According to GameBiz, SNK has seen an operating loss of $125.2 million, and a net loss of $139.7 million for the fiscal year that ended in December 2025. This is in spite of an increase of 10% in revenue. SNK has contracted a loan with its parent company, Electronic Gaming Development Company, for $40 million, to be repaid in October 2029.
How to explain that?
It seems tempting to explain the loss simply as game sales being disappointing. Howver, this is not the case, as revenue is actually up between FY2024 and FY2025. So what happened?
If it's not possible to say with certaintly, we can at least take the following into account:
- SNK has opened a second office in Tokyo on September 1st, 2025.
- SNK is working on new titles, and has announced before their plan to hire 150-300 people to augment their 472 employee headcount. This is a substantial increase. All this consistute operating expenses, even as new titles are just being developed.
- SNK has also opened a new office in Singapore in 2024, and the operating costs are necessarily weighing on FY2025.
Should we get worried?
This situation seems perfectly expected for a company in high-speed expansion. It's only a few years from now that we will start seeing the return on these investments, and will be able to judge how well this all went. In the meantime, this is simply business as usual.