Financial

Summary of Consolidated Earnings Results for the Nine Months Ended December 31, 2025

Summary

KADOKAWA CORPORATION experienced a difficult fiscal period for the nine months ending December 31, 2025, characterized by a 1.7 percent decline in net sales to 202,991 million yen and a substantial 59.7 percent drop in operating profit to 6,377 million yen. This contraction in profitability, which resulted in a 70.0 percent decrease in net income attributable to owners of the parent, stems from a lack of major hit titles across the Publication, Animation, and Gaming segments. While the Web Services and Education sectors demonstrated resilience through growth, these gains were insufficient to offset rising operational expenses and a 2,700 million yen impairment loss recorded within the Animation and Film division. The company’s balance sheet reflects these pressures, with total assets contracting to 394,716 million yen as a result of debt repayment and reduced cash reserves. Despite these headwinds, management has opted to maintain its existing consolidated earnings forecasts for the full fiscal year ending March 31, 2026. This outlook suggests an expectation of stabilization or recovery in the final quarter, supported by ongoing strategic initiatives rather than immediate short-term gains. Strategic expansion remains a priority, evidenced by the acquisition of an 80 percent stake in the Singapore-based firm SOZO Pte. Ltd. for 2,299 million yen. This move is designed to bolster the company’s global media mix and secure a stronger foothold in the Southeast Asian entertainment market. Although the financial contributions of this new subsidiary were not reflected in the current nine-month results, the acquisition highlights a long-term commitment to international growth. Furthermore, the company is utilizing a performance-based stock compensation plan, involving the disposal of over 900,000 treasury shares in early 2026, to align internal incentives with future recovery efforts.

From the report

Translation _MEMBEBSHIP of any Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Summary of Consolidated Earnings Results for the Nine Months Ended December 31, 2025 (Based on Japanese GAAP) February 12, 2026 Company name: KADOKAWA CORPORATION Stock exchange listing: Tokyo Stock code: 9468 URL https://group.kadokawa.co.jp/global/ir/ Representative: Chief Executive Officer Takeshi Natsuno Inquiries: Head, Corporate Communication Tomoyuki Oue TEL 03-5216-8212 Scheduled date to commence dividend payments: – Preparation of supplementary material on financial results: Yes Holding of financial results meeting: No (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025) (1) Consolidated operating results (Percentages indicate year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Million yen % Million yen % Million yen % Million yen % Nine months ended December 31, 2025 202,991 (1.7) 6,377 (59.7) 9,107 (47.1) 2,211 (70.0) Nine months ended December 31, 2024 206,587 10.5 15,838 18.8 17,226 28.5 7,366 16.7 (Note) Comprehensive income: 1,411 million yen (-87.4%) for the nine months ended December 31, 2025 11,186 million yen (18.2%) for the

nths ended December 31, 2025 202,991 (1.7) 6,377 (59.7) 9,107 (47.1) 2,211 (70.0) Nine months ended December 31, 2024 206,587 10.5 15,838 18.8 17,226 28.5 7,366 16.7 (Note) Comprehensive income: 1,411 million yen (-87.4%) for the nine months ended December 31, 2025 11,186 million yen (18.2%) for the nine months ended December 31, 2024 Earnings per share Diluted earnings per share EBITDA Yen Yen Million yen % Nine months ended December 31, 2025 15.07 14.18 13,144 (39.0) Nine months ended December 31, 2024 54.79 53.60 21,534 18.8 (Note) EBITDA = Operating profit + Depreciation + Amortization of goodwill (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen As of December 31, 2025 394,716 276,872 62.4 1,674.68 As of March 31, 2025 410,029 277,408 60.9 1,704.48 (Reference) Equity capital: As of December 31, 2025: 246,132 million yen As of March 31, 2025: 249,788 million yen 2. Dividends Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Year ended March 31, 2025 – 0.00 – 30.00 30.00 Year ending March 31, 2026 – 0.00 – Year ending March 31, 2026 (Forecast) 30.00 30.00 (Note) Revisions from dividends forecasts announced most recently: No

share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Year ended March 31, 2025 – 0.00 – 30.00 30.00 Year ending March 31, 2026 – 0.00 – Year ending March 31, 2026 (Forecast) 30.00 30.00 (Note) Revisions from dividends forecasts announced most recently: No 3. Forecast of consolidated financial results for the year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) (Percentages indicate year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to Earnings per EBITDA owners of parent share Million yen % Million yen % Million yen % Million yen % Yen Million yen % Full year 278,200 0.1 10,300 (38.1) 12,400 (30.1) 4,900 (33.7) 33.34 19,500 (21.7) (Note) Revisions from financial results forecasts announced most recently: No

* Notes (1) Significant changes in the scope of consolidation during the period: Yes New: 2 companies Edizioni BD S.r.l. and SOZO Pte. Ltd. Excluded: – (Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes (4) Notes on Quarterly Consolidated Financial Statements (Business Combinations)” on page 11 of the Attachments. (2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements (i) Changes in accounting policies due to revisions to accounting standards and other regulations: No (ii) Changes in accounting policies due to other reasons: No (iii) Changes in accounting estimates: No (iv) Restatement of prior period financial statements: No (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of December 31, 2025 148,990,296 shares As of March 31, 2025 148,990,296 shares (ii) Number of treasury shares at the end of the period As of December 31, 2025 2,017,335 shares As of March 31, 2025 2,442,006 shares (iii) Average number of shares during the period (cumulative from the beginning of the fiscal year) Nine months ended 146,770,605 shares Nine months ended 134,458,181 shares December 31, 2025 December 31, 2024 * Review by a certified public accountant or an auditing firm of the attached quarterly consolidated financial statements: No

the period (cumulative from the beginning of the fiscal year) Nine months ended 146,770,605 shares Nine months ended 134,458,181 shares December 31, 2025 December 31, 2024 * Review by a certified public accountant or an auditing firm of the attached quarterly consolidated financial statements: No * Proper use of forecasts of earnings results and other special matters Earnings results forecasts and other forward-looking statements contained in this material are based on information available to the Company as of this moment and certain assumptions that are deemed to be reasonable. Therefore, actual results may differ significantly from these forward-looking statements due to various factors. For further details, please refer to “1. Overview of Operating Results and Financial Position (3) Overview Concerning Forward-Looking Information, Including Consolidated Operating Result Forecasts” on page 4 of the Attachments.

○ Contents of the Attachments 1. Overview of Operating Results and Financial Position ...................................................................................... 2 (1) Overview of Operating Results ........................................................................................................................ 2 (2) Overview of Financial Position ......................................................................................................................... 4 (3) Overview Concerning Forward-Looking Information, Including Consolidated Operating Result Forecasts .....4 2. Quarterly Consolidated Financial Statements and Major Notes ........................................................................ 5 (1) Quarterly Consolidated Balance Sheets .......................................................................................................... 5 (2) Quarterly Consolidated Statements of Income and Comprehensive Income................................................... 7 Quarterly Consolidated Statements of Income ................................................................................................ 7 Quarterly Consolidated Statements of Comprehensive Income ...................................................................... 8 (3) Quarterly Consolidated Statements of Cash Flows..........................................................................................9 (4) Notes on Quarterly Consolidated Financial Statements.................................................................................

Pages: 15
Words: 6,140
Type: Financial

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