Interim report
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財務 会計 基报 This document has been translated from the original document written in Japanese for reference purposes only . In the event of any discrepancy between translated and original documents , the original shall prevail . 財 団 法人 FASF August 12 , 2026 Non - consolidated Financial Results for Three Months Ended March 31 , 2027 ( Under Japanese GAAP ) Company name : Listing : COVER Corporation TSE Growth Market https://cover-corp.com/en Securities code : 5253 URL : Representative : Inquiries : Phone : Motoaki Tanigo , President and CEO Yosuke Kaneko , Director and CFO +81 3 ( 6280 ) 4036 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : Yes Yes ( for institutional investors and analysts ) ( Yen amounts are rounded down to millions unless otherwise noted . ) 1. Financial results for the three months ended March 31 , 2027 ( from April 1 , 2026 to March 31 , 2027 ) ( 1 ) Non - consolidated operating results ( Percentages indicate year - on - year changes ) Three months ended June 30 , 2026 June 30 , 2025 Revenue Millions of yen 8,825 9,629 50.1 Operating Profit Ordinary Profit % ( 8.3 ) Millions of yen 651 972 16.5 % Millions of yen % Net Profit Millions of yen % ( 33.0 ) 598 ( 35.8 ) 415 ( 40.1 ) 932 1.6 693 11.9 Basic earnings per share Three months ended Yen Diluted earnings per share Yen June 30 , 2026 6.38 June 30 , 2025 10.57 6.25 10.35 ( 2 ) Non - consolidated financial position Total assets Net assets Equity - to - asset ratio As of Millions of yen Millions of yen % June 30 , 2026 28,088 March 31 , 2026 34,908 17,379 19,964 61.9 57.2 Reference : Equity As of June 30 , 2026 : As of March 31 , 2026 : 17,378 million 19,963 million 2. Cash dividends First quarter - end Yen Fiscal year ended March 31 , 2026 Fiscal year ended March 31 , 2027 Fiscal year ending March 31 , 2027 ( Forecast ) Annual dividends per share Second quarter - end Third quarter - end Fiscal year - end Total Yen 0.00 Yen Yen Yen 0.00 0.00 0.00 ( Note ) Revision to the forecast for dividends announced most recently : None 0.00 0.00
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3. Forecast for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes) Revenue Operating Profit Ordinary Profit Net Profit Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % yen Interim Period 22,270 2.4 1,930 (27.6) 1,930 (27.8) 1,350 (32.5) 20.56 Full-year 51,350 4.1 7,000 (0.8) 7,000 (1.0) 4,900 62.4 74.64 (Notes) Revision to the financial results forecast announced most recently: No Basic earnings per share for the fiscal year ending March 31, 2027 (forecast) were calculated using the number of shares issued and outstanding (excluding treasury stock) as of March 31, 2026 as the divider. Notes 1. Accounting methods adopted particularly for the preparation of quarterly financial statements: None 2. Changes in accounting policies, changes in accounting estimates , and retrospective restatement (1) Changes in accounting policies due to the revision of accounting standards: None (2) Changes in accounting policies other than (1) above: None (3) Changes in accounting estimates: None (4) Retrospective restatement: None 3. Number of shares issued and outstanding (common stock) (1) Total number of issued shares at the end of the period (including treasury stock): June 30, 2026: 65,650,100 Shares March 31, 2026: 65,650,100 Shares (2) Total number of treasury stock at the end of the period: June 30, 2026: 1,879,784 Shares March 31, 2026: 84 Shares (3) Average number of shares during the period: June 30, 2026 65,130,949 Shares June 30, 2025 65,650,016 Shares * These quarterly financial results are outside the scope of the audit by certified public accountants or an audit firm * Explanation of the proper use of financial results forecast and other notes The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable and are not intended to be a guarantee by the Company of future performance. Actual results may differ materially from these forecasts due to various factors.
