Slides
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Financial Results for FY2026/3 Q2 November 11th, 2025
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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 Q2 01
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FY2026/3 Q2 ｜ Management Evaluation and Summary © COVER 4 In FY2026/3 Q2, revenue reached 12,124 million yen (YoY +13.4%), gross profit was 5,666 million yen (YoY -1.6%), contribution margin was 5,049 million yen (YoY +3.8%), operating profit was 1,693 million yen (YoY -33.3%), and net pfofit was 1,306 million yen (YoY -13.0%) While revenue fell short of the first-half forecast by about 4% due to factors such as the influence of North American tariffs, substitution effects between product sales channels, and a temporary decrease in EC sales due to a reduction in the number of talents, operating income exceeded the forecast by about 10% In the second half, we aim to catch up with the full-year plan through the expansion of the scaled-up Fes/EXPO, TCG business, and domestic/international licensing/tie-ups, along with SCM improvement and sales channel expansion in merchandising. In Q2, Streaming/Content and Concerts/Events saw revenue increase QoQ, against the backdrop of excitement for content and events during the summer season, and the sales recognition from after-sales goods and video products from the large-scale live concert held in previous fiscal year. In Merchandising, while the growth of EC sales temporarily slowed due to the aforementioned factors, sales of the trading card game continued to perform strongly. Retail expansion showed an upward trend, including the commencement of product handling at target Don Quijote/APiTA stores nationwide. On the other hand, an inventory write-down of approximately 550 million yen for past inventory was recorded at the end of Q2 due to the increase in SKUs. In Licensing/Collaborations, summer events jointly implemented with other companies performed well, and game-related sales is also gaining presence, exceeding 100 million yen per quarter solely through contributions from small and medium-sized game titles. By continuing R&D related to expressive technologies, the accuracy of facial capture of avatar in home streaming environmentshas improved. In logistics, the consolidation of domestic logistics hubs has progressed, and optimization of logistics with overseas suppliersand procurement will be advanced from the second half. In game development, game titles jointly developed with external developers and simultaneously released on multi-platforms including Nintendo Switch are performing well, contributing to sales in Licensing/Collaborations. Additionally, in management structural reforms, a monitoring system of projects targeting the next fiscal year and beyond has been introduced and operationalized. Business Progress Overview of Business Performance Investment Progress, etc.
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Financial Highlights ｜ Summary for FY2026/3 Q2 © COVER 5 FY2025/3 Q2 FY2026/3 Q2 YoY FY2026/3 Q2 [consecutive] First-half Earnings Forecast (Progress rate) Revenue 10,688 12,124 +13.4% 21,754 22,750 (95,6%) Streaming/Content 2,184 2,299 +5.3% 4,474 - Concerts/Events 1,144 1,922 +68.0% 2,356 - Merchandising 5,879 5,839 -0.7% 11,678 - Licensing/Collabora tions 1,480 2,062 +39.4% 3,244 - Gross Profit 5,757 5,666 -1.6% 10,573 - Reference: Marginal Profit 4,865 5,049 +3.8% 9,202 9,021 (102.0%) Operating Profit 2,537 1,693 -33.3% 2,666 2,420 (110.2%) Net Profit 1,500 1,306 -13.0% 1,999 1,679 (119.1%) In Q2, while Concerts/Events and Licensing/Collaborations performed strongly, revenue increased but profit decreased YoY due to inventory write-down for previously produced products and the impact of upfront investment Recording a write-down of 550 million yen mainly related to products produced before 2024 increased the cost of sales The upfront investment planned at the beginning of the fiscal year is progressing on schedule On the other hand, the increase in SG&A expenses is progressing more moderately than the business plan due to various measures for management structural reform and business development Developments into Q3 In Q3, the usual increase in content viewing during the winter holiday season is expected, and measures targeting loyal fans will be implemented with the release of the official fan club starting in October. Furthermore, Izuki Michiru and Hanazono Sayaka started activities as the new VTuber announcer to convey official production information In the Concerts/Events domain, the world tour continuing from July of this year until February of next year, plus the first local live event in Indonesia of hololive Indonesia in November, arena-class live concerts in Japan will be following such as Tokoyami Towa's 2nd solo live, AZKi Solo Live 