FY2025.Q3 Financial Results

Summary of Consolidated Financial Results

for the Nine Months Ended September 30, 2025 (Japanese GAAP)

Company name: V-cube, Inc. Securities code: 3681

Stock exchange listings: The Prime Market of the Tokyo Stock Exchange URL: (Japanese) https://http://jp.vcube.com/ (English) https://http://www.vcube.com/

1. Results of the Second quarter ended September 30, 2025

   1. Consolidated quarterly operating results:

      November 14, 2025

      (millions of Yen, except per share amounts)

      	Net sales		Adjusted EBITDA		Operating profit		Ordinary profit
      Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Sep. 30, 2025	7,218	-7.5	241	-70.5	-1,201	-	-1,425	-
      Sep. 30, 2024	7,802	-3.8	817	-5.4	-131	-	-267	-

      Note: Comprehensive income For Nine months ended Sep. 30, 2025: ¥-1,186 million [－%]

      For Nine months ended Sep. 30, 2024: ¥-575 million [－%]

      	Profit attributable to owners of parent		Basic earnings per share	Diluted earnings per share
      Nine months ended	Millions of yen	%	Yen	Yen
      Sep. 30, 2025	-991	-	-38.32	-
      Sep. 30, 2024	-684	-	-27.08	-

   2. Consolidated financial position:

      	Total assets	Net assets	Capital adequacy ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	Yen
      Sep. 30, 2025	10,318	914	2.2	8.87
      Dec. 31, 2024	10,481	23	-1.3	-5.35

      Reference: Owner's equity As of Sep. 30, 2025: ¥229 million

      As of Dec. 31, 2024: ¥-138 million

2. Dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended Dec. 31, 2024	-	0.00	-	0.00	-
   Fiscal year ended Dec. 31, 2025	-	0.00	-
   Fiscal year ending Dec. 31, 2025 (Forecast)				0.00	0.00

   Note: Revisions to the forecast of cash dividends most recently announced: No

3. Consolidated forecasts

   (millions of Yen, except per share amounts)

   	Net sales		Adjusted EBITDA		Operating profit		Ordinary	profit	Profit attributable to owners of parent		Basic earnings per share
   Fiscal year ended Dec. 31, 2025	Millions of yen	%	Millions of yen	%	Millions of yen	% -	Millions of yen	% -	Millions of yen	% -	Yen
   	10,000	-4.4	1,050	-0.3	-700		-900		100		3.93

   Note: Revisions to the forecasts most recently announced: No

4. Others

   1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None

   2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

   3. Changes in accounting policies, changes in accounting estimates, and restatement

      1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

      2. Changes in accounting policies due to other reasons: None

      3. Changes in accounting estimates: None

      4. Restatement: None

   4. Number of issued and outstanding shares (common stock)

      1. Number of issued and outstanding shares at the period end (including treasury stock)

         As of December 31, 2024

         26,343,900 shares

         As of September 30, 2025

         26,343,900 shares

      2. Number of treasury stock at the end of fiscal year

         As of December 31, 2024

         466,472 shares

         As of September 30, 2025

         466,472 shares

      3. Average number of shares (quarterly period-YTD)

         Nine months ended September 30, 2024

         25,279,377 shares

         Nine months ended September 30, 2025

         25,877,428 shares

   5. Formula for each management index Adjusted EBITDA: Operating income + Depreciation & amortization ± EBITDA adjustment items (*)

(*) EBITDA adjustments items: Gains/losses on non-recurring or discontinued operations within operating revenues and expenses (M&A- related expenses, Stock-based compensation expense, gains/losses from exited business etc.)

* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.

* Explanation related to appropriate use of results forecasts and other items warranting special mention

The above forecasts are based on the information available as of the date of the release of this document. As a result, a variety of factors in the future may cause actual results to differ from these forecasts.

Consolidated Financial Statements

1. Consolidated Balance Sheet

   Assets

   (Thousands of yen) As of December 31, 2024 As of September 30, 2025

   Current assets

   Cash and deposits	1,006,735	872,433
   Notes and accounts receivable - trade	1,580,520	1,398,161
   Advance payments to suppliers	10,780	9,900
   Prepaid expenses	703,144	1,042,402
   Other	267,118	479,733
   Allowance for doubtful accounts	△23,126	△20,876
   Total current assets	3,545,172	3,781,755
   Non-current assets
   Property, plant and equipment	1,983,552	2,004,717
   Intangible assets
   Software	2,509,975	2,296,054
   Software in progress	217,905	309,446
   Goodwill	770,176	662,798
   Total intangible assets	3,498,056	3,268,300
   Investments and other assets
   Investment securities	465,197	380,171
   Shares of subsidiaries and associates	406,249	410,027
   Long-term loans receivable	39,542	37,222
   Leasehold and guarantee deposits	319,466	317,821
   Deferred tax assets	153,394	25,701
   Long-term prepaid expenses	61,435	87,625
   Other	36,052	37,425
   Allowance for doubtful accounts	△40,777	△40,777
   Total investments and other assets	1,440,561	1,255,219
   Total non-current assets	6,922,170	6,528,237
   Deferred assets
   Share issuance costs	13,709	8,993
   Total deferred assets	13,709	8,993
   Total assets	10,481,052	10,318,986

