LY (4689) Q1 2026 earnings summary

Executive summary

• Consolidated revenue for Q1 reached JPY489.6B, up 5.7% year-over-year, with adjusted EBITDA at JPY125.8B, up 3.4% year-over-year, both record highs for the first quarter.

• Growth was driven by account ads, PayPay consolidation, and phased LINE app revamp with AI feature rollout.

• Operating income declined 11.0% year-over-year to JPY95.0B due to the absence of prior year's non-cash gain.

• Major acquisitions included BEENOS Inc., LINE Bank Taiwan Limited, and LYST LTD.

Financial highlights

• Adjusted EBITDA margin was 25.7%, with adjusted EPS up 7.1% year-over-year to JPY6.05.

• E-commerce transaction value grew 8.1% year-over-year to JPY1,180.2B, with domestic shopping up 5.9% and Yahoo! Shopping up 6.9%.

• PayPay consolidated revenue increased 22.1% year-over-year to JPY96.6B, with adjusted EBITDA at JPY20.9B and margin at 21.7%.

• Share repurchases of JPY116.2B completed and canceled, with an additional JPY38.5B repurchase plan announced.

Outlook and guidance

• Q1 results represent 23.3% of annual revenue guidance and 24.7–25.2% of adjusted EBITDA guidance, with full-year targets expected to be met.

• FY2025 revenue forecast: JPY2,100.0B (+9.5% YoY); adjusted EBITDA guidance: JPY500.0–510.0B (+6.2–8.3% YoY).

• Continued focus on digital transformation, AI integration, and capital efficiency.