2025, and ReGLOSS 1st live In Merchandising, expansion of the domestic and international trading card business and retail sales channels will continue, and service improvements such as introducing fixed international shipping rates and expanding EC sales channels are planned for EC. In Licensing/Collaborations, growth through the realization of sales from continuously expanding domestic and international client transactions, as well as recurring revenue from game-related projects is planned 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 51.2% 46.7% 45.4% 44.5% 51.8% 53.9% 49.9% 47.2% 51.0% 46.7% © COVER 6 Historical Trends in Revenue and Gross Profit Revenue increased by 13.4% YoY, mainly driven by the strong performance of Concerts/Events and Licensing/Collaborations On the other hand, the gross profit level slightly decreased by 1.6% YoY due to increased manufacturing costs in Merchandising and the recording of a 550 million yen write-down of previously produced products 1,651 1,799 2,038 2,157 2,034 2,184 2,504 2,599 2,175 2,299 376 1,285 954 2,985 349 1,144 2,328 3,971 433 1,922 2,091 3,269 2,701 4,414 2,931 5,879 5,448 6,280 5,838 5,839 1,023 778 1,254 1,383 1,100 1,480 1,476 1,687 1,182 2,062 5,142 7,133 6,949 10,941 6,416 10,688 11,758 14,538 9,629 12,124 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 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% 33.8% 27.0% 28.4% 25.8% 38.8% 30.1% 31.4% 30.3% 40.9% 32.8% 910 1,152 1,168 1,488 993 1,497 1,570 1,669 1,330 1,453 246 332 574 473 339 500 485 450 584 665 220 727 468 2,060 62 516 1,280 2,128 107 778 462 757 724 1,091 734 1,228 1,476 2,067 1,638 2,476 668 831 855 963 961 1,188 1,082 1,361 1,061 1,084 2,508 3,801 3,791 6,076 3,091 4,930 5,895 7,679 4,722 6,457 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2024/3 FY2025/3 FY2026/3 Historical Trends in Cost of Sales and SG&A Expenses © COVER 7 Regarding Cost of Sales, costs increased due to higher related expenses associated with the increase in the number of events during the summer season, and manufacturing cost rose due to the recording of a one-time expense of 550 million yen resulting from the inventory write-down of previously produced products (excluding this one-time expense, the CoS ratio was approximately 49%) Regarding SG&A expenses, warehouse SG&A expenses began to decrease both YoY and QoQ due to the increase in retail sales channel revenue, which does not involve an increase in internal logistics costs, and the impact of logistics efficiency measures 640 703 734 879 894 1,020 1,114 1,383 1,259 1,356 245 249 271 313 384 387 437 475 510 519 556 650 605 946 570 1,067 930 1,157 892 727 172 157 200 306 419 443 735 721 766 818 122 162 158 373 221 301 472 664 506 550 1,738 1,923 1,970 2,819 2,490 3,219 3,691 4,401 3,935 3,972 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 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% 44.5% 41.7% 41.1% 38.9% 46.2% 45.5% 42.9% 40.1% 43.1% 41.7% Historical Trends in Contribution Margin and Operating Profit © COVER 8 The contribution margin ratio temporarily declined YoY due to the expansion of studio operations and the impact of the inventory write-down of previously produced products While upfront expenditures related to expressive technology development, software development, logistics improvements, and overseas business development are pushing down the operating margin, the Company aims to improve profitability through improvements in logistics costs and the realization of revenue from licensed games 2,288 2,974 2,857 4,255 2,967 4,865 5,044 5,834 4,152 5,049 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2024/3 FY2025/3 FY2026/3 895 1,408 1,186 2,045 834 2,537 2,171 2,457 972 1,693 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2024/3 FY2025/3 FY2026/3 Marginal Profit Marginal Profit Ration 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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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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2024/3 FY2025/3 FY2026/3 Business Development by Service ｜ Streaming/Content © COVER 10 In Q2, Streaming/Content sales gained momentum QoQ due to seasonality during the summer holiday period Asset-type content such as music videos works as an accumulating and continuous customer acquisition channel Suki-Suki Diesuki Cho AyeShiteru An original song sung by Houshou Marine had its animated MV released on July 30 and has already surpassed 8 million views holonatsu Paradise A large-scale project implemented throughout July 2025, centered on cross-group streaming across various language regions Historical Trends in Streaming/Content Unit: MM JPY
