GMO Financial Gate (4051) Q4 2025 earnings summary

Executive summary

• Operating profit grew 45.6% year-over-year, driven by recurring revenue expansion, increased efficiency, and profitable development sales.

• Revenue for FY2025 was ¥17.9bn, down 4.2% YoY, mainly due to a decline in initial terminal sales after a large project, despite strong recurring revenue and transaction volume growth.

• Profit attributable to owners increased 61.0% YoY to ¥1.63bn.

• Expansion in active IDs and merchant ecosystem in daily life necessities supported profit growth.

• Launched "Digital Restaurant byGMO" and acquired TakeMe Co., Ltd.'s mobile order business for ¥130 million.

Financial highlights

• Gross profit rose to ¥6.61bn (up 9.3% YoY); basic EPS increased to ¥197.49 from ¥121.99 YoY.

• Operating profit: ¥2.23bn (up 45.6% YoY); profit attributable to owners: ¥1.63bn (up 61.0% YoY).

• Cash and cash equivalents at period end were ¥4,257.3m, down from ¥5,060.5m.

• Total assets decreased to ¥13,832.5m, while total equity increased to ¥6,494.3m.

• Transaction volume: 1.05bn (up 41.4% YoY); GMV: ¥8.2tn (up 30.1% YoY).

Outlook and guidance

• FY2026 revenue forecast: ¥19.73bn (up 10.1% YoY); operating profit forecast: ¥2.8bn (up 25.5% YoY); profit attributable to owners forecast: ¥1.87bn (up 14.6% YoY).

• Dividend per share forecast: ¥125 for FY2026, up from ¥99 in FY2025.

• Number of active terminals expected to reach 513K (up 17.1% YoY).

• Growth expected from new service launches for major commercial facilities and recurring revenue expansion.

• Continued focus on AI utilization and operational efficiency to drive profit growth.