Avex : Consolidated Financial Summary for the First Nine Months of Fiscal Year Ending March 31, 2026 (Japanese Accounting Standards)

February 12, 2026

Avex Inc. Tokyo Stock Exchange, Prime Market

Code No: 7860 URL: https://avex.com/jp/en/

Representative: Katsumi Kuroiwa, President, CEO

Contact: Shinji Hayashi, Representative Director, CFO TEL: 0570(020)050 Scheduled date for commencement of dividend payments: -

Supplementary documents for financial results: Yes Financial results briefing: None

Note: All amounts are rounded down to the nearest million yen.

1. Consolidated operating results for the nine-month period of fiscal year ending March 31, 2026 (April 1, 2025 to December 31, 2025)

   1. Consolidated operating results Note: Figures in percentages denote the year-on-year change.

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      	million yen	%	million yen	%	million yen	%	million yen	%
      Nine-Month Period of Fiscal Year Ending March 31, 2026	103,060	11.3	3,013	-	3,516	-	3,067	42.3
      Nine-Month Period of Fiscal Year Ended March 31, 2025	92,607	(1.9)	(1,262)	-	(1,141)	-	2,155	49.9

      (Note) Comprehensive income Nine-Month Period of Fiscal Year Ending March 31, 2026: ¥3,582 million (51.1%)

      Nine-Month Period of Fiscal Year Ended March 31, 2025: ¥2,371 million (-%)

      	Profit per share	Diluted profit per share
      	yen	yen
      Nine-Month Period of Fiscal Year Ending March 31, 2026	72.25	-
      Nine-Month Period of Fiscal Year Ended March 31, 2025	48.97	-

   2. Consolidated financial position

   	Total assets	Net assets	Shareholders' equity ratio
   	million yen	million yen	%
   As of December 31, 2025	110,924	52,114	45.8
   As of March 31, 2025	105,960	51,112	47.3

   (Reference) Shareholders' equity As of December 31, 2025: ¥50,804 million

   As of March 31, 2025: ¥50,109 million

2. Status of dividend payments

   	Annual dividends
   	End of first quarter	End of second quarter	End of third quarter	End of year	Annual
   	yen	yen	yen	yen	yen
   Year ended March 31, 2025	-	25.00	-	25.00	50.00
   Year ending March 31, 2026	-	25.00	-
   Year ending March 31, 2026 (forecast)				25.00	50.00

   (Note) Revisions to dividend forecasts published most recently: None

3. Forecasts for consolidated operating results for the year ending March 31, 2026 (April 1, 2025 to March 31, 2026)

   Note: Figures in percentages denote the year-on-year change.

   	Operating profit		Profit attributable to owners of parent		Profit per share
   Full year	million yen	%	million yen	%	yen
   	3,000	-	2,800	145.9	65.94

   (Note) Revisions to earnings forecasts published most recently: None

   • Notes

     1. Significant changes in the scope of consolidation during the period: Yes Newly added: 1 company (Company name) S10 Entertainment & Media LLC Excluded: 2 companies: Avex Technologies Inc. and Virtual Avex Inc.

     2. Application of particular accounts procedures to the preparation of quarterly consolidated financial statements:

        None

     3. Changes in accounting policies and changes in or restatement of accounting estimates

        1. Changes in accounting policies in conjunction with revisions to accounting standards: None

        2. Changes in accounting policies other than 1: None

        3. Changes in accounting estimates: None

        4. Restatement: None

     4. Outstanding shares (ordinary shares)

        1. Shares outstanding at end of term (including treasury stock)

           As of December 31, 2025: 45,919,300 shares

           As of March 31, 2025: 45,792,500 shares

        2. Treasury stock at end of term

           As of December 31, 2025: 3,410,808 shares

           As of March 31, 2025: 3,410,680 shares

        3. Average number of share (quarter-to-date)

        Nine months ended December 31, 2025: 42,451,029 shares

        Nine months ended December 31, 2024: 44,009,912 shares

   • Review by certified public accountant or audit corporation of the attached quarterly consolidated financial statements: None

   • Explanation for forecasts of business results and other notes

The forecasts for business results and other forward-looking statements contained in this release are based on data and information that the Group has obtained so far and specific assumptions that the Group judges to be reasonable. Please note, therefore, that the actual results and others may greatly differ from the forecasts due to various factors.