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Streaming/Content ｜ Outlook on Traffic © COVER 11 Although there were several talent graduations last year, engagement across the community continues to be driven by new talents The Company aims for sustained growth by releasing highly reproducible hit content through both existing and new talents going forward 100.0% 201.4% First year Second year Historical trends in total number of views and total amount of watch time Sales growth of new talents debuted since 2023* Unit: MM JPY Left axis: Views Right axis: Watch time (million) (million hours) * Comparison of talent sales between the first 12 months and the subsequent 12 months for "Advent," a hololive English unit that debuted in July 2023, and "ReGLOSS," a hololive DEV_IS unit that debuted in September 2023 1,939 2,280 2,798 2,958 3,388 338 339 369 425 372 0 50 100 150 200 250 300 350 400 450 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 1H 2H 1H 2H 1H FY2024/3 FY2025/3 FY2026/3
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376 1,285 954 2,985 349 1,144 2,328 3,971 433 1,922 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2024/3 FY2025/3 FY2026/3 Business Development by Service ｜ Concerts/Events © COVER 12 Sebral solo live concerts and post-event merchandise sales and Blu-ray sales from concerts held in previous years performed strongly The 3rd hololive English concert in North America was held at the highly influential Radio City Music Hall, contributing to the strengthening of the brand locally hololive English 3rd Concert -All for One Held on 2025/8/23~24 at Radio City Music Hall (New York) Recorded the highest ever local attendance, exceeding 10,000 people over both days at New York's legendary venue. The performance featured different set lists each day and included all hololive English members Amane Kanata 1st Solo Concert "LOCK ON" Held on 2025/8/13 at Ariake Arena, recording attendance exceeding 20,000 people both in person and via streaming Ookami Mio 1st Solo Concert "Our Sparkle" Held on 2025/9/10 at Pia Arena MM, recording attendance exceeding 20,000 people both in person and via streaming 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 1,970 1,677 2,091 3,269 2,701 4,414 2,931 5,879 5,448 6,280 5,838 5,839 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2024/3 FY2025/3 FY2026/3 Business Development by Service｜ Merchandising © COVER 13 While the expansion of sales for the trading card game and retail stores is progressing strongly, EC sales growth is slowing down due to the impact of North American tariffs and short-term sales substitution between sales channels, requiring countermeasures for the second half of the fiscal year onwards Brand exposure expansion through retail distribution of merchandise continues to advance, including the start of merchandise handling at designated Don Quijote/Apita stores nationwide beginning in August Current Status and Future Outlook for EC EC demand of approximately 500 million to 1 billion yen per quarter has been lost due to the impact of North American tariffs and demand substitution between merchandise sales channels In the second half, the Company plans to improve demand by enhancing consumer experience through fixed international shipping rates, providing economy delivery services, and expanding EC sales channels Expansion of Brand Recognition Through Retail Distribution Sales of related products commenced at designated Don Quijote/Apita stores nationwide starting August 23, 2025 Historical Trends in Merchandising Unit: MM JPY TCG sales
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Merchandising ｜ TCG-related Initiatives in Q2 © COVER 14 The Company intends to attract a wide range of users, from competitive to casual players Mutual customer referral to the fan community is also implemented through PR collaboration with talents 8/29 Two new starter decks Until September Advertising at Akihabara hOCG player Potential hOCG player Casual Contestant 8/16・17 Comic Market106 9/6 holo fireworks 8/30 hOCG Fes Summer 8/17 WGP Nagoya Mutual PR with Talents Strategic mutual PR is implemented by linking with measures tailored to talent activities WGP Nagoya/hOCG Fes Summer WGP Nagoya Held at Port Messe Nagoya on August 17, 2025, with over 4,000 applications for 2,300 main event seats hOCG Fes Summer Held at Makuhari Messe on August 30, 2025, with over 4,000 applications for 1,800 seats