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1 Table of Contents of Attachments 1. Qualitative information regarding results for the period ........................................................................................ 2 (1) Explanation of business results .............................................................................................................................. 2 (2) Explanation of financial position ........................................................................................................................... 3 (3) Explanation on earnings forecasts and other forward-looking information ................................................... 3 2. Quarterly Financial Statements and Primary Notes ................................................................................................ 4 (1) Quarterly balance sheet ........................................................................................................................................... 4 (2) Quarterly Statement of income .............................................................................................................................. 6 (3) Notes to financial statements .................................................................................................................................. 7 (Assumptions for going concern) ................................................................................................................................ 7 (Notes to statement of cash flows) ............................................................................................................................... 7 (Segment Information, etc.) ......................................................................................................................................... 7
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2 1. Qualitative information regarding results for the period (1) Explanation of business results With the mission of “Together, Let’s Create Culture Loved by All” the Company aims to increase the activity opportunities for creators involved in cultural content such as anime and gaming, which are unique strengths of Japan, by creating Japan-originated entertainment culture content and distributing it to users across the world. In the first quarter, revenue in the Concerts/Events and Licensing/Collaborations services grew year on year. In contrast, revenue in the Streaming/Content and Merchandising services declined year on year, reflecting changes in talent composition and in the community environment, differences in the launch schedule and product mix of new trading card products, and stockouts and limited product assortment arising during the transition of manufacturing and sales operations for e-commerce products. As a result, net sales for the first quarter decreased year on year. We also position the current period as an investment phase for strengthening the foundation for sustainable growth, and are developing the business infrastructure and organizational structure that support the continuous creation of talent value. Fixed costs therefore increased ahead of revenue, temporarily raising the fixed cost ratio, and the operating margin for the first quarter fell below the level of the same period a year earlier. Performance by service was as follows. In the Streaming/Content service, streaming-related indicators softened against a backdrop of changes in talent composition and in the community environment, while the expansion of diverse streaming activities by our talents and the rise of emerging talents supported resilient performance. In addition, we launched "mekPark," a next-generation talent development project intended to drive medium- to long-term growth of the production business, and two new units began their activities. As a result, revenue in this segment was 2,092 million yen, down 3.8% year on year. In the Concerts/Events service, we held a number of live concerts and events featuring our talents, including "Secret Society holoX Live 2026 'First MISSION'," the first offline live concert by Secret Society holoX, and the first offline edition of the large-scale gaming event "Shishiro Cup" hosted by Shishiro Botan. Growth in sales of video products from previously held live concerts also contributed. As a result, revenue in this segment was 908 million yen, up 109.6% year on year. In the Merchandising service, we worked to broaden points of contact with both new and existing fans and to diversify sales channels, including opening "hololive production official shop in Harajuku," an official store of hololive production, in Harajuku. Compared with the previous year, however, revenue declined year on year due to differences in the launch schedule and product mix of new trading card products, the absence of sales of products related to graduated talents, and lost sales opportunities caused by stockouts and limited product assortment during the transition of manufacturing and sales operations for e-commerce products. As a result, revenue in this segment was 4,546 million yen, down 22.1% year on year. In the Licensing/Collaborations service, greater brand exposure through collaborations with major domestic clients, together with expanded transactions with overseas clients centered on North America and East Asia, drove revenue. As a result, revenue in this segment was 1,279 million yen, up 8.2% year on year. As a result of the above, for the cumulative first quarter, revenue were 8,825 million yen (down 8.3% year on year), operating profit was 651 million yen (down 33.0%), ordinary profit was 598 million yen (down 35.8%), and quarterly net profit was 415 million yen (down 40.1%).
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3 (2) Explanation of financial position (i) Assets, liabilities and net assets (Assets) Total net assets at the end of the third quarter under review amounted to 28,088 million yen, an decrease of 6,819 million yen from the end of the previous fiscal year. This was mainly due to a decrease of 4,129 million yen in cash and deposits, a decrease of 3,270 million yen in accounts receivable - trade, and an increase of 528 million yen in intangible assets, primarily software in progress. (Liabilities) Total liabilities at the end of the first quarter under review decreased by 4,235 million yen from the end of the previous fiscal year to 10,708 million yen. This was mainly due to a decrease of 1,568 million yen in accounts payable - trade, a decrease of 1,355 million yen in income taxes payable, a decrease of 705 million yen in advances received, and a decrease of 327 million yen in provision for bonuses. (Net assets) Total net assets at the end of the first quarter under review decreased by 2,584 million yen from the end of the previous fiscal year to 17,379 million yen. This was due to a decrease of 2,999 million yen resulting from the purchase of treasury stock and an increase of 415 million yen in retained earnings. (3) Explanation on earnings forecasts and other forward-looking information There are no changes to the forecast for the fiscal year ending March 2027 from the full-year forecast disclosed on May 14, 2026.
