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Financial Results for FY2026/3 Q3 February 12th, 2026
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2 Together, Let's Create Culture Loved by All. We are continuing to build a platform to bring together unique and diverse content creators. With the latest technology, users are exposed to new, exciting, high-quality experiences every single day. We bring about the best 2D entertainment loved by all, regardless of age, gender, and nationality. To bring all this to fruition, we continue to challenge the norm.
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Financial Results for FY2026/3 Q3 01
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FY2026/3 Q3 ｜ Management Evaluation and Summary © COVER 4 In FY2026/3 Q3, the Company recorded Revenue of 12,927 million yen (YoY +9.9%), Gross Profit of 6,999 million yen (YoY +19.4%), Contribution Margin of 5,878 million yen (YoY +16.5%), Operating Profit of 2,559 million yen (YoY +17.9%), and Net Profit of 1,927 millionyen (YoY +16.3%) Against the backdrop of changes in talent composition and the community environment, trends in Streaming and EC sales as wellas the traffic composition by talent are in an adjustment phase. On the other hand, the Trading card business and Licensing/Collaborations fields maintained strong performance, resulting in a quarter that showed structural improvements in operating profit momentum The Company positions this current business environment as a phase to rebuild the business structure for sustaining medium- to long-term growth Streaming/Content and Concerts/Events revenue in FY2026/3 Q3 increased QoQ, driven by increased traffic from year-end and New Year initiatives and strong performance in offline and online live concert projects by new talents In the Merchandising field, growth in the trading card business through tournaments and expanded distribution, as well as a catch-up in EC sales due to measures such as fixed international shipping rates and the sale of select licensed products via our in-house EC, contributed to an expansion trend compared to the same period of the previous year In Licensing/Collaborations, structural growth was supported by an increase in the number of trading partners, particularly overseas, diversification of domestic tie-up partners, and expansion of sponsor collaborations with proprietary content such as year-end online live concerts Preparations for auditions looking ahead to the next fiscal year and beyond are progressing across multiple lines Through FLOW GLOW's 3D live concert, progress was made in talent development from an artist's perspective and in the improvement of 3D expressive capabilities Announced the planned simultaneous global release* of the large-scale mobile game project "hololive Dreams," which will lead to expanded brand contact points for customers Through official collaborations with Twitch and The Game Awards, the frequency of contact with potential fans in the gaming context increased in overseas markets Due to progress in logistics improvements, the efficiency of SG&A expenses is steadily advancing Business Progress Overview of Business Performance Investment Progress, etc. * Except for some areas
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Financial Highlights ｜ Summary for FY2026/3 Q3 © COVER 5 FY2025/3 Q3 FY2026/3 Q3 YoY FY2026/3 Q3 [consecutive] Full-year Earnings Forecast (Progress rate) Revenue 11,758 12,927 +9.9% 34,681 52,500 (66.1%) Streaming/Content 2,504 2,504 +0.0% 6,979 - Concerts/Events 2,328 2,024 -13.1% 4,380 - Merchandising 5,448 6,639 +21.9% 18,317 - Licensing/Collabora tions 1,476 1,759 +19.2% 5,004 - Gross Profit 5,862 6,999 +19.4% 17,573 - Reference: Marginal Profit 5,044 5,878 +16.5% 15,080 21,714 (69.4%) Operating Profit 2,171 2,559 +17.9% 5,225 8,200 (63.7%) Net Profit 1,656 1,927 +16.3% 3,927 5,700 (68.9%) In Q3, there was a revenue adjustment in the Concerts/Events against the backdrop of providing exposure opportunities for new talents. On the other hand, the TCG and Licensing/Collaborations areas performed strongly While Q3 of the previous fiscal year saw a succession of solo live concerts by major existing talents, this period prioritized providing exposure opportunities for up-and-coming talents While EC revenue remains in the process of recovery, TCG and Licensing/Collaborations have performed strongly, expanding the brand market size On the other hand, due to various measures for management structure reforms and business development, the increase in SG&A expenses progressed more moderately