Kids Star Inc.

Business Details

Under the mission of "nurturing and supporting children's enthusiasm," the company operates "Gokko Land," a family-oriented social experience app that serves as its core service, using a stock-type business model in which companies and organizations pay exhibition fees. The company is also promoting real-world events ("Gokko Land EXPO") and the overseas version "Gokko World" across Asia. FY2026 (ending December 2026), the first year of its medium-term management plan, is positioned as a phase of strategic investment, with priority placed on building a foundation for future growth.

Recent Overview

Q1 FY2026 recorded net sales of ¥253 million and operating profit of ¥29 million, remaining profitable; full-year forecast unchanged

In the first quarter of FY2026 (ending December 2026) (January to March), the company recorded net sales of ¥253 million, operating profit of ¥29 million, ordinary profit of ¥38 million, and quarterly net profit of ¥21 million. Comparison with the same quarter of the prior year is not possible as this is the first year of consolidated financial statement preparation. Domestic cumulative downloads for Gokko Land reached 8.87 million, with an average monthly play count of 22.49 million. Gokko World continued to perform steadily, with 2.65 million downloads in Vietnam, 600,000 in Indonesia, and 250,000 in Thailand. The full-year earnings forecast (net sales of ¥1,176 million and operating profit of ¥119 million, down 51.7% year-on-year) remains unchanged from the figures announced on February 13, 2026. The current fiscal year is positioned as a phase of declining profit due to the execution of growth investments.

Key Products

Growth Drivers

• Accumulation of stock-type revenue through the increase in Gokko Land pavilion exhibitors (73 at end of 2023 → 88 at end of 2024 → 96 at end of 2025)
• Increased media value and higher exhibition fees driven by growth in monthly play counts
• Full-scale expansion of real-world Gokko Land EXPO events (35 locations planned in FY2026 (ending December 2026), plus new events and brand collaborations), cultivating a new revenue pillar
• Accelerated expansion of Gokko World across Asia (2.65 million downloads in Vietnam, with steady growth following additional releases in Indonesia, Thailand, and English)
• Diversification of the business portfolio through membership business initiatives, engagement with public education, and promotion of M&A and alliances
• Building the foundation for the medium-term management plan (targeting net sales of ¥2,500 million and operating profit of ¥500 million in FY2028 ending December 2028)

Risks

• If the number of Gokko Land pavilion exhibitors falls short of plan, the stock-type nature of the business means the impact would continue to affect results in subsequent periods
• If new downloads and play counts fall below expectations, the resulting decline in media value could adversely affect the number and pricing of pavilion exhibitions
• In FY2026 (ending December 2026), the combination of growth investment execution and the conclusion of a large-scale contract project is expected to result in a significant decline in operating profit of 51.7% year-on-year to ¥119 million
• The overseas business (Gokko World) is in the early stage of monetization, with high uncertainty regarding securing local partners, localization, and the competitive environment
• Given the single-segment structure concentrated on its core service, any decline in Gokko Land's competitiveness would directly affect overall performance
• The absence of comparable data for the same quarter of the prior year makes it difficult to evaluate Q1 progress, limiting the basis for judging whether full-year forecasts will be achieved