ANYCOLOR Inc. Q2 FY2026 earnings call

• Talent & Audience Expansion • 8 new VTubers debuted in Q2: a 4-member girl band unit

1. Live Streaming Segment: Performance was stable, supported by a membership-focused revenue structure. YouTube watch time grew steadily driven by strong engagement from streamer-focused events in the quarter, with no specific absolute revenue or revenue contribution percentage provided in the transcript. 2. Commerce Segment: Grew revenue overall through the 5th anniversary campaign for the official NIJISANJI store, event-related merchandise, and music CD sales. Performance landed at the lower end of the initial forecast range because 600 million yen to 700 million yen in planned merchandise revenue was delayed to Q3 due to production scheduling adjustments and aligned launch timing for physical and online store sales. No specific revenue contribution percentage was provided. 3. Event Segment: Held 3 performances of the NIJISANJI WORLD TOUR 2025 Singin' in the Rainbow! which received higher-than-expected fan response, so performance landed above the upper end of the initial forecast range. No specific absolute revenue or revenue contribution percentage provided. 4. Promotion Segment: Both the number of campaigns and average campaign value grew steadily compared to the prior year quarter and prior quarter, with IP collaboration cases continuing to increase. Performance landed at the upper end of the initial forecast range. No specific absolute revenue or revenue contribution percentage provided.

• Q3 FY26/4 guidance: Revenue is projected between 13.5 billion yen and 14.85 billion yen, and operating income is projected between 5.48 billion yen and 6.25 billion yen. A large revenue increase is expected for the commerce segment from delayed Q2 merchandise sales and accumulated orders, and the event segment will see an increase in the number of events compared to Q2. - Full-year FY26/4 guidance has been upwardly revised for both revenue and operating income based on Q1-Q2 actual results and Q3+ demand expectations. - Full-year dividend guidance has been revised upward from 70 yen to 75 yen, following an increase to the year-end dividend forecast to 40 yen. - The next major large-scale event is currently scheduled for Q1 of the next fiscal year, with no large events announced for Q4 FY26/4 as of this call. - Management plans to update medium-term business targets (including the 24 billion yen operating income target) alongside the release of full-year FY26/4 results in June 2026.

• Merchandise revenue can experience unexpected quarter-to-quarter timing shifts due to production scheduling delays and retail launch coordination needs, which can cause short-term revenue misses relative to forecast. - The NIJISANJI EN segment has experienced lower recent commerce performance, and recovery of the overseas VTuber business is expected to be gradual, requiring continued investment and planned new talent debuts over time. - Scheduling differences in large event timings between quarters can create visible year-over-year and quarter-over-quarter performance volatility, even with no change to underlying business trends.

Q: What caused the recent merchandise sales booking delay, how large is the deferred revenue, and is this issue recurring? / A: Production scheduling adjustments and alignment of launch timing for pop-up store and EC sales pushed ~0.6 billion yen to 0.7 billion yen in planned Q2 revenue into Q3. This issue stemmed from coinciding timing factors for multiple planned products and is not considered an ongoing systemic risk.

Q: What level of earnings contribution do you expect from the upcoming NIJISANJI card game with Takara Tomy, and is it included in current medium-term targets? / A: The card game will launch in early 2027, and Takara Tomy is the seller, so ANYCOLOR will only record royalty revenue (not gross merchandise sales) in the promotion segment. No specific contribution size was provided, and additional details will be released in spring 2026.

Q: What is the outlook for recovery of NIJISANJI EN, and when can we expect a return to growth? / A: ANYCOLOR has spent the past year rebuilding the segment's foundation and re-establishing trust between talent and audiences. A NIJISANJI EN audition was held in Q2, and the company is preparing to debut new talent to drive growth. Management noted recovery will take time, but they are executing planned initiatives to grow the overseas market gradually.

Q: What is your strategy for expanding IP licensing business going forward? / A: The company is aggressively expanding mascot-style merchandise (such as the popular Nijitaun line) based on VTuber motifs, which has already helped attract new fan segments. Management plans to leverage a broader range of IP beyond human VTuber characters for more licensing and merchandise opportunities to increase brand exposure and reach new audiences.