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Financial results presentation5253COVER CorporationInformation and Communications, Services and Others

Presentation Materials for the Fiscal Year Ending March 2026 Results

For the fiscal year ended March 2026, revenue increased, while operating profit and net profit declined due to one-time expenses, including inventory write-offs and valuation losses and an impairment loss on HoloEarth development assets. For the fiscal year ending March 2027, the company expects revenue and operating profit to increase, incorporating upfront investments in talent support and its production and logistics infrastructure.

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Mixed performance
Direction inferred from the company’s description.
Scale
13.7
Year-on-year change in revenue (%)
Wording
Conditional
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Contents of this document

Financial results presentationFiscal year ending March 2026, full year11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥49,330 million+13.7%
Operating profit¥7,056 million-11.8%
Ordinary income¥7,068 million
Net income¥3,016 million-45.7%
Selling, general and administrative expensesAmount not stated
Gross Profit Margin
Rate40.5% (Q4 FY2026/3); 49.6% excluding one-time effects
Year-on-year change (points)Q4 declined from 46.7% in the same quarter of the previous year
Operating profit margin
Rate12.5% (Q4 FY2026/3); 21.6% excluding one-time effects
Year-on-year change (points)Q4 declined from 16.9% in the same quarter of the previous year
Results for the three months of the current quarter
Net Sales¥14,648 million (up 0.8% year on year)
Gross profit¥5,934 million (down 13.5% year on year)
Operating profit¥1,831 million (down 25.5% year on year)
Net income-¥910 million
Full-year earnings forecast
Net Sales¥51,350 million
Contribution margin¥22,381 million
Operating profit¥7,000 million
Ordinary income¥7,000 million
Net income¥4,900 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales94.0%
Contribution margin94.0%
Operating profit86.1%
Net income52.9%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The profit and loss for the large-scale Fes/EXPO came in above plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Cost of sales¥1.3 billion in inventory write-offs and valuation losses (¥1.8 billion cumulative for the fiscal year)
Extraordinary loss¥3.3 billion impairment loss on HoloEarth-related software assets
FY2027/3 operating profit bridge
Operating profit in the previous fiscal year¥7,056 million
Elimination of one-time expense impact+¥1,856 million
Business growth and other factors+¥1,298 million
Focused capital investment in talent value creation and other factors-¥3,211 million
Operating profit forecast for the current fiscal year¥7,000 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Seasonality, with results weighted toward the second half
  • Upfront investment in strengthening the talent support structure in the first half
  • Conservative assumptions regarding changes in the talent mix and community environment
New initiatives
  • Talent development project, “mekPark”
  • Permanent audition program for new talent
  • Development of a new app integrating metaverse technology into streaming apps and 3D asset production
  • Large-scale smartphone game, “hololive Dreams”
  • Organizational restructuring and redesign of the evaluation system
  • Supply chain management optimization
  • Share repurchases
Key KPIsA metric the company considers important as a management benchmark.
  • Average monthly unique users2,759 10,000 UUs
    Year on year against the same period last year-1.0%
  • Cumulative videos150,000 bottles
    Year on year against the same period last year+25.0%
  • Concert attendance450,000 people
    Year on year against the same period last year-14.0%
  • Live performances17 bottles
    Year on year against the same period last year+13.0%
  • TCG packs shippedApproximately 21
    Year on year against the same period last year+110.0%
  • External sales scaleApproximately 37
    Year on year against the same period last year+27.0%
  • Number of customersApproximately 500
    Year on year against the same period last year+35.0%
  • Pre-registrations (hololive Dreams)90 10,000 people
Unit price and quantity metricsThese figures show sales broken down by price and volume.
EC shipments2.4 million (3.0 million in the previous year, down 20% year on year)
TCG packs shippedApproximately 21 million (approximately 10 million in the previous year, up 110% year on year)
Segment results
Streaming/content
Sales¥9,137 million
Year on year against the same period last year-2.0%
Live/events
Sales¥9,247 million
Year on year against the same period last year+18.7%
Merchandising
Sales¥23,747 million
Year on year against the same period last year+15.6%
Licensing/tie-ups
Sales¥7,198 million
Year on year against the same period last year+25.3%
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2030
Net Sales¥100 billion
Operating profit¥25 billion or more
ChangeNo major changes to the targets
Market Size / Share
VTuber market size¥126 billion
Domestic TCG market shareApproximately 2%
Global content market¥135.6 trillion
Global anime market¥3.8 trillion
Number of employees
Only the workforce composition ratio was disclosed (production operations 25%, live events and media mix 32%, creative and technology development 30%, back office 12%)
Acquisition of treasury shares
The company will conduct flexible share buybacks (buyback authorization, number of shares and period: Not disclosed)
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥49,330 million (YoY +13.7%)
Operating profit¥7,056 million (YoY -11.8%)
Ordinary income¥7,068 million
Net income¥3,016 million (YoY -45.7%)
Gross Profit MarginRate 40.5% (Q4 FY2026/3); 49.6% excluding one-time effects / Year-on-year change (points) Q4 declined from 46.7% in the same quarter of the previous year
Operating profit marginRate 12.5% (Q4 FY2026/3); 21.6% excluding one-time effects / Year-on-year change (points) Q4 declined from 16.9% in the same quarter of the previous year
Selling, general and administrative expenses非開示
Results for the three months of the current quarterNet Sales ¥14,648 million (up 0.8% year on year) / Gross profit ¥5,934 million (down 13.5% year on year) / Operating profit ¥1,831 million (down 25.5% year on year) / Net income -¥910 million
Full-year earnings forecastNet Sales ¥51,350 million / Contribution margin ¥22,381 million / Operating profit ¥7,000 million / Ordinary income ¥7,000 million / Net income ¥4,900 million
Progress against full-year forecastNet Sales 94.0% / Contribution margin 94.0% / Operating profit 86.1% / Net income 52.9%
Self-assessment against the planThe profit and loss for the large-scale Fes/EXPO came in above plan
Segment resultsStreaming/content Sales ¥9,137 million / Year on year against the same period last year -2.0% / Live/events Sales ¥9,247 million / Year on year against the same period last year +18.7% / Merchandising Sales ¥23,747 million / Year on year against the same period last year +15.6% / Licensing/tie-ups Sales ¥7,198 million / Year on year against the same period last year +25.3%
Breakdown of Factors Affecting the ChangeCost of sales ¥1.3 billion in inventory write-offs and valuation losses (¥1.8 billion cumulative for the fiscal year) / Extraordinary loss ¥3.3 billion impairment loss on HoloEarth-related software assets / FY2027/3 operating profit bridge Operating profit in the previous fiscal year ¥7,056 million / Elimination of one-time expense impact +¥1,856 million / Business growth and other factors +¥1,298 million / Focused capital investment in talent value creation and other factors -¥3,211 million / Operating profit forecast for the current fiscal year ¥7,000 million
Key KPIsIndicator name Average monthly unique users / Value 2,759 10,000 UUs / Year on year against the same period last year -1 10,000 UUs, Indicator name Cumulative videos / Value 150,000 bottles / Year on year against the same period last year 25 bottles, Indicator name Concert attendance / Value 450,000 people / Year on year against the same period last year -14 people, Indicator name Live performances / Value 17 bottles / Year on year against the same period last year 13 bottles, Indicator name TCG packs shipped / Value Approximately 21 / Year on year against the same period last year 110 Million packs, Indicator name External sales scale / Value Approximately 37 / Year on year against the same period last year 27 Hundreds of millions of yen, Indicator name Number of customers / Value Approximately 500 / Year on year against the same period last year 35 companies, Indicator name Pre-registrations (hololive Dreams) / Value 90 10,000 people / Year on year against the same period last year Not disclosed
Unit price and quantity metricsEC shipments 2.4 million (3.0 million in the previous year, down 20% year on year) / TCG packs shipped Approximately 21 million (approximately 10 million in the previous year, up 110% year on year)
Number of employeesOnly the workforce composition ratio was disclosed (production operations 25%, live events and media mix 32%, creative and technology development 30%, back office 12%)
Assumptions Underlying the Business OutlookSeasonality, with results weighted toward the second half, Upfront investment in strengthening the talent support structure in the first half, Conservative assumptions regarding changes in the talent mix and community environment
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2030 / Net Sales ¥100 billion / Operating profit ¥25 billion or more / Change No major changes to the targets
Acquisition of treasury sharesThe company will conduct flexible share buybacks (buyback authorization, number of shares and period: Not disclosed)
Market Size / ShareVTuber market size ¥126 billion / Domestic TCG market share Approximately 2% / Global content market ¥135.6 trillion / Global anime market ¥3.8 trillion
New initiativesTalent development project, “mekPark”, Permanent audition program for new talent, Development of a new app integrating metaverse technology into streaming apps and 3D asset production, Large-scale smartphone game, “hololive Dreams”, Organizational restructuring and redesign of the evaluation system, Supply chain management optimization, Share repurchases
Items this document does not state (8)
Number of stores and locationsRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The scale of the live and events, TCG, and licensing/tie-up businesses expanded, while streaming and the company’s own e-commerce business entered an adjustment phase against a backdrop of changes in the talent mix and community environment. The company also recorded ¥1.8 billion in write-offs and valuation losses on slow-moving inventory and ¥3.3 billion in impairment losses on HoloEarth development assets.

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Presentation Materials for the Fiscal Year Ending March 2026 Results | COVER Corporation (5253) timely disclosure | Komori