FY2026 Q3: Summary of Financial Results

May 8, 2026

Representative: Tetsuro Yoshimatsu, Representative Director, Chairperson, CEO

Contact: Kei Sugawara, Director, Vice Chairperson, CFO Tel: +81-3-6161-3660 Scheduled date of dividend payment: -

Preparation of supplementary materials for financial results: Yes

Schedule of financial results briefing session: Yes

(All amounts are rounded off to the nearest million yen)

1. Consolidated results of operations (Percentages represent year-on-year changes)

   	Net sales		Operating profit		Ordinary	profit	Profit attributable to owners of the parent company
   	Million yen	%	Million yen	%	Million yen	%	Million yen	%
   Nine months ended March 31, 2026	59,694	19.7	2,884	23.0	3,025	19.4	1,957	11.1
   Nine months ended March 31, 2025	49,885	21.7	2,345	61.2	2,534	88.9	1,761	111.3

   Note: Comprehensive income (million yen) Nine months ended March 31, 2026: 2,074 million yen (46.9%)

   Nine months ended March 31, 2025: 1,411 million yen (46.3%)

   	Earnings per share	Diluted earnings per share
   	Yen	Yen
   Nine months ended March 31, 2026	20.09	15.95
   Nine months ended March 31, 2025	22.32	14.99

   Reference: Total equity	As of March 31, 2026:	21,506 million yen
   2. Dividends	As of June 30, 2025:	15,900 million yen

2. Consolidated financial position

Note: Revisions to most recently announced dividend forecast: None

(Percentages represent year-on-year changes)

Note: Revisions to the most recently announced operating results forecast: None

1. Significant changes in scope of consolidation during the period: None

2. Application of special accounting methods for presenting quarterly consolidated financial statements: None

3. Changes in accounting policies and accounting-based estimates, and restatements

   1. Changes in accounting policies due to revisions in accounting standards, others: None

   2. Changes in accounting policies other than 1) above: None

   3. Changes in accounting-based estimates: None

   4. Restatements: None

4. Number of shares outstanding (common shares)

   1. Number of shares issued (including treasury shares) at end of period As of March 31, 2026: 102,661,967 shares

      As of June 30, 2025: 91,754,577 shares

   2. Number of treasury shares at end of period

      As of March 31, 2026: 2,632,769 shares

      As of June 30, 2025: 2,693,618 shares

   3. Average number of shares outstanding during the period

Nine months ended March 31, 2026: 97,408,909 shares

Nine months ended March 31, 2025: 78,897,985 shares

• The review by certified public accountants or auditing corporations on the attached Consolidated Financial Statements: None

• Cautionary statement with respect to forecasts and other matters:

  Operating results forecasts and other forward-looking statements in this report are based on assumptions judged to be valid and information available to the Company at the time of the preparation of this report. Actual performance may differ significantly from these forecasts for a number of reasons. For the assumptions underlying the forecasts herein and other notices on the use of operating results forecasts, please refer to 1. Operating Results and Financial Position (3) Consolidated Operating Results Forecast and Information about Future Predictions on page 4 of the accompanying materials.

• This financial report is solely a translation of the original Japanese "Kessan Tanshin" document, which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.

  Accompanying Materials - Contents

  1. Operating Results and Financial Position 2

     1. Analysis of Operating Results 2

     2. Consolidated Financial Position 4

     3. Consolidated Operating Results Forecast and Information about Future Predictions 4

  2. Consolidated Financial Statements and Relevant Notes 5

     1. Consolidated Balance Sheets 5

     2. Consolidated Statements of Income and Comprehensive Income 7

     3. Notes on Consolidated Financial Statements 9

(Notes on the Going-Concern Assumption) 9

(Notes on Significant Changes in the Amount of Shareholders' Equity) 9

(Notes on Segment Information) 10

(Notes on Statements of Cash Flows) 11

During the nine months ended March 31, 2026, the global economic outlook remained uncertain due to fluctuations in resource prices amid heightened tensions in the Middle East and the impact on supply chains.

In the Japanese economy, consumer spending remained at a standstill due to prolonged high prices putting pressure on households and heightened cost-consciousness, although improving employment and wage conditions and the effects of various government policies are expected to underpin a gradual recovery. Among consumers, a shift toward selective consumption further strengthened, with purchasing decisions being more carefully considered, in addition to a preference for saving.

In the cosmetics industry, purchasing value and demand from certain countries and regions showed a slowdown, against a backdrop of geopolitical risks and economic stagnation in Asia, despite inbound demand showing a recovery trend in the number of tourists visiting Japan. Moreover, inbound consumption continues to require close monitoring due to fluctuations in foreign exchange rates and uncertainty over the outlook for overseas economies.

In accordance with the Medium-term Business Plan announced in August 2024, the Group aims to achieve consolidated net sales of 100 billion yen and consolidated operating profit of 8 billion yen, which are the medium-term business goals, by increasing points of contact with users and data through the expansion of the Retail segment (e-commerce and retail stores), and monetizing those in the Marketing Solution segment (BtoB services).

For the fiscal year ending June 30, 2026, marking the second fiscal year of the Medium-term Business Plan, the Group positions it as the "Year of Strategic Investments," aiming for a leap into the next phase of growth.

The Group will strive to expand net sales, which serve as a source of future operating profit, through the flagship store in Hong Kong, @cosme HONG KONG (opened on December 5, 2025), in the Global segment, in addition to the overall organic growth of businesses in Japan.

