The severe margin compression and swing to operating loss signal fundamental business deterioration. The capital raise provided cash but diluted shareholders. With a $17M market cap and worsening losses, the stock faces continued downward pressure. Watch for any restructuring announcements or further capital needs.
Price Chart
Executive Summary
TryHard Holdings reported disastrous H1 FY2026 results for the six months ended December 31, 2025. Revenue was essentially flat at ¥1.696B ($10.8M), but gross profit collapsed 66.6% to ¥129M ($825K) due to a 20.5% surge in cost of revenue. Operating income swung from a ¥37M profit to a ¥439M loss ($2.8M), and net loss widened to ¥57M ($364K) from ¥3.5M. A one-time ¥386M gain on disposal of an associate partially masked the operating deterioration. The company also completed a capital raise, increasing shares outstanding by 6.8% to 52M, which diluted existing holders. The filing is bearish given the severe margin compression and widening losses.
Key Facts
- Total revenue for H1 FY2026 was ¥1,696M ($10.8M), essentially flat YoY (¥1,688M).
- Gross profit plunged 66.6% to ¥129M ($825K) from ¥387M, as cost of revenue rose 20.5% to ¥1,567M.
- Operating loss of ¥439M ($2.8M) vs operating profit of ¥37M in the prior period.
- Net loss widened to ¥57M ($364K) from ¥3.5M; diluted EPS was -¥1.11 (-$0.01) vs -¥0.07.
- Shares outstanding increased 6.8% to 52,046,250 from 48,750,000, indicating dilution from a capital raise.
- Cash and cash equivalents rose sharply to ¥121M ($774K) from ¥13M, likely from the offering.
- Deferred offering costs of ¥207M as of June 30, 2025 were fully written off by Dec 31, 2025, confirming a completed offering.
- A ¥386M gain on disposal of an associate provided a one-time boost but did not offset operating losses.
Financial Impact
Operating loss of ¥439M ($2.8M) on flat revenue; net loss of ¥57M ($364K); gross margin collapsed from 22.9% to 7.6%.
Risk Factors
- Continued operating losses may require additional dilutive financing.
- Gross margin collapse suggests pricing pressure or cost inflation that may persist.
- One-time gain on asset disposal is non-recurring; underlying operations are deeply unprofitable.
- Micro-cap with low liquidity could see outsized moves on this news.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001493152-26-029697 |
| Document: form6-k.htm | 0001493152-26-029697 |
| Document: 0001493152-26-029697-index-headers.html | 0001493152-26-029697 |
| Document: 0001493152-26-029697-index.html | 0001493152-26-029697 |
| Document: 0001493152-26-029697.txt | 0001493152-26-029697 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 25, 2026 9w ago | Press Release | $2.27 $1.54 | ▼ −32.16% | ▼ −33.13% | $1.46 (−35.68%) |
Aug 6, 2026 11w ago | 6-K | $0.2350 $0.1700 | ▲ +27.66% | ▲ +28.26% | $1.46 (−521.28%) |
Jul 21, 2026 14w ago | 6-K | $0.2250 $0.2550 | ▲ +13.33% | ▲ +10.44% | $1.46 (+548.89%) |
Jul 10, 2026 15w ago | Press Release | $0.2801 $0.2290 | ▲ +18.24% | ▲ +20.67% | $1.46 (−421.24%) |
Jul 9, 2026 15w ago | 6-K | $0.2801 $0.2290 | ▼ −18.24% | ▼ −20.67% | $1.46 (+421.24%) |
Jun 25, 2026 17w ago | 6-K | $0.3220 $0.2094 | ▼ −34.97% | ▼ −36.35% | $1.46 (+353.42%) |
Jun 23, 2026 18w ago | 6-K | $0.3080 $0.2250 | ▲ +26.95% | ▲ +28.83% | $1.46 (−374.03%) |
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