Mercari (4385) Q1 2026 earnings summary

Executive summary

• Q1 FY2026.6 revenue rose 10.1% year-over-year to 49.4B JPY, with core operating profit up 128% to 9.3B JPY, driven by marketplace GMV recovery, US growth, and fintech credit expansion.

• Growth was supported by enhancements in the Marketplace domain, strong Entertainment & Hobbies performance, and disciplined investment.

• Strategic focus remains on top-line growth, product innovation leveraging AI, and investments for FY2027.6 growth.

• The global Mercari app launched in Taiwan and Hong Kong, expanding overseas access.

• Mercari Hallo was discontinued, with negligible impact on consolidated results.

Financial highlights

• Revenue for Q1 FY2026.6: 49.4B JPY (+10% YoY); core operating profit: 9.3B JPY (+128% YoY); gross profit: 35.9B JPY; basic EPS: 30.30 JPY.

• Marketplace GMV: 270.3B JPY (+5% YoY, excluding Mercari Hallo); Fintech credit balance: 269.1B JPY (+35% YoY); US GMV: 194M USD (+0.4% YoY).

• Marketplace core operating profit: 8.4B JPY (+1.8B YoY); Fintech: 2.7B JPY (+2.3B YoY); US: 0.6B JPY (+1.4B YoY).

• Fintech revenue: 14.2B JPY (+22% YoY); US revenue: 9.5B JPY (+2% YoY); Japan Business revenue: 38.4B JPY (+12.6% YoY).

• Cash and cash equivalents increased to 148.6B JPY as of September 30, 2025.

Outlook and guidance

• FY2026.6 full-year guidance: revenue 200.0–210.0B JPY, core operating profit 28.0–32.0B JPY.

• Marketplace GMV growth targeted at +3–5% YoY; core operating profit 32.0–36.0B JPY.

• Fintech core operating profit guidance: 5.0–7.5B JPY; US segment aims for break-even and positive full-year GMV growth.

• No dividends are planned for the fiscal year.