Cover Corporation announced its financial results for the fiscal year ending March 2026 (April 2025 to March 2026) on May 14, 2026. Sales reached 49.33 billion yen (up 13.7% year-on-year), while net income remained at 3.016 billion yen (down 45.7% year-on-year).
The significant decrease in profits is primarily due to two one-time expenses. A change in development strategy for the metaverse platform “HoloEarth” resulted in an impairment loss of approximately 3.2 billion yen on software assets, recorded as an extraordinary loss. Additionally, approximately 1.8 billion yen was recorded in cost of goods sold for the write-off and write-down of low-turnover inventory produced during the past SKU expansion period (2023-2024).
Operating profit was 7.056 billion yen (down 11.8% year-on-year), and ordinary profit was 7.068 billion yen (down 11.2% year-on-year). These figures represent non-cash costs that do not involve cash outflows.
Looking at sales by category, Live/Events reached 9.247 billion yen (up 18.7% year-on-year), Merchandising reached 23.747 billion yen (up 15.6% year-on-year), and Licensing/Tie-ups reached 7.198 billion yen (up 25.3% year-on-year), with all categories showing increased revenue.
In particular, in merchandising, the trading card game “hololive OFFICIAL CARD GAME” was the driving force, selling over 20 million packs in total. On the other hand, distribution/content sales were 9.137 billion yen (down 2.0% from the previous period), indicating a short-term adjustment phase due to changes in the talent composition and community environment.
For the fiscal year ending March 2027, the company forecasts net sales of 51.35 billion yen (up 4.1% year-on-year), operating profit of 7 billion yen (down 0.8% year-on-year), and net profit of 4.9 billion yen (up 62.4% year-on-year). Factors contributing to this upward revision include the debut of new talent and the release of the major smartphone game “hololive Dreams,” which has surpassed 900,000 pre-registrations.
Also on the same day, the Board of Directors resolved to repurchase its own shares. The repurchase will be limited to a maximum of 3 million shares and a total value of 3 billion yen, and will be carried out through market purchases on the Tokyo Stock Exchange from May 15 to July 8, 2026.
This article is an English translation of an original Japanese article, translated by the Mogura VR editorial team.
