CloverWorks Posts Second Straight Annual Net Loss

CloverWorks has reported a net loss of ¥38.48 million (~ $238K USD) for the fiscal year ended March 31, 2026, according to a financial statement published in Japan’s official gazette on June 29. The result marks the studio’s second consecutive annual loss, even as its production slate includes popular modern anime like WIND BREAKER and Spy x Family.

In 2025, CloverWorks, an Aniplex subsidiary, produced seasonal hits Fragrant Flower Blooms with Dignity, the second season of My Dress-Up Darling, and Spy x Family season 3 (in collaboration with WIT). The financial result raises questions due to all three titles performing well on streaming.

Fragrant Flower debuted at No. 6 on the Netflix Global Top 10 Non-English Shows list. It stayed on the list for three consecutive weeks following its debut on the platform in September 2025.

Furthermore, the FY2026 loss widened from the previous financial year’s ¥24.35M (~ $148K) net loss, a roughly 58% year-over-year increase in loss.

CloverWorks Sees Second Consecutive Loss, While Sister Studio A-1 Pictures Rebounds

CloverWorks’ fiscal 2026 result draws on the studio’s eight years’ inconsistent performance since its establishment, which marked four financial years with losses previously. However, the studio has rebounded across FY2021, FY2022, and FY2024; fiscal 2024 recorded the highest revenue (¥203M, ~$1.25M) for the studio in recent memory.

A single year’s earnings at Japanese animation studios often reflect investment and licensing arrangements issues rather than the commercial performance of produced anime. Despite the loss, CloverWorks maintained positive net assets of about ¥577.6M (~$3.56M) and total assets of ¥3.07B (~$18.88M).

Previously, a Teikoku Databank survey referenced by Animenomics, documented a growing profitability gap between primary contractor studios and subcontractor studios. According to the data, 78% of the primary contractors, the ones who earn royalty, turned a profit that year, whereas only 57% of the subcontractors, who are likely to produce the anime, were profitable.

The result also landed amidst financial concerns across Japan’s anime production sector, which recorded that 60% of anime contractors struggled to profit in 2024.

The timing draws a contrast with fellow Aniplex subsidiary A-1 Pictures, which recorded a net profit over ¥91M (~$562.23K) for the same fiscal year. That result reversed A-1’s ¥178M (~$1.09M) loss in FY2025, a decade-low income for the company. CloverWorks spun out of A-1 Pictures in 2018.

CloverWorks’ Slate Includes Successful Anime Despite Loss

Nonetheless, the figures stand in contrast to CloverWorks’ creative momentum. Over the past few years, the Aniplex subsidiary has released or contributed to several high-profile titles, including My Dress-Up Darling and WIND BREAKER.

Its upcoming slate remains equally active, featuring Bocchi the Rock! season 2, The Elusive Samurai season 2 (dropping in Summer 2026), The Case Files of Biblia Bookstore, and other projects currently in production. CloverWorks’ slate also includes two upcoming anime films GROTESQUE  and Rascal Does Not Dream of a Dear Friend.

Its current pipeline also boasts a new Evangelion series in development with Anno’s studio Khara. Nonetheless, CloverWorks’ widening loss fits a recent pattern in which studios behind some globally recognized titles could not remain immune to the sector’s production cost and revenue-sharing structures.