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2026.07.31Notices

Supplementary Material on Financial Results for Q2 FY12/26 (Text Version)

Supplementary Material on Financial Results for Q2 FY12/26 (Text Version)

CELSYS, Inc.
Securities Code: 3663
July 31, 2026

Highlights of Q2 FY12/26

In Q2 FY12/26, both net sales and operating profit significantly exceeded the levels of the same period of the previous year.

Even during this phase of growth, we maintained high profitability with an operating margin of 40%, and the fact that we are achieving both sales growth and a high profit margin demonstrates the growth potential and earning power of our business.

There were three main factors behind these strong results.

(1) CLIP STUDIO PAINT grew beyond expectations, and full-year financial results forecasts were revised upward

CLIP STUDIO PAINT has continued to grow at a pace exceeding the initial plan, and progress through Q2 has also been ahead of the initial plan.
Based on these results, we revised our full-year financial results forecasts for FY12/26 upward.
Net sales are projected to reach 10.0 billion yen for the first time since our founding, marking a milestone as CELSYS enters a new stage of growth.

We also expect to achieve the Medium-Term Management Plan (2025–2027) one year earlier than scheduled. Going forward, we will update the Medium-Term Management Plan and take on new challenges for further growth while maintaining the pace of that growth.

(2) Subscription ARR recorded its largest-ever increase — global expansion is driving growth

Subscription ARR was 6.3 billion yen at the end of Q2, up 31% YoY, recording the largest increase ever on a YoY basis.
This growth has been strongly driven by measures to acquire users in overseas markets.
Recognition is expanding globally and our user base is steadily broadening, and we believe overseas markets will continue to be an important driver supporting our sustainable growth.
Details are presented on the following page.

(3) Management focused on capital efficiency, and dividend increases for 11 consecutive years

Amid growing calls for management with awareness of the cost of capital and the stock price, we are promoting management that emphasizes not only sales and profit growth but also capital efficiency, including ROE.
As part of these efforts, we raised our annual dividend forecast from 38 yen to 50 yen, and plan to increase dividends for the 11th consecutive years.

As a company that achieves both high growth and high shareholder returns at a high level, we will continue to work to enhance corporate value over the medium to long term while emphasizing the balance between growth investment and shareholder returns.

Growth of subscription ARR is accelerating

Competitive advantages supporting sustainable growth

Subscription ARR is not simply on a steady upward trend; it is on an accelerating growth trajectory.

In June 2026, it exceeded 6.0 billion yen, reaching 6.31 billion yen. This is approximately 1.3 times the level of the same month of the previous year, and high growth is continuing. We expect 7.0 billion yen or more by the end of December 2026 and 10.0 billion yen or more by the end of 2030.

We believe this growth is not due to temporary factors, but is structural and highly sustainable, achieved through the accumulation of continuous product enhancement, the expansion of supported platforms, and global marketing.

The main strengths supporting this growth are the following three.

(1) Continuous product enhancement

CLIP STUDIO PAINT has been continuously updated from Ver. 2.0 through Ver. 5.0, enhancing its functions and product value.
This continuous product evolution has not only led to the acquisition of new users but also encouraged existing users to continue using the application, building a solid foundation that supports the growth of subscription ARR.

(2) Expansion of the platforms on which subscriptions are offered

CLIP STUDIO PAINT first began offering subscriptions for the iPhone version, and subsequently introduced the subscription model to the PC version, which had previously been offered as a one-time purchase version. The scope of subscription offerings has since been expanded in stages to the Galaxy version and the Android version.

This expansion of supported platforms allows us to respond to the diversification of users' operating environments and devices, leading to the acquisition of new user segments and the growth of subscription ARR.

(3) An in-house marketing structure built around global talent

We have built an in-house marketing structure centered on global talent.

We deploy measures tailored to the market characteristics and user needs of each country and region, expanding our user base in overseas markets. This market-rooted marketing structure is an important competitive advantage supporting our sustainable growth.

Many creators around the world still do not use our products, and we believe the room for market development is extremely large.

Going forward, by strengthening marketing in emerging countries, enhancing functions for mobile devices, and strengthening user communities, we will further expand new user acquisition and continued use.

Through these initiatives, we will sustain the high growth of subscription ARR and aim to achieve our targets of 7.0 billion yen or more in December 2026 and 10.0 billion yen or more by 2030.

There are more than 130 million digital creators worldwide

Turning the expansion of the global market into a growth opportunity

According to a study by Adobe, it is estimated that there are approximately 130 million digital creators worldwide. Meanwhile, the number of our subscription users was more than 1 million as of the end of June 2026, meaning that the current number of users still accounts for only a portion of this overall market.

Furthermore, these 130 million people represent a market consisting mainly of professionals and semi-professionals who create for their jobs or creative activities, and beyond it lies a much larger segment of hobby users who enjoy the creative experience. We believe we still have significant room for growth in the global market.

In addition, the market itself continues to expand. The creator economy market grew from 1.4 billion U.S. dollars in 2014 to 24.0 billion U.S. dollars in 2024, and is expected to reach a scale of 32.55 billion U.S. dollars in 2025 (CAGR of 33.1%).

With this market expansion as a tailwind, we aim to acquire new users and grow subscription ARR through continuous product enhancement, the promotion of global marketing, and the expansion of our communities.

Marking our 35th anniversary and moving toward further growth

To date, we have supported the creative activities of creators around the world through products and services including CLIP STUDIO PAINT.

Based on the concept of the “CREATOR JOURNEY” set out in our Medium-Term Management Plan, we are building a platform that supports creators' creative activities as a whole: from starting to create, to showcasing their works, to connecting with the world.

Going forward, by continuing to provide value that supports the creative activities of creators around the world in the global creator economy market, we aim to achieve sustainable growth and enhance corporate value.

INDEX

About CELSYS

CELSYS operates a creator platform globally, centered on CLIP STUDIO PAINT, a Japanese-made creative application for creators.

Cumulative shipments of CLIP STUDIO PAINT have exceeded 67 million units, and more than 80% of users are overseas users. The usage ratio among manga artists in Japan is 95%, and the application is used by a wide range of creators, from hobbyists to professionals.

On the financial side, we have set medium-term management targets of ROE of 30% or higher and an operating margin of 30% or higher, and are working to improve profitability and capital efficiency. Subscription ARR has surpassed 6.3 billion yen, continuing high growth of 31% YoY.

We are also continuously enhancing shareholder returns, and plan an annual dividend of 50 yen for FY12/26. This is expected to be the 11th consecutive years of dividend increases. We will continue to aim to achieve both business growth and shareholder returns.

CELSYS's Mission

CELSYS defines the "CREATOR JOURNEY" as the series of steps through which creators produce works, showcase them, and expand their activities while connecting with fans.

We aim to provide a creation infrastructure that supports the whole of this "CREATOR JOURNEY," offering creators a new creative experience.

At present, we are establishing the Creator Support Field, centered on CLIP STUDIO PAINT, which provides tools for producing works, as a robust revenue base, while leveraging that customer base to expand our business domain into the Creator Platform Field, which supports a place for creators' activities.