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1,023 778 1,254 1,383 1,100 1,480 1,476 1,687 1,182 2,062 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2024/3 FY2025/3 FY2026/3 Business Development by Service ｜ Licensing/Collaborations © COVER 15 Domestically, Pop-Up events were intensively implemented in Shibuya, Ikebukuro, Tokyo, and Ariake to capture foot traffic during the summer holiday period. Overseas, a collaboration event with the Los Angeles Dodgers was held for the second consecutive year Game-related sales is increasing its presence, generating over 100 million yen per quarter solely from the contribution of small- to medium-sized titles The ”holonatsu Paradise POP UP SHOP" was held at the SHIBUYA TSUTAYA 6F IP Bookstore starting August 1, 2025 From July 15th to Sunday, August 24th, hololive will hold the ‘Hello hololive’ event on the 1st floor of SHIBUYA TSUTAYA, unveiling new visuals for all 31 hololive members The second collaboration project with the Los Angeles Dodgers, " hololive night," was held on Saturday, July 5, 2025 (local time) This featured the first-ever VTuber live stream from Dodger Stadium in MLB history, alongside other initiatives like game start announcements and singing during the 7th inning stretch Historical Trends in Licensing/Collaborations Unit: MM JPY
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03 Initiatives in Current Fiscal Year to Achieve Medium-term Targets
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Growth Drivers Progress in FY2026/3 Q2 Medium-term outlook Strengthening of content supply through co- creation Improved the accuracy of talent/avatar facial capture in home streaming environments Established the music label "hololive RECORDS," building upon the existing structure for music production and distribution Know-how for supporting talent-hosted game tournament operations accumulated, resulting in the operation of a large-scale game tournament, "Tokoyami Fes," held in September, involving over 500 teams of three players Individual/group interviews with talents continue to be conducted. Aims to increasingly reflect talent intentions in various initiatives 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 In addition to the Los Angeles Dodgers collaboration game for the second consecutive year in North America, a large-scale collaboration game was also implemented with Wei Chuan Dragons in Taiwan, mobilizing approximately 100,000 people over three days, expanding general recognition worldwide Progress was made in developing style guides for licensees in response to the expansion of overseas licensing/collaboration projects Procurement optimization and logistics efficiency aimed at improving global consumer services for EC are progressing Progress was made in supporting the new official EC in Indonesia (launched in October) 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 Handling of hololive OFFICIAL CARD GAME began at designated TSUTAYA stores nationwide Technical development, such as voice chat and facial tracking, is deepening to enhance the fan experience of directly interacting with VTuber talents on Holoearth Development of multiple mobile games is progressing Roll out TCG globally Increase earnings from digital content, such as games Advanced utilization of human capital Improved personnel fluidity through the strengthening of internal HRBP functions and the development of internal transfer rules Strengthening of management accounting systems and project monitoring systems aimed at enhancing internal collaboration is progressing Maximize performance through optimal allocation and development of human resources Strengthen management foundations for sustainable growth Status of Progress of Business Expansion to Achieve Medium-term Targets © COVER 17
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Progress Status of Upfront Expenditures ｜ Logistics Related © COVER 18 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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Progress Status of Upfront Expenditures ｜ Game-related Business/Holoearth © COVER 19 Small to medium-sized game titles developed by external developers are gradually being released, enhancing the presence of affiliated VTubers in the game market On Holoearth, technical development to enhance the fan experience of interacting with VTuber talents is deepening Game Titles Simultaneously Released on Nintendo Switch Holoearth Update/Initiative Progress Tracking function By connecting a webcam, motion tracking becomes possible, allowing users to control the avatar's facial expressions and movements based on their own tracking information Voice chat function Users can listen to the voice chat of talents in the same room within Holoearth Arrival Fest events, where talents appear on Holoearth not as avatars but as themselves, are being held sequentially. This allows for a more intimate VTuber experience through mutual communication with talents, facilitated by wearing matching items or fashion items from the marketplace Holo’sHanafuda Pixel Museum Update Talent Arrival Fest
