GMO Financial Gate (4051) Q1 2026 earnings summary

Executive summary

• Operating profit for Q1 FY2026 exceeded both first-half and full-year guidance, driven by strong recurring revenue growth and expansion in the life necessities domain.

• Revenue for Q1 FY2026 rose 7.8% year-over-year to ¥4,942.8 million, driven by increased cashless payment adoption and strong year-end holiday demand.

• Operating profit increased 15.3% year-over-year to ¥954.7 million, with recurring-model revenue growth offsetting a decline in initial revenue from large projects.

• The number of active IDs and ecosystem in essential services continues to expand, supporting sustainable profit growth.

• Profit attributable to owners of parent was ¥644.8 million, up 7.0% year-over-year.

Financial highlights

• Revenue reached ¥4.94bn, up 7.8% year-over-year; gross profit rose 13.2% to ¥1.8bn.

• Operating profit increased 15.3% year-over-year to ¥954mn; profit attributable to owners grew 14.8% to ¥951mn.

• Dividend per share increased 7.0% year-over-year to ¥644.

• Recurring-model revenue grew 31.0% year-over-year to ¥2.64bn, now 53.5% of total revenue.

• Transaction volume surged 34.8% year-over-year to 319.51mn; GMV rose 24.3% to ¥2.47tn.

Outlook and guidance

• Full-year FY2026 revenue is forecast at ¥19,730 million, up 10.1% year-over-year.

• Operating profit is projected to reach ¥2,800 million (up 25.5% YoY), and profit attributable to owners of parent is expected at ¥1,870 million (up 14.6% YoY).

• Progress toward first-half operating profit forecast is 68.7%; full-year progress is 34.1%.

• Targeting 75K new IDs in FY26, with a long-term goal of 1.2 million IDs by 2033.

• Mid- to long-term strategy aims for ¥10bn operating profit by 2033, with recurring ARPU to reach ¥25K and gross profit margin above 70%.