Toreba grows, the losses move elsewhere
CyberStep Holdings, Inc. (TSE: 3810) reported consolidated results for the first quarter of FY5/2027, June 1 to August 31, 2026, on October 15, 2026 under Japanese GAAP. Net sales rose 79.1% to ¥864 million. The online game business, built mainly around the Toreba online crane game, grew external sales 53.9% to ¥673 million on campaigns, new prizes and popular-IP content, and narrowed its segment loss to ¥70 million from ¥196 million. The entertainment business, which covers sound production, voice-actor management and merchandising, recorded no sales. A new other category, which brings together subsidiaries set up or bought since last year in merchandise wholesale, software and AI marketing support, advertising and talent management and disaster-prevention products, contributed ¥191 million of sales but a ¥157 million loss, and unallocated corporate costs came to ¥368 million.
Losses widen
The operating loss therefore widened to ¥596 million and the ordinary loss to ¥611 million, from ¥353 million. The net loss attributable to owners of the parent grew to ¥631 million from ¥310 million, though more shares in issue cut the loss per share to ¥7.71 from ¥15.05. During the quarter the group took over the cap business of the HOMEGAME brand, adding ¥670 million of provisionally measured goodwill, and is preparing to open physical crane-game stores that draw on Toreba's prize sourcing.
Balance sheet and going concern
Total assets fell 7.7% to ¥6,673 million as cash and deposits fell by ¥794 million, and net assets fell 10.0% to ¥5,876 million, leaving the equity ratio at 88.1%. After six straight years of significant operating, ordinary and net losses, and with this quarter's losses adding to concerns over funding, the company states that events exist that cast significant doubt on its ability to continue as a going concern; it plans further fundraising alongside cost cuts and efforts to improve the profitability of existing titles. It has not decided a dividend for FY5/2027 and says a reasonable full-year forecast cannot yet be calculated.
| Metric | Q1 FY5/2027 | Q1 FY5/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 864 | 482 | +79.1% |
| Operating profit (¥ million) | −596 | −324 | loss widened |
| Ordinary profit (¥ million) | −611 | −353 | loss widened |
| Net profit attrib. to owners of parent (¥ million) | −631 | −310 | loss widened |
| EPS (¥) | −7.71 | −15.05 | loss narrowed |
| Online games — revenue (¥ million) | 673 | 437 | +53.9% |
| Online games — segment profit (¥ million) | −70 | −196 | loss narrowed |
| Total assets (¥ million) | 6,673 | 7,226 | −7.7% |
| Net assets (¥ million) | 5,876 | 6,530 | −10.0% |
| Equity ratio | 88.1% | 90.4% | −2.3 pt |
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.