than anticipated Developments into Q4 Q4, starting with streaming content at the beginning of the year, followed by music releases linked to large-scale live concerts, we will foster content momentum In the Concerts/Events, large-scale arena-class live concerts by popular talents such as "hololive 3rd Generation Live" and "Hoshimachi Suisei Live ‘SuperNova: REBOOT’" will occur in succession. Additionally, "hololive SUPER EXPO 2026 & hololive 7th fes." is scheduled, with the event duration extended from the usual two days to three days. Overseas, performances by popular talents such as "Takanashi Kiara / Ninomae Ina’nis 1st Concert" in LA are also upcoming. In the Merchandising, while EC remains in the process of recovery, we anticipate the TCG business to continue trending firmly. We expect an increase in customer traffic for retail and EC against the backdrop of continuous large-scale events. In the Licensing/Collaborations, in addition to the seasonality where revenue typically peaks in Q4, we anticipate an increase in the number of transactions with overseas clients and revenue expansion in the game sector Unit: MM JPY
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4,716 5,266 5,708 5,115 5,916 8,397 8,844 7,964 8,559 7,979 7,512 51.2% 46.7% 45.4% 44.5% 51.8% 53.9% 49.9% 47.2% 51.0% 46.7% 54.1% © COVER 6 Historical Trends in Revenue and Gross Profit Revenue expanded by +9.9% YoY due to steady trends in the Merchandising and Licensing/Collaborations fields Gross profit margin reached a record high for the past three years due to the rebound from the inventory write- down recorded in Q2, as well as an improved sales mix driven by asset-type revenue from music and past live concert content. Gross profit level grew +19.4 YoY 1,651 1,799 2,038 2,157 2,034 2,184 2,504 2,599 2,175 2,299 2,504 376 1,285 954 2,985 349 1,144 2,328 3,971 433 1,922 2,024 2,091 3,269 2,701 4,414 2,931 5,879 5,448 6,280 5,838 5,839 6,639 1,023 778 1,254 1,383 1,100 1,480 1,476 1,687 1,182 2,062 1,759 5,142 7,133 6,949 10,941 6,416 10,688 11,758 14,538 9,629 12,124 12,927 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2024/3 FY2025/3 FY2026/3 2,634 3,331 3,157 4,864 3,325 5,757 5,862 6,859 4,097 5,666 6,999 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2024/3 FY2025/3 FY2026/3 Historical Trends in Revenue and Advanced Payment Unit: MM JPY Streaming/Content Concerts/Events Advanced Payment Merchandising Licensing/Collaborations Historical Trends in Gross Profit and Gross Profit Margin Unit: MM JPY Gross Profit Gross Profit Margin
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48.8% 53.3% 54.6% 55.5% 48.2% 46.1% 50.1% 52.8% 49.0% 53.3% 45.9% 33.8% 27.0% 28.4% 25.8% 38.8% 30.1% 31.4% 30.3% 40.9% 32.8% 34.3% 910 1,152 1,168 1,488 993 1,497 1,570 1,669 1,330 1,453 1,582246 332 574 473 339 500 485 450 584 665 554 220 727 468 2,060 62 516 1,280 2,128 107 778 564 462 757 724 1,091 734 1,228 1,476 2,067 1,638 2,476 2,096 668 831 855 963 961 1,188 1,082 1,361 1,061 1,084 1,130 2,508 3,801 3,791 6,076 3,091 4,930 5,895 7,679 4,722 6,457 5,928 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2024/3 FY2025/3 FY2026/3 Historical Trends in Cost of Sales and SG&A Expenses © COVER 7 Regarding Cost of Sales, it decreased compared to Q2 due to the rebound from the inventory write-down recorded in Q2, the aforementioned improvement in sales mix, as well as improvements in procurement and content production efficiency Regarding SG&A expenses, due to the increase in sales through retail channels which does not involve an increase in internal logistics costs, and the impact of logistics efficiency measures, the increase in warehouse SG&A expenses relative to the increase in Merchandising revenue remained at a limited level 640 703 734 879 894 1,020 1,114 1,383 1,259 1,356 1,274 245 249 271 313 384 387 437 475 510 519 542 556 650 605 946 570 1,067 930 1,157 892 727 998 172 157 200 306 419 443 735 721 766 818 837 122 162 158 373 221 301 472 664 506 550 786 1,738 1,923 1,970 2,819 2,490 3,219 3,691 4,401 3,935 3,972 4,439 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2024/3 FY2025/3 FY2026/3 Personnel expenses Office equipment expenses Outsourcing expenses Other SG&A expenses Warehouse SG&A expenses* SG&A ratio Historical Trends in Cost of Sales and Cost of Sales Ratio Unit: MM JPY Historical Trends in SG&A Expenses and SG&A Ratio Unit: MM JPY Performer remuneration Outsourcing expenses Manufacturing costs Other cost of sales Event expenses Cost of sales Ratio *: Including SG&A cost related to EC such as logistics expense, sales commission, etc.
