Recently, Japanese game developer SNK released its financial results for the fiscal year ending December 2025. Despite a 10.0% year-on-year increase in revenue, the company recorded an operating loss of 19.9 billion yen (approximately $125.2 million), an ordinary loss of 21.5 billion yen (approximately $135.3 million), and a net loss of 22.2 billion yen (approximately $139.7 million), marking a significant decline compared to the previous fiscal year. For reference, in fiscal year 2024, the company reported an operating loss of 12.6 billion yen, an ordinary loss of 12.0 billion yen, and a net loss of 12.9 billion yen.
Last November, SNK announced a reduction of 8 billion yen each in its capital stock and capital surplus to offset accumulated deficits. Although this move did increase the company's capital, SNK remains in a state of insolvency. Insolvency refers to a temporary financial difficulty and is not equivalent to bankruptcy.
Subsequently, SNK secured financing through its parent company, Electronic Gaming Development Company, obtaining a $40 million loan. This loan is scheduled to be repaid in a lump sum in October 2029, with an annual interest rate of 7.28%.