LY (4689) Q3 2025 earnings summary

Executive summary

• Group revenue grew 6.1% year-on-year in Q3 FY2024 to JPY 1,428.7 billion, with adjusted EBITDA up 17.5% to JPY 363.4 billion, driven by account advertising, PayPay, and commerce growth.

• Quarterly revenue exceeded JPY 500 billion for the first time, and both adjusted EBITDA and adjusted EPS are tracking above 75% of annual guidance.

• Dividend forecast was revised upward to JPY 7.00 per share, with ongoing consideration for share buybacks and a total shareholder return target of 70%+ over 2025–2029.

• Acquisition of BEENOS Inc. for JPY 54 billion aims to boost cross-border e-commerce and reuse business, expected to contribute to profit and adjusted EPS from the first year.

• Net income attributable to owners of the parent was JPY 127.7 billion, up 4.3% year-on-year.

Financial highlights

• Adjusted EBITDA margin improved to 25.6% due to fixed cost optimization and disciplined investments.

• Adjusted EPS for Q3 was JPY 6.351, up 29.3% year-on-year; for the period, adjusted EPS was 17.33 yen, up 6.1%.

• Operating income increased 46.2% year-on-year to JPY 254.8 billion.

• Cash inflows increased from improved operating cash flow, with cash and cash equivalents at JPY 1,328.2 billion at period end.

• Share buyback of approximately JPY 150.0 billion executed in FY2024 Q2.

Outlook and guidance

• Adjusted EBITDA and adjusted EPS are progressing well, both exceeding 75% of annual guidance.

• FY2024 revenue forecast is JPY 1,935.0 billion, up 6.6% year-on-year; adjusted EBITDA guidance is JPY 450.0–460.0 billion.

• Dividend of JPY 7.00 is set as a minimum, with future increases dependent on business performance.

• Remaining capital allocation buffer of JPY 80 billion will be rolled forward to FY26 and beyond, with continued consideration for share buybacks.

• Continued active investments planned in Commerce and Strategic Businesses in Q4.