COVER Corporation
5253・Growth Market・Information & Communication
VTuber Business (Single Segment)
Single business entity operating hololive production, a Japan-originated VTuber business
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year) | ¥49,330 million | ¥43,401 million | ↑ |
| Operating income (full year) | ¥7,056 million | ¥8,001 million | ↓ |
| Ordinary income (full year) | ¥7,068 million | ¥7,962 million | ↓ |
| Net income (full year) | ¥3,016 million | ¥5,559 million | ↓ |
| Operating margin | 14.3% | 18.4% | ↓ |
| Cash flow from operating activities | ¥7,204 million | ¥5,285 million | ↑ |
| Cash and cash equivalents at end of period | ¥16,008 million | ¥11,498 million | ↑ |
| Earnings per share | ¥45.95 | ¥88.70 | ↓ |
| Equity ratio | 57.2% | 51.3% | ↑ |
| Streaming/Content segment net sales | ¥9,137 million | ¥9,323 million (estimate) | ↓ |
| Live/Event segment net sales | ¥9,247 million | ¥7,789 million (estimate) | ↑ |
| Merchandising segment net sales | ¥23,747 million | ¥20,541 million (estimate) | ↑ |
| License/Tie-up segment net sales | ¥7,198 million | ¥5,745 million (estimate) | ↑ |
Business Details
Cover Corporation operates the VTuber production 'hololive production' and generates revenue across four segments: Streaming/Content Services, Live/Event Services, Merchandising Services, and License/Tie-up Services. For FY2026 (ending March 2026), net sales were ¥49,330 million (up 13.7% year-on-year), and operating income was ¥7,056 million (down 11.8% year-on-year). IP commerce (Merchandising plus License/Tie-up) continues to be the primary component of sales, and the evolution from a streaming business to a multifaceted character content business continues.
Recent Overview
Net sales increased, but net income fell 45.7% due to a ¥3,199 million impairment loss
In FY2026 (ending March 2026), the company achieved net sales of ¥49,330 million (up 13.7% year-on-year), but recorded an impairment loss of ¥3,199 million due to a shift in development policy for assets related to 'holoEarth,' along with disposal and write-down of slow-moving inventory, resulting in net income of only ¥3,016 million (down 45.7% year-on-year). Operating income also declined to ¥7,056 million (down 11.8% year-on-year) due to an increase in SG&A expenses (from ¥13,803 million to ¥16,450 million). On the other hand, operating cash flow improved to ¥7,204 million year-on-year, and the cash balance rose to ¥16,008 million. As a subsequent event, on May 14, 2026, the company resolved to acquire treasury shares up to 3,000,000 shares and a total of ¥3,000,000,000. For FY2027 (ending March 2027), the company forecasts net sales of ¥51,350 million and net income of ¥4,900 million (up 62.4% year-on-year).
Key Products
Growth Drivers
- Continued growth in popularity of the trading card game 'hololive OFFICIAL CARD GAME' and expansion of retail sales channels driving growth in the Merchandising segment (FY2026 (ending March 2026) net sales of ¥23,747 million, up 15.6% year-on-year)
- Strengthened collaboration with domestic and international agencies and expansion in the number of deals in the License/Tie-up segment (FY2026 (ending March 2026) net sales of ¥7,198 million, up 25.3% year-on-year)
- Global expansion of Live/Events (second World Tour held across 7 cities; hololive SUPER EXPO 2026 and 7th fes. held over 3 days for the first time, achieving the largest scale to date)
- Expansion of fan communities and real event deployment driven by new generation talent from new units such as 'FLOW GLOW' and 'ReGLOSS'
- Progress in media mix expansion including the release of the first large-scale smartphone game 'hololive Dreams' (anticipated as an upside factor for FY2027 (ending March 2027))
- Improved convenience for owned EC and overseas sales through improved overseas delivery (fixed shipping rates, expanded delivery regions) and logistics infrastructure development
- Shift in management strategy from a phase of quantitative expansion to a phase of qualitative expansion, and establishment of a mid-to-long-term growth foundation through a cumulative growth investment and M&A allocation of approximately ¥500 million
Risks
- Risk of short-term fluctuations in streaming revenue and owned EC sales due to changes in talent lineup and community environment (Streaming/Content segment net sales down 2.0% year-on-year in FY2026 (ending March 2026))
- Risk of policy shifts in development investment, as exemplified by 'holoEarth,' and risk of recording large-scale impairment losses (an impairment loss of ¥3,199 million was recorded in FY2026 (ending March 2026))
- Risk of accumulation of slow-moving inventory and increasing complexity of inventory management due to SKU expansion (disposal and write-down were carried out in FY2026 (ending March 2026))
- Risk of dependence on specific platforms (such as Google LLC)
- Global risks associated with overseas expansion, including foreign exchange fluctuations, tax systems in various countries, price fluctuations, and tariff risks
- Risks related to the discovery, development, and continued activity retention of content creators (performers)
- Risk of rising product manufacturing costs (such as rising crude oil prices) and risk of declining overseas consumer demand related to tariffs and price fluctuations
- Overseas tax risks such as provisions for indirect taxes in various countries (balance of ¥287 million in FY2026 (ending March 2026))
Last updated: July 3, 2026