Mercari (4385) Q2 2025 earnings summary

Executive summary

• Achieved record consolidated core operating profit of JPY 7 billion in Q2 FY2025, up 79% year-on-year, with all business pillars showing profit growth.

• Revenue for the six months ended December 31, 2024, was JPY 94.161 billion, a 1.9% increase year-over-year, with operating profit up 45.9% to JPY 11.413 billion.

• Japan region saw revenue rise 7.9% year-on-year to JPY 72.856 billion, driven by stable C2C growth and Fintech expansion.

• US segment revenue declined 16.1% year-on-year to JPY 18.598 billion, with GMV down 21%, but segment loss improved to JPY 1.368 billion; new fee model and management changes aim to restore growth.

• Focused on building a safer and more secure usage environment across the group for sustainable mid- to long-term growth.

Financial highlights

• Q2 FY2025 revenue reached JPY 49.2 billion, a 2% increase year-on-year; core operating profit was JPY 7 billion, up 79% year-on-year.

• Marketplace GMV was JPY 296 billion (+5% YoY); adjusted core operating margin was 39% (46% excluding Mercari Hallo).

• Fintech credit balance reached JPY 213.3 billion (+38% YoY); core operating profit was JPY 1.2 billion.

• US GMV was USD 175 million (-27% YoY); core operating profit improved to JPY -0.1 billion, with profit achieved in December.

• Basic earnings per share rose to JPY 45.02 from JPY 27.94 year-over-year.

Outlook and guidance

• Full-year consolidated revenue forecast is JPY 200-210 billion, with core operating profit projected at JPY 22-25 billion.

• Marketplace aims for ~10% GMV growth and core operating margin of 37-42%.

• Fintech targets core operating profit of JPY 3 billion through continued credit business growth.

• US segment aims to break even and return to growth with a new fee model and product refinements.

• No dividends are planned for the fiscal year ending June 30, 2025.