Rakuten Group (4755) Q3 2025 earnings summary

Executive summary

• Consolidated revenue for Q3 2025 rose 10.9% year-on-year to JPY 628.6 billion, with double-digit growth in all segments driven by domestic EC, international business, FinTech, and Mobile.

• Non-GAAP operating income surged 212.8% year-on-year to JPY 38.6 billion, with significant contributions from FinTech and Mobile; consolidated EBITDA hit a record JPY 118.7 billion, up 28.8%.

• Net loss narrowed to JPY -11.5 billion from JPY -66.0 billion in Q3 FY2024, reflecting improved profitability and financial income.

• All core businesses contributed to growth, with strong momentum in B2C and B2B subscriber acquisitions, especially in Mobile.

• IFRS operating income improved to JPY 8.0 billion from JPY 0.5 billion year-over-year.

Financial highlights

• Internet Services revenue grew 11.1% year-on-year to JPY 349.6 billion; non-GAAP operating income up 14.5% to JPY 24.2 billion.

• FinTech revenue increased 20.3% year-on-year to JPY 250.5 billion; non-GAAP operating income up 37.9% to JPY 55.2 billion.

• Mobile segment revenue rose 12% year-on-year to JPY 118.7 billion; operating loss improved by JPY 10.1 billion year-on-year, with EBITDA turning positive.

• Quarterly profit before tax was JPY 8.7 billion; quarterly profit was -JPY 11.5 billion, a significant year-on-year improvement.

• Non-recurring impairment loss of JPY 27.9 billion recorded in Online Supermarket Business, with book value of fixed assets reduced to zero.

Outlook and guidance

• Full-year EBITDA expected to exceed JPY 400 billion.

• Targeting 10 million mobile subscribers by end of 2025, supported by B2C and B2B growth.

• Aiming for full-year 2025 profitability for both Non-GAAP and IFRS operating income.

• Expecting continued positive growth in operating income for FinTech and Payment businesses.

• Medium-term consolidated equity ratio target set at 5%, with a long-term goal of 10%.