LY (4689) Q4 2026 earnings summary

Executive summary

• Revenue and profit increased year-on-year, reaching a record JPY 2,036.3 billion for FY2025, despite a temporary ASKUL system outage and ransomware incident impacting consolidated results.

• Adjusted EBITDA hit a record JPY 496.6 billion, up 5.5% year-on-year, with operating income up 8.3% to JPY 341.3 billion, aided by gains from business combinations.

• Excluding ASKUL, both e-revenue and adjusted EBITDA grew at double-digit rates, with revenue up 13.3% and adjusted EBITDA up 12.6% year-on-year.

• Accelerated rollout of AI agent (Agent i) to enhance LINE-based experiences and integrate AI across services.

• Major acquisitions included BEENOS Inc., LINE Bank Taiwan Limited, LINE MAN CORPORATION PTE. LTD., and LYST LTD.

Financial highlights

• FY2025 consolidated revenue grew 6.2% year-on-year to JPY 2.04 trillion; adjusted EBITDA up 5.5% to JPY 496.6 billion.

• Adjusted EPS was JPY 28.73, up 15.3% year-on-year, meeting guidance.

• Strategic segment revenue surged 30.6% and adjusted EBITDA rose 85.0% year-on-year, driven by PayPay and fintech growth.

• Revenue growth driven by strategic and commerce businesses; excluding ASKUL, profit grew 12.6% year-on-year.

• Cash and cash equivalents at year-end were JPY 1,068.0 billion, up 2.3%.

Outlook and guidance

• FY2026 revenue forecast at JPY 2.24 trillion (+10.0%), adjusted EBITDA at JPY 585.0 billion (+17.8%), and adjusted EPS at JPY 30.0 (+4.4%).

• Double-digit growth in both revenue and profit expected, driven by commerce and account advertising.

• Dividend per share for FY2026 is planned at JPY 11.00, up from JPY 7.30.

• Medium-term targets include high single-digit growth in adjusted EBITDA and EPS, and ROE of 8%+ by FY2030.

• Continued focus on cost reduction and operational efficiency.