Aiming for medium- to long-term growth, investment in new businesses will be increased, in addition to strengthening recruitment efforts and system investments in each segment. In the Marketing Solution segment, the Group will focus on hiring consultants in order to make data consulting that leverages our unique data a core source of new revenue.

For the fiscal year ending June 30, 2026, the Group plans to increase operating profit by 20.1% year-on-year, with the operating profit margin expected to remain at the same level as in the previous fiscal year associated with the aforementioned upfront investments. Positioning this fiscal year as a preparatory period for growth from the next fiscal year onward, the Group aims to enhance corporate value over the medium to long term by strengthening the strategic business foundation and expanding investment with a view to future growth.

The consolidated operating performance for the nine months ended March 31, 2026 was as follows.

Net sales increased 19.7% year-on-year, driven by the Marketing Solution segment and Retail segment in Japan, together with contributions from the flagship store in Hong Kong.

Operating profit increased 23.0%, as the Marketing Solution segment and Retail segment contributed to profit growth as well as to higher net sales.

As a result, the consolidated operating performance for the nine months ended March 31, 2026 was as follows:

Net sales: 59,694 million yen (49,885 million yen in the previous fiscal year; 19.7% year-on-year increase) Operating profit: 2,884 million yen (2,345 million yen in the previous fiscal year; 23.0% year-on-year increase) Ordinary profit: 3,025 million yen (2,534 million yen in the previous fiscal year; 19.4% year-on-year increase) Profit before income taxes: 3,026 million yen (2,531 million yen in the previous fiscal year; 19.6% year-on-year increase)

Profit attributable to

owners of the parent company: 1,957 million yen (1,761 million yen in the previous fiscal year; 11.1% year-on-year increase)

1. Marketing Solution segment

   The Marketing Solution segment consists of various services based on the cosmetics and beauty portal site @cosme, including

   advertising solutions for cosmetics brands and data-driven solutions.

   Net sales increased 27.0% year-on-year due to a continued increase in transaction volume with major and new mid-sized brands. This took place against a backdrop of the successful sales promotion measures utilizing the touchpoints at e-commerce and retail stores in the Retail segment.

   Operating profit increased 26.2% due to the contribution made to efficient profit expansion by a business model with a high marginal profit ratio.

   As a result, segment operating performance for the consolidated nine months ended March 31, 2026 was as follows:

   Net sales: 8,968 million yen (7,063 million yen in the previous fiscal year; 27.0% year-on-year increase) Operating profit: 2,606 million yen (2,065 million yen in the previous fiscal year; 26.2% year-on-year increase)

2. Retail segment

   The Retail segment consists mainly of retail services in Japan, including the operation of the domestic cosmetics e-commerce site

   @cosme SHOPPING and operations of @cosme STORE cosmetics specialty shops.

   Net sales for e-commerce rose 19.7% year-on-year due to the continued acquisition of new customers through platform collaborations. This was despite a temporary shipment delay associated with the relocation of a logistics warehouse aimed at further improving service levels. Net sales for retail stores rose 17.0% due to the contribution of new stores, including @cosme NAGOYA, despite a decline in some inbound tourists due to geopolitical factors and a slowdown in the growth rate at regional stores. As a result, net sales increased 17.9% year-on-year in the segment overall.

   Operating profit increased 21.0% due to the contribution of the increased net sales.

   As a result, segment operating performance for the consolidated nine months ended March 31, 2026 was as follows:

   Net sales: 45,573 million yen (38,649 million yen in the previous fiscal year; 17.9% year-on-year increase) Operating profit: 2,601 million yen (2,149 million yen in the previous fiscal year; 21.0% year-on-year increase)

3. Global segment

   The Global segment consists of business operations outside of Japan, such as e-commerce and wholesale and retail stores, as well as media and other services.

   Net sales increased 31.0% year-on-year in the segment overall. This was due to the contribution of net sales from the flagship store in Hong Kong, in addition to a recovery in the China cross-border e-commerce business.

   Operating profit expanded a year-on-year deficit in the segment overall. This was due to the recording of 251 million yen in opening-related expenses for the flagship store in Hong Kong in the first half of the fiscal year ending June 30, 2026, as well as net sales falling below initial forecasts. This was because optimization of local operations during the initial phase immediately after opening took time, resulting in insufficient absorption of personnel expenses and other costs. The store is expected to contribute fully to revenue from the next fiscal year onward.

   As a result, segment operating performance for the consolidated nine months ended March 31, 2026 was as follows:

   Net sales: 3,998 million yen (3,052 million yen in the previous fiscal year; 31.0% year-on-year increase) Operating loss: 327 million yen (70 million yen loss in the previous fiscal year)

4. Others

The Others segment consists of a temporary staffing agency for beauty consultants, BtoC subscription services, and investment and consulting projects for companies in various stages of development, including new startups.

Net sales increased 3.0% year-on-year, following a recovery in a temporary staffing agency for beauty consultants.

Operating profit declined 61.3% year-on-year due to the effect of the termination of BLOOMBOX, one of the BtoC subscription services, in December 2024 and the upfront expenses for the Supplement segment launched in July 2025.

As a result, segment operating performance for the consolidated nine months ended March 31, 2026 was as follows:

Net sales: 1,155 million yen (1,121 million yen in the previous fiscal year; 3.0% year-on-year increase) Operating profit: 63 million yen (163 million yen in the previous fiscal year; 61.3% year-on-year decrease)