Animation studio Studio Kai is facing potential insolvency after reporting its seventh consecutive year of financial losses, according to recent earnings data.
Financial reports released via Gamebiz indicate the studio recorded a net loss of approximately 2-48 million yen ($1.5 million) this past fiscal year. This brings the studio's total accumulated net losses to roughly 565 million yen, or about $3.5 million.
Despite the mounting debt, the studio has maintained a high-profile production schedule. Studio Kai recently produced the 2026 hit 'Sentenced to Be a Hero' and the latest seasons of the massive franchise 'Umamusume: Pretty Derby.'
Parent company support expected
Industry observers and fans suggest the studio's financial instability may be offset by its parent company, ADK Holdings. South Korean publisher Krafton acquired ADK Holdings for 75 billion yen ($517 million) in 2025.
Some analysts speculate the studio's losses are a result of specific Japanese accounting practices. 'It’s done on purpose to avoid tax. They are doing just fine in reality,' one commenter on the r/anime subreddit suggested regarding the studio's financial state.
Critics of the studio's official figures point to the massive commercial success of its recent titles. 'Umamusume: Pretty Derby' Season 2 was one of the highest-selling anime Blu-rays in recent years, rivaling the performance of 'Demon Slayer: Kimetsu no Yaiba.'
Studio Kai continues to announce new projects despite the reported insolvency. The studio has already confirmed a second season for 'Sentenced to Be a Hero' and has production underway for 'The Ramparts of Ice and Snowball Earth.'
While the studio's debt continues to grow, the financial backing of Krafton provides a potential safety net. The studio's ability to fund upcoming releases like 'Skeleton Knight in Another World' Season 2 suggests that capital injections from ADK Holdings remain a possibility.
