LY (4689) Q4 2025 earnings summary

Executive summary

• Achieved record consolidated revenue of JPY 1,917.4 billion (up 5.7% year-over-year) and adjusted EBITDA of JPY 470.8 billion (up 13.5% year-over-year) for FY2024, with all business segments showing growth and improved profitability post-merger.

• Surpassed initial adjusted EBITDA guidance by JPY 30.0–40.0 billion, driven by product growth and profitability improvements.

• Net income attributable to owners rose 35.6% to JPY 153.5 billion; basic EPS increased to JPY 21.00 (up 39.1%).

• Announced up to JPY 150 billion share repurchase to enhance capital efficiency.

• FY2025 will focus on transforming LINE Official Account and Mini App into a business platform, evolving PayPay into a digital financial platform, and deploying AI agents at scale.

Financial highlights

• Adjusted EBITDA margin expanded to 24.6% in FY2024 from 22.9% in FY2023 due to lean operations.

• Adjusted EPS rose 11.7% year-over-year to JPY 24.9 (old definition); redefined adjusted EPS at JPY 19.6 (+3.8% YoY).

• Operating income surged 51.3% year-over-year to JPY 315.0 billion; profit before tax up 51.3% to JPY 274.9 billion.

• Domestic shopping transaction volume grew 5.1% year-over-year; Yahoo! JAPAN Shopping transaction volume up 6.7%.

• Cash and cash equivalents at period end were JPY 1,043.9 billion, down 26.5% from prior year.

Outlook and guidance

• FY2025 guidance: consolidated revenue approx. JPY 2,100.0 billion (up 9.5%), adjusted EBITDA JPY 500.0–510.0 billion (up 6.2–8.3%), and adjusted EPS JPY 25.9–26.9 (up 4.0–7.9%).

• High single-digit growth in both revenue and profit expected, with continued investment in AI, digital platforms, and business platforms.

• Year-end dividend for FY2024 and FY2025 set at JPY 7.00 per share; share repurchase planned for FY2025.

• PayPay IPO preparations underway; financial forecasts for PayPay consolidated not disclosed for FY2025.

• No direct impact expected from recent U.S. tariff measures; monitoring macroeconomic effects.