AltPlusInc.

Business Details

Composed of three businesses: the Game Business, which plans, develops, and operates online games for smartphones; the Service Development Business, which develops services for corporate clients; and the Technology & Talent Support Business, which provides staffing and other services to game companies. Its main revenue source is in-app purchase income through the Apple Inc. and Google Inc. platforms, and it employs a revenue model combining expansion of self-published titles with contract development and operation services. Net sales for the interim period (Q2 cumulative) of FY2026 (ending September 2026) were ¥1,331 million (down 8.2% year on year).

Recent Overview

Net sales down 8.2%, operating loss widened; raised ¥644 million through exercise of stock acquisition rights, cash balance increased

Net sales for the Q2 cumulative period (October 2025 to March 2026) of FY2026 (ending September 2026) were ¥1,331 million (down 8.2% year on year). While Game Business revenue increased year on year, Service Development and Technology & Talent Support revenue declined. A valuation loss of ¥64 million on the minimum guarantee payment for "Boukyaku Zen'ya" was recorded as an extraordinary loss, and the interim net loss attributable to owners of parent widened to ¥355 million. On the financial front, the company secured ¥644 million in proceeds from share issuance through the exercise of stock acquisition rights, and the cash balance increased to ¥1,062 million. A capital and business alliance is underway to make Okazaki Holdings an equity-method affiliate (with a final voting rights ratio of 43.48% planned). Operating losses have continued for 12 consecutive fiscal years through the previous fiscal year, and there is material uncertainty regarding the going concern assumption.

Key Products

Growth Drivers

• Expansion of self-published titles (development plan for 4 domestic IP titles and 6 overseas localized titles by the end of FY2027 (ending September 2027), with "Charisma de Murder Mystery" scheduled for release within the year)
• Continued high sales levels for the flagship title "Hypnosis Mic -Alternative Rap Battle-" and accumulation of in-app purchase revenue through various event initiatives
• Stabilization of the financial base through exercise of stock acquisition rights (¥644 million raised in the current interim period, with room to raise over approximately ¥9,195 million from unexercised portions of the 11th and 12th stock acquisition rights)
• Strengthened marketing and joint promotion of the merchandise business through IP-driven content development under the capital and business alliance with Okazaki Holdings
• Diversification and layering of revenue sources through the Oshi Activity & Fandom Business in collaboration with the GF Holdings group
• Recovery in personnel utilization through acquisition of clients outside the game industry for the Technology & Talent Support Business
• Gaining income gains and enhancing flexibility in capital policy through strategic acquisition and management of crypto assets

Risks

• Material uncertainty regarding the going concern assumption due to operating losses, ordinary losses, and net losses continuing for 13 consecutive fiscal periods (including Q2 of FY2026 ending September 2026)
• Risk of sales shortfalls for new titles (a valuation loss of ¥64 million on the minimum guarantee payment for "Boukyaku Zen'ya" was recorded in the current interim period)
• Continued decline in personnel utilization in the Technology & Talent Support Business due to project reviews and discontinuation of operations at major client game companies
• Dilution risk from exercise of stock acquisition rights (number of shares issued increased from 59,402 thousand shares at the end of FY2025 ended September 2025 to 83,955 thousand shares at the end of Q2 of FY2026 ending September 2026, and to 87,205 thousand shares including subsequent events)
• Increasing burden of upfront development costs associated with the expansion of self-publishing and its impact on period profit/loss
• Investment recovery risk and equity-method profit/loss fluctuation risk associated with the investment in Okazaki Holdings (approximate acquisition cost of ¥887 million)
• Deepening losses due to increased fundraising costs (¥16 million in the current interim period) and expansion of non-operating expenses such as foreign exchange losses and miscellaneous losses
• Full-year earnings forecasts are undisclosed as reasonable calculation is considered difficult, making it difficult for investors to grasp the earnings outlook