Rakuten Group (4755) Q2 2025 earnings summary

Executive summary

• Consolidated Q2 FY2025 revenue rose 11% year-on-year to JPY 596.4 billion, with all major business segments contributing to growth and the first Q2 profit since FY2019 driven by operational efficiencies and AI integration.

• Consolidated EBITDA surged 54.5% year-on-year to JPY 103.2 billion, a record high for Q2, with Rakuten Mobile standalone EBITDA improving by JPY 19.1 billion year-on-year to JPY 5.6 billion.

• Official launch of Rakuten AI and Agentic AI service, expanding AI integration across the ecosystem and planning further expansion.

Financial highlights

• Consolidated non-GAAP operating income improved by JPY 31.9 billion year-on-year to JPY 20.1 billion, and IFRS operating income increased by JPY 27.2 billion year-on-year to JPY 8.8 billion.

• Quarterly net loss was JPY 40.1 billion, impacted by increased tax expenses and non-recurring items, including JPY 4.9 billion in additional taxes for Rakuten Card and JPY 1.0 billion in compensation for unauthorized access at Rakuten Securities.

• All segments posted revenue growth: Internet Services +6.8% YOY (JPY 324.5bn), FinTech +14.8% YOY (JPY 232.7bn), Mobile +18.1% YOY (JPY 112.1bn).

Outlook and guidance

• On track to achieve full-year EBITDA profitability in 2025 for Rakuten Mobile, targeting 10 million mobile subscribers with accelerated net additions planned for H2 2025.

• Medium-term financial target revised: net interest-bearing debt to non-GAAP EBITDA in non-Fintech businesses now targeted at 8.5x by end-2025, aiming for 5x by 2027.