Delivers Highest Post-Pandemic Revenue, Returns to Profitability, Expands Global Publishing & Music Rights Platform, and Strengthens International Entertainment Infrastructure
TOKYO, May 15, 2026 /PRNewswire/ -- Avex Inc. (TSE: 7860) ("Avex"), led by CEO Katsumi Kuroiwa today announced financial results for the fiscal year ended March 31, 2026, highlighted by strong revenue growth, a return to profitability, continued expansion across its global music and anime businesses, and accelerated execution of its long-term intellectual property and music rights strategy.
FY2025 net sales reached approximately USD 971 million (JPY 146.6 billion), increasing +11.3% year-over-year and representing the company's highest revenue level since the COVID-19 pandemic. Operating profit improved to approximately USD 27 million from a loss of approximately USD (12) million in the prior fiscal year, representing a year-over-year improvement of approximately USD 39 million and a return to profitability, driven by increased live performance-related revenue, strong global sales of anime titles in the anime related business, and continued optimization of SG&A expenses.
Gross margin expanded to 28.5%, while net income attributable to shareholders increased +212.1% year-over-year to approximately USD 24 million.
The company also issued FY2026 operating profit guidance of approximately USD 40 million, implying expected year-over-year growth of +47% in profit as Avex continues investing in long-term global growth initiatives across music, anime, live entertainment, publishing, and intellectual property ownership.
"Our FY2025 results reflect meaningful progress as we continue transforming Avex into a more globally integrated entertainment and intellectual property company," said Katsumi Kuroiwa, CEO Avex. "We are seeing strong momentum across recorded music, publishing, live entertainment, anime, and international rights management while continuing to strengthen the long-term earnings profile of the company. Our strategy remains focused on building world-class artists, creators, and intellectual property with a long-term global perspective."
Global Rights Management, Publishing & Catalog Expansion
During FY2025, Avex Music Group, Avex's U.S.-based global music company led by Brandon Silverstein, continued expanding its global music rights strategy through investments across publishing, artist management, recorded music, catalog acquisitions, and global creative infrastructure.
The company stated it has built a "world-class creative framework" through the continued growth of its U.S.-based publishing business and expanding global creator network.
During the past year, the company's publishing and creative ecosystem contributed to numerous globally recognized releases across pop, hip-hop, R&B, K-pop, and dancehall markets, including the GRAMMY Award winning "Folded" by Kehlani (Kamal Wilson), "Nokia" by Drake (Elkan), and multiple releases from Tate McRae including "Sports Car," "Tit for Tat," and "Revolving Door" (Grant Boutin), among others
The company's publishing division and creators also received five ASCAP awards during the fiscal year, reflecting continued momentum across the global songwriter and producer community.
As part of its broader music rights strategy, the company launched a USD 100 million global music catalog investment initiative designed to further expand its music-related rights business and maximize the long-term utilization and monetization of premium intellectual property assets.
As the first phase of the initiative, the company acquired the music catalog of producer "infamous," including rights associated with "Lose Control" by Teddy Swims, one of the most commercially successful global releases of the year.
The company also launched a global music publishing partnership with Bruno Mars, under which Avex Music Group will administer exclusive global music publishing rights for future musical works created during the term of the partnership.
Avex further strengthened its international operating platform through the acquisition of a majority stake in U.S.-based management company S10 Entertainment, which now operates as a consolidated subsidiary within the Avex Group.
"We are building a modern entertainment company centered around ownership, intellectual property, global artist development, and long-term strategic partnerships," said Brandon Silverstein, CEO of Avex Music Group and Founder of S10.
"We believe the future of the industry will be defined by companies capable of operating across culture, rights ownership, worldwide distribution, and international infrastructure at scale. Through the combination of global publishing, premium music rights ownership, artist management, recorded music, anime, and strategic partnerships, we believe Avex Music Group is uniquely positioned for long-term global growth."
Silverstein continued, "Our focus is on creating world-class artists, creators, and content while continuing to build a long-term global rights platform capable of generating sustainable intellectual property and recurring revenue for decades to come."
Global Artist Development & International Growth
XG completed its first world tour across 35 cities with total attendance exceeding 400,000 fans worldwide, concluding with a performance at Tokyo Dome. The group also reached approximately 5.91 million monthly Spotify listeners, with approximately 80% of listeners located outside of Japan.
The group's first full album also ranked within the Billboard 200, reflecting the continued international expansion of Japanese-origin global artists.
ONE OR EIGHT continued its international breakout momentum as "TOKYO DRIFT" surpassed 280 million TikTok views and charted across 36 countries and regions globally. The group also signed a global major label agreement with Atlantic Music Group during FY2025.
In addition, the company announced the debut of VIBY, a five-member Japanese boy group developed through the "Rii.MJ Project" led by executive producer KIM MI JEONG, who is recognized for discovering members of BTS and Tomorrow X Together. The group's pre-debut tracks surpassed 25 million social media views within seven days of release ahead of its official debut in June.
Avex continued expanding its international infrastructure through investments across Los Angeles, Tokyo, Miami, Puerto Rico, Mexico City, and other strategic markets as part of its long-term global growth strategy.
Music Business Returns to Strong Profitability
Avex's Music Business segment generated approximately USD 810 million in revenue during FY2025, increasing +6.8% year-over-year, while operating profit improved from a loss of approximately USD (8) million to a profit of approximately USD 23 million.
Live entertainment became the primary growth driver within the segment, with live-related revenue increasing +17.4% year-over-year to approximately USD 354 million, supported by continued arena-scale touring activity and expanding international fan engagement. Digital music distribution revenue also increased +12.5% year-over-year to approximately USD 103 million, reflecting continued global streaming growth.
Avex continued expanding its recurring revenue businesses through music publishing, digital distribution, management and membership, and catalog monetization initiatives as part of its broader long-term IP accumulation strategy.
Anime & Visual Content Continues International Expansion
The Anime & Visual Content segment delivered one of the company's strongest performances during FY2025, with revenue increasing +17.5% year-over-year to approximately USD 144 million, while operating profit increased +254.8% year-over-year to approximately USD 7 million.
Anime revenue alone increased +26.9% year-over-year, driven primarily by strong overseas licensing and international streaming demand as global consumption of Japanese content continued to accelerate.
The company continues building a highly profitable anime portfolio focused on global distribution, recurring catalog monetization, and cross-platform franchise development. The global anime market is now estimated at approximately USD 24.5 billion, with the overseas anime market excluding Japan expanding at an estimated CAGR of approximately 8.7% over the past decade, according to The Association of Japanese Animations (AJA).
SOURCE Avex Music Group
