Financial Summary for the Second Quarter of the Fiscal Year Ending June 2026 [Japanese GAAP] (Consolidated)

Overview of Business Results

For the second quarter of the fiscal year ending June 2026, consolidated results were net sales of 25,472 million yen (down 10.7% YoY), operating income of 1,468 million yen (down 30.6% YoY), ordinary income of 2,074 million yen (down 3.9% YoY), and net income attributable to owners of parent of 1,231 million yen (up 28.9% YoY). By segment, the Game Business recorded net sales of 14,651 million yen (down 19.3% YoY) and operating income of 1,275 million yen (down 23.2% YoY), showing declines in both revenue and profit. Conversely, the VTuber Business performed steadily with net sales of 4,397 million yen (up 9.0% YoY) and operating income of 560 million yen (up 27.1% YoY). The IP Business saw a slight decline in sales and an operating loss of 16 million yen, the DX Business posted increased sales and profits, while the Investment Business experienced reduced sales and turned to an operating loss.

Financial Position and Future Outlook

Total assets stood at 124,311 million yen, a decrease from the previous fiscal year-end, and net assets slightly decreased to 93,416 million yen, but the equity ratio improved to 74.0%. Cash flow included inflows of 573 million yen from operating activities, outflows of 462 million yen from investing activities, and outflows of 11,495 million yen from financing activities. Disclosure of consolidated earnings guidance is postponed due to significant market fluctuations making reasonable estimates difficult. Future outlooks for each segment except the Investment Business are disclosed in the earnings presentation materials.