Avex Posts Record Fiscal 2025 Revenue and Profit, Accelerates Global Music Rights and IP Expansion

Avex Inc. (7860), a Tokyo-based entertainment conglomerate led by CEO Katsumi Kuroiwa, reported record financial results for the fiscal year ended March 31, 2026. The company achieved net sales of approximately USD 971 million (JPY 146.6 billion), marking an 11.3% increase compared to the prior year and representing its highest revenue level since the onset of the COVID-19 pandemic.

Operating profit improved significantly to approximately USD 27 million, reversing a loss of USD 12 million in the previous fiscal year. This turnaround reflects a year-over-year operating profit improvement of roughly USD 39 million. Key drivers included increased revenue from live performances, strong global sales in the anime segment, and continued optimization of selling, general, and administrative expenses.

Avex’s gross margin expanded to 28.5%, while net income attributable to shareholders surged 212.1% year-over-year to approximately USD 24 million. Looking ahead, the company issued guidance for fiscal 2026 operating profit of approximately USD 40 million, projecting a 47% increase as it continues to invest in long-term global growth initiatives spanning music, anime, live entertainment, publishing, and intellectual property ownership.

CEO Katsumi Kuroiwa emphasized the company’s ongoing transformation into a globally integrated entertainment and intellectual property enterprise. "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," Kuroiwa stated. "Our strategy remains focused on building world-class artists, creators, and intellectual property with a long-term global perspective."

Avex Music Group, the company’s U.S.-based global music division led by Brandon Silverstein, continued to expand its music rights strategy through investments in publishing, artist management, recorded music, catalog acquisitions, and global creative infrastructure during fiscal 2025.

The group has developed a "world-class creative framework" by growing its U.S. publishing business and expanding its global creator network. Its publishing and creative ecosystem contributed to numerous internationally recognized releases across genres including pop, hip-hop, R&B, K-pop, and dancehall. Notable works include the GRAMMY Award-winning "Folded" by Kehlani (Kamal Wilson), "Nokia" by Drake (Elkan), and multiple releases from Tate McRae such as "Sports Car," "Tit for Tat," and "Revolving Door" (Grant Boutin).

The publishing division and its creators received five ASCAP awards during the fiscal year, underscoring sustained momentum within the global songwriter and producer community.

As part of its broader music rights strategy, Avex launched a USD 100 million global music catalog investment initiative aimed at expanding its music-related rights business and maximizing long-term monetization of premium intellectual property assets.

In the first phase of this initiative, Avex acquired the music catalog of producer "infamous," which includes rights associated with "Lose Control" by Teddy Swims, one of the year’s most commercially successful global releases.

Additionally, Avex Music Group entered into a global music publishing partnership with Bruno Mars, under which it will administer exclusive global publishing rights for future musical works created during the partnership term.

Avex also bolstered its international operating platform by acquiring a majority stake in U.S.-based management company S10 Entertainment, now a consolidated subsidiary within the Avex Group.

Brandon Silverstein, CEO of Avex Music Group and founder of S10, highlighted the company’s strategic vision: "We are building a modern entertainment company centered around ownership, intellectual property, global artist development, and long-term strategic partnerships. 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."

Silverstein added, "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. 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."

In the live entertainment arena, the Japanese girl group XG completed its inaugural world tour, performing in 35 cities with total attendance exceeding 400,000 fans worldwide. The tour concluded with a performance at Tokyo Dome. XG also achieved approximately 5.91 million monthly Spotify listeners, with roughly 80% of their audience located outside Japan.

Avex’s fiscal 2025 results and strategic initiatives underscore its commitment to evolving as a global leader in music, anime, and intellectual property management, leveraging a diversified portfolio and international partnerships to drive sustainable growth.