SNK sees operating loss of $125 million and widening deficit despite revenue growth

Japanese video game developer SNK Corporation recently published their financial results for the fiscal year ending December 2025.

While revenue went up by 10.0%, the company suffered an operating loss of 19.9 billion yen (about $125.2 million USD), an ordinary loss of 21.5 billion yen ($135.3 million USD) and a net loss of 22.2 billion yen ($139.7 million USD), showing a significant downwards trend compared to the previous fiscal period. For reference, in the fiscal year ending December 2025, the company reported an operating loss of 12.6 billion yen ($79.3 million USD), an ordinary loss of 12 billion yen($75.5 million USD) and a net loss of 12.9 billion yen ($81.2 million USD) (source: GameBiz).  

In November last year, SNK announced that it would reduce its capital stock and capital reserve by 8 billion yen each, likely to reduce its accumulated losses. However, while that did help the company increase its capital, it is still in a state of insolvency. Insolvency refers to a temporary state of financial distress and is not equal to or indicative of bankruptcy.

Subsequently, SNK raised funds through a loan from its parent company, Electronic Gaming Development Company – a total of $40 million USD. The loan is expected to be repaid in a lump sum in October 2029, with an interest rate of 7.28%.

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