CELSYS,Inc.

Business Details

In the globally expanding creator economy market, the company is composed of two areas: the Creator Support field, centered on the illustration, manga, webtoon, and animation production application "CLIP STUDIO PAINT"; and the Creator Platform field, which handles community and distribution solutions. In January 2025, the company absorbed a subsidiary and transitioned to non-consolidated (standalone) accounting. Under the Medium-Term Management Plan 2025-2027, the company has set ROE of 30% or higher as a key KPI and aims to expand its business across the entire creator economy market.

Recent Overview

Ver.5.0 major version upgrade achieved sales exceeding plan; Q1 key metrics hit record highs

In March 2026, the company launched a global release of "CLIP STUDIO PAINT" Ver.5.0, achieving sales results significantly exceeding the initial plan. An average 10% price increase for the one-time purchase version was implemented simultaneously. Q1 revenue reached ¥2,803 million (up 16.7% year-on-year), operating profit reached ¥1,211 million (up 59.6% year-on-year), and operating margin reached 43.2% (up 11.6 points year-on-year), all record highs for a quarter. Progress against the full-year earnings forecast stood at 28.1% for revenue and 36.5% for operating profit. In addition, on March 16, 2026, the company carried out its first-ever retirement of treasury shares (1.5 million shares), aiming to improve capital efficiency. The annual dividend is planned at ¥38 per share (an increase of ¥2 year-on-year).

Key Products

Growth Drivers

• Acquisition of new users and promotion of subscription migration through the CLIP STUDIO PAINT Ver.5.0 major version upgrade, along with capturing demand from preferential purchases and repurchases by existing one-time purchase users of older versions
• Improved profitability through an average 10% price increase for the one-time purchase version, and continuation of price revisions linked to regular major version upgrades
• Continued expansion of subscription ARR (¥5,800 million in March 2026, up 25.9% year-on-year)
• Strengthened marketing in overseas markets (over 80% of shipments) and localization of payment methods (in emerging markets such as Southeast Asia and Latin America)
• Expansion of the number of users of creator platform services (over 12 million globally, up 22.8% year-on-year)
• Building a second earnings pillar through the Creator Monetization Support Platform, planned for release during FY2026 (ending December 2026)
• Improved capital efficiency and enhanced shareholder returns through the retirement of treasury shares (1.5 million shares) and an increased dividend (¥38 annually)

Risks

• Risk that the software and services offered may become obsolete due to accelerating technological innovation
• Limited short-term profitability during the transition period to the subscription model (compared to the one-time purchase model)
• Foreign exchange risk (over 80% of revenue is derived from overseas sales; a foreign exchange loss of ¥3 million was recorded in the current Q1)
• Risk that the new services in the Creator Platform field, which are still in the preparation phase, may take time to establish as a second earnings pillar
• Risk of declining subscription revenue due to a rising monthly churn rate (from 4.6% at end of December 2025 to 5.4% at end of March 2026)
• Risk of a rebound decline in subsequent quarters due to temporary demand front-loading caused by the Ver.5.0 version upgrade effect
• Decrease in net assets and other capital surplus due to the retirement of treasury shares (a decrease of ¥1,500 million in the current Q1)