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17.4% 19.7% 17.1% 18.7% 13.0% 23.7% 18.5% 16.9% 10.1% 14.0% 19.8%44.5% 41.7% 41.1% 38.9% 46.2% 45.5% 42.9% 40.1% 43.1% 41.7% 45.5% Historical Trends in Contribution Margin and Operating Profit © COVER 8 Contribution margin increased due to the rebound from the inventory write-down recorded in Q2, as well as the aforementioned efficiency improvements While recording upfront investment expenditures related to continuing R&D in expressive technologies, software development, logistics improvements, and overseas business development as planned, the quarterly operating profit margin was recorded at around 20% 2,288 2,974 2,857 4,255 2,967 4,865 5,044 5,834 4,152 5,049 5,878 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2024/3 FY2025/3 FY2026/3 895 1,408 1,186 2,045 834 2,537 2,171 2,457 972 1,693 2,559 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2024/3 FY2025/3 FY2026/3 Contribution Margin Contribution Margin Ratio Historical Trends in Contribution Margin and Contribution Margin Ratio Unit: MM JPY Historical Trends in Operating Profit and Operating Profit Margin Unit: MM JPY Operating Profit Operating Profit Margin
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Progress of Current Fiscal Year Performance and Key Operational Issues at Present © COVER 9 Performance for the current fiscal year has progressed while being affected by the external environment, such as tariff policies, and changes in the product mix Regarding the seasonality of the Company’s performance, Q4 performance tends to be the largest due to increased momentum from large-scale events, and the current earnings forecast remains unchanged On the other hand, we are currently proceeding with improvements to business processes and a reorganization of areas under consideration for medium- to long-term growth, and there is a possibility that temporary costs may be recorded in this process Areas Under Consideration ① Product Inventory Centering on past products produced during the SKU expansion period of 2023–2024, fluctuations in the supply-demand balance have occurred for certain products due to changes in the market environment We are currently scrutinizing the consistency of turnover, supply, and sales plans for the entire product portfolio ② Development Investment Regarding software development investment aimed at medium- to long-term growth, we are proceeding with a reorganization of the scale, approach, and schedule in light of changes in the market environment and priorities Guidelines Regarding areas with high uncertainty, we will conduct operations with an emphasis on investment efficiency and business sustainability We will make management decisions at the appropriate timing as soon as the preconditions necessary for judgment are clarified
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02 Current Status of Business Development by Service
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1,651 1,799 2,038 2,157 2,034 2,184 2,504 2,599 2,175 2,299 2,504 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2024/3 FY2025/3 FY2026/3 Business Development by Service ｜ Streaming/Content © COVER 11 During Q3, revenue in the Streaming/Content segment recovered, driven by increased viewership during the year-end holiday period and the excitement surrounding content from new talents In the first online 3D live concert by FLOW GLOW, who debuted in 2024, attention was drawn to the completeness of their performance as artists and the improvements in expression resulting from the Company's technological advancements The New Year's holidays events “Nenmatsunenshi ha hololive to” The countdown live concert "hololive production COUNTDOWN LIVE 2025▷2026," featuring 60 hololive talents, recorded a maximum concurrent viewership of over 230,000 https://www.youtube.com/watch?v=oKiKqycF-lk FLOW GLOW 3D Live “MAKE IT, BREAK IT” Through the accumulation of “People x Technology,” 3D live expression and operational capabilities have improved, and the completeness as artists has evolved https://www.youtube.com/watch?v=zUI_V1Fea2U Historical Trends in Streaming/Content Unit: MM JPY
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376 1,285 954 2,985 349 1,144 2,328 3,971 433 1,922 2,024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2024/3 FY2025/3 FY2026/3 Business Development by Service ｜ Concerts/Events © COVER 12 During Q3, in addition to holding three domestic live concerts at arena-class large-scale venues, the Company conducted multiple performances as part of the continuing overseas world tour Asset-type revenue, such as Blu-ray sales from past live concerts, also continued to trend strongly Tokoyami Towa 2nd Live "SHINier" Released 2nd Album "SHIN" on October 8, 2025, and held the 2nd live concert at Ariake Arena on October 29, 2025 https://www.youtube.com/watch?v=ZjuDUe4jnqE AZKi SOLO LiVE 2025 "Departure" Simultaneously released two new EPs, “Re:Start” and “Re:Birth,” on November 5. Subsequently, held her first arena solo live concert at Pia Arena MM on November 19, 2025 https://www.youtube.com/watch?v=7UlZnyO79Xg ReGLOSS 1st Live “Flashpoint” Held the first large-scale live concert for "ReGLOSS," who debuted from hololive DEV_IS under hololive production, at Ariake Arena on December 16, 2025 https://www.youtube.com/watch?v=wlPLYUOmtHE Historical Trends in Concerts/Events Unit: MM JPY
