Akatsuki (3932): FY2025 Results Summary — Operating Profit Up 90% on Kaiju No. 8 The Game and Cost Streamlining

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Akatsuki’s materials label the fiscal year ended March 31, 2026 as “FY3/26”; this site classifies it as FY2025. Labels in the body and tables follow the company’s materials.

Akatsuki Inc. reported FY3/26 sales of ¥25,856mm (YoY +¥2,204mm, +9%) and operating profit of ¥7,444mm (YoY +¥3,529mm, +90%), with net income of ¥5,652mm (+243%) and Adjusted EBITDA of ¥10,553mm (+51%). The company attributes the result to improved profitability from company-wide selection and concentration efforts, while the release of Kaiju No. 8 The Game and M&A contributed to sales growth. The year-end dividend was raised to ¥60, bringing the full-year dividend to ¥115, and the company announced a tender offer (TOB) for SUNNY SIDE UP GROUP, Inc. aimed at business integration.

Consolidated Results (Full-Year Actual)

Sales rose 9% to ¥25,856mm and operating profit rose 90% to ¥7,444mm. Other income (expense) was ¥862mm, including ¥1,547mm of gains on sale of investment securities (total of gains on sale of crypto assets and investment securities), and profit before income tax was ¥8,306mm (+81%). Net income increased by ¥4,006mm to ¥5,652mm. The company notes that the tax rate increased temporarily in FY3/25 due to factors such as differences in profit recognition methodology in financial accounting and tax accounting.

Item (¥ mm)	FY3/26	FY3/25	Change	% Change
Sales	25,856	23,652	+2,204	+9%
Operating Profit	7,444	3,915	+3,529	+90%
Other Income (Expense)	862	665	+197	+30%
Gains (Losses) on Sale of Investment Securities	1,547	2,164	(617)	(29%)
Profit Before Income Tax	8,306	4,581	+3,725	+81%
Net Income	5,652	1,646	+4,006	+243%
Adjusted EBITDA	10,553	6,978	+3,575	+51%

On the balance sheet, total assets at the end of FY3/26 were ¥62,325mm (+¥7,693mm YoY), with cash & equivalents of ¥34,975mm, total liabilities of ¥16,949mm and net assets of ¥45,376mm. Fixed liabilities were ¥11,526mm, with the company citing an increase in borrowings as the main quarter-on-quarter factor.

Segment Results

Games & Comics: Sales were ¥22,134mm (-¥240mm, -1%) while segment profit rose 93% to ¥7,972mm. Kaiju No. 8 The Game, released in Q2, contributed to sales, while portfolio review and improved operational efficiencies for existing titles drove large-scale profit growth. In Q4, campaigns celebrating the 11th anniversary of the Japanese version of Dragon Ball Z Dokkan Battle (published by BANDAI NAMCO Entertainment Inc.) achieved top store sales ranking in 7 countries and regions, including Japan and France.

Entertainment & Lifestyle: Sales rose to ¥2,560mm (+¥1,383mm, +117%) and segment profit was ¥474mm (+¥11mm, +2%), with contributions from newly consolidated PAPABUBBLE, CRAYON, and WOWs. CRAYON, Inc. was included in the scope of consolidation with Q1, and PAPABUBBLE and WOWs are reflected in P&L starting with Q3.

AI / DX Solutions: This new segment recorded sales of ¥1,143mm and a segment loss of ¥(241)mm. SNS Marketing achieved solid sales growth while the company accelerated investment for further growth; AI Solutions is in a start-up phase, focused on building a solid foundation and investing for growth. Natee and Akatsuki AI Technologies (formerly AI Talent Force) are reflected in P&L starting from Q3.

Segment (¥ mm)	Metric	FY3/26	FY3/25	Change
Games & Comics	Sales	22,134	22,374	(240)
Games & Comics	Operating Profit	7,972	4,132	+3,840
Entertainment & Lifestyle	Sales	2,560	1,177	+1,383
Entertainment & Lifestyle	Operating Profit	474	463	+11
AI / DX Solutions	Sales	1,143	–	+1,143
AI / DX Solutions	Operating Profit (Loss)	(241)	–	(241)
Others	Sales	18	100	(82)
Others	Operating Profit (Loss)	(64)	(284)	+220
Corporate & Eliminations	Operating Profit (Loss)	(696)	(395)	(301)

Within the segments, the company breaks down results by business line (management accounting figures).

