SoftBank (9434) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 revenue of ¥1,535.7 billion, up 7.4% year-over-year, and record Q1 operating income of ¥303.9 billion, up 23.4% year-over-year, with growth across all segments.

• Net income attributable to owners rose 10.8% year-over-year to ¥162.5 billion; adjusted EBITDA up 6.9%.

• PayPay achieved positive operating income for the first time on a quarterly basis, driving financial segment profitability.

• Progress made on next-generation social infrastructure, including AI data center development and digitalization initiatives.

• Announced a 10-for-1 stock split effective October 1, 2024, to broaden investor base.

Financial highlights

• Revenue: ¥1,535.7 billion (+7.4% YoY); operating income: ¥303.9 billion (+23.4% YoY); net income attributable to owners: ¥162.5 billion (+10.8% YoY); adjusted EBITDA: ¥460.6 billion (+6.9% YoY).

• All segments posted revenue and profit growth; Media & EC operating income up 74.5% (20% increase excluding one-time factors).

• Financial business revenue up 20% year-over-year; PayPay became profitable.

• Progress rates toward full-year forecasts: revenue 24.8–25%, operating income 27.4–34%, net income 30–33%.

• Free cash flow improved year-over-year; cash and cash equivalents at period end: ¥1,906.9 billion.

Outlook and guidance

• Q1 revenue, operating income, and net income represent 24.8–25%, 27.4–34%, and 30–33% of full-year forecasts, respectively.

• Media & EC segment achieved 43% of its full-year operating income target in Q1; Financial segment exceeded full-year target.

• FY2025 forecast: revenue ¥6,200.0 billion (+1.9% YoY), operating income ¥900.0 billion (+2.7%), net income attributable to owners ¥500.0 billion (+2.2%).

• No change to previously announced guidance; stock split and new shareholder benefits program to support investor growth.

• Long-term vision focuses on building next-generation social infrastructure and expanding digital transformation initiatives.