GMO Financial Gate (4051) Q3 2025 earnings summary

Executive summary

• Recurring revenue expanded steadily in Q3 FY2025, driving profit growth at all stages, while initial sales declined due to increased marketing of terminal-less payments in the SME segment.

• Strategic acquisition of high-ARPU merchants in daily life necessities and a restaurant DX/mobile ordering business enhanced recurring revenue and OMO support.

• Achieved highest "A" rating in CDP Supplier Engagement score, reflecting ESG progress.

• Cashless payment transaction volume and GMV grew strongly, offsetting a fall in initial sales from payment terminals.

• Net profit attributable to owners increased 44.5% YoY to ¥1,351 million, with basic EPS up to ¥163.48.

Financial highlights

• Q3 FY2025 revenue: ¥13.19 billion (YoY -3.0%), operating profit: ¥1.81 billion (YoY +27.9%), profit attributable to owners: ¥1.35 billion (YoY +44.5%).

• Recurring revenue: ¥6.42 billion (YoY +29.8%); initial revenue: ¥6.76 billion (YoY -21.7%).

• Gross profit: ¥4.97 billion (YoY +18.1%), with cost of goods sold decreasing.

• Transaction volume: 283.2 million (YoY +42.1%); GMV: ¥2.1 trillion (YoY +28.8%).

• Total assets as of June 30, 2025: ¥12.58 billion; total equity: ¥6.22 billion.

Outlook and guidance

• FY2025 operating profit forecast revised upward to ¥2.22 billion (+46.6% YoY), driven by recurring revenue and SG&A cost control.

• Revenue forecast revised downward due to lower SME initial revenue from terminal-less payment marketing.

• Dividend per share raised to ¥90, up ¥10 from previous guidance.

• Targeting 1.2 million active IDs and ¥10 billion operating profit by 2033.