• Index for Supplementary Information

1. Overview of Operating Results, etc. 4

   1. Overview of Consolidated Financial Results for the Nine-Month Period of Fiscal Year

      Ending March 31, 2026 4

   2. Overview of Financial Position for the Nine-Month Period of Fiscal Year Ending March 31, 2026 5

   3. Summary of Consolidated Financial Forecasts and Other Future Forecast Information 5

2. Quarterly Consolidated Financial Statements and Key Notes 6

   1. Quarterly Consolidated Balance Sheets 6

   2. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income 8

   3. Notes Concerning Consolidated Quarterly Financial Statements 10

(Notes to Segment Information) 10

(Note Regarding Significant Changes in the Amount of Shareholders' Equity) 11

(Notes on Going Concern Assumptions) 11

(Notes on Statement of Cash Flows) 11

1. Overview of Operating Results, etc.

   1. Overview of Consolidated Financial Results for the Nine-Month Period of Fiscal Year Ending March 31, 2026

      (Unit: million yen)

      Nine-month period results	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025	Fiscal year ending March 31, 2026
      Net sales	76,032	85,525	94,382	92,607	103,060
      Cost of sales	48,392	56,952	65,379	66,238	73,320
      Gross profit	27,640	28,573	29,003	26,368	29,739
      Gross profit margin	36.4%	33.4%	30.7%	28.5%	28.9%
      Personnel expenses	8,516	9,309	9,840	9,313	9,531
      Sales promotion and advertising expenses	5,136	5,355	5,529	5,197	5,687
      General expenses	10,060	10,563	12,055	13,119	11,507
      Total SG&A expenses	23,713	25,228	27,425	27,631	26,725
      Operating profit (loss)	3,926	3,344	1,577	(1,262)	3,013
      Operating margin	5.2%	3.9%	1.7%	-%	2.9%

      In the entertainment industry, to which the Group belongs, the production of music software, including music videos, was up 5.1% year on year, to 215,706 million yen (January to December 2025; according to a survey by the Recording Industry Association of Japan). Sales of paid music downloads were up 8.3% year on year, to 98,980 million yen (January to September 2025; according to a survey by the Recording Industry Association of Japan). In the video-related market, sales of video software decreased 16.5% year on year, to 81,281 million yen (January to December 2025; according to a survey by the Japan Video Software Association).

      In this business environment, the Group worked to realize the Medium-Term Management Plan "avex vision 2027" by making aggressive investments, with emphasis on "seeking out and cultivating new talent" as the starting point of value creation and by building a structure that will allow it to aim for long-term growth, while at the same time implementing strategic initiatives for overseas markets. In each segment, progress was made in IP discovery, cultivation, development and acquisition with a global perspective, expanding the IP portfolio, and building a global value chain to maximize the value of IP. We have already steadily strengthening our business foundations in overseas markets. In our mainstay businesses such as LIVE and LABEL, we worked to maximize the value of existing IP and strengthened collaboration with partner companies.

      As for business results for the first nine months of the current fiscal year, net sales were 103,060 million yen (up 11.3% year on year), mainly due to an increase in the number of major live performances in the Music Business and strong overseas distribution of animation works in the Anime & Visual Content Business. Operating profit was 3,013 million yen (operating loss of 1,262 million yen in the same period of the previous year), and profit attributable to owners of parent was 3,067 million yen (up 42.3% year on year), mainly due to a decrease in provision for doubtful accounts and a decrease in selling, general and administrative expenses resulting from a review of cost execution.

   2. Overview of Financial Position for the Nine-Month Period of Fiscal Year Ending March 31, 2026

      Assets totaled 110,924 million yen at the end of the third quarter under review after an increase of 4,963 million yen from the end of the previous consolidated fiscal year. This was chiefly attributable to increases of 3,734 million yen in Other in current assets and 2,488 million yen in goodwill, which more than offset a decline in investment securities of 2,569 million yen.

