GLOE Inc.

Business Details

Under the mission of "Making people and society HAPPY through games," the company operates two core business pillars: "Esports Event Services," which plans and operates esports events for game maker clients and others, and "Agency Services," which provides diverse game marketing solutions including casting, influencer marketing, community marketing, and SNS marketing. The company includes three consolidated subsidiaries (en-zin Inc., Streaming Technology Laboratory Inc., and 28 Inc.). Over 90% of net sales are generated from domestic customers.

Recent Overview

Interim net sales rose 41.9% year on year to a record high, and the company returned to operating profit

Net sales for H1 FY2026 (ending June 2026) (November 2025 to April 2026) were ¥1,544 million (up 41.9% year on year), marking a record high for a cumulative second-quarter period. Operating profit improved significantly to ¥63 million (compared with an operating loss of ¥85 million in the same period last year), driven by strengthened profitability management on a per-project basis and the resolution of one-time expenses. Esports Event Services grew 39.9% year on year, driven by expansion of the customer base to include VTuber agencies and local governments, while Agency Services grew 22.5% year on year, supported by the official launch of SCOP and expansion of continuous-type services. The full-year earnings forecast (for the 8-month fiscal period) remains unchanged, maintaining net sales of ¥1,904 million, an operating loss of ¥112 million, and a net loss of ¥131 million.

Key Products

Growth Drivers

• Strong progress in strengthening relationships with key clients and acquiring new customers in Esports Event Services
• Expansion of the customer base beyond traditional domestic game developers to include VTuber agencies and local governments
• Improved revenue continuity and predictability through the expansion of continuous-type services such as community management in Agency Services
• Start of new revenue contribution from the official launch of SCOP (Live Streaming Ad Platform)
• Improved profit margins through strengthened per-project profitability management and the resolution of one-time expenses
• Continued growth of the domestic esports market (expected to reach a scale of approximately ¥20 billion and over 10 million fans in 2025)
• Expansion of service offerings into design, video production, and system development through the full consolidation of 28 Inc. as a wholly owned subsidiary

Risks

• Risk of deteriorating performance during the transitional period due to the change in fiscal year-end, with a forecasted full-year operating loss of ¥112 million and net loss of ¥131 million for FY2026 (ending June 2026, 8-month period)
• Although the interim period returned to profitability, a significant loss is expected in the second half on a full-year basis, posing a risk of increased expenses and slowing sales in the latter half
• Operating margin remains at a low level of 4.1% for the interim period, posing a risk that cost increases could immediately worsen profit and loss
• Risk of dependence on specific game titles or specific clients (subject to trends among game makers)
• Risk of declining competitiveness due to delayed response to new technologies and new game titles
• Risk of increased financial burden in a rising interest rate environment, given the large outstanding borrowings (approximately ¥495 million combined short-term and long-term)
• Risk of profit pressure from increased personnel and administrative expenses associated with business expansion