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In the third quarter (October to December), the Japanese economy remained generally firm as export recovery was accompanied by signs of improvement in both personal consumption and capital investment. On the other hand, prices remained elevated, with core CPI—a key indicator of inflation—also staying at a high level. Due to factors such as changes in trade policies in various countries and growing global uncertainty, investment activity overseas declined and Japan’s exports stagnated, as a result, external demand as a whole remained weak.
In the 51st House of Representatives general election held on February 8, 2026, the Liberal Democratic Party significantly increased its number of seats, and the current administration received a strong mandate. Policies such as initiatives to address rising prices, tax reform, immigration policy, and growth strategies centered on AI and semiconductors are expected to continue to be advanced. As a result, improvements in the business environment are anticipated, including support for personal consumption through household assistance initiatives, stabilization of corporate costs, and promotion of investment in growth sectors.

Under such business conditions, improvements in consumer sentiment and enhancements in the promotional environment within the entertainment content industry—one of our priority areas—are expected to provide favorable tailwinds for further business expansion in the future.
Guided by the corporate philosophy of The Greatest Leisure for All People, our Group steadily advanced initiatives aimed at achieving sustainable growth and creating long-term corporate value during this period.

As a result, the Group’s consolidated results for the third quarter (nine months) were as follows: net sales ¥154,617 million (up 58.2% YoY), operating profit ¥18,531 million (up 97.3% YoY), ordinary profit ¥18,937 million (up 76.0% YoY), and profit attributable to owners of parent ¥13,439 million (up 109.2% YoY).

The overview of each business segment is as follows.

Content and Digital Business Segment
The status of Tsuburaya Productions Co., Ltd. during the third quarter (nine months) is as follows. Net sales was ¥7,319 million (down 20.7% YoY), of which the total of the major categories (license/ MD (product sales)/ imaging and event revenues) was ¥6,679 million (down 24.9% YoY).

Despite continued strong domestic and international support for the Ultraman intellectual property (IP), sales and profits declined due to the continued decline in licensing revenue for mainstay merchandise in the Chinese market. Although the sales peak for certain temporary hit products has passed and we are currently in a transition period for product replacement, we are working to strengthen our ability to respond to market needs by launching new products and renewing our product lineup, particularly for trading cards and block toys.

During this period, there were reports of reactions in China following certain comments in Japan regarding the situation in Taiwan, and some Japan‑related entertainment events scheduled to be held in mainland China were reportedly cancelled or postponed. Although we currently expect the impact on our consolidated results to be limited, we recognize the need to remain attentive to uncertainties associated with the operation of licenses and permits and changes to the event operation environment. We will strive to stabilize our business portfolio through regional diversification while continuing to strengthen collaboration with local partners and monitor risks.

The breakdown by category is as follows.

<License Revenue: ¥3,314 million (down 42.0% YoY)>

<Overseas>
In the Chinese market, licensing revenue decreased year-on-year as mentioned above.

<Japan>
In Japan, licensing revenue declined during the period, primarily due to a decrease in GRIDMAN-related revenue in the same period of the previous year. Currently, various initiatives related to the Ultraman Series 60th Anniversary Project are in progress. New collaborations with more than 20 IPs and companies are being formalized.

<MD (Product Sales) Revenue: ¥1,125 million (up 12.4% YoY)>

The Ultraman Card Game, which celebrated its first anniversary at the end of October 2025, saw increased MD (product sales) revenues in both Japan and overseas due to the strengthening of the product lineup. To mark the milestone, the fifth booster pack, “Heroes of the Radiant Dawn” was released at the end of October and recorded strong sales. In preparation for the World Championship in May 2026, we are promoting comprehensive initiatives that link merchandise sales with qualifiers and official events in Japan and overseas.

<Imaging and Event Revenue: ¥2,239 million (up 2.8% YoY)>

Revenue from imaging and event operations increased year-on-year during the period, primarily due to increase in audience attendance at the biennial “TSUBURAYA CONVENTION 2025” held during the autumn season and the annual “Ultra Heroes EXPO2025” (held in summer and winter).

As a result, net sales for the content and digital business segment for the third quarter (nine months) was ¥10,762 million (down 16.4% YoY) and operating profit was ¥922 million (down 67.0% YoY).

Amusement Equipment Business Segment
During the third quarter (nine months) of the fiscal year under review, the number of units sold was approximately 255,000 units (up 93.8% YoY). This was due to strong sales of several titles equipped with leading IP and our response to increased production demand for L Tokyo Ghoul. As a result, our share of total market unit sales was approximately 20.3% (based on our research).
In particular, for NEON GENESIS EVANGELION -Memories of the beginning-, launched in December, we implemented various initiatives to maximize pachinko parlor customer attraction, including aggressive promotional campaigns through TV commercials and social media, and proposing the installation of dedicated prize sections for approximately 2,000 adopting parlors. In addition, sales towards the fourth quarter have also remained solid, and we are making steady progress toward achieving our full-year performance forecast.

As a result, the amusement equipment business segment’s net sales for the third quarter (nine months) of this fiscal year was ¥142,974 million (up 70.0% YoY) and operating profit was ¥20,153 million (up 135.1% YoY).

Other Businesses
Other businesses posted net sales of ¥1,355 million and operating profit of ¥ 30 million for third quarter (nine months).

(2) Explanation Regarding Forward-Looking Statements Including Consolidated Earnings Forecasts

The forecasts for the fiscal year ending March 31, 2026 are unchanged from those announced in the “Consolidated Financial Results for the Six Months Ended September 30, 2025” dated October 31, 2025.

Based on our business alliance with DAIKOKU DENKI Co., Ltd. (hereinafter, “DAIKOKU DENKI”) announced on November 14, 2024, we are working to create new products and services that contribute to the broader development of the PS industry by leveraging the expertise of market-analysis and marketing capabilities of both parties. Currently, various initiatives based on this alliance are progressing steadily. We are preparing to provide new services, such as AI-driven hall operation support and personalized advertisements. In addition, we are working to jointly develop and sell PS machines through the mutual utilization of IP and to strengthen sales of DAIKOKU DENKI hall equipment. Going forward, we will continue to expand our products and services and create new corporate value that contributes to industry development by combining the strengths of both companies through our collaborative framework. For more details, please refer to the materials disclosed on the same date.
Additionally, we are working to strengthen the foundation of our IP-centered business from a medium- to long-term perspective. Japanese IPs are gaining worldwide acclaim, and its regional expansion is broadening in various forms, including video distribution, licensing, MD (product sales), and events. Based on our expertise in IP business built up over 20 years since our listing, we are working to accelerate global expansion centered on the Ultraman IP, and to further IP acquisition, product development, and sales capabilities in the amusement equipment business. We will continue to maximize the value of leading IPs by expanding on MD (product sales) initiatives in Japan and overseas while building a structure that enables business development across diverse content domains, leveraging the strengths of each business segment in a coordinated manner.

(Note 1) Figures in this summary report are based on published figures for each company/organization or on our estimates.
(Note 2) The names of products in this summary report are trademarks or registered trademarks of their respective companies.

(3) Overview of Financial Position