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Progress in Management Structure Reforms and Other Matters © COVER 20 Review of Personnel and Organizational Systems Development of operation and management accounting systems under the new organizational structure implemented in April onwards is gradually progressing The institutional reorganization of the appointment and transfer flow led to numerous instances of company-wide team reorganization and personnel reallocation Strengthening of performer support Individual/group interviews and town hall meetings aimed at sharing management status and exchanging opinions continue to be conducted The environment for creating content from the talent/fan perspective is strengthened by increasing the frequency of contact between talents and various planning departments Cost optimization Cost rationalization for each business department is gradually progressing due to the increased transparency of ordering status across departments Inventory and optimization of SaaS services and hardware such as PCs are advancing, resulting in cost reductions exceeding 100 million yen on a full-year basis Strengthening of project governance The project operation/monitoring system aimed at the next fiscal year and beyond was introduced and began operation Re-evaluation of existing projects based on their suitability for medium- to long-term strategy is underway The goal is to achieve flexible resource reallocation in response to overall strategy and project progress
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Appendix
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Medium-term Targets (From FY2026/3 to FY2030/3) © COVER 22 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 23 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 24 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 25 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 26 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 FY2023/3 FY2024/3 FY2025/3 FY2026/3 38.4% 31.0% 25.3% 21.5% 20.6% 16.1% 16.8% 18.6% 18.0% 10.8% 35.4% 39.1% 41.4% 47.3% 53.7% 10.1% 13.1% 14.7% 13.2% 14.9% FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Q2 Overview of Service Mix and Product Mix 27© 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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Organizational Structure © COVER 28 COVER boasts an industry-leading and diverse workforce with a large number of specialized employees IP Planning, Content Creation, Infrastructure Development 28% Sales & Marketing 24% Production Management 26% Metaverse 8% Back Office 14% Company Structure*1 (as of September 30, 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 93 110 132 170 215 262 300 373 376 392 409 455 480 492 509 570 602 652 679 738 743 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Historical Trends in Employees © COVER 29
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© COVER 30 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 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 # 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) 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 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 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 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 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 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 Reference(# of ch subs., # of VTubers, revenue and operating profit by service) *: Fuwawa Abyssgard and Mococo Abyssgard, who shared a channel, were counted as one person
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PL Summary © COVER 31 MM JPY FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Q2 Total Revenue 13,663 20,451 30,166 43,401 12,124 YoY Growth +138% +49% +48% +44% +13.4% Gross Profit 5,274 9,396 13,988 21,805 5,666 Margin 38% 45% 46% 50% 47% Operating Profit 1,855 3,417 5,536 8,001 1,693 Margin 13% 16% 18% 18% 14% Net Profit 1,244 2,508 4,137 5,559 1,306 Margin 9% 12% 14% 13% 11%
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BS Summary © COVER 32 MM JPY FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Q2 Total Current Assets 7,168 11,740 14,798 22,872 22,278 Cash and Cash Equivalents 4,644 7,793 8,666 11,498 13,056 Total Fixed Assets 1,069 4,146 7,914 10,187 10,801 Total Asset 8,238 15,887 22,713 33,060 33,080 Total Liabilities 4,780 8,880 11,569 16,112 14,133 Total Equity 3,457 7,006 11,143 16,947 18,947
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CF Summary © COVER 33 MM JPY FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Q2 Cash flows from operating activities 3,537 4,866 4,765 5,285 2,953 Cash flows from investing activities (793) (2,759) (3,893) (2,696) (1,391) Cash flows from financing activities - 1,040 (0) 244 (3) Net increase in cash and cash equivalents 2,745 3,148 873 2,831 1,558 Cash and cash equivalents at beginning of period 1,899 4,644 7,793 8,666 11,498 Cash and cash equivalents at end of period 4,644 7,793 8,666 11,498 13,056
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Handling of these Materials © COVER 34 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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