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2,091 3,269 2,701 4,414 2,931 5,879 5,448 6,280 3,868 4,162 4,752 1,970 1,677 1,887 2,091 3,269 2,701 4,414 2,931 5,879 5,448 6,280 5,838 5,839 6,639 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2024/3 FY2025/3 FY2026/3 Business Development by Service｜ Merchandising © COVER 13 Although EC revenue remains in a recovery phase due to the impact of overseas tariffs and other factors, the effects of measures to improve convenience, such as the expansion of overseas sales regions and the introduction of fixed international shipping rates, are gradually becoming apparent We have also commenced the sale of select licensed products via our in-house EC, aiming to expand multifaceted customer acquisition channels for EC Improvement of Convenience in EC Implemented fixed international shipping rates Expanded cross-border EC sales regions to Southeast Asia, including Thailand, the Philippines, and Vietnam Implemented EC site improvements such as improved search accuracy and increased site display speed Commenced sales of licensed products via the official EC site Selling re-releases of figure series sold by Good Smile Company, such as "POP UP PARADE," "Nendoroid," and "HELLO! GOOD SMILE," on the official EC site "hololive production OFFICIAL SHOP" Historical Trends in Merchandising Unit: MM JPY TCG sales
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Merchandising ｜ TCG-related Initiatives in Q3 © COVER 14 During Q3, large-scale tournament initiatives tailored to player segments were implemented, such as the "EXSTREAMER CUP" in October and the "World Grand Prix" in November Backed by the operation of initiatives throughout the year, the number of players is continuously expanding, and sales of new products continued to perform strongly EXTREAMER CUP 2025 Final World Grand Prix25-26 A final tournament to determine the No. 1 player, featuring participants who advanced through the qualifiers As a global tournament attracting participants not only from Japan but also from overseas, 80 people participated The official stream of the tournament recorded over 100,000 views, reaching a scale that indicates an increase in the player population and interest compared to the initial tournaments Held a national tournament starting in November, vying for the right to participate in the final tournament scheduled for next autumn We implemented not only individual competitions but also trio tournaments for teams, attracting approximately 3,000 participants In addition to the official tournament, we held free events available for same-day entry, resulting in a tournament that gathered over 5,000 participants
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1,023 778 1,254 1,383 1,100 1,480 1,476 1,687 1,182 2,062 1,759 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2024/3 FY2025/3 FY2026/3 Business Development by Service ｜ Licensing/Collaborations © COVER 15 Against the backdrop of the expansion in deal sizes and the number of corporate partners, Licensing/Collaborations revenue continued to expand compared to previous fiscal years Figure sales continue to perform strongly, ranking high in the popularity rankings by brand at various licensees Reference: https://prtimes.jp/main/html/rd/p/000003120.000025615.html (Japanese only) Figure sales are strong, with our VTuber figures ranking high in the 2025 sales performance of "AmiAmi," one of Japan's largest hobby EC sites We dominated the top rankings in the small Figure category and also won 1st and 2nd place in the Scale Figure category Coca-Cola participated as a sponsor for "hololive production COUNTDOWN LIVE 2025▷2026" Historical Trends in Licensing/Collaborations Unit: MM JPY
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Initiatives in Current Fiscal Year to Achieve Medium-term Targets 03
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Growth Drivers Progress in FY2026/3 Q3 Medium-term outlook Strengthening of content supply through co- creation Promoting the reinforcement of production and operational systems rooted in the creative environment and fan experience, aimed at balancing support for talent activities and sustainable production management against the backdrop of business scale expansion Progressing with multiple types of new talent auditions intended to discover and nurture next-generation talent, and to optimize the workload concentration of existing talents through increased personnel Improvement of content quality backed by the accumulation of technologies related to creative production and studio operations Expansion of 3D content quantity utilizing simple motion capture equipment operable at low cost Produce top talents in diverse fields of expression, including live streaming, music, games and art Improve sophistication and efficiency of content production systems Expand awareness through collaboration with other companies' large-scale content/media Establishment of a global earnings base Expansion of exposure in the overseas gaming context, such as official collaborations with Twitch and The Game Awards. In domestic logistics, delivery unit costs were reduced by over 20% year-on-year (over 100 million yen on a quarterly basis) due to volume discounts against the backdrop of the consolidation of multiple warehouses In overseas logistics as well, the effect of reducing delivery unit costs by over 10% year-on-year is beginning to appear due to the optimization of packaging sizes, etc., and a portion of the cost improvements was applied to improvements such as fixed international shipping rates and the expansion