Studio KAI Enters Insolvency After Losing 565 Million Yen in 2025

Studio KAI has entered a state of insolvency after posting a net loss of 565 million yen (approximately 3.54 million dollars) in the fiscal year ending December 2025. The company, a subsidiary of ADK Emotions and a member of the Japan Animation Association, more than doubled the deficit of 248 million yen from the previous fiscal year.

The studio, founded in 2019 and with 133 employees on staff as of the end of 2025, is known for its policy of hiring animators full-time and for producing a high proportion of its output in-house. Among its notable works are the second and third seasons of Umamusume: Pretty Derby and the adaptation of Sentenced to Be a Hero.

Studio KAI's insolvency comes amid growing financial pressure on the Japanese anime industry, which in 2025 saw its third consecutive year of rising bankruptcies and studio closures. The future of projects currently in production remains uncertain pending a possible restructuring or intervention by the parent company.

Originally published on Anitsu by Marcos López. Text reviewed and fact-checked for DonOtaku on November 5, 2026; the original date is preserved.