enish, inc. (TSE: 3667), a Tokyo-based mobile- and social-game developer operating under the slogan "Link with Fun," reported first-quarter results for its fiscal year ending December 2026 (the three months from January 1 to March 31, 2026) on May 15, 2026. Revenue fell 29.3% year-on-year to ¥476 million, while the operating loss widened to ¥278 million from a ¥146 million loss a year earlier. The ordinary loss deepened to ¥306 million (from ¥156 million) and the net loss widened to ¥307 million (from ¥158 million), equivalent to a loss per share of ¥7.44 versus ¥5.55 a year earlier.
The company's financial statements carry a material-uncertainty disclosure regarding its ability to continue as a going concern. Management states it is addressing the situation through the structural reforms outlined below.
Stable browser titles offset by declining apps and a soft new launch
enish plans, develops and operates social and mobile games. Its browser-based titles "Boku no Restaurant 2" and "Garusho" have provided a relatively stable revenue base, but its native-app titles have been declining amid intense competition and shifting player tastes. A new online-mahjong title, "Jong Evo Live," launched on September 17, 2025, underperformed expectations during the quarter, compounding the top-line pressure. The combination of weaker app revenue and the soft new launch drove the year-on-year revenue decline and the wider operating loss.
Structural overhaul targets IP-led, data-driven growth
In response, enish is pursuing a structural overhaul of its development and operating model. The plan centres on IP-and-development-led growth with data-driven title selection, development-productivity reform — including reuse of game engines and libraries, AI and automation — and optimisation of operating costs. The objective is to lower the cost and raise the hit-rate of new title development while sustaining the contribution from its stable browser franchises.
Balance sheet bolstered by capital raise; no dividend
At quarter-end, total assets stood at ¥1,236 million and net assets at ¥822 million, for an equity ratio of 66.2% — up sharply from 47.8% — and book value per share of ¥18.42. The improvement followed a capital raise that lifted shares outstanding to 44.4 million from 38.1 million, strengthening the balance sheet during the restructuring phase. enish pays no dividend. The company did not disclose full-year guidance for the fiscal year ending December 2026, saying a reasonable forecast cannot currently be calculated given the uncertainty around the turnaround.
| Metric | Q1 FY12/2026 | Q1 FY12/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 476 | 674 | −29.3% |
| Operating profit (loss) (¥ million) | −278 | −146 | n.m. |
| Ordinary profit (loss) (¥ million) | −306 | −156 | n.m. |
| Net profit (loss) (¥ million) | −307 | −158 | n.m. |
| EPS (¥) | −7.44 | −5.55 | n.m. |
| Total assets (¥ million) | 1,236 | — | — |
| Net assets (¥ million) | 822 | — | — |
| Equity ratio | 66.2% | 47.8% | +18.4pp |
| BPS (¥) | 18.42 | — | — |
| Annual dividend | 0 | 0 | — |
| FY guidance | Not disclosed | ||
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.