   Liabilities

   (Thousands of yen) As of December 31, 2024 As of September 30, 2025

   Current liabilities

   Accounts payable - trade	419,225	414,657
   Short-term borrowings	3,587,217	3,401,823
   Current portion of long-term borrowings	754,500	660,100
   Lease liabilities	196,710	179,564
   Contract liabilities	827,061	1,034,333
   Provision for bonuses	129,118	75,106
   Income taxes payable	29,661	19,530
   Other	813,475	568,503
   Total current liabilities	6,756,970	6,353,619
   Non-current liabilities
   Long-term borrowings	3,093,000	2,519,461
   Lease liabilities	253,882	157,357
   Asset retirement obligations	319,572	320,015
   Other	33,962	54,184
   Total non-current liabilities	3,700,417	3,051,020
   Total liabilities	10,457,387	9,404,640
   Net assets
   Shareholders' equity
   Share capital	10,000	10,000
   Capital surplus	1,326,328	3,763,748
   Retained earnings	△2,567,079	△4,378,794
   Treasury shares	△794,791	△794,791
   Total shareholders' equity	△2,025,541	△1,399,836

   Accumulated other comprehensive income

   Valuation difference on available-for-sale

   securities

   102,940

   97,296

   Foreign currency translation adjustment 1,784,034 1,532,016

   Total accumulated other comprehensive 1,886,975 1,629,313 income
   Share acquisition rights	16,762	540,406
   Non-controlling interests	145,468	144,464
   Total net assets	23,664	914,346
   Total liabilities and net assets	10,481,052	10,318,986

2. Consolidated Statement of Income and Comprehensive Income (Consolidated Statement of Income)

   (Thousands of yen)

   Nine months ended Nine months ended

   September 30, 2024 September 30, 2025
   Net sales	7,802,984	7,218,976
   Cost of sales	4,795,516	4,591,618
   Gross profit	3,007,467	2,627,357
   Selling, general and administrative expenses	3,139,209	3,828,968
   Operating loss	△131,741	△1,201,610
   Non-operating income
   Interest income	3,982	2,415
   Insurance claim income	1,330	1,450
   Subsidy income	2,483	1,353
   Share of profit of entities accounted for using equity method	10,624	4,347
   Gain on forfeiture of unclaimed dividends	632	1,022
   Other	2,216	1,271
   Total non-operating income	21,269	11,861
   Non-operating expenses
   Interest expenses	45,240	69,090
   Foreign exchange losses	53,531	90,994
   Commission expenses	52,442	67,769
   Loss on valuation of investment securities	2,128	2,735
   Other	3,582	4,716
   Total non-operating expenses	156,926	235,307
   Ordinary loss	△267,398	△1,425,056
   Extraordinary income
   Gain on sale of investment securities	2,912	516,202
   Gain on reversal of share acquisition rights	2,160	-
   Total extraordinary income	5,072	516,202
   Extraordinary losses
   Loss on retirement of non-current assets	762	-
   Impairment losses	165,296	63,675
   Loss on valuation of investment securities	7,300	14,482
   Loss on cancellation of leases	1,145	493
   Other	12,480	-
   Total extraordinary losses	186,984	78,650
   Loss before income taxes	△449,310	△987,504
   Income taxes - current	43,003	30,195
   Income taxes - deferred	173,649	147,802
   Total income taxes	216,653	177,998
   Loss	△665,964	△1,165,503

   Loss attributable to owners of parent △684,474 △991,523

   Profit (loss) attributable to non-controlling interests

   18,510 △173,979

   (Consolidated Statement of Comprehensive Income)

   (Thousands of yen)

   Nine months ended September 30, 2024

   Nine months ended September 30, 2025

   Loss △665,964 △1,165,503

   Other comprehensive income

   Valuation difference on available-for-sale securities	△4,858	△5,644
   Foreign currency translation adjustment	95,023	△15,129
   Total other comprehensive income	90,164	△20,773
   Comprehensive income	△575,799	△1,186,276
   Comprehensive income attributable to

   Comprehensive income attributable to owners of parent

   △593,601 △1,010,522

   Comprehensive income attributable to non-

   controlling interests

   17,802

   △175,754

3. Notes to Consolidated Financial Statements (Segment Information)

Nine months ended September 30, 2024

(Thousands of yen)

Notes:

1. The ¥835,846 thousand downward adjustment to segment income reflects corporate expenses not allocated to segments. Corporate expenses mainly include general administration costs of administrative departments.

2. Segment income (loss) has been adjusted for the operating income figure on the consolidated income statements.

Nine months ended September 30, 2025

(Thousands of yen)

Notes:

1. The ¥689,392 thousand downward adjustment to segment income reflects corporate expenses not allocated to segments. Corporate expenses mainly include general administration costs of administrative departments.

2. Segment income (loss) has been adjusted for the operating income figure on the consolidated income statements.