNTER NEN×SURVIVOR, the loss from older titles, and development investment and R&D expenses. Because the company has a single mobile game business segment, it is not possible to verify performance by segment. Without supplementary disclosure by title or expense category, it will be difficult to assess the sustainability of operating profitability.