      Liabilities increased by 3,961 million yen from the end of the previous consolidated fiscal year, to 58,809 million yen. This was primarily due to an increase of 7,711 million yen in other current liabilities, despite decreases of 1,728 million yen in income taxes payable and 1,372 million yen in accounts payable - other.

      Net assets increased 1,002 million yen from the end of the previous consolidated fiscal year, to 52,114 million yen. This was chiefly attributable to an increase of 937 million yen in retained earnings.

   3. Summary of Consolidated Financial Forecasts and Other Future Forecast Information

   With respect to consolidated financial results forecasts for the fiscal year ending March 31, 2026, there is no change in the forecasts presented in a "Announcement Regarding Revision to Business Results" announced on December 25, 2025.

   If any revision to the financial forecasts becomes necessary in the future, the Company will promptly disclose it.

2. Quarterly Consolidated Financial Statements and Key Notes

1. Quarterly Consolidated Balance Sheets

   (Unit: million yen)

   	As of March 31, 2025	As of December 31, 2025
   Assets
   Current assets
   Cash and deposits	35,690	33,266
   Notes and accounts receivable - trade	22,952	23,686
   Merchandise and finished goods	910	2,143
   Work in process	3,683	4,273
   Raw materials and supplies	315	456
   Other	14,474	18,209
   Allowance for doubtful accounts	(253)	(59)
   Total current assets	77,774	81,976
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	4,214	5,230
   Land	2,690	2,979
   Other, net	1,595	1,296
   Total property, plant and equipment	8,500	9,506
   Intangible assets
   Goodwill	22	2,511
   Other	2,637	2,555
   Total intangible assets	2,660	5,067
   Investments and other assets
   Investment securities	9,839	7,270
   Retirement benefit asset	42	72
   Other	8,767	8,882
   Allowance for doubtful accounts	(1,624)	(1,851)
   Total investments and other assets	17,025	14,373
   Total non-current assets	28,186	28,948
   Total assets	105,960	110,924

   (Unit: million yen)

   	As of March 31, 2025	As of December 31, 2025
   Liabilities
   Current liabilities
   Notes and accounts payable - trade	2,972	2,621
   Current portion of long-term borrowings	3	1
   Accounts payable - other	29,511	28,138
   Income taxes payable	2,105	377
   Refund liabilities	1,323	1,216
   Provision for bonuses	310	515
   Other	16,607	24,319
   Total current liabilities	52,834	57,190
   Non-current liabilities
   Other	2,013	1,618
   Total non-current liabilities	2,013	1,618
   Total liabilities	54,848	58,809
   Net assets
   Shareholders' equity
   Share capital	4,755	4,836
   Capital surplus	5,649	5,156
   Retained earnings	43,677	44,615
   Treasury shares	(4,933)	(4,933)
   Total shareholders' equity	49,149	49,674
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	700	917
   Foreign currency translation adjustment	(49)	126
   Remeasurements of defined benefit plans	308	86
   Total of accumulated other comprehensive income	960	1,130
   Non-controlling interests	1,003	1,309
   Total net assets	51,112	52,114
   Total liabilities and net assets	105,960	110,924

2. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income Quarterly Consolidated Statements of Income

   (Consolidated Nine-Month Period)

   (Unit: million yen)

   For the nine-month period ended December 31, 2024		For the nine-month period ended December 31, 2025
   Net sales	92,607	103,060
   Cost of sales	66,238	73,320
   Gross profit	26,368	29,739
   Selling, general and administrative expenses
   Advertising expenses	3,998	4,184
   Promotion expenses	1,199	1,502
   Provision of allowance for doubtful accounts	983	(79)
   Employees' salaries and bonuses	6,245	6,204
   Provision for bonuses	66	503
   Retirement benefit expenses	160	(32)
   Commission fee	5,401	5,525
   Other	9,577	8,916
   Total selling, general and administrative expenses	27,631	26,725
   Operating profit (loss)	(1,262)	3,013
   Non-operating income
   Interest income	25	82
   Dividend income	10	8
   Share of profit of entities accounted for using equity method	179	497
   Gain on valuation of investment securities	2	-
   Other	62	70
   Total non-operating income	280	658
   Non-operating expenses
   Interest expenses	4	3
   Foreign exchange losses	56	81
   Commission fee	32	32
   Other	66	37
   Total non-operating expenses	160	155
   Ordinary profit (loss)	(1,141)	3,516
   Extraordinary income
   Gain on sale of investment securities	-	1,053
   Gain on sale of shares of subsidiaries	4,548	-
   Gain on change in equity	1,965	-
   Total extraordinary income	6,514	1,053
   Extraordinary losses
   Impairment loss	263	183
   Loss on disaster	159	-
   Loss on liquidation of business	-	71
   Loss on valuation of investment securities	13	-
   Other	230	26
   Total extraordinary losses	666	281
   Profit before income taxes	4,706	4,289
   Income taxes - current	2,607	915
   Income taxes - deferred	(247)	(33)
   Total income taxes	2,360	881
   Profit	2,346	3,407
   Profit attributable to non-controlling interests	191	339
   Profit attributable to owners of parent	2,155	3,067

