PayPay (PAYP) investor relations material

Executive summary

• Q1 FY2026 total revenue grew 27% year-over-year to JPY 109.8bn, driven by both payment and financial service segments, with profit for the period up 83% to JPY 19.7bn and adjusted EBITDA margin reaching 34%.

• Adjusted EBITDA rose 59% year-over-year, with margin expanding to 34% from 27% in the prior year.

• Raised full-year guidance for FY2026 and FY2027, now expecting total revenue of JPY 465–473bn and adjusted EBITDA of JPY 149.0–155.0bn, reflecting continued momentum.

• Announced acquisition of a 70.2% stake in T&D Financial Life Insurance Company, targeting entry into the JPY 45tn Japanese life insurance market, with completion targeted for October 1, 2027, pending regulatory approvals.

• Continued expansion of the eKYC-verified user base to 42.5 million, supporting anti-fraud and AML/CFT initiatives.

Financial highlights

• Payment segment revenue rose 25% year-over-year to JPY 88.6bn; GMV reached JPY 5.4tn, up 23%; PayPay Card GMV up 28%, PayPay Credit GMV up 30%.

• Financial service segment revenue increased 44% year-over-year to JPY 22.5bn; deposit accounts reached 10.2 million, with deposits up 17% and loans up 37%.

• Adjusted EBITDA for Q1 FY2026 was JPY 37.4bn, up 59% year-over-year.

• ARPU increased to JPY 990, up from JPY 840 in the prior year.

• Profit for the period margin improved to 18% from 13% year-over-year.

Outlook and guidance

• FY2026 and FY2027 full-year revenue guidance raised to JPY 465–473bn; Adjusted EBITDA guidance raised to JPY 149.0–155.0bn.

• Q2 FY2026 revenue guidance set at JPY 114–116bn, Adjusted EBITDA at JPY 37.5–39.5bn.

• Continued strong momentum expected from Q2 onward.