On August 12, 2026, Cover Corporation announced its financial results for the first quarter of the fiscal year ending March 2027. Sales were 8.825 billion yen, down 8.3% year-on-year; operating profit was 651 million yen, down 33.0% year-on-year; and net profit for the quarter was 415 million yen, down 40.1% year-on-year.
The performance varied across service sectors. Live events reached 908 million yen, a 109.6% increase compared to the same period last year. This was driven by the first offline live performance by the secret society holoX and the first offline “Shishiro Cup” hosted by Shishiro Botan. Licensing and tie-ups also increased by 8.2% to 1.279 billion yen, with expanded transactions with overseas clients in North America and East Asia driving sales growth.
On the other hand, distribution and content sales fell by 3.8% to 2.092 billion yen, and merchandising sales fell by 22.1% to 4.546 billion yen. The company cited changes in talent composition and community environment, differences in the sales schedule and product lineup of new trading card game products, and stockouts and insufficient product selection resulting from the transition process of manufacturing and sales operations for e-commerce products as reasons. The company positions the current period as an investment phase aimed at strengthening its growth foundation, and as a result of fixed costs rising ahead of schedule, the operating profit margin fell below the same period last year.
Structural reforms are underway in the business sector. The metaverse “HoloEarth” has been discontinued, and the technology and knowledge gained from its development will be integrated into existing businesses. The next-generation talent development project “mekPark” has also been launched. UNIT B (Pre-Debut) began its activities on May 22nd, and ACHRORA on June 26th. The official store “hololive production official shop in Harajuku” opened for business on April 24th.
Furthermore, on July 23rd, the smartphone game “hololive Dreams” was officially released worldwide simultaneously. It surpassed 1 million downloads on its first day and has now exceeded 2 million downloads.
This article is an English translation of an original Japanese article, translated by the Mogura VR editorial team.
