Despite the meteoric rise of Solo Leveling and its dominance across global anime charts, A 1 Pictures, the studio behind the phenomenon, has reported its largest financial loss in more than a decade. In a surprising development, the studio posted a net loss of 178 million yen, roughly 1.2 million US dollars, for the fiscal year ending March 31, 2025. The announcement was made public through Japan’s official gazette on June 30, leaving fans and industry watchers stunned.
Solo Leveling premiered in January 2024 and rapidly rose to become one of the biggest anime hits of the decade. It set viewership records, dominated online discussions, and swept multiple honors at the 2025 Crunchyroll Anime Awards, including Anime of the Year. Its second season, which aired in early 2025, only added to the hype. The show has become Crunchyroll’s most watched title of all time, creating a lasting global impact that rivals some of the most iconic series in recent memory.
Yet, despite this remarkable success, the studio that animated the show has been unable to translate popularity into financial gain. The current loss represents a dramatic reversal from the previous year, where A 1 Pictures reported a modest net profit of 24 million yen. This decline also overshadows its most profitable year on record, back in 2016, when the studio earned approximately 350 million yen.According to the studio’s financial statement, total assets now stand at 2.69 billion yen, while liabilities are at 2.02 billion yen. The retained earnings section directly reflects the 178 million yen loss, confirming the troubling gap between audience demand and actual studio profitability.
This disconnect has reignited conversations around how anime studios are compensated under Japan’s production committee system. Under this structure, studios are typically hired for a fixed production fee and rarely enjoy long term revenue from merchandise, streaming, or licensing. These profits are mostly absorbed by the production committee, which includes publishers, record labels, streaming services, and distributors. The studio, in many cases, is left out of the larger financial pie, even when their work becomes a worldwide success.
A 1 Pictures is not a small player in the anime landscape. As a subsidiary of Aniplex, which is owned by Sony Music Entertainment Japan, the studio has handled major projects beyond Solo Leveling. This includes the second cour of NieR:Automata Ver1.1a, Sword Art Online Alternative: Gun Gale Online II, Too Many Losing Heroines, and even animated content for the mobile game Goddess of Victory: NIKKE. Despite such a packed production schedule, the studio has not managed to stabilize its financial performance.
The situation highlights a broader industry issue that has persisted even as anime explodes globally. While audiences continue to demand high quality animation and engaging stories, the studios that bring these worlds to life often struggle with budget constraints, long hours, and minimal profit margins. Solo Leveling’s massive popularity is a reminder of how disconnected commercial success can be from studio stability.
As fans celebrate the artistry and storytelling behind Solo Leveling, this news adds a layer of urgency to ongoing discussions about fair compensation and sustainability in the anime industry. If a top tier studio producing a global blockbuster still operates at a loss, the system may need to be reexamined to protect the future of anime production.
Follow Anime Insider on Instagram and Facebook for more updates, insights, and deep dives into the world of anime, behind the scenes of your favorite shows, and the studios that bring them to life.
