ENVALITH
株式会社ユークス logo

YUKE'S Co.,Ltd.

4334・Standard Market・Information & Communication

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株式会社ユークス logo
YUKE'S Co.,Ltd.4334

Business

YUKE'S Co., Ltd. was founded in 1993 and is listed on the Standard Market of the Tokyo Stock Exchange as a digital content company. Its main businesses are software development for home and commercial game consoles, video development for pachinko and pachislot machines, live production utilizing XR (extended reality) technology, and mobile content development. Its subsidiaries include Fine Co., Ltd. (network operations) and YUKE'S MUSIC Co., Ltd. Major clients include domestic game publishers such as Arc System Works and Irem Software Engineering, as well as pachinko and pachislot manufacturers. The company has also been building a track record in the XR business, leveraging its proprietary AR live system "ALiS ZERO®".

Business Model

The main revenue source is contract development fees for games, gaming machines, and XR content based on outsourcing agreements. Royalty income linked to unit sales is also earned as a supplementary source. For FY2026 (ending January 2026), net sales were ¥4,288 million and the operating margin was 4.2%. Fundraising is based on the principle of using internal funds, maintaining financial soundness. ROE is emphasized as a key management indicator, with actual FY2025 (ended January 2025) results recording 8.3%.

Company Strengths

Developed and provided to other companies a proprietary system, "ALiS ZERO®," that fuses CG and analog information using AR technology, enabling users to experience virtual characters without the need for any equipment. It has a track record of adoption in large-scale live events, including all 12 performances × 2 tours of "Ensemble Stars!! DREAM LIVE" and "Project Sekai 4th Anniversary Thanksgiving Festival."

Since its founding in 1993, the company has accumulated development track records across a wide range of fields, including home and arcade games, pachinko/pachislot video content, XR, and mobile. It has participated in major titles such as "Tales of ARISE – Beyond the Dawn" and "Chikyu Boueigun 2: Digiboku," and its presentation at GAME CREATORS CONFERENCE '24 externally demonstrated its technical capabilities.

As of the end of FY2025 (ended January 2025), net assets stood at ¥2,517 million and total liabilities at ¥627 million, maintaining a high equity ratio of approximately 80%. The company reduced short-term borrowings by ¥300 million, achieving a state close to debt-free management. Cash and cash equivalents amounted to ¥1,690 million, ensuring sufficient liquidity on hand.

ENVALITH's Perspective

In Q1 of FY2027 (ending January 2027), the company achieved substantial growth in both revenue and profit, with net sales of ¥1,119 million (up 21.5% year-on-year), operating profit of ¥67 million (up 68.7%), and ordinary profit of ¥70 million (up 71.4%). Against the full-year forecast (net sales of ¥5,300 million, operating profit of ¥275 million), the Q1 progress rate stood at 21.1% for net sales and 24.4% for operating profit, indicating generally steady progress. Meanwhile, the full-year forecast remains unchanged from the previously announced figures, and the contribution of new Aquaplus-related titles as well as order trends in the latter half will be key to achieving the full-year targets.

While the consolidated contribution from Aquaplus has helped boost net sales, the smartphone game "Utawarerumono: Lost Flag" is scheduled to end its service on April 23, 2026. It will be necessary to assess whether the loss of mobile game revenue can be offset by new titles such as "Utawarerumono: Shiro he no Michishirube" (Path to White) (released May 28, 2026) and merchandise sales, and to determine the sustainability of IP-derived revenue.

The equity ratio at the end of Q1 of FY2027 (ending January 2027) remained at a healthy level of 64.0% (compared to 63.0% at the end of the previous fiscal year). On the other hand, cash and deposits decreased by ¥193 million from the end of the previous fiscal year to ¥1,070 million, and short-term borrowings remained at ¥400 million. The payment of ¥84 million in dividends from retained earnings put pressure on net assets. Even as the order recovery trend continues, it will be necessary to continue monitoring cash flow management and progress on debt repayment.

Growth Strategy

Evolution toward a hybrid revenue structure that increases the IP revenue ratio while maintaining a stable revenue base from contract development

The order recovery trend continued across the Game, XR, and Gaming Machine fields. The stable earnings base was strengthened through the accumulation of track-record projects, including development cooperation on "Like a Dragon: Infinite Wealth 3" (Ryu ga Gotoku Kiwami 3) and large-scale live CG production. In the first quarter of FY2027 (ending January 2027), all fields continued to perform steadily.

AQUAPLUS, which became a subsidiary in August 2025, contributed to the increase in consolidated net sales. IP revenue was accumulated through "Utawarerumono: Shiro e no Michishirube" (releasing May 28, 2026) and related merchandise sales. Finding a substitute revenue source following the termination of the smartphone game "Lost Flag" service is a challenge.

In addition to steady progress on contracted projects, royalty income arose on some projects. The company is promoting a shift from dependence on contract fees toward a hybrid revenue structure that combines contract fees with IP revenue. An improved IP revenue ratio is expected to contribute to medium-term earnings stabilization.

The company continues to identify new business ideas through its in-house open recruitment system. Development of mobile content projects is also underway. The company aims to cultivate a third pillar of earnings alongside its existing contract development and IP businesses.

Last updated: July 17, 2026