Mercari (4385) Q4 2025 earnings summary

Executive summary

• Core operating profit reached JPY 27.5 billion, up 46% year-on-year, exceeding forecasts, while revenue hit a record JPY 192.6 billion, up 2.8% year-on-year but below target due to slower marketplace and U.S. growth.

• All three core businesses—marketplace, fintech, and U.S.—achieved full-year profitability for the first time, with group synergies and cross-border transactions driving record-high consolidated profit.

• Strategic focus remains on top-line growth with profit, leveraging AI, cross-border expansion, and transforming into an AI-native organization.

• New services launched, including Mercari Mobile and Mercari NFT, and Mercard issuances exceeded 5 million.

• Challenges include a slowdown in Marketplace GMV growth (+4% YoY) and a decline in US GMV (–16.6% YoY).

Financial highlights

• Marketplace GMV grew 4% year-on-year, below the 10% target, with a 38% margin (43% excluding Mercari Hallo); cross-border GMV reached JPY 90 billion.

• Fintech core operating profit reached JPY 4.5 billion, surpassing the JPY 3 billion target, with Mercard Gold launched and credit balance up 32% year-on-year.

• U.S. business achieved its first full-year profitability with JPY 900 million core operating profit, despite a downward trend in GMV and revenue.

• Operating profit rose 59.2% year-on-year to JPY 27.84 billion; net profit attributable to owners surged 94% to JPY 26.1 billion.

• Total assets at period end: JPY 543.7 billion; cash and cash equivalents: JPY 147.0 billion.

Outlook and guidance

• FY 2026 revenue forecast is JPY 200–210 billion (3.8–9% year-on-year growth), with core operating profit projected at JPY 28–32 billion.

• Double-digit CAGR in revenue and 25% CAGR in core operating profit remain midterm targets through FY 2027.

• FY 2026 is positioned as a foundational year, with essential investments in AI and product initiatives to drive future growth.

• Marketplace aims for GMV growth of 3–5% and core operating profit of JPY 32–36 billion.

• Fintech targets core operating profit of JPY 5–7.5 billion, focusing on increased Mercard holders and usage.