Going forward, by enhancing services that support creators' creative activities as a whole, we will provide new value to creators around the world and aim to enhance corporate value over the medium to long term.

Stable growth of the first pillar, and additional revenue growth from the second pillar

For medium- to long-term growth, we position the Creator Support Field as the “first pillar” and the Creator Platform Field as the “second pillar.”

The first pillar: Creator Support Field

In the Creator Support Field, centered on providing CLIP STUDIO PAINT, we will promote the transition from the one-time purchase version to the subscription model, while also working to develop emerging country markets, strengthen user communities, and expand measures for mobile devices.

Through these measures, we will continuously expand subscription sales and aim for sustainable growth based on a recurring revenue base with high stability and predictability.

For specific initiatives, please refer to the following pages.

P.38 “Initiatives in Global Expansion to Acquire New Users”
P.39 “Acquiring New Young and Light Users; Measures for Mobile Devices”

The second pillar: Creator Platform Field

In the Creator Platform Field, we will continuously launch new services and aim to add to sales growth over the medium to long term.

For the time being, we will prioritize expanding the user base, and we expect a full-scale contribution to earnings from FY12/28 onward. Over the long term, we aim to grow this field into a revenue pillar on par with the Creator Support Field.

1. Q2 Financial Results

Q2 FY12/26 Financial Results



Both sales and profit increased YoY as well as compared to the initial plan

In Q2 FY12/26, both net sales and operating profit exceeded the same period of the previous year and the initial plan, achieving increases in both sales and profit.

Net sales

Net sales were 5.56 billion yen, up 17.4% YoY and up 10.9% compared to the initial plan.

Subscription sales were 3.04 billion yen, up 28.3% YoY, continuing high growth. In addition to the expansion of ARR, marketing in emerging countries and measures aimed at mobile users contributed, and the recurring revenue base is growing steadily.
Sales of the one-time purchase version also exceeded the initial plan, as the effect of the major version upgrade of CLIP STUDIO PAINT (Ver. 5.0) implemented in March 2026 and the sales promotion campaigns performed strongly.

Profit

Operating profit was 2.22 billion yen, up 44.8% YoY and up 39.0% compared to the initial plan.
The operating margin was 39.9%, an improvement of 8.0 percentage points from 31.9% in the initial plan.
The increase in profit was due to the growth in net sales, as well as to expenses, particularly outsourcing expenses and advertising expenses, remaining in line with the plan.

Each profit item below operating profit also exceeded the same period of the previous year and the initial plan, achieving profit growth at every profit level.

Progress exceeding the initial plan

As of Q2, achievement rates were 111% for net sales, 139% for operating profit, 142% for ordinary profit, and 143% for profit, all exceeding the levels of the initial plan.

This progress was due to the growth in subscription sales, as well as to sales of the one-time purchase version exceeding expectations thanks to the effect of the major version upgrade of CLIP STUDIO PAINT (Ver. 5.0) and the sales promotion campaigns.

Considering the progress of financial results through Q2, we revised our full-year financial results forecasts for FY12/26 upward.

Both net sales and operating profit continued to increase

This section shows quarterly trends in net sales and operating profit.

Due to the major version upgrade of CLIP STUDIO PAINT implemented in March and the effect of the accompanying sales promotion campaigns, both net sales and operating profit tend to be skewed toward the first half (Q1 and Q2) every year.

While this seasonality also applies in FY12/26, net sales and operating profit through Q2 have progressed at a higher level compared with trends up to the previous year. Operating profit in particular has grown significantly through Q2 against the backdrop of expanding subscription sales, reflecting the improvement in our earning power.

Considering the progress of financial results through Q2, we revised our full-year financial results forecasts for FY12/26 upward, and the full-year plan figures for net sales and operating profit for 2026 are the revised figures.

Led by subscription ARR, key indicators expanded steadily

Subscription ARR, the indicator we place the greatest emphasis on, was 6.31 billion yen, up 30.7% YoY, reaching a new record high. The churn rate (customer attrition rate) was 4.9%, maintaining the target level of 5% or lower, and the subscription business is achieving both high growth and a stable revenue base.

In addition, cumulative shipments of our mainstay product CLIP STUDIO PAINT reached 67.04 million units, up 27.5% YoY, and the overseas user ratio expanded to 83.0%. Our user base in the global market is steadily expanding, and the foundation supporting future subscription growth has become even stronger.

Furthermore, the number of users of the platform services that provide a place for creators' activities, an initiative in the Creator Platform Field, was 13.08 million, up 24.7% YoY. Use of services that support creative activities as a whole is steadily expanding, and the building of a foundation to support future growth is also progressing smoothly.

2. Outlook

Considering the strong progress through Q2, full-year financial results forecasts have been revised upward

Financial results through Q2 progressed ahead of the initial plan, due to the expansion of subscription sales as well as the results of marketing in emerging countries and measures aimed at mobile users, and the effect of the major version upgrade (Ver. 5.0).

In light of these circumstances, we revised our full-year financial results forecasts for FY12/26 upward.

Net sales

Net sales were revised upward to 10.81 billion yen, up 8.5% compared to the initial plan. Net sales are expected to exceed 10.0 billion yen for the first time since our founding.

Subscription sales were also revised upward to 6.45 billion yen, up 5.5% compared to the initial plan, and we expect a further expansion of the recurring revenue base.

Profit

Operating profit is expected to be 4.00 billion yen, up 20.6% compared to the initial plan and up 34.8% YoY.

The marginal profit ratio of CLIP STUDIO PAINT is approximately 90%, so an increase in sales translates into an increase in profit. In addition, cost of sales such as outsourcing expenses, and selling, general and administrative expenses such as advertising expenses, are expected to trend as planned.

The operating margin is expected to be 37.0%, an improvement of 5.7 percentage points YoY and 3.7 percentage points compared to the initial plan.

No extraordinary losses or similar items are planned going forward, and profit is also expected to exceed the levels of the previous fiscal year and the initial plan.

ROE

ROE, which we regard as an important management indicator, is expected to be 50% or higher, an increase of 10 percentage points or more compared to the initial plan and 14.5 percentage points or more YoY.

These financial results forecasts have been calculated on conservative assumptions, taking into account the progress through Q2 and the future business environment. We will continue to review our financial results forecasts appropriately, as necessary, in accordance with business progress.

Steady progress against the revised plan as well

As of Q2, achievement rates against the revised full-year financial results forecasts were 51% for net sales, 56% for operating profit, 56% for ordinary profit, and 56% for profit, with net sales and profit at each level progressing steadily in line with the plan.

Every year, our sales tend to be skewed toward the first half due to the major version upgrade of CLIP STUDIO PAINT in March and the effect of sales promotion measures, and the revised plan has likewise been formulated taking into account this seasonality and the future business environment.

If we determine that a revision to our financial results forecasts is necessary in accordance with business progress, we will promptly disclose it.

Both the subscription and one-time purchase versions grew, driving the expansion of net sales

In the initial plan for FY12/26, we assumed a transition to subscriptions and projected sales of the one-time purchase version at approximately 85% of the previous year.

