enish,inc.

Business Details

enish, Inc. is primarily engaged in the planning, development, and provision of mobile games through the internet. The company mainly distributes native apps via the App Store and Google Play, and also provides services through mobile game platforms. Major customers are GREE, Inc. (30.1% of net sales), Apple Inc. (19.3%), and GMO Media, Inc. (12.3%). Net sales for the first quarter of FY2026 (ending March 2026) (January to March 2026) were ¥476 million, a 29.3% year-on-year decrease, continuing the trend of declining revenue, with an operating loss of ¥278 million recorded. Material uncertainty regarding the going concern assumption continues.

Recent Overview

Net sales decreased 29.3% year on year to ¥476 million, and operating loss widened to ¥278 million, with the deterioration in performance continuing

Net sales for the first quarter of FY2026 (ending March 2026) (January to March 2026) were ¥476 million (down 29.3% year on year), with an operating loss of ¥278 million (widening from a loss of ¥146 million in the same period of the prior year). Against cost of sales of ¥619 million, net sales of ¥476 million resulted in a gross loss of ¥143 million. Among non-operating expenses, a new loss on valuation of crypto assets of ¥26 million was recorded. Net assets increased by ¥55 million from the end of the previous fiscal year to ¥822 million due to the exercise of stock acquisition rights (capital stock and capital surplus each increased by ¥181 million), while cash and deposits decreased by ¥320 million from the end of the previous fiscal year to ¥562 million. In addition, a reduction in capital stock and capital reserve (by approximately ¥4,803 million and ¥4,902 million, respectively) and the appropriation of accumulated deficit (¥9,043 million) took effect as of May 1, 2026. The introduction of an active treasury business (DAT business) utilizing crypto assets is scheduled to be proposed at an extraordinary general meeting of shareholders to be held in early June 2026. Material uncertainty regarding the going concern assumption continues.

Key Products

Growth Drivers

• Maintaining stable revenue through collaboration and event measures for existing titles (Boku no Restaurant II, Garusho☆)
• Lineup diversification and risk dispersion through the release of multiple new IP titles during FY2026 (ending March 2026) (Yowamushi Pedal Resonance Pedalism, Yuru Camp△ Minna de Wachawacha! Camping Cook!, etc.)
• Strengthening customer acquisition and improving promotional investment efficiency through the use of external IP (highly popular, well-known anime, etc.)
• Restructuring of the development cost structure and establishment of a small-team, high-quality development framework through the use of AI technology and the commonization of development infrastructure (engine-ization and library-ization)
• Stabilization of the financial base through the exercise of stock acquisition rights (108,880 units of the 20th series of stock acquisition rights exercised by the end of March 2026, raising ¥663 million)
• Diversification of revenue opportunities and efficient utilization of cash flow through the introduction of the active treasury business (DAT business)

Risks

• Continuation of material uncertainty regarding the going concern assumption (significant operating loss, ordinary loss, and quarterly net loss recorded)
• Continued downward trend in sales of native app titles (due to intensifying market competition and changing user preferences) and deterioration of the overall revenue base of the business
• Risk of delays in new title releases and shortfalls in initial sales (Jan Evo Live's initial sales fell below expectations and revenue has not recovered)
• Crypto asset-related risks (a loss on valuation of crypto assets of ¥26 million was recorded in the first quarter; new price volatility risk associated with the introduction of the DAT business)
• Suspension of disclosure of earnings forecasts (a reasonable calculation of earnings forecasts is difficult as the progress of structural reforms and the impact of new businesses need to be carefully assessed)
• Intensifying competition in the mobile game market and dependence on major platform operators (GREE, Apple, and GMO Media together account for approximately 62% of net sales)
• Liquidity risk due to a sharp decrease in cash and deposits (from ¥882 million at the end of the previous fiscal year to ¥562 million at the end of the current quarter, a decrease of ¥320 million in three months)