   Quarterly Consolidated Statements of Comprehensive Income (Consolidated Nine-Month Period)

   (Unit: million yen)

   For the nine-month period ended December 31, 2024		For the nine-month period ended December 31, 2025
   Profit	2,346	3,407
   Other comprehensive income
   Valuation difference on available-for-sale securities	(4)	217
   Foreign currency translation adjustment	60	236
   Remeasurements of defined benefit plans, net of tax	(68)	(208)
   Share of other comprehensive income of associates accounted for using equity method	37	(69)
   Total other comprehensive income	25	175
   Comprehensive income	2,371	3,582
   (Comprehensive income attributable to)
   Comprehensive income attributable to owners of parent	2,180	3,237
   Comprehensive income attributable to non-controlling interests	190	345

3. Notes Concerning Consolidated Quarterly Financial Statements (Notes to Segment Information)

   [Segment information]

   1. Net sales and profit (loss) for each reportable segment and the breakdown of revenue

      For the nine-month period ended December 31, 2024 (Unit: million yen)

      	Reportable segments				Other (Note 1)	Annual	Adjustments (Note 2)	Amount in quarterly consolidated statement of income (Note 3)
      	Music Business	Anime & Visual Content Business	Overseas Business	Subtotal
      Net sales	76,144	13,843	2,587	92,575	32	92,607	-	92,607
      Revenue from contracts with customers
      Sales to external customers	76,144	13,843	2,587	92,575	32	92,607	-	92,607
      Inter-segment sales and transfers	3,120	436	1	3,559	466	4,025	(4,025)	-
      Annual	79,265	14,280	2,589	96,134	498	96,633	(4,025)	92,607
      Segment profit (loss)	(904)	221	(579)	(1,262)	(6)	(1,268)	6	(1,262)

      (Notes) 1. The category, others, is a business segment not included in reportable segments, which mainly includes the travel business.

   2. An adjustment of 6 million yen in segment profit (loss) represents the deduction of intersegment transactions.

   3. Segment profit (loss) have been adjusted with operating loss recorded in the consolidated quarterly income statement.

For the nine-month period ended December 31, 2025 (Unit: million yen)

(Notes) 1. The category, others, is a business segment not included in reportable segments, which mainly includes the travel business.

1. An adjustment of -4 million yen in segment profit (loss) represents the deduction of intersegment transactions.

2. Segment profit (loss) have been adjusted with operating profit recorded in the consolidated quarterly income statement.

2. Information on impairment loss in non-current assets and goodwill by reportable segment (Important impairment loss on non-current assets)

For the nine-month period ended December 31, 2024 (Unit: million yen)

For the nine-month period ended December 31, 2025 (Unit: million yen)

(Significant changes in amount of goodwill)

In the overseas business, S10 Entertainment & Media LLC was included in the scope of consolidation since it became a subsidiary based on the effective control criteria. This event resulted in an increase in goodwill of 2,493 million yen during the first nine months under review.

(Note Regarding Significant Changes in the Amount of Shareholders' Equity)

Not applicable

(Notes on Going Concern Assumptions)

Not applicable

(Notes on Statement of Cash Flows)

The Company did not prepare quarterly consolidated statements of cash flows for the first nine months under review. Depreciation (including amortization of intangible assets excluding goodwill) and amortization of goodwill for the first nine months are as follows:

(Unit: million yen)