of delivery regions The number of BtoB transaction companies in overseas regions expanded by +29% quarter-on-quarter Establish merchandise production and distribution in major overseas consumption areas, mainly in North America and Asia Expand global licensing transactions Expansion of earnings in new business areas Released the new official fan club “hololive FANCLUB” in October Implemented the renewal of the fan ID product “hololive Account,” intended to design new experiences from a fan perspective. The number of registered IDs exceeded 1 million Announced the overview, including the developer, regarding the global release of the mobile game “hololive Dreams,” which is expected to become a next-generation brand contact point Roll out TCG globally Increase earnings from digital content, such as games Advanced utilization of human capital Progressing with improvement plans for the organizational structure and evaluation system for the next fiscal year. Preventing silos stemming from function-based organizational management and promoting cross-departmental collaboration Planning improvements to allocation rules and internal transaction rules in budget control. Intended to improve inefficiencies in the operation of large-scale cross-departmental projects Maximize performance through optimal allocation and development of human resources Strengthen management foundations for sustainable growth © COVER 17 Status of Progress of Business Expansion to Achieve Medium-term Targets
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Regarding Ongoing Auditions © COVER 18 Auditions are progressing in three categories: Japanese-speaking, English-speaking, and NEW PROJECT. While aiming for reproducible talent discovery and development, we also intend to disperse the concentration of workload on existing talents through the increase in personnel Permanent Audition We are conducting permanent auditions for new talents at hololive production We have prepared special websites for each language region to discover individuals with diverse talents not limited to streaming activities, who possess dreams and passion as entertainers Although the debut timing is undecided (undisclosed), successful applicants will prepare for their debut as our affiliated talents through a curriculum and training program "NEW PROJECT" Audition A next-generation project with an independent vision, different from hololive production Positioned as a subordinate organization of hololive production, it aims to "pioneer new genres" and "expand recognition on a global scale" beyond the framework of traditional VTuber idols Activities in "NEW PROJECT" emphasize "team synergy" and serve as a springboard for talents toward their next leap forward Upon achieving certain results through these activities, transfers to the production or debuts in specialized organizations are planned
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Regarding the Improvement of Brand Contact Frequency Overseas © COVER 19 Through the implementation of official collaborations with Twitch and The Game Awards, we improved the frequency of brand contact with potential fans in overseas regions through the gaming context In parallel, through high-density contact with fans via live concerts and Meet & Greets, we enhanced engagement and fostered communities in each region Enthusiasm through Live Concerts Increase in Contact Points through the Gaming Context Collaboration with Twitch Implemented official collaboration measures on Twitch Garnered over 50 million impressions and gained over 250,000 new followers The Game Awards As an official Co-streaming Partner, more than 10 talents conducted mirroring streams Total impressions of related SNS posts recorded approximately 3 million World Tour ‘25 Touring 7 cities worldwide from July 2025 to February 2026 In the Q3, held live performances at anime conventions in Seoul and Kuala Lumpur hololive Indonesia 5th Anniversary LIVE Commemorating the 5th anniversary of hololive Indonesia, held the first local live concert utilizing Unreal Engine at Indonesia's largest anime convention COMIC FRONTIER 21
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Progress Status of Upfront Expenditures ｜ Game-related Business/Holoearth © COVER 20 Announced the overview of the large-scale official mobile game "hololive Dreams," aiming to further expand contact points with fans through the game In Holoearth, the Company held the virtual live concert "NePoLaBo Live re:VISION" to verify the fan concert participation experience within the virtual space Holoearth NePoLaBo Live “re:VISION” On December 21, 2025, hololive 5th Generation members held the virtual live concert "NePoLaBo Live re:VISION" in Holoearth In Holoearth, users became their own avatars, sharing the same space and experience with the VTubers After the concert, a "3D Archive" preserving the entire concert space was released hololive Dreams Joint development with QualiArts, a consolidated subsidiary of Cyber Agent Announced global release plan* in January 2026 Planned for release as “hololive’s” first official smartphone game featuring over 50 affiliated talents, with a scale of over 150 recorded songs The information reveal program attracted approximately 50,000 concurrent viewers, and the reveal video on X exceeded 10 million views (Company estimate), indicating a high level of attention Teaser PV: https://www.youtube.com/watch?v=BWWmKvYcjB4 * Except for some areas
