Mercari, Inc.

FY2025 consolidated revenue was JPY 192.6 billion, up 3% YoY, and core operating profit was JPY 27.5 billion, up 46% YoY and above the top end of guidance. Marketplace GMV grew 4% YoY, Marketplace adjusted core operating profit margin was 38% including