LY : Results for the Nine Months Ended December 31, 2025 (FY2025-3Q)

February 4, 2026

Company Name: LY Corporation Share Listings: Prime Market of TSE

Code No.: 4689 URL: https://www.lycorp.co.jp/en/

Representative: Takeshi Idezawa,

President and Representative Director, CEO

Contact: Ryosuke Sakaue,

Executive Corporate Officer, CFO Scheduled Dividend Payment Date: －

Financial Results Supplementary Briefing Materials to Be Created: Yes Financial Results Investors Meeting to Be Held: Yes (for Financial Analysts)

Tel: +81-3-6779-4900

1. Consolidated Results for the Nine Months Ended December 31, 2025 (April 1, 2025 - December 31, 2025)

   (Amounts less than one million yen are omitted)

   1. Consolidated Business Performance (April 1, 2025 - December 31, 2025) (Percentages represent year-on-year changes)

      	Revenue		Operating income		Profit before tax		Net income		Net income attributable to owners of the parent		Total comprehensive income
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Nine-month period ended Dec. 31, 2025	1,495,357	4.7	284,198	11.6	265,091	18.3	261,528	57.9	183,304	43.6	294,177	85.2
      Nine-month period ended Dec. 31, 2024	1,428,759	6.1	254,765	46.2	224,033	31.6	165,581	21.3	127,677	4.3	158,858	2.6

      	Adjusted EBITDA		Adjusted net income		Adjusted EPS		Basic earnings per share	Diluted earnings per share
      Nine-month period ended Dec. 31, 2025 Nine-month period ended Dec. 31, 2024	Millions of yen 377,316 363,488	% 3.8 16.1	Millions of yen 156,917 144,453	% 8.6 5.0	Yen 22.58 19.61	% 15.2 6.9	Yen 26.38 17.33	Yen 26.26 17.25

   2. Consolidated Financial Position

   	Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent
   	Millions of yen	Millions of yen	Millions of yen	%
   As of Dec. 31, 2025	11,089,007	3,597,966	2,966,185		26.7
   As of March 31, 2025	9,158,346	3,418,915	2,998,170		32.7

2. Dividends

   	Dividends per share
   	1Q	2Q	3Q	Year end	Full year
   Fiscal year ended March 31, 2025 Fiscal year ending March 31, 2026	Yen - -	Yen 0.00 0.00	Yen - -	Yen 7.00	Yen 7.00
   Fiscal year ending March 31, 2026 (Estimates)				7.30	7.30

   (Note) Revision in dividends previously announced: None

3. Consolidated Performance Estimates for FY2025 (April 1, 2025-March 31, 2026)

(Note) Revision in performance estimates previously announced: Yes

For details, please refer to 3. Outlook for Fiscal Year Ending March 31, 2026 (April 1, 2025-March 31, 2026) in (1) Qualitative Information Regarding the Consolidated Business Performance on page 6 of the Results for the Nine Months (Attachments).

1. Significant changes in scope of consolidation during the period: Yes

   Newly consolidated: 5 (BEENOS Inc., LINE Bank Taiwan Limited, LINE MAN CORPORATION PTE. LTD., DECACORN CO., LTD., LINE MAN (THAILAND) COMPANY LIMITED)

   Excluded from consolidation: 1 (Z Financial Corporation)

2. Changes in the accounting principles and accounting estimates

   1. Changes due to IFRSs: None

   2. Changes other than 1): None

   3. Changes in accounting estimates: None

3. Number of stocks issued (common stock)

   1. Number of stocks issued (including treasury stocks)

      As of December 31, 2025 6,882,998,181 shares

      As of March 31, 2025 7,154,182,647 shares

   2. Number of shares of treasury stocks

      As of December 31, 2025 29,005,522 shares

      As of March 31, 2025 28,775,073 shares

   3. Average number of common stocks outstanding (cumulative from the beginning of the fiscal year) Nine months ended December 31, 2025 6,948,312,693 shares

      Nine months ended December 31, 2024 7,368,155,805 shares

      Note: The number of shares of treasury stocks includes the shares of LY Corporation (the "Company") held by the Stock Delivery Trust (J-ESOP), the Board Incentive Plan Trust, and the Stock Delivery ESOP Trust (as of March 31, 2025: 28,167,999 shares; as of December 31, 2025: 23,565,831 shares).

