GALA INCORPORATED
4777・Standard Market・Information & Communication
Japan Segment
Domestic business base handling head office management functions and the Treehouse Resort business
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (including intersegment transactions) | ¥45,881 thousand | ¥39,040 thousand (Q1 FY2025 (ending December 2025)) | ↑ |
| Revenue from external customers | ¥22,629 thousand | ¥18,557 thousand (Q1 FY2025 (ending December 2025)) | ↑ |
| Segment loss | -¥82,642 thousand | -¥97,027 thousand (Q1 FY2025 (ending December 2025)) | ↑ |
| Depreciation and amortization (consolidated total) | ¥12,921 thousand | ¥37,627 thousand (Q1 FY2025 (ending December 2025)) | ↓ |
Business Details
Gala, Inc. serves as an operating holding company handling head office management functions, while consolidated subsidiary Treeful Co., Ltd. operates the Treehouse Resort business in Nago City, Okinawa Prefecture. Under the concept of a "sustainable resort," the company offers three sets of tree houses and aero houses plus one additional tree house unit. Overseas expansion is also underway through TREEFUL (CAMBODIA) Co., Ltd. in Cambodia.
Recent Overview
Segment loss narrowed due to cost reductions; decision made to exclude Treeful from consolidation
In the first quarter of FY2026 (ending December 2026), Japan Segment revenue increased to ¥45,881 thousand (up 17.5% year on year). Depreciation and amortization decreased due to impairment losses already recognized on properties acquired in prior periods, while selling, general and administrative expenses decreased due to company-wide cost reviews, narrowing the segment loss to ¥82,642 thousand (from ¥97,027 thousand in the same quarter of the prior year). Additionally, in order to concentrate management resources on the smartphone app business and online game business, the company resolved on April 30, 2026 not to exercise its subscription rights associated with a capital increase by Treeful Co., Ltd., and as a result the subsidiary is expected to be excluded from the scope of consolidation.
Key Products
Growth Drivers
- Reduction in depreciation and amortization expense due to impairment losses recognized in prior periods, improving the cost structure
- Reduction in selling, general and administrative expenses through company-wide cost reviews
- Revenue from the Treehouse Resort business increased 17.5% year on year
Risks
- Risk of additional losses and accounting treatment issues arising from the exclusion of Treeful Co., Ltd. from consolidation (resolved April 30, 2026)
- Uncertainty regarding the future recoverability of TREEFUL (CAMBODIA) Co., Ltd. (business continuation policy undecided)
- Continuation of structural losses as head office management costs substantially exceed revenue
- Continued risk of low occupancy rates in the Treehouse Resort business
- Operating losses have been recorded continuously in FY2024 (ending December 2024), FY2025 (ending December 2025), and the current first quarter, giving rise to material events that raise substantial doubt about the going concern assumption
Last updated: June 2, 2026