However, results through Q2 showed that sales of the one-time purchase version exceeded expectations, due to the effect of the major version upgrade of CLIP STUDIO PAINT (Ver. 5.0) and various sales promotion campaigns.

At the same time, even as sales of the one-time purchase version grew, subscriptions maintained stable growth, supported by contributions from marketing in emerging countries and measures aimed at mobile users.

In light of these circumstances, in our full-year financial results forecasts we revised subscription sales upward to 6.45 billion yen and sales of the one-time purchase version upward to 3.24 billion yen.

In addition to continuous growth from subscriptions, demand for the one-time purchase version is also expanding, and the simultaneous growth of both sales models is a major factor behind this upward revision of net sales.

Going forward, while keeping the stable growth of subscriptions as our core, we will steadily capture sales opportunities for the one-time purchase version through major version upgrades and sales promotion measures, aiming to expand net sales through the growth of both.

The Medium-Term Management Plan is expected to be achieved one year earlier than scheduled

A review of the FY12/27 plan is under consideration, with a view to an upward revision

With this upward revision of the full-year financial results forecasts, net sales for FY12/26 are expected to be 10.81 billion yen and operating profit 4.00 billion yen.

As a result, we expect to achieve net sales of 10.7 billion yen and operating profit of 3.3 billion yen, which are the targets set for FY12/27 in the Medium-Term Management Plan, one year earlier than scheduled.

ROE is also expected to be 50% or higher in FY12/26, significantly exceeding the 30% or higher set out in the Medium-Term Management Plan.

In light of this progress in financial results, we are considering a review of the plan for FY12/27, the final year of the Medium-Term Management Plan, with a view to an upward revision. We will carry out a review as necessary based on future business progress.

Continuing growth investment while maintaining high profitability

Under a policy of maintaining an operating margin of 30% or higher throughout the Medium-Term Management Plan period, we will steadily implement the investment necessary for business growth at a constant scale.

We will also manage advertising expenses using a benchmark of 14% to 16% of net sales, continuing management that emphasizes the balance between profitability and growth investment.

Regular major version upgrades support sustainable growth

For CLIP STUDIO PAINT, we have established a business model under which major version upgrades are implemented regularly from 2023 onward and prices are revised in line with improvements in product and service value.

As part of these efforts, we released Ver. 5.0, a major version upgrade, worldwide in March 2026. At the same time, in line with the improvement in service value, we increased the price of the one-time purchase version by approximately 10% on average.

Since its release in 2012, CLIP STUDIO PAINT provided functional updates for the one-time purchase version free of charge for approximately 10 years. Now, through regular major version upgrades, we continuously provide new value and appropriately reflect that value in prices, evolving into a business model that achieves sustainable growth.

Ver. 5.0 was highly rated by users worldwide, and sales of the one-time purchase version grew beyond initial expectations. The number of subscription users has also increased steadily, and the improvement in product value and the price revision brought about by regular major version upgrades were the factors driving these strong results.

Going forward, we will continue to add and improve functions in response to user needs, new forms of content expression, and the evolution of devices and production environments, and will continue to implement regular major version upgrades. While keeping subscriptions as the core of our business growth, we will also meet the needs of users who prefer the one-time purchase version, and will achieve sustainable business growth through price revisions in line with improvements in service value.

Three targets for financing activities

Our basic financial strategy is to maintain high capital efficiency, enhance shareholder returns, and achieve an appropriate evaluation of our corporate value.

Using a guide of 5.0 billion yen to 6.0 billion yen, we will actively invest in business growth and provide shareholder returns without excessively accumulating cash, continuing management that emphasizes capital efficiency.

Achieve ROE of 30% or higher constantly

In the Medium-Term Management Plan, we have set a target of constantly achieving ROE of 30% or higher.

Going forward, we will continue management with awareness of the stock price and the cost of capital, and by maintaining high capital efficiency we aim to enhance corporate value.

Continue to enhance shareholder returns

We emphasize the balance between investment in business growth and shareholder returns.

To date we have acquired treasury shares totaling 6.5 billion yen, and in March 2026 we cancelled 1,500,000 shares. Going forward, we will consider cancellations in stages, with a treasury share holding ratio of around 10% as a guide.

In the current fiscal year, we are further enhancing shareholder returns by increasing the interim dividend by 2 yen and paying a 35th Anniversary Commemorative Dividend of 10 yen.

Aim to maintain inclusion in TOPIX

Our shares have been a constituent in TOPIX since October 2024.

Ahead of the review of TOPIX constituents scheduled for October 2026, we will enhance our IR activities and implement our capital policy in order to ensure that our corporate value is appropriately evaluated, aiming to maintain inclusion in TOPIX.

Annual dividend forecast raised to 50 yen against a backdrop of increased sales and profit

Dividend increases planned for 11 consecutive years

In light of this upward revision of our financial results forecasts, we raised our annual dividend forecast to 50 yen (interim dividend of 20 yen, year-end dividend of 20 yen, and 35th Anniversary Commemorative Dividend of 10 yen).

At the beginning of the period, we planned an annual dividend of 38 yen, exceeding the 36 yen recorded in the previous fiscal year, which included a commemorative dividend of 10 yen for listing on the Prime Market. We now plan to increase the interim dividend by 2 yen and to pay a 35th Anniversary Commemorative Dividend of 10 yen at the year-end. As a result, we expect a dividend increase of 12 yen YoY.

We plan to increase dividends for the 11th consecutive year.

Going forward, we will aim for stable and continuous dividend increases in line with the expansion of our financial results, and will strive to enhance corporate value and shareholder returns.

3. Market & Environment

Our Work on AI Technology

Promoting product development with the highest priority on respecting creators' rights

For over a decade, we have continued research and development of AI technology in the fields where we can support creators' creative activities.

At the same time, what we value most is respecting creators' rights and addressing the ethical issues involved in creative activities. This has been a consistent basic policy of our product and service development since our founding, and it remains unchanged in our use of AI technology.

Accordingly, in CLIP STUDIO PAINT we utilize AI technology that contributes to creators' creative activities and to improved production efficiency. However, at present, we do not plan to incorporate features that use generative AI for image generation.

Based on the belief that AI is not a replacement for creators but a technology that supports their creative activities, we will continue our research and development and work to provide products and services that support creators side-by-side.

We believe that this stance has earned the trust of a wide range of creators worldwide, from professional creators to those who enjoy creating as a hobby, and is an important element supporting the brand value of CLIP STUDIO PAINT.

Promoting an AI-native management structure

Actively using AI to improve service quality and increase operational efficiency

We have built a structure that enables AI technology to be used across our entire organization, and are promoting the transition to an AI-native management structure.

In management control operations, we use AI for a variety of tasks, including organizing information and preparing materials, working to improve operational efficiency and reduce dependence on specific individuals.

We are also advancing the use of AI in development and testing operations to improve development speed and productivity. This strengthens a development structure that can respond quickly to changes in the market and in user needs, while also improving the efficiency of development costs.

In customer support, we use AI for tasks such as the initial response to inquiries received globally and in multiple languages, accelerating our response and improving support quality.

