Mercari (4385) Q3 2025 earnings summary

Executive summary

• Achieved record core operating profit of 8.8B JPY in Q3 FY2025.6, up 85% year-over-year, with both Japan and US businesses contributing to profit growth.

• Revenue for the nine months ended March 31, 2025, rose 2.3% year-over-year to ¥144,067 million, with operating profit up 58.9% to ¥20,336 million and profit attributable to owners of parent up 34.0% to ¥11,732 million.

• Marketplace GMV increased 5% year-over-year to ¥846.0 billion, driven by product and marketing initiatives; Fintech core operating profit reached ¥3.4 billion, supported by strong credit balance growth and high collection rates.

• US business broke even on a cumulative basis in Q3, with core operating profit of 1.3B JPY, aided by cost reductions and temporary factors.

• Japan Region revenue grew 8.0% year-over-year to ¥111,858 million, with segment profit up 19.2% to ¥26,172 million; US segment revenue declined 16.6% year-over-year to ¥27,808 million, but segment loss improved sharply to ¥50 million.

Financial highlights

• Q3 revenue: 49.9B JPY (+3% YoY); core operating profit: 8.8B JPY (+85% YoY).

• Gross profit increased to ¥103,269 million from ¥97,853 million year-over-year; gross margin improved.

• Marketplace GMV: 292.3B JPY (+6% YoY, excluding Mercari Hallo); adjusted core operating margin: 37% (42% excluding Mercari Hallo).

• Fintech credit balance: 226.3B JPY (+30% YoY); core operating profit: 1.8B JPY (+2.0B JPY YoY).

• US GMV: 179M USD (-24% YoY); core operating profit: 1.3B JPY (+2.0B JPY YoY).

Outlook and guidance

• Full-year consolidated revenue forecast remains at ¥200,000–210,000 million (up 6.7–12.1% YoY), with core operating profit expected at ¥22,000–25,000 million (up 16.6–32.5%).

• Marketplace aims for ~10% GMV growth YoY and 37–42% adjusted core operating margin, but full-year GMV target is challenging.

• Fintech expects Q4 core operating profit to decline due to growth investments, but maintains full-year objectives.

• US segment expects lower Q4 profit due to seasonality and absence of temporary factors, but remains committed to breaking even for the year.

• No dividend is planned for the fiscal year ending June 30, 2025.