SoftBank (9434) Q2 2025 earnings summary

Executive summary

• Revenue grew 7–7.4% year-on-year to ¥3,152.1 billion, with all segments posting increases and progress toward full-year forecasts.

• Operating income rose 13.9–14% to ¥585.9 billion, driven by higher segment income, especially in Media & EC and Financial segments.

• Net income attributable to owners increased 7.2% to ¥323.9 billion, reflecting strong operating results.

• PayPay achieved positive operating income for two consecutive quarters, contributing to improved financial results.

• The company is executing a medium-term plan focused on digital infrastructure and AI, aiming for record profits by FY2025.

Financial highlights

• Adjusted EBITDA rose 5.1% year-on-year to ¥936.4 billion, with a margin of 29.7%.

• Free cash flow increased to ¥206.4 billion, with primary free cash flow at ¥355.2 billion.

• Total assets stood at ¥15,469.4 billion, equity attributable to owners at ¥2,519.6 billion (16.3% of total assets).

• Capital expenditures rose to ¥359.6 billion, mainly for AI infrastructure and network improvements.

• Net leverage ratio improved to 2.4x, reflecting stable net interest-bearing debt and growing EBITDA.

Outlook and guidance

• Full-year revenue forecast upgraded to ¥6,350 billion (+4.4% YoY), operating income to ¥950 billion (+8.4%), and net income to ¥510 billion (+4.3%).

• Segment operating income guidance raised for Media & EC and Financial segments due to strong performance.

• At first-half, progress rates: revenue 51%, operating profit 65%, net profit 65% of full-year guidance.

• Basic EPS forecast for FY2025 is ¥10.66, reflecting the stock split.

• Consumer and Enterprise segments are on track to meet or exceed full-year targets.