4. Formula for each management index

・Adjusted EBITDA: Operating income + depreciation & amortization (*1) ± EBITDA adjustment items (*2)

・Adjusted net income: Net income attributable to owners of the parent ± EPS adjustment items (*3) ± tax equivalent on some EPS adjustment items

・Adjusted EPS: Adjusted net income/average number of common stocks outstanding (cumulative from the beginning of the fiscal year)

(*1) Depreciation & amortization: Depreciation, depreciation of right-of-use assets, etc.

(*2) EBITDA adjustment items: Gains/losses on non-recurring and non-cash transactions within operating revenue and expenses (loss on retirement of fixed assets, impairment losses, stock compensation expenses, gain on remeasurement relating to business combinations, other transactions with undetermined cash outflows (one-time provisions, etc.), etc.). Also, gains/losses on sales of shares held by certain funds.

(*3) EPS adjustment items: ± EBITDA adjustment items + amortization of identifiable intangible assets arising from business combinations ± non-recurring gains/losses in non-operating income/expenses

(Note) Starting from the fiscal year ended March 31, 2025, "amortization of identifiable intangible assets arising from business combinations" and "non-recurring gains/losses in non-operating income/expenses" are added to the formula for adjusted net income. Tax equivalent is also adjusted considering such adjustment items.

* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (optional)

* Explanation of the proper use of performance estimates, and other special notes

• The performance estimates, etc., and other forward-looking statements contained in this document are based on the information currently available to the Company and premised on assumptions that have been deemed reasonable by the management. For a variety of reasons, actual performances, etc., could differ significantly.

• Supplementary materials to the earnings results are published on the Company's website (https://www.lycorp.co.jp/en/ir.html) on Wednesday, February 4, 2026.

• Table of contents of attachments

1. Qualitative Information Regarding the Consolidated Operating Results············································ 2

   1. Qualitative Information Regarding the Consolidated Business Performance 2

   2. Qualitative Information Regarding the Consolidated Financial Position 7

2. Interim Condensed Consolidated Financial Statements and Significant Notes 9

   1. Interim Condensed Consolidated Statement of Financial Position 9

   2. Interim Condensed Consolidated Statement of Profit or Loss 11

   3. Interim Condensed Consolidated Statement of Comprehensive Income 12

   4. Interim Condensed Consolidated Statement of Changes in Equity 13

   5. Interim Condensed Consolidated Statement of Cash Flows 15

   6. Notes to Interim Condensed Consolidated Financial Statements 16

1. Qualitative Information Regarding the Consolidated Business Performance

   1. Business Results Summary (April 1, 2025-December 31, 2025)

      • Highlights

      Revenue came to 1,495.3 billion yen (up 4.7% year on year), and adjusted EBITDA came to 377.3 billion yen (up 3.8% year on year). Both set new records for the highest performance to date in the cumulative consolidated third quarter.

The revenue for the cumulative consolidated third quarter of the fiscal year ending March 31, 2026 amounted to 1,495.3 billion yen (up 4.7% year on year), representing the highest cumulative consolidated third quarter revenue to date. This was due to an increase in revenue mainly from PayPay's consolidated revenue in the Strategic Business and account advertising in the Media Business, as well as the consolidation of BEENOS Inc. and LINE MAN CORPORATION PTE. LTD. in the Commerce Business, despite the impact of the system outage at ASKUL Corporation that occurred in October 2025.

Adjusted EBITDA for the cumulative consolidated third quarter of the fiscal year ending March 31, 2026 amounted to

377.3 billion yen (up 3.8% year on year), representing the highest cumulative consolidated third quarter earnings to date. This was due to the increased revenues mentioned above, despite an increase in selling, general and administrative expenses mainly due to higher sales promotion costs, commission expenses, and personnel expenses.

In addition, operating income for the cumulative consolidated third quarter of the fiscal year ending March 31, 2026 amounted to 284.1 billion yen (up 11.6% year on year). This was mainly due to the recognition of a gain on remeasurement relating to business combinations accompanied by the consolidation of LINE MAN CORPORATION PTE. LTD. in the second quarter of the fiscal year ending March 31, 2026.

Notes:

1. In the first quarter of the fiscal year ending March 31, 2026, the standards for allocating personnel expenses of technology divisions and expenses related to data centers and internal infrastructure were revised. As a result, the financial results for the fiscal year ended March 31, 2025, have been retroactively adjusted.

2. In the third quarter of the fiscal year ending March 31, 2026, services have been transferred between segments following an internal reorganization. As a result, the financial results for the fiscal year ended March 31, 2025 have been retroactively adjusted.

3. Figures in Adjustments represent inter-segment transactions and general corporate expenses not belonging to any reporting segment.