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4 2. Quarterly Financial Statements and Primary Notes (1) Quarterly balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 16,008 11,879 Accounts receivable - trade 5,890 2,619 Merchandise 958 1,231 Prepaid expenses 564 609 Accounts receivable - other 1,403 1,275 Other 317 322 Allowance for doubtful accounts (33) (19) Total current assets 25,108 17,918 Non-current assets Property, plant and equipment Facilities attached to buildings, net 2,317 2,280 Tools, furniture and fixtures, net 1,659 1,582 Construction in progress - 15 Total property, plant and equipment 3,977 3,878 Intangible assets Patent right 72 76 Trademark right 118 117 Software 838 885 Software in progress 968 1,446 Total intangible assets 1,998 2,526 Investments and other assets Shares of subsidiaries and associates 146 146 Investments securities 77 77 Investments in capital 113 150 Guarantee deposits 1,141 1,186 Long-term loans receivable 20 59 Deferred tax assets 2,231 2,056 Other 94 88 Total investments and other assets 3,824 3,765 Total non-current assets 9,799 10,170 Total assets 34,908 28,088
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5 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Accounts payable - trade 2,750 1,182 Accounts payable - other 703 1,038 Accrued expenses 556 654 Income taxes payable 1,357 2 Advances received 6,758 6,053 Deposits received 141 166 Provision for bonuses 545 218 Allowance for foreign indirect tax 287 277 Other 811 82 Total current liabilities 13,913 9,675 Non-current liabilities Asset retirement obligations 1,031 1,033 Total non-current liabilities 1,031 1,033 Total liabilities 14,944 10,708 Net assets Shareholders' equity Share capital 1,096 1,096 Capital surplus Legal capital surplus 1,093 1,093 Total capital surplus 1,093 1,093 Retained earnings Other retained earnings Retained earnings brought forward 17,772 18,188 Total retained earnings 17,772 18,188 Treasury shares (0) (3,000) Total shareholders' equity 19,963 17,378 Share acquisition rights 0 0 Total net assets 19,964 17,379 Total liabilities and net assets 34,908 28,088
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6 (2) Quarterly Statement of income Three months ended March 31, 2027 (Millions of yen) Three months ended March 31, 2026 Three months ended March 31, 2027 Net sales 9,629 8,825 Cost of sales 4,722 4,332 Gross profit 4,907 4,493 Selling, general and administrative expenses 3,935 3,841 Operating profit 972 651 Non-operating income Interest income 0 0 Capital appreciation - 9 Settlement received - 9 Other 1 2 Total non-operating income 1 21 Non-operating expenses Foreign exchange losses 41 - Commission expenses - 8 Settlement expenses - 53 Other 0 12 Total non-operating expenses 42 74 Ordinary profit 932 598 Extraordinary losses Loss on retirement of non-current assets 21 0 Total extraordinary losses 21 0 Profit before income taxes 910 597 Income taxes - current 206 7 Income taxes - deferred 10 174 Total income taxes 217 182 Net Profit 693 415
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7 (3) Notes to financial statements (Assumptions for going concern) Not applicable. (Notes to statement of cash flows) No quarterly statement of cash flows has been prepared for the cumulative third quarter of the current fiscal year. Depreciation and amortization (including amortization relating to intangible assets) for the cumulative third quarter of the current fiscal year is as follows. Three months of the previous fiscal year (From April 1, 2025, to June 30, 2025) Three months of the current fiscal year (From April 1, 2026, to June 30, 2026) Depreciation and amortization 337 million yen 209 million yen (Notes on Significant Changes in the Amount of Shareholders' Equity) (Acquisition of Treasury Stock) Pursuant to a resolution passed at the Board of Directors meeting held on May 14, 2026, the Company acquired 1,879,700 shares of treasury stock. As a result, treasury stock increased by 2,999 million yen during the first quarter cumulative period, bringing the balance of treasury stock to 3,000 million yen at the end of the first quarter. (Segment Information, etc.) Segment information is omitted as the Company operates a single segment, the VTuber business.