Going forward, we will continue to actively use AI technology to raise the productivity and competitiveness of the entire organization, while building an efficient management structure that supports high profitability.

We have established a business structure centered on providing value that cannot be replaced by AI

CLIP STUDIO PAINT provides the value of the “creative experience” itself, which cannot be replaced by AI

Even after 2023, when generative AI expanded rapidly, the number of CLIP STUDIO PAINT users and net sales have continued to grow. This shows that the value we provide is not merely a set of functions for completing an image.

Approximately 90% of CLIP STUDIO PAINT users are creators who enjoy creative activities as a hobby or as high-level amateurs. These users do not aim solely to obtain a finished image; they use our products and services because they find value in the creative experience itself: the joy of drawing on their own, the pleasure of seeing their skills improve, and the experience of showcasing their works and having them resonate with others.

Even as generative AI evolves further, we believe that the value of the “creative experience,” in which people express themselves and produce works through trial and error, cannot be replaced by AI.

In addition, the spread of generative AI may prompt people who previously had no connection to creation to take an interest in content production and extend that interest to drawing and expressing themselves. In that sense, we also expect the expansion of generative AI to be an opportunity to broaden the creative population and the base of the creator market.

Going forward, we will continue to enhance the value of the creative experience, which is difficult for AI to replace, and provide products and services chosen by creators around the world.

The global expansion of Japanese entertainment content is expanding our growth opportunities

Aiming to expand our user base with the growth of the global creator population as a tailwind

Japanese entertainment content, including anime and comics, is spreading worldwide through services such as Netflix, Amazon Prime, Crunchyroll, and Webtoon.

We believe that as more users encounter content originating in Japan, potential creators with an interest in creative activities will be motivated, and an increasing number of them will actually begin producing works.

This growth in the global creator population is a major growth opportunity for CLIP STUDIO PAINT, which supports the production of illustrations, manga, and animation. We will broaden our points of contact with users who are beginning creative activities around the world, and use this to further expand the CLIP STUDIO PAINT user base.

In addition, the Japanese government has positioned the content industry as a core industry and has set a target of expanding overseas sales revenue to a scale of 20 trillion yen by 2033. Measures to support the overseas expansion of content-related companies are also being advanced, and the global expansion of Japan's entertainment and creative industries is expected to accelerate further.

CLIP STUDIO PAINT is a tool that supports the production activities of the creators who generate content. We will turn the tailwinds of the global expansion of content originating in Japan, and the accompanying expansion of the creator market, into our own sustainable growth.

To the Shareholders

Emphasizing continuous dialogue with shareholders and investors

Aiming to enhance corporate value through timely and appropriate information disclosure

We emphasize continuous dialogue with our shareholders and investors, and in addition to our financial results briefings we continuously provide information on business progress and IR.

■ Monthly progress report

We provide monthly disclosures on a continuous basis to our shareholders and investors on changes in our business that cannot be conveyed through quarterly financial results alone. We continuously disclose important indicators such as ARR (Annual Recurring Revenue), the churn rate, the number of platform users, and company-wide net sales, presenting the state of our business in an easy-to-understand manner.

■ Shareholder Benefit Program

With the aim of deepening understanding of our business, we have established a shareholder benefit program under which shareholders holding 200 shares or more can use CLIP STUDIO PAINT EX. This is a unique shareholder return program that deepens understanding of our services by allowing shareholders to experience our products firsthand.

■ IR questionnaire

We conduct an IR questionnaire inviting opinions and requests from our shareholders and investors, to serve as a reference for improving our IR activities and for management. The opinions we receive are used to enhance our future information disclosure and IR activities.

■ IR online magazine

We distribute an IR online magazine in order to deliver the latest information, such as financial results information, the monthly progress report, and news releases, in a timely manner.
Going forward, we will continue to value dialogue with our shareholders and investors and strive for easy-to-understand, highly transparent information disclosure, thereby aiming to enhance corporate value over the medium to long term.

Appendix

Reference Material (1) Progress of the Medium-Term Management Plan

Strengthening a stable revenue base through the expansion of subscription sales

In the Medium-Term Management Plan 2025-2027, we have set out a policy of raising subscription sales to about two-thirds (69%) of total sales in FY12/27, advancing the shift to a stable revenue structure.

As of Q2 FY12/26, the ratio of subscription sales had expanded to 54.6%, progressing steadily toward the achievement of the Medium-Term Management Plan. ARR has also grown to 6.3 billion yen, and the churn rate has been maintained at 4.9%, meeting the target of 5% or lower, showing that the strengthening of a stable revenue base is steadily progressing.

In addition to increasing the number of subscription contracts, having existing users continue to use our services enhances the stability and predictability of earnings, strengthening the business foundation that supports high profitability.

Going forward, we will work to increase the number of subscription contracts and expand ARR through the continuous enhancement of the value of our products and services, including CLIP STUDIO PAINT, leading to the achievement of the Medium-Term Management Plan and to sustainable growth beyond it.

Establishing a management structure that takes the perspectives of shareholders and investors into consideration

Aiming for sustainable growth and increased corporate value through the strengthening of our governance system

In order to align our perspective with that of our shareholders and investors and to achieve the Medium-Term Management Plan while further expanding business and improving earnings beyond it, we are strengthening our corporate governance system and promoting management reform.

Our main initiatives are three: reviewing the officer remuneration system, rejuvenating the management structure, and enhancing our IR structure.

Review of the officer remuneration system

In order to more closely align the interests of shareholders and investors with those of management, we abolished the Officer Retirement Benefit System as of the end of December 2025.

Going forward, with respect to remuneration for senior management, we will increase the ratio of stock-based compensation and introduce and expand performance-linked remuneration, further strengthening management's commitment to enhancing corporate value over the medium to long term.

Rejuvenation of the management structure

We are systematically developing the next generation of management talent to drive sustainable growth, advancing the rejuvenation of our management structure.

In addition to successor development for senior management, we are strengthening the organizational foundation that will support future business growth through the strategic shift of roles to next-generation talent, strengthened hiring of manager candidates, and the hiring and development of young talent.

Enhancement of the IR structure

Our senior management actively participates in dialogue with institutional investors and analysts, and the opinions and evaluations obtained there are fed back into management.

The number of meetings with institutional investors and analysts after the Q1 FY12/26 financial results increased 75% YoY. Meetings with institutional investors increased 88% YoY.

We reflect the market perspectives obtained through dialogue with investors in the formulation of our business strategy and in management decision-making, and we also share them in important internal meetings, thereby improving the quality of our management.
Going forward, we will continue to emphasize dialogue with our shareholders and investors and, through the continuous strengthening of our governance system and management structure, work to achieve sustainable growth and enhance corporate value.

A diverse, highly specialized talent base supporting sustainable growth

To support the planning, development, and operation of our proprietary products and services centered on CLIP STUDIO PAINT, we are working to strengthen a talent base with both specialized expertise and diversity.

As of the end of June 2026, we had 255 employees, of whom engineers accounted for 52%. We have built a structure that handles planning and development in-house, which is an important foundation supporting the continuous enhancement of the value of our products and services.