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Progress in Management Structure Reforms and Other Matters © COVER 21 Review of Personnel and Organizational Systems Planning for improvements regarding the organizational structure and evaluation system for the next fiscal year is progressing We aim to prevent silos resulting from function-based organizational operations and promote cross-departmental collaboration Strengthening of Talent Support Established an environment for agile 3D content production through the expanded operation of simple motion capture studios Planning and considering the strengthening of mechanisms related to the dispersion of talent workload concentration Cost Optimization Improved cost governance in logistics and procurement Improvement in content production quality and costs driven by operational efficiency in studio operations Strengthening of Project Governance Planning improvements to allocation rules and internal transaction rules in budget control Aiming to improve inefficiencies in the operation of cross-departmental large-scale projects
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Appendix
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Medium-term Targets (From FY2026/3 to FY2030/3) © COVER 23 our medium-term management targets are reset to achieve net sales of 100 billion yen and operating profit of 25 billion yen or more in FY2030/3 43,462 8,064 Business Growth Image Unit: MM JPY 100,000~ 25,000~ Revenue and Gross Profit Increase business scale while improving profitability over the medium term through multifaceted product offerings and changes to sales mix, while ensuring revenue distribution to VTubers Operating Profit Emphasize investment in a wide range of growth areas, including expansion of production capacity, overseas business development, and digital content-related business development, as well as sustainable growth, and target a realistic profit level that aims to create maximum value over the medium to long term As the sales mix is expected to fluctuate in the process of promoting growth investment and diversifying profit opportunities, focus on the level of operating profit as a medium-term target Under the new management structure, structural reforms will be promoted such as personnel reassignment, business process review, and optimization of SG&A expenses, while at the same time strengthening the earnings structure Once the expansion phase of our business foundation is completed, expect room for further improvement in profitability through cost optimization and economies of scale The medium-term target is assumed to be achievable through organic growth, but strategic alliances and the utilization of external resources are not ruled out as growth options
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Impact of Upfront Investment Expenditure on Operating Profit Forecast © COVER 24 In FY2026/3, expansion of the Company's structure for sustainable growth and R&D expenses will cause a temporary drop in profits. On the other hand, profitability over medium to long term is expected to be improved through disciplined investment and improved management efficiency Breakdown of FY2026/3 Forecasts Unit: MM JPY 52,500 -26,436 26,063 -17,863 8,200 3,092 11,292 Lower profits due to upfront expenditures (see below) R&D in expressive technologies Enhancement of systems to increase content supply Enhancement of systems to improve SCM efficiency Development of overseas business (operation of overseas bases, marketing, etc.) Development of digital content business such as games/Holoearth Enhancement of systems in administrative departments to strengthen management foundations Breakdown of main costs Performer's fees Manufacturing cost of goods Event costs Studio-related expenses Breakdown of main SG&A expenses Personnel expenses/Outsourcing expenses/Subcontracting expenses Expansion of production capacity R&D expenses Enhancement of systems to improve SCM efficiency Overseas business development expenses (including overseas base expenses as outsourcing expenses) Strengthening of management foundation Warehouse SG&A expenses Office and studio equipment costs Software amortization Operating profit (Operating margin) Forecast: 820 million yen (15%) Reference value with upfront investment expenditure reversed: 1,120 million yen (21%)
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Drivers of Business Expansion for Achievement of Targets © COVER 25 For the 5 years until FY2030/3, we expect to make a cumulative total of approximately 50 billion yen in growth investment or M&As We will consider returning surplus cash to shareholders while maintaining flexible internal reserves Cash at end of period Cumulative operating cash flow For growth investment or M&As: 50 billion yen Cash-on-hand/ Shareholder returns • Flexibly maintain a buffer of cash-on-hand against business risks and fluctuations in the market environment • Possibility of transitioning to a stage where we consider shareholder returns from a capital efficiency perspective, depending on our financial soundness and cash generation capabilities • Make growth investments aimed at contributing to medium-term business performance, focusing on areas such as overseas business development, strengthening of production and producing functions, optimization of production and logistics, diversification of earnings, and strengthening of management foundations • Also consider strategic M&As as necessary Carefully scrutinize the effects of investment when implementing projects.
