Japanese animation studio Studio KAI has declared insolvency, unable to meet its financial obligations. The announcement, revealed in the KanpΠΎΜ gazette, follows a fiscal year 2025 closing with a net loss of 565 million yen, approximately US$3.5 million.
This marks a continuation of financial struggles for the studio, which had already reported substantial deficits in earlier fiscal periods. Its second financial results report for 2021 detailed a loss of 165 million yen (about US$1.51 million). Prior to that, a report ending December 31, 2019, showed losses of 402 million yen (around US$3.69 million).
Studio KAI, a subsidiary of ADK Emotions, was formed in June 2019. It inherited a portion of GONZO's anime production, intellectual property, and rights management business in July of the same year through an absorption-type company split. The studio's production credits include Uma Musume Pretty Derby Season 2, Skeleton Knight in Another World, Super Cub, and Phantasy Star Online 2: Episode Oracle.