In addition, to respond to the expansion of our overseas user base, more than 40 members of global talent reside in Japan, accounting for 17% of all employees. By conducting marketing for regions around the world and multilingual user support in-house, we quickly grasp the needs of each market and use this to improve service quality.

By age group, employees in their 20s and 30s account for 67% of the total, with young talent playing a central role in supporting business growth. The ratio of women in managerial positions is 36%, and we are building an organization in which diverse talent can thrive.

Going forward, we will continue to strengthen the organizational foundation supporting global business growth through the hiring and development of specialized talent and the creation of an environment in which diverse talent can demonstrate their abilities.

Reference Material (1) Creator Support Field (Growth phase)

Aiming for sustainable growth in the number of CLIP STUDIO PAINT subscription contracts and in ARR

In the Creator Support Field, centered on CLIP STUDIO PAINT, we are promoting three priority measures in order to increase the number of subscription contracts and achieve sustainable growth in ARR.

(1) Increase new user acquisition by strengthening global expansion

In overseas markets, in addition to regions with high demand such as North America, Europe, and South Korea, we are strengthening marketing activities in emerging countries, which offer particularly large room for growth, expanding recognition of CLIP STUDIO PAINT and acquiring new users.

(2) Expand the user base by engaging with young and light users

So that young people and light users who are just beginning to engage in serious creative activities can also use our products, we are working to improve ease of use and functionality on a variety of devices, including mobile devices.

(3) Increase the retention rate by strengthening user communities

Through the enhancement of services and communities that support the creative activities of creators using CLIP STUDIO PAINT, we promote the continued use of our products and services.

Through these measures, we will advance new user acquisition, the expansion of our user base, and improvement of the retention rate, aiming for sustainable growth in the number of subscription contracts and in ARR.

Promoting the subscription model to expand a stable revenue base

For CLIP STUDIO PAINT, with the aim of expanding a stable revenue base over the medium to long term, we are promoting the provision of the subscription model and focusing on increasing the number of contracts.

Because the subscription model makes it easy for users to start using the application with a low initial investment and leads to continuous earnings for us, we position it as an important business model supporting medium- to long-term business growth.

At the same time, we continue to offer the one-time purchase version as well. The one-time purchase version serves to broaden our points of contact with new users through sales promotion campaigns, and has the advantage of meeting the needs of users who prefer a single purchase. In addition, under this model, users of the one-time purchase version can access new functions by paying a version update fee, which also contributes to improving our earnings.

In recent major version upgrades, we have revised the price of the one-time purchase version in line with improvements in product value, while leaving subscription prices unchanged. This is expected to lead more users to choose subscriptions, expanding a stable revenue base over the medium to long term.

In this way, while promoting the transition to subscriptions, we continue to provide value to users who prefer the one-time purchase version, aiming for sustainable growth and the expansion of a stable revenue base while meeting diverse user needs.

Going forward, by providing products and services that leverage the respective characteristics of the subscription and one-time purchase versions, we will work to increase the number of subscription contracts and strengthen a stable revenue base.

Strengthening marketing in emerging countries to expand our global user base

To acquire new users of CLIP STUDIO PAINT, we are continuously strengthening our global expansion.

While continuing our expansion efforts in Europe, the US, Japan, and South Korea, where we already have an established user base, we are currently focusing on marketing activities in populous emerging countries that offer large room for growth. In particular, we are expanding recognition and acquiring new users mainly in Latin America and Southeast Asia.

As a result, the number of subscription contracts in emerging countries has continued to increase, with cumulative contracts from June 2024 to June 2026 expanding 1.9 times in Thailand, 2.3 times in Indonesia, 2.2 times in Brazil, and 1.9 times in Mexico.

In addition, Latin America accounted for 21% and Southeast Asia for 13% of the most recent 10 million units shipped, showing that the presence of emerging country markets is steadily increasing.

Alongside marketing activities, we are also advancing support for the main payment methods used in each country and region. By developing a purchasing environment that is easy for users, such as support for UnionPay Card in China and Naver Pay in South Korea, we are working to expand our reach to prospective customers in each market and strengthen user acquisition.

Going forward, we will continue to advance marketing measures and the development of payment environments tailored to the market characteristics and user needs of each country and region, leading to the further expansion of our global user base, including in emerging countries.

Strengthening measures for mobile devices to expand points of contact with young and light users

In light of the growing number of users, mainly young people and light users, who enjoy creating on mobile devices such as smartphones and tablets, we are strengthening measures for mobile devices.

For smartphones, we are advancing UI/UX improvements and expanded functionality so that the application is easy to operate even with finger drawing. We are also working to expand new points of contact with users in cooperation with device makers, including support for pre-installation on Motorola's foldable smartphone.

For tablets, we are expanding the range of supported devices and promoting measures that combine devices with CLIP STUDIO PAINT, such as bundling with various companies' Android tablets. This creates an environment in which more users can use CLIP STUDIO PAINT starting from the purchase of a device.

In addition, at Google's annual developer conference, Google I/O, CLIP STUDIO PAINT was introduced, with Google's cooperation, as an example of an app optimized for large screen Android devices. Leveraging this recognition, we are working to improve the user experience on Android devices and expand our user base.

As a result of these measures, subscription contracts for CLIP STUDIO PAINT on Android devices have increased, and as of the end of June 2026 sales were 1.8 times the level of the same month of the previous year, driving the growth of subscription ARR.

Going forward, we will continue to improve operability on smartphones and tablets, expand the range of supported devices, and strengthen cooperation with device makers, leading to the attraction and acquisition of young and light users and an increase in the number of subscription contracts.

Reference Material (1) Creator Platform Field (Foundation-Building phase)

Developing the Creator Platform Field into the second pillar of growth

We are working to expand the Creator Platform Field as the second pillar of growth following the Creator Support Field.

We are currently in the Foundation-Building phase, promoting two priority measures: “developing and providing new services” and “improving our existing services and providing distribution solutions.”

(1) Develop and provide new services

As new platform services that further support creators' creative activities, we are currently planning and developing two new services.
Through these new services, we will create new points of contact with creators, leading to the expansion of the Creator Platform Field.

(2) Improve our existing services and provide distribution solutions

For the various platform services we currently operate, we are making continuous improvements aimed at enhancing user convenience and service quality.
We are also engaged in providing distribution solutions.

Through these initiatives, we will further broaden our points of contact with creators and develop the Creator Platform Field into the second pillar of growth, leading to sustainable business expansion and increased corporate value.

Providing value for creators' activities that follow the step of creating works

Making the Creator Platform Field the second pillar of growth

We define the path of the activities of creators, and of the audiences who enjoy their works, as the “CREATOR JOURNEY,” and support creators' creative activities broadly.

To date, in the Creator Support Field we have provided tools and services for creators to produce works, centered on CLIP STUDIO PAINT.

In the Creator Platform Field, we aim to extend that support beyond the completion of works, providing “a place for creators' activities,” including a safe space to showcase and sell their own works, a place to record and authenticate their creative work, a place to foster communities with audiences and other creators, and a place for generating monetization opportunities.