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Global Content Market 123.6 trillion yen Global Anime Market 3.3 trillion yen VTuber Market 105 billion yen Conceptual Image of Expanding the VTuber Economic Zone © COVER 26 Make VTubers elevate to the culture of the youth generation, especially in countries with an anime culture, and penetrate the global content market that transcends countries and generations The VTuber business in Japan will be established as a collection of various pieces of content VTuber business will expand into anime market, mainly in countries with high affinity for anime and IP content VTuber content will transcend regions and generations, creating a unique economic zone and penetrating each market ・・・ ・・・ ・・・ Toy Hobby Music Game AnimeLIVE streaming Events such as live activities Goods North America East Asia Southeast Asia Europe Anime market Game market Publishing market Manga market Music market Character market
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From VTuber Agency to an Expanding IP Business © COVER 27 A passionate fan community is expanding through daily streaming and live concerts of VTubers Multifaceted commerce initiatives is going forward, utilizing the characteristics of virtual avatars Commerce Activities via IPBuilding up Our VTuber IP and Fan Community Major Rev. Sources Major Cost Items Services Revenue Mix *1 (vs Prev. Year) Streaming / Content Merchandising Licensing / CollaborationsConcerts / Events Livestreaming through streaming platforms Live events offline / online Real / digital merchandise IP license-out and Promotional support like tie-up ads. Channel Membership*2, Super Chat *3 Tickets sales, Product sales In-house/External EC sales Royalties collected from licensees, Promotional fees from advertisers Platform Fees, Rev. share w/ VTubers Event production costs, Rev. share w/ VTubers Sales Commission, Raw Materials, Rev. share w/ VTubers Production Costs, Rev. share w/ VTubers 47.3％ （YoY +64.6%） 13.2％ （YoY +29.4%） 18.0％ （YoY +39.1%） 21.5％ （YoY +21.9%） *1 : Breakdown of FY2025/3 Revenue *2 : A system on YouTube whereby members pay a monthly fee to become channel members and receive badges, emotes, limited video d istribution and other similar privileges *3 : A system that allows viewers to pay a fee to make their chat messages stand out when livestreaming is published using Yo uTube's live chat
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 38.4% 31.0% 25.3% 21.5% 20.1% 16.1% 16.8% 18.6% 18.0% 12.6% 35.4% 39.1% 41.4% 47.3% 52.8% 10.1% 13.1% 14.7% 13.2% 14.4% FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Q3 Overview of Service Mix and Product Mix 28© COVER % of Revenue by Service Segments Monthly Sales Ratio of Each Product Streaming/Content Licensing/CollaborationsConcerts/Events Merchandising Made-to-order anniversary goods (EC) Other in-house planned goods(EC) Other in-house planned goods (retail)
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Logistics-related initiatives (Supplementary Information) © COVER 29 The Company intends to improve customer service and optimize costs through multiple initiatives from the second half of the current fiscal year to the next fiscal year Efficiency improvement through logistics optimization from overseas production locations 画像が入ります 画像が入ります Procurement optimization utilizing volume Efficiency improvement through consolidation of domestic logistics hubs Measures to improve fan satisfaction, such as revising shipping fees to enhance ease of purchase
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Organizational Structure © COVER 30 COVER boasts an industry-leading and diverse workforce with a large number of specialized employees IP Planning, Content Creation, Infrastructure Development 28% Sales & Marketing 26% Production Management 25% Metaverse 7% Back Office 13% Company Structure*1 (as of December 31, 2025) Planning and Developing New VTubers VTuber Branding Streaming Application and Software Development Studio Content Creation Event Planning Advertisement・PR Sales & MD Live Event Management Production Management Talent Management Metaverse Development Media Mix Expansion Management Corporate Planning Administrators *1 : Organizational structure in full-time employees
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2 2 2 2 2 2 2 3 3 4 9 13 22 36 48 51 75 93 110 132 170 215 262 300 373 376 392 409 455 480 492 509 570 602 652 679 738 740 743 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Historical Trends in Employees © COVER 31
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Reference(# of ch subs., # of VTubers, revenue and operating profit by service) © COVER 32 FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Total # of YouTube ch. Subs. (MM) 4,418 5,081 5,799 5,986 6,525 7,002 7,238 7,558 7,782 8,319 8,625 8,841 9,225 9,362 9,599 9,715 9,287 9,478 9,394 # of VTubers* (# of VTubers with 1M+ Subs.) 52 (18) 57 (21) 62 (22) 68 (23) 68 (27) 71 (30) 71 (31) 75 (32) 75 (33) 82 (36) 86 (36) 85 (38) 89 (41) 87 (40) 91 (46) 89 (44) 86 (42) 86 (43) 85 (43) Revenue （MM JPY） 2,423 2,422 4,423 4,394 3,601 4,190 5,010 7,648 5,142 7,133 6,949 10,941 6,416 10,688 11,758 14,538 9,629 12,124 12,927 Streaming / Content 1,220 1,200 1,416 1,412 1,450 1,572 1,575 1,744 1,651 1,799 2,038 2,157 2,034 2,184 2,504 2,599 2,175 2,299 2,504 Concerts / Events 293 287 563 1,059 193 581 466 2,187 376 1,285 954 2,985 349 1,144 2,328 3,971 433 1,922 2,024 Merchandising 756 713 1,904 1,457 1,574 1,597 2,090 2,740 2,091 3,269 2,701 4,414 2,931 5,879 5,448 6,280 5,838 5,839 6,639 Licensing / Collaborations 152 220 540 464 382 439 878 976 1,023 778 1,254 1,383 1,100 1,480 1,476 1,687 1,182 2,062 1,759 Operating Profit （MM JPY） 624 326 757 145 361 516 856 1,682 895 1,408 1,186 2,045 834 2,537 2,171 2,457 972 1,693 2,559 *: Fuwawa Abyssgard and Mococo Abyssgard, who shared a channel, were counted as one person
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PL Summary © COVER 33 MM JPY FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Q3 Total Revenue 13,663 20,451 30,166 43,401 12,927 YoY Growth +138% +49% +48% +44% +9.9% Gross Profit 5,274 9,396 13,988 21,805 6,999 Margin 38% 45% 46% 50% 54% Operating Profit 1,855 3,417 5,536 8,001 2,559 Margin 13% 16% 18% 18% 20% Net Profit 1,244 2,508 4,137 5,559 1,927 Margin 9% 12% 14% 13% 15%
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BS Summary © COVER 34 MM JPY FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Q3 Total Current Assets 7,168 11,740 14,798 22,872 23,288 Cash and Cash Equivalents 4,644 7,793 8,666 11,498 14,938 Total Fixed Assets 1,069 4,146 7,914 10,187 11,117 Total Asset 8,238 15,887 22,713 33,060 34,406 Total Liabilities 4,780 8,880 11,569 16,112 13,531 Total Equity 3,457 7,006 11,143 16,947 20,874
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Handling of these Materials © COVER 35 This material has been prepared by COVER Corporation (the “Company”) solely for information purpose only, and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in the United States, Japan or any other jurisdictions. Any information contained in this material other than facts in the past and at present is referred to as such forward-looking statements. Forward-looking statements include but are not limited to expressions such as “believe”, “strive to", “anticipate”, “predict", “expect", “confirm", “continue", “try", “estimate“, “forecast“ “to take measures to", “hope”, “intend", “attempt", “it is possible…", “plan“, “strategy”, “potential", “probability", “project", “risk", “pursue", “should be…", “working to…", “have the goal of…“ and “planning to" as well as other similar expressions to explain future business activities, achievements, events and circumstances. Forward- looking statements are predictions about the future that reflect management's judgment based on currently-available information. As such, these forward-looking statements are subject to various risks and uncertainties. It is possible that the actual business content, results and the like in the future may significantly differ from those expressed in or suggested by the forward-looking statements. Therefore, please do not rely on forward-looking statements. The Company undertakes no obligation to update this material after the date of this material.
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