Business (¥ mm)	FY3/26 Sales	FY3/25 Sales	FY3/26 Operating Profit (Loss)	FY3/25 Operating Profit (Loss)
Games	21,249	21,237	7,913	4,033
Comics	884	1,136	59	98
Merchandising Solutions	1,106	1,177	459	463
Fan Engagement	297	–	82	–
PAPABUBBLE	928	–	102	–
SNS Marketing	1,044	–	(73)	–
AI Solutions	98	–	(119)	–

Investments & Incubation: The company achieved proceeds of circa ¥2.6 billion on a cumulative Q1~Q4 basis and recorded gains on sale of approximately ¥400 million in Q4. FY3/26 saw exits via 1 IPO and 2 M&A deals, bringing cumulative totals through FY3/26 to 22 exits (5 IPOs, 12 M&A, 5 IEOs).

FY3/27 Plans

The briefing materials do not present numerical full-year forecasts for FY3/27; this cannot be confirmed from the materials. The company states that it anticipates sales and profit growth for Akatsuki as a group, and plans to release an update on future group policies after TOB completion.

Games & Comics: The company anticipates sales growth alongside IP developments, with Kaiju No. 8 The Game making a full-year contribution and a seasonal lull expected for Q1 and Q3. On expenses, large-scale development expenses have peaked out, the Mobile Smartphone Competition Act is expected to drive a reduction in platform fees, and AI-driven efficiencies are planned in both operations and development.

Entertainment & Lifestyle is expected to benefit from full-year contributions from acquisitions made in FY3/26 and further growth with the addition of GROOVE DIRECTION INC. in April 2026. In AI / DX Solutions, SNS Marketing is expected to continue performing strongly with accelerated investment, while AI Solutions remains in a start-up phase. In Investments & Incubation, the company expects steady progress with exits, including IPOs and M&A.

Shareholder Returns

Maintaining its 4% DOE policy, Akatsuki raised the FY3/26 year-end dividend to ¥60, for a full-year dividend of ¥115 (FY3/25: ¥95; FY3/24: ¥80), and states it will continue its progressive dividend policy, backed by cumulative profit growth. The FY3/27 mid-term dividend forecast is ¥60; the mid-term dividend and the year-end dividend for FY3/27 are subject to change, depending on progress with the TOB announced on May 13, 2026 and other factors.

Dividend per Share	Mid-term	Year-end	Full Year
FY3/24	¥40	¥40	¥80
FY3/25	¥40	¥55	¥95
FY3/26	¥55	¥60	¥115
FY3/27 (Forecast)	¥60	One-half of FY3/27 year-end dividend benchmark	–

On May 13, the company announced an acquisition of treasury shares of up to 2,600,000 shares (18.0% of total issued shares excluding treasury shares) for a total acquisition cost of up to JPY 7,051,200,000, funded by borrowings from banks. It plans to use a portion of the repurchased treasury shares to acquire the shares of SUNNY SIDE UP GROUP, Inc. via share exchange.

Under its cashflow allocation for FY3/26～FY3/28, Akatsuki aims to balance growth investment(s) of ¥35 billion with nimble implementation of ¥10~15 billion in shareholder returns. The company plans a public announcement about shareholder returns and cashflow allocation after TOB completion and a careful review of its policies.

Topics: M&A and Tender Offer for SUNNY SIDE UP GROUP

GROOVE DIRECTION INC., which plans and produces goods and merchandise for concerts and fan clubs, joined the Akatsuki group in April 2026 (ownership ratio 100%, acquisition price ¥4,500 million for equity).

On May 13, 2026, Akatsuki announced a tender offer for SUNNY SIDE UP GROUP, Inc., a PR and communications group listed on the Tokyo Stock Exchange Standard Market, aiming for business integration. The anticipated schedule set out in the materials was a tender offer start on May 14 and completion on June 24, followed by squeeze-out procedures if not all shares are acquired. After completion of the tender offer and share consolidation, Akatsuki Inc. plans to change its trade name to SUNNY’s Holdings Inc. (tentative name), with the aim of becoming a next-generation “IP accelerator” that creates, nurtures, develops and maximizes the value of IP.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.