Through these platform services, we will create new connections between creators and audiences and contribute to the formation of a richer creator economy in which each person's dreams are connected.

The Creator Platform Field is currently in a Foundation-Building phase aimed at long-term growth. While planning and developing new services, we will make continuous investments for future business expansion and develop this field into the second pillar of growth following the Creator Support Field.

Leveraging a user base of more than 13 million to strengthen existing services and grow new services

More than 13 million creators worldwide have registered as users of the creator platform services we provide, forming a large-scale user base centered on CLIP STUDIO PAINT.

Our existing platform services support creators' creative activities broadly, and include a material marketplace for making fuller use of CLIP STUDIO PAINT, services for sharing drawing techniques and production know-how, services for viewing and showcasing works, and a Q&A community.

We also provide services that support the use of works created by creators, such as “Mochicomi online,” which matches editors and creators, and services that support entry into manga contests.

By continuously strengthening these services, we work to increase the number of CLIP STUDIO PAINT subscription contracts and promote continued use, while also expanding the number of platform users.

Furthermore, we intend to leverage this user base for the growth of the platform to support creators' monetization and the services to strengthen user communities that are currently under development.

Going forward, through the improvement of existing services and the development and provision of new services, we will expand our points of contact with creators, leading to revenue growth in the Creator Platform Field.

Two new platform services under development

Developing the business from a long-term perspective as the second pillar of growth

In order to develop the Creator Platform Field into the second pillar of growth, we are planning and developing two new platform services for release in 2026 and beyond.

(1) Platform to support creators' monetization

This is a new platform service that comprehensively supports creators throughout the process of delivering their works to more people, attracting fans, getting sponsored projects, and monetization.
In addition to enhancing creators' visibility, obtaining support from fans, and generating monetization opportunities, we are also considering providing a mechanism to connect IP businesses and creators.
Generating revenue through creation is one of the most challenging issues for many creators. Through this service, we aim to help solve that issue and contribute to the development of the global creator economy.
We are developing this service with the aim of launching it in 2026 or later, but we do not expect it to generate earnings during the current Medium-Term Management Plan period. Our policy is to first prioritize expanding the number of platform users and to develop the service over the long term, aiming for monetization from 2028 onward.

(2) Services to strengthen user communities

We are planning and developing a new community service that allows creators around the world to interact with one another.
By energizing communities globally and providing an environment in which creators can stimulate one another and boost their creative urge, we will also promote the continued use of CLIP STUDIO PAINT and our other services.
We aim to launch this service in 2026 or later as well, but we do not expect it to generate earnings during the current Medium-Term Management Plan period. Our policy is to first prioritize expanding the user base and to develop the business from a long-term perspective.
For these two new services, we will announce the specific service content and monetization methods in due course, as soon as preparations are complete.

Reference Material (2) Service Overview and Activity Status

Developing the creator economy market as a new growth area

Leveraging the strengths we have cultivated to expand our business domain

To date, in the creator economy market we have built our business foundation through content production support centered on CLIP STUDIO PAINT and the provision of solutions that support content distribution.

Going forward, we will leverage the points of contact with creators that we have cultivated, our base of more than 13 million platform users, and our know-how in content production support to expand our business domain into the Creator Platform Field.

The creator economy market that we regard as a business opportunity includes diverse areas that support creators' activities, such as fan communities, online content sales, skill provision, crowdfunding, and illustration and photo posting services.

Combining these related markets, we estimate on our own that the global creator economy market will reach a scale of 46 trillion yen around 2029. We estimate that the overseas market is approximately 10 times the size of the Japanese market, and we believe that significant business opportunities exist globally.

While continuing to grow the Creator Support Field, centered on production support, we will provide value across a broader range of creators' activities through the platform to support creators' monetization and the services to strengthen user communities that we are currently planning and developing.

Through this expansion of our business domain, we will develop the Creator Platform Field into the second pillar of growth and aim to capture business opportunities in the global creator economy market.

CLIP STUDIO PAINT is a creative application supported by a wide range of creators

CLIP STUDIO PAINT is a creative application for creators that supports production in a wide range of genres, such as illustration, comic, webtoon, and animation.

It is equipped with abundant functions that meet the needs of a wide range of creators, from professionals to those who enjoy creating as a hobby, and is available on a variety of devices, including PCs, tablets, and smartphones.

It is also available globally, based on a subscription model, and is used by creators around the world.

Highly rated in the market as a paint application for production support

CLIP STUDIO PAINT ranks #1 in sales and market share as a paint application for production support.

It also enjoys strong support in each creator market:
- Usage ratio among manga artists in Japan: 95%
- Usage ratio in animation productions in Japan: 82%
- Usage ratio on pixiv, one of the world's largest social media for illustration: 63%

CLIP STUDIO PAINT is highly rated in Japan and overseas as a creative application used by a wide range of users, from professionals to those who enjoy creating as a hobby.

CLIP STUDIO PAINT is used by a wide range of creators globally

CLIP STUDIO PAINT is used by more than 67 million creators worldwide on a cumulative shipment basis. The overseas usage ratio is more than 80%, and the application supports 11 languages, providing an environment that is easy to use globally.

The user's purpose

Approximately 90% of users are those who enjoy creative activities as a hobby. The remaining approximately 10% are professionals who create as part of their work, including manga artists and animation creators.

Being supported by a wide range of users, from professionals to those who enjoy creating as a hobby, contributes to the stable user base of CLIP STUDIO PAINT.

Category of the user's creative work

By category of creative work, illustration accounts for approximately 90%, and manga and animation for approximately 10%.

While centered on illustration, the application supports a wide range of production genres, including manga, webtoon, and animation.

Type of device used

By type of device used, PCs account for approximately 60% and mobile devices such as smartphones and tablets for approximately 40%.

In addition to users who carry out serious production on PCs, use is also spreading among beginners and young people who casually start creating on mobile devices.

Position in the market

The creative application market includes products with differing characteristics, such as applications with strengths in mobile use and professional-oriented applications centered on PCs.

CLIP STUDIO PAINT can be said to be the only all-in-one creative application that supports almost all devices available in the market and covers content production in every genre, including illustration, manga, webtoon, and animation; there is no direct competitor that covers all of these.

There are applications that compete in areas limited to specific devices or content genres, and we will focus on strengthening our expansion among beginners and young people using mobile devices, which is where such applications have their strength. Through improved operability on smartphones and tablets, an expanded range of supported devices, and cooperation with device makers, we will work to acquire new user segments and increase the number of subscription contracts.

Promoting new user acquisition and an increase in subscription contracts through bundling with device makers

As part of our measures for mobile devices, we are promoting the provision of CLIP STUDIO PAINT through bundling and pre-installation with device makers.

Through cooperation with globally active device makers such as Wacom, Samsung, and Lenovo, we grant licenses that allow CLIP STUDIO PAINT to be used for a limited period on target devices, offering it to users in regions around the world.

This allows users to start creating with CLIP STUDIO PAINT immediately after purchasing a device. In addition, after the usage period of the bundled or pre-installed license expires, users can continue using the application by entering into a subscription contract with us.

Through this measure, we are working to expand brand recognition of CLIP STUDIO PAINT globally, acquire new users, increase the number of subscription contracts, and enhance our reach to young people.

Going forward, by broadening our cooperation with device makers and increasing opportunities to experience CLIP STUDIO PAINT through bundling and pre-installation, we will expand our global user base and subscription revenue.

Supporting the development of next-generation creators by providing our products to educational institutions worldwide

We provide CLIP STUDIO PAINT to creative educational institutions around the world, supporting the creation and development of next-generation creators.

Adoption is progressing globally, mainly at high schools, universities, and vocational schools where students study creative fields such as illustration, manga, and animation, and as of the end of December 2025 we had provided licenses to 466 institutions.

Through cooperation with education-related organizations, we are also building a system for providing our products to educational institutions in countries around the world, and are engaged in events for creators and talent development projects.

Through these activities, we provide opportunities for young generations around the world to experience digital creation and acquire production skills and expressive ability, contributing to the development of the next-generation creators who will support the global content industry.

We also expect that creators who encounter CLIP STUDIO PAINT at educational institutions will continue to use our services as they continue their creative activities thereafter.

Going forward, we will continue to deepen our cooperation with educational institutions and education-related organizations around the world and, through CLIP STUDIO PAINT, support the creation and development of next-generation creators.

Supporting the improvement of production environments through “xdts,” a generic standard format for animation production

Together with CLIP STUDIO PAINT, we have made available “xdts,” an open, generic exposure sheet file format for animation production that anyone can use freely, supporting the improvement of animation production environments.

Animation production is an industry in which many production companies and creators divide the work to produce a single title. At the same time, because different tools are used by each production company and in each process, it is important that data can be integrated and handed over smoothly.

“xdts” is an open, generic standard format that allows exposure sheet information to be exchanged between such different production tools in a common format. It supports integration with production tools and process management tools, contributing to greater efficiency and the advancement of digitalization across the animation production workflow.

Going forward, we will continue to deepen integration with other companies' tools and promote the adoption of “xdts,” supporting the future of animation production in Japan through the creation of efficient production environments.

Three strengths supporting the competitive advantage of CLIP STUDIO PAINT

We believe there are three main strengths supporting the competitive advantage of CLIP STUDIO PAINT.

The first is the proprietary graphic technologies, and the know-how of planning, developing, and operating applications, that we have cultivated over more than 30 years of staying close to creators.

The second is that we provide functionality high enough to be supported even by professional creators while remaining available at a price that is affordable for a wide range of users. Having many users creates a virtuous cycle that enables continuous development investment.

The third is that, with a target market of 130 million people worldwide, we have built a global community in which creators can share their works and know-how. This community supports the creative activities of new users and also leads to the continued use of our services.

Through the interaction of these three elements of Expertise, Customer perspective, and Advantages of scale, we support the competitive advantage of CLIP STUDIO PAINT and have built a business foundation that leads to sustainable growth.

Over 30 years of experience, and functions that meet a wide range of creative needs, are the reasons why we are chosen

We carry out regular updates based on more than 30 years of experience in developing graphic tools and on the opinions and requests received from users. This continuous improvement of functions, together with our extensive user communities, is also a reason why CLIP STUDIO PAINT is chosen by creators around the world.

CLIP STUDIO PAINT is an all-in-one graphic application that supports the production of works in a wide range of genres, including illustration, comic, webtoon, and animation.

While equipped with a simple user interface that is easy for beginners to use, it also provides advanced functions suitable for professional production sites, and is used by a wide range of users regardless of their creative experience or purpose.

3D drawing support features using poseable models and 3D materials make it possible to efficiently consider composition and poses, and users can also use a wide variety of brushes and materials created and published by other users. The brush functions in particular provide a natural, smooth drawing experience, with access to over 40,000 brushes.

The application is also compatible with a wide range of operating systems and devices, including Windows, macOS, iPad, iPhone, and Android, providing a creative experience suited to each user's production environment and usage situation via PCs, tablets, and smartphones.

Testimonials for CLIP STUDIO PAINT from creators around the world

We present comments on CLIP STUDIO PAINT received from users active in countries around the world, including manga artists, illustrators, overseas creators, and educational institutions.

Although their creative genres and purposes vary, many users highly rate the application for aspects such as ease of drawing, production efficiency, abundant functions, and continuous updates.

In our supplementary material on financial results, we introduce comments received from creators every quarter, conveying the value that CLIP STUDIO PAINT provides through the voices of actual users.

Going forward, we will continue to reflect the opinions and requests received from creators around the world in our product development, and to evolve as a tool that supports creative activities.

Key functions of the major version upgrade of CLIP STUDIO PAINT (Ver. 5.0)

In CLIP STUDIO PAINT Ver. 5.0, released in March 2026, we implemented numerous additions and improvements, including enhanced drawing and 3D-related functions as well as new functions for young and entry-level users.

As key new functions, we added Smart Shape, which helps draw smooth curves and well-balanced figures intuitively and efficiently, and 3D Hand Model, which allows detailed adjustment of hand poses and shapes to increase drawing quality and speed.

We also added a simple mode for animation production, which makes it easy for young people and users who have just started creating to take on animation production, as well as a function to visualize production time, which visualizes users' own creation time and helps enhance motivation in their daily creative work.

In addition, we implemented approximately 400 additions and improvements to functions in the update from Ver. 4.0 to Ver. 5.0.

We have carried out continuous updates while incorporating users' feedback for more than 30 years, and we will continue to work to improve the creative experience and product value.

Conducting in-house marketing with global talent

We conduct marketing activities for countries around the world primarily through our own global staff members.

We have staff members with deep knowledge of the languages, cultures, business customs, and creator characteristics of each region, who plan and manage advertising expression and promotion methods that match the characteristics of local markets. Global talent accounts for 17% of all employees, and this talent base supports marketing activities suited to the market characteristics of each region.

By planning and executing most of our marketing measures in-house, we have also built a structure that allows us to quickly reflect market and user responses in our measures.

Our main initiatives are three: Web marketing, Influencer marketing, and Supporting events and contests.

Web marketing

We place web advertisements, optimizing language, design, and messaging for the market of each country and region. In line with our regular sales campaigns, we work to expand recognition and promote sales through media around the world.

Influencer marketing

We conduct promotion through social media in collaboration with creators and influencers in countries around the world. In FY12/25, we carried out approximately 1,000 collaborative campaigns and worked with more than 200 global ambassadors. In recent years, we have also focused on short videos introducing production processes and functions using CLIP STUDIO PAINT.

Supporting events and contests

We exhibit at and sponsor events in the entertainment field, and sponsor contests for illustration, manga, and other genres. In FY12/25, we carried out approximately 60 such activities annually in more than 20 countries and regions, working to expand our direct points of contact with creators.
By combining digital measures with real-world points of contact, we conduct marketing suited to each market, leading to expanded recognition and user acquisition globally.

Expanding points of contact with creators by exhibiting at and sponsoring real events around the world

In addition to online marketing, we exhibit at and sponsor real events in the entertainment field, such as illustration, manga, and animation events, held around the world.

In FY12/25, we participated in approximately 60 events and contests annually in more than 20 countries and regions. From April to June 2026, we also conducted activities in regions including Japan, South Korea, Taiwan, Thailand, the Philippines, Australia, Germany, Spain, Mexico, and Canada.

At real events, we provide opportunities to actually experience CLIP STUDIO PAINT and, by making direct contact with local creators and users, work to improve product recognition and expand our user communities.

In addition to exhibiting at and sponsoring events, we are also advancing cooperation with local educational institutions and education-related organizations. Through these initiatives, we work not only to expand recognition of CLIP STUDIO PAINT but also to provide opportunities for next-generation creators to experience digital creation.

Going forward, we will continue activities suited to the market characteristics and creator cultures of each region, broadening our points of contact with creators around the world.

Main recent activity topics (April to June 2026)

This section introduces the main activity topics from April to June 2026. In addition to product development, we are advancing a variety of initiatives globally, including cooperation with educational institutions, collaboration with device makers, and the energizing of creator communities.

(1) Technical support for “Mission: SPACE COMIC” by JAXA and Kodansha

We provided technical support through CLIP STUDIO PAINT for “Mission: SPACE COMIC,” a project by JAXA and Kodansha to draw a comic in space. This initiative supports a new challenge of creating in outer space.

(2) Adoption as the official creation app by YLAB ACADEMY

CLIP STUDIO PAINT was adopted as the official creation app by YLAB ACADEMY, one of South Korea's largest educational institutions specializing in Webtoon and digital content creation. This initiative supports the development of next-generation creators in the Webtoon field and also leads to an increase in overseas users.

(3) Pre-installation on a Motorola smartphone

CLIP STUDIO PAINT was pre-installed on a Motorola device for worldwide distribution, the first time it has been pre-installed on a smartphone. As part of our mobile strategy, we are advancing the expansion of new points of contact with users.

(4) Holding contests globally

We continuously hold illustration and comic contests, as well as coloring contests jointly with other companies, in regions around the world, working to create points of contact with creators and energize our communities.

Achieving continuous product improvement through extensive user support

So that users around the world can use CLIP STUDIO PAINT with confidence, we have built a user support structure that is available globally 365 days a year.

All user support is handled by our own staff members, who respond in multiple languages including Japanese, English, and Korean.

In addition, inquiries and improvement requests received through support are visualized using a tool that we develop and operate in-house, and are shared with the development division at any time. This has enabled us to build a structure that quickly grasps user needs and reflects them in product development.

In user support, we have designated as important KPIs the “Thank-you ratio,” which measures whether inquiries were closed with words of gratitude such as “thank you,” and response time, and are working to improve response quality.

Through these initiatives, we link users' voices to continuous product improvement, aiming to provide an application that is highly rated by creators around the world.

Accelerating management decision-making through data visualization and real-time analysis

We have developed in-house a tool that visualizes various business and management data and enables real-time analysis and simulation, and we use it in our management.

By grasping data across areas such as sales results and forecasts, user behavior, needs, contract status, and internal operations, we work to accelerate decision-making and improve its accuracy in budget management, customer analysis, investment strategy, and cost management.

As a specific example, we analyze results and business outlook figures within about five business days from the quarter-end date, and reflect the results in our monthly “Monthly Progress Report” and in revisions to our financial results forecasts as necessary. By grasping issues and changes in real time, we have built a structure that allows us to promptly implement responses aimed at achieving our targets.

We also analyze user needs obtained from creator support and development, and use them to optimize promotions and improve our products. With respect to investment and costs, we continuously review allocation while identifying growth drivers, leading to improved operational efficiency and profitability.

Through this data-driven management control structure, we achieve agile strategy formulation in response to changes in the environment, and the appropriate allocation of management resources.

Impact on business performance from U.S. tariff measures and foreign exchange fluctuations

Here we explain, based on our business structure, the impact on our business performance of U.S. tariff measures and foreign exchange fluctuations, about which we frequently receive questions from investors.

Impact from U.S. tariff measures

Because our business consists mainly of providing digital services rather than the import or export of physical products, it is not directly subject to U.S. tariff measures. Accordingly, at this time there is no impact on our business performance or on our financial results plan.

Impact from foreign exchange fluctuations

While our overseas sales ratio is high, not only sales but also expenses associated with our overseas operations, such as server usage fees and advertising expenses, are incurred in currencies other than Japanese yen. As a result, our business structure is one in which the effects of foreign exchange fluctuations on sales and on expenses offset each other to a certain extent.

In addition, given our high marginal profit ratio, a weaker yen tends to have a positive effect on our business performance.

Furthermore, our overseas sales and overseas expenses are diversified across multiple currencies; not only the U.S. dollar but also the euro, the Korean won, and others, so our structure is not one in which fluctuations in any single currency have a major impact on our business performance.
Given this business structure, we believe that the impact of U.S. tariff measures and foreign exchange fluctuations on our financial results plan is limited.

Reference Material (2) Monthly Progress

Reference material: Creator Support Field - ARR (three-month moving average) trends (June 2026)

The subscription ARR of CLIP STUDIO PAINT (three-month moving average) has continued to grow.

As of June 2026, it reached a record high of 6.3 billion yen. The increase from the same month of the previous year was also a record high of 1.48 billion yen (up 31% YoY), and the growth of the subscription business is accelerating.

As subscription contracts accumulate, ARR expands steadily every year, and the building of a stable recurring revenue base is progressing.

Reference material: Creator Support Field - Churn rate trends (June 2026)

The churn rate for paid subscription contracts of CLIP STUDIO PAINT has remained on a stable trend.

Although fluctuations are seen around the time of the version upgrade and campaigns each March, due to the effect of temporary cancellations and re-subscriptions, the rate is generally maintained at a low level in the 4% range in normal periods.

The churn rate in June 2026 was 4.9%, and it has trended without major fluctuation over the past several years.

Going forward, we will work to maintain a stable contract retention rate through the enhancement of product value and user support.

Reference material: Creator Platform Field - Number of users trends (June 2026)

In the Creator Platform Field, we operate community services that link with CLIP STUDIO PAINT and services that support the use of works, and the number of users is steadily increasing.

As of June 2026, the cumulative number of users was 13.08 million, surpassing 13 million. In addition, the number of new registrants in the current fiscal year has trended at a level exceeding 200,000 every month, and the user base is expanding steadily.

This user base will be an important foundation as we enhance services that support creators' creative activities as a whole: drawing, learning, sharing, and communicating. Going forward, we will aim to grow the creator platform through the expansion of users and the enhancement of services.

Reference material: Sales by field (three-month moving average) trends (June 2026)

Sales by field are shown as a three-month moving average, which smooths out monthly fluctuations.

Due to the major version upgrade implemented each March, sales from tool sales (one-time purchase version) increase significantly in March. Because a three-month moving average is used, the impact of the increase in sales due to tool sales (one-time purchase version) for the major version upgrade conducted in March every year is reflected up to May.

In 2026, in addition to tool sales (one-time purchase version) trending above the previous year, subscription sales also reached a record high, and the Creator Support Field as a whole is growing steadily.

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