Studio KAI Faces Financial Struggles After Significant Annual Loss
Studio KAI Faces Financial Struggles After Significant Annual Loss
Updated at: May 28, 2026 at 03:25 AM
Japanese animation studio Studio KAI is facing a critical situation as it has officially declared insolvency as of April 2026.
According to the Japanese government's official gazette, the studio's liabilities now exceed its assets following a net loss of ¥565 million for the 2025 fiscal year.
Since its establishment in 2019, the studio has struggled to achieve profitability, marking seven consecutive years of financial deficits.
Despite these challenges, Studio KAI has built a reputation for high-quality work with titles like 'Umamusume: Pretty Derby' and '7th Time Loop'.
Unlike many studios that rely on freelancers, KAI chose a sustainable business model by hiring animators as full-time employees.
As a subsidiary of ADK Emotions, the studio’s future remains uncertain.
Fans and industry experts are now speculating whether the parent company—or its owner, the gaming giant Krafton—will provide the necessary support to keep the studio afloat during these difficult insolvency proceedings.
