ENVALITH
株式会社オーバーラップホールディングス logo

OVERLAP Holdings, Inc.

414A・Growth Market・Information & Communication

株式会社オーバーラップホールディングス logo
OVERLAP Holdings, Inc.414A

Business

OVERLAP Holdings Co., Ltd. is a group company operating as a holding company with OVERLAP Co., Ltd. and OVERLAP Plus Co., Ltd. under its umbrella. It creates content IP centered on Light Novels (such as "OVERLAP Bunko") and Manga (Comics) (such as "Comic Gardo"), and maximizes IP value through media mix development including anime adaptations, game adaptations, and Overseas Licensing. Its main customers are domestic and international e-book platforms (Media Do, LINE Digital Frontier, Kakao Piccoma, etc.), and the company continues to grow while benefiting from the shift toward digital publishing. It listed on the Tokyo Stock Exchange Growth Market in October 2025.

Business Model

Amateur works are discovered from novel-submission sites and SNS, then edited and published as Light Novels. Hit titles are adapted into manga to cultivate new fan bases, and further adapted into anime to raise awareness and drive back-catalog sales. By combining long-term monetization through serialization with the creation of new IP every period, the company accumulates flagship IP (annual sales exceeding ¥25 million each) to achieve stable growth. Overseas Licensing revenue is also one of the company's revenue sources.

Company Strengths

The number of core IPs generating over ¥25 million in annual sales increased from 40 in FY2021 (ending August 2021) to 57 in FY2025 (ending August 2025). Core IP sales also expanded from ¥4,327 million to ¥6,646 million over the same period, with the steady accumulation of IP assets contributing to a more stable revenue base.

In FY2025 (ending August 2025), the company achieved operating profit of ¥3,026 million against revenue of ¥8,535 million (an operating margin of approximately 35.5%). Operating profit grew 40.7% year on year, and net profit for the period grew 80.1% year on year, achieving substantial profit growth and demonstrating the high profitability of the IP business.

Major customers are led by e-book platforms, including Media Do (29.5% of sales), LINE Digital Frontier (10.8%), and Kakao Piccoma (10.6%). This sales structure allows the company to directly capture the high growth of the e-comics market.

ENVALITH's Perspective

Cumulative revenue for the first three quarters of FY2026 (ending March 2026) held flat at ¥6,057 million (up 0.0% year on year), while cost of sales rose from ¥2,863 million to ¥3,140 million, causing the gross margin to decline from 52.7% to 48.1%. SG&A expenses also increased from ¥1,098 million to ¥1,220 million, resulting in operating profit falling 19.0% from ¥2,093 million to ¥1,696 million. The rise in costs at a time when revenue growth has stalled suggests a structural deterioration in profit margins, making cost control going forward a key focus.

The full-year earnings forecast for FY2026 (ending March 2026) was revised to revenue of ¥8,300 million (down 9.9% year on year), operating profit of ¥2,373 million (down 30.6%), and net profit of ¥1,566 million (down 29.8%). The progress rate for the cumulative first three quarters stands at 73% for revenue, 71% for operating profit, and 72% for net profit, making a substantial improvement in the fourth quarter alone unlikely. Compared with the prior period (FY2025, ended August 2025) figures of revenue of ¥8,535 million, operating profit of ¥3,026 million, and net profit of ¥2,067 million, the significant decline in profit levels is evident.

Of total assets of ¥18,484 million as of the end of May 2026, goodwill of ¥7,679 million and intangible assets of ¥3,938 million account for the majority of non-current assets, reaching 62% of total assets. The ratio of equity attributable to owners of the parent has been improving, at 46.2% (versus 43.8% at the previous fiscal year-end), but the balance of borrowings, combining current and non-current portions, remains high at ¥6,299 million. Should the profitability of the IP business decline, the risk of impairment of goodwill and intangible assets could materialize, warranting continued close attention.

Growth Strategy

Pursuing growth through three pillars: creation of new IP, expansion of media mix, and overseas licensing development

Building on the track record of expanding the number of core IP titles (with annual revenue exceeding ¥25 million) from 40 in FY2021 (ending August 2021) to 57 in FY2025 (ending August 2025), the company continues to discover and cultivate new IP. It also focuses on maintaining back-catalog sales of existing IP, aiming for stable, cumulative revenue growth.

Anime broadcasts for 3 titles were realized during the cumulative nine months of Q3 FY2026 (ending August 2026). The company continues to promote its strategy of increasing IP recognition and boosting back-catalog sales through anime adaptations, contributing to the maximization of IP value.

The company aims to diversify international revenue by expanding the regions and partners for its overseas licensing operations. This is positioned as a revenue source to complement the slowing growth of the domestic market, although the current scale of its contribution has not been disclosed.

Last updated: July 17, 2026