GMO Financial Gate (4051) Q1 2025 earnings summary

Executive summary

• Recurring revenue and profit expanded in Q1 FY2025, with operating profit up 69.1% YoY and profit at all stages progressing ahead of full-year targets.

• Revenue for Q1 FY2025 rose 1.9% YoY to ¥4,584 million, driven by increased offline cashless payment platform usage and year-end campaigns.

• Mid-term plan targets operating income of 10 billion yen by 2033, focusing on payment solutions, merchant DX, and increased payment activity.

• ESG initiatives advanced, including a B score from CDP for the second consecutive year and new human capital policies.

• Profit attributable to owners of parent jumped 90.1% YoY to ¥602 million, with basic EPS at ¥72.71.

Financial highlights

• Q1 FY2025 revenue: ¥4.58bn (YoY +1.9%), operating profit: ¥0.83bn (YoY +69.1%), net profit: ¥0.60bn (YoY +90.1%).

• Gross profit rose 25.1% YoY to ¥1.59bn, driven by recurring sales and higher-margin terminal mix.

• Recurring-model revenue: ¥2.01bn (YoY +27.6%), initial revenue: ¥2.56bn (YoY -12.0%).

• Transaction volume: 0.23bn (YoY +44.3%), GMV: ¥1.98tn (YoY +36.4%).

• Number of active terminals: 393K (YoY +20.6%).

Outlook and guidance

• Full-year FY2025 guidance maintained: revenue ¥22,200 million (+18.7% YoY), operating profit ¥2,020 million (+31.9% YoY), profit attributable to owners of parent ¥1,316 million (+29.9% YoY).

• Progress toward 1H and full-year forecasts: revenue at 47.4%/20.7%, operating profit at 75.9%/41.0%.

• Plan to actively invest from Q2 onward, leveraging strong profit progress.

• Targeting +15–20% YoY growth in spread revenue through merchant portfolio review and new cashless solutions.

• The company expects continued growth in cashless payments, supported by government initiatives and rising inbound tourism.