DLE Inc.
3686・Standard Market・Information & Communication
Business
DLE, Inc. operates the Fast Entertainment Business as a single segment, centered on its own original IP such as "Himitsu Kessha Taka no Tsume" (Secret Society Eagle Talon), "Pan de Pan Pants", and "Kaishain" (Shellfish Worker). The company integrally handles everything from IP planning, development, and production to Social Character Marketing Service, digital content development, and merchandise/licensing expansion. It has built a proprietary model that mass-produces short-form content designed for brief leisure moments with short lead times and low costs, serving a wide range of clients from promotional demand by companies and municipalities to terrestrial broadcast and streaming anime production. In August 2025, the company launched an AI Studio, positioning AI Video Production as a new core business. It is also advancing international expansion into Taiwan and Thailand, with Japan and Asia as its primary markets.
Business Model
The company owns original copyrights to IP, either directly or through production committees, and generates revenue across three axes: (1) production income (contracted anime and video production), (2) advertising and marketing income (promotions for companies and local governments using social characters), and (3) licensing and rights income (merchandise, digital content, etc.). Through a strategy of "nurturing IP small and growing it big," the company progressively expands its deployment area, starting with limited rollout on regional broadcasters and specific media before scaling to nationwide and global reach, aiming to enhance IP value and diversify revenue.
Company Strengths
The company solely or jointly owns numerous original IPs such as "Angry Beavers... (Himitsu Kessha Taka no Tsume)" and "Taeko no Nichijo," building a framework that reduces licensing and coordination costs while enabling rapid responses to market needs. By limiting the number of investors in production committees, the company secures flexibility in decision-making and can proactively drive multifaceted IP expansion, which serves as a differentiating factor versus competitors.
Through unique production methods leveraging digital production technologies such as Adobe Animate, the company has streamlined its content production process, achieving IP mass production with short lead times and low costs. This production system enables timely responses to current events and simultaneous delivery of original content for multiple media platforms, and the AI studio launched in August 2025 is expected to further strengthen production speed and cost competitiveness.
As of the end of March 2026, the confirmed order backlog significantly exceeded ¥1.0 billion, marking a record high. This resulted from a surge in new orders for Alternative Video Production, triggered by "Nohara Hiroshi Hirumeshi no Ryugi" winning the Anime Topic Award in the TV Anime category at the "Japan Anime Trend Awards 2025," as well as increased inquiries for AI Video Production, laying the foundation for sales growth in FY2027 (ending March 2027).
ENVALITH's Perspective
Performance Trend
Revenue moved from ¥1,640 million in FY2022 → ¥2,021 million in FY2023 → ¥1,706 million in FY2024 → ¥1,979 million in FY2025 → ¥1,463 million in FY2026, with revenue declining in 3 of the 5 fiscal years. In FY2026 (ending March 2026), rising costs in the K-POP-related overseas business and the lump-sum booking of upfront investment costs in the AI business weighed on results, with revenue down 26.1% and operating loss widening to ¥595 million (versus ¥489 million in the prior period). However, due to the recognition of extraordinary gains (gain on sale of investment securities of ¥492 million and gain on sale of shares of affiliated companies of ¥98 million), net loss attributable to owners of the parent improved to ¥498 million from ¥728 million in the prior period. Amid a tailwind from the widening supply-demand gap for Japanese animation as an external factor, the company forecasts revenue of ¥1,740 million and operating profit of ¥100 million (a return to profitability for the first time in 9 fiscal years) for FY2027 (ending March 2027).
Growth Strategy
Targeting the first operating profit in nine fiscal periods by capturing the anime supply-demand gap through the twin pillars of Alternative Video Production and AI Video Production
The AI Studio was launched in August 2025, and regular terrestrial broadcasting began in October of the same year. Leveraging overwhelming speed and diverse expressive capabilities, the studio has secured active inquiries and is positioned as a key driver of revenue growth for FY2027 (ending March 2027).
"Nohara Hiroshi Hirumeshi no Ryugi," the first work using a "mid-quality" production method combining hand-drawn animation with technology, won the TV Anime Division Topic Award at the "Japan Anime Trend Awards 2025." Recognition within the industry has been established, and new order intake is becoming increasingly active.
In FY2026 (ending March 2026), 5 consolidated subsidiaries were excluded from the scope of consolidation, completing the disposal of unprofitable businesses. SG&A expenses were reduced by ¥78 million year-on-year, enabling management resources to be concentrated on the core content production business. This has formed the foundation for the return to operating profitability in FY2027 (ending March 2027) for the first time in nine fiscal periods (operating profit forecast of ¥100 million).
In FY2026 (ending March 2026), the company issued convertible bond-type bonds with stock acquisition rights (¥287 million), conducted a third-party allotment capital increase (¥96 million), and exercised stock acquisition rights (¥30 million). Combined with proceeds of ¥501 million from the sale of investment securities, the cash balance recovered to ¥818 million (from ¥587 million in the prior period). The company plans to continue generating cash through the sale of financial assets going forward.
Last updated: July 19, 2026