COVER (5253) Q3 2026 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2025, was ¥34,681 million, up 20.2% year-over-year, with net profit at ¥3,927 million, up 4.0% year-over-year.

• Q3 FY2026 revenue reached 12,927 million yen, up 9.9% YoY, with gross profit at 6,999 million yen (+19.4% YoY) and net profit at 1,927 million yen (+16.3% YoY).

• Operating profit and ordinary profit declined by 5.7% and 5.4% year-over-year, respectively, despite revenue growth.

• Merchandising, trading cards, and Licensing/Collaborations drove growth, offsetting adjustments in Streaming and EC sales.

• The business is in a structural rebuilding phase to sustain medium- to long-term growth, with notable progress in talent development and global brand expansion.

Financial highlights

• Revenue: ¥34,681 million (up 20.2% YoY); Q3 operating profit: 2,559 million yen, up 17.9% YoY.

• Gross profit margin hit a three-year high, aided by a rebound from prior inventory write-downs and improved sales mix.

• SG&A expenses increased moderately, with logistics efficiency measures containing cost growth.

• Operating profit margin for the quarter was around 20%.

• Basic earnings per share: ¥59.82 (up from ¥58.57 YoY).

Outlook and guidance

• Full-year revenue forecast for FY ending March 31, 2026: ¥52,500 million (up 21.0% YoY), with a progress rate of 66.1% as of Q3.

• Operating and ordinary profit forecast: ¥8,200 million each (up 2.5% and 3.0% YoY, respectively).

• Net profit forecast: ¥5,700 million (up 2.5% YoY); basic EPS forecast: ¥86.82.

• Q4 is expected to benefit from large-scale concerts, new music releases, and continued strong TCG and Licensing/Collaborations performance.

• Medium-term targets reset to 100 billion yen in net sales and 25 billion yen operating profit by FY2030.