Sanrio Company, Ltd. · FY3/2026
Sanrio’s many characters generate ¥96.4 billion in royalties.
Sanrio creates characters such as Hello Kitty and Cinnamoroll, plans and sells merchandise, and operates theme parks. It also licenses characters to manufacturers, retailers and other businesses in exchange for royalties.
One character can earn revenue in two different ways
Who pays Sanrio?
Examples: merchandise licensing and sales through Sanrio’s own shops.
The right to use a character
Sanrio grants manufacturers and retailers the right to use characters↓
Manufacturers and retailers pay Sanrio usage fees↑
The licensee plans, designs, manufactures and sells products.
The product itself
Sanrio shops and online stores provide goods to shoppers↓
Shoppers pay Sanrio shops and online stores for goods↑
Sanrio sells merchandise it has planned through its own shops.
Royalties are contractual usage fees. Sanrio does not receive the full retail price of a licensed product.
Source: company presentation, PDF pp.11–12 (printed pp.10–11, Japanese)
Selling its own goods and granting other companies the right to use characters produce different types of revenue. The 40.1% operating margin covers the consolidated group, including these activities and theme parks. It is not a licensing-only margin.
Read the character mix as three separate categories
Which character categories contribute to merchandising and licensing gross profit in Japan and overseas? Sanrio separates Hello Kitty, multi-character and other characters.
The Hello Kitty category’s share, a decade apart
Company-disclosed share of merchandising and licensing gross profit in Japan and overseas (%). Both bars compare the same category on a common scale starting at 0. Multi-character is a separate category.
Source: results presentation, PDF page 12 (printed page 11).
A share measures a category relative to the total. These figures alone do not establish that the amount of Hello Kitty gross profit declined. Sanrio says greater use of characters other than Hello Kitty broadened the range contributing to growth.
In the fan ranking, Hello Kitty finished fifth
The breadth of that portfolio is also visible outside the financial statements.
Having fans across many characters gives Sanrio choices for products and collaborations. The vote ranking is not a ranking of gross profit, however, and votes are not a count of purchasers.
Licensing and merchandising both grew overseas
Overseas revenue includes both licensing to local businesses and merchandise sales. The overseas results included in FY3/2026 cover January–December 2025.
Licensing to fast-fashion brands grew in Europe. In China, toy licensing expanded alongside merchandise sales supported by a larger store network. Licensing alone does not explain all the overseas increase (results presentation, PDF pages 9 and 16–17).
Next, Sanrio wants to do more than license its characters to others
THE VIEW AFTER THE NUMBERS
What the numbers suggest
Sanrio earns revenue from selling its own goods and charging other businesses to use its characters. Royalty sales reached ¥96.4 billion in FY3/2026.
The character portfolio behind those revenues extends beyond one star. Merchandising and licensing gross profit in Japan and overseas was split into Hello Kitty at 37.3%, multi-character at 16.2%, and other characters at 46.5%. Uses involving several characters are disclosed as their own category.
Licensing connects the characters with manufacturers and brands in different markets. Sanrio also invests in its own stores and products, and plans self-published games and in-house animation. Developing characters and expanding the products, places and content where people encounter them connect these businesses.
Primary sources used
FY3/2026 Full-Year Results Presentation
Sanrio Company, Ltd. · 2026-06-23
Pages used: p.10 / p.12 / p.13
Open source →Long-Term Vision / Mid-Term Management Plan Update 2025
Sanrio Company, Ltd.
Pages used: p.26
Open source →Final Results for the 2026 Sanrio Character Ranking
Sanrio Company, Ltd. · 2026-06-28
Open source →Sanrio Launches New Brand “Sanrio Games”
Sanrio Company, Ltd. · 2026-04-21
Open source →Company Presentation for Individual Investors (2025, Japanese)
Sanrio Company, Ltd.
Pages used: p.11-12
Open source →