Earnings momentum still driven by company-specific trends; downgrade ANYCOLOR to Neutral and Cover to Sell: JAPAN SMID: VTUBER

Research evidence excerpt

Earnings momentum still driven by company-specific trends; downgrade ANYCOLOR to Neutral and Cover to Sell: JAPAN SMID: VTUBER

Equity Research

18 June 2026 | 3:51PM JST

JAPAN SMID: VTUBER

Earnings momentum still driven by company-specific trends;

downgrade ANYCOLOR to Neutral and Cover to Sell

Overall view on the VTuber sector: In terms of the net increase in YouTube channel Norihiro Miyazaki

+81(3)4587-9842 |

subscribers (YTD through end-May 2026), ANYCOLOR saw an increase of +4.4 mn, norihiro.miyazaki@gs.com

Goldman Sachs Japan Co., Ltd.

while Cover saw an increase of +1.6 mn (Exhibit 1). Comparing the annualized net

Ryohei Kuritaincrease (+10.6 mn and +3.9 mn, respectively) to the median of the past three +81(3)4587-1799 |

years, ANYCOLOR is acquiring subscribers at a similar scale, whereas Cover is ryohei.kurita@gs.comGoldman Sachs Japan Co., Ltd.

acquiring fewer subscribers. We believe the divergence between the two

companies is due to a combination of factors, including the number of new VTuber

debuts, the departure of existing VTubers, and the acquisition of new customer

demographics through content diversification by existing VTubers. Therefore, amid

YouTube’s penetration, especially among younger demographics, we believe

that a divergence is emerging in fan base acquisition momentum depending on

each company’s content strategy and its results. In terms of the risk of

substitution by generative AI, we believe that a certain degree of market

segmentation exists, considering that AI-driven YouTubers that can converse (e.g.,

Neuro-sama) have existed for some time and have not replaced the content of

existing VTubers. ANYCOLOR and Cover, as VTuber agencies, have large existing fan

bases, and we believe this functions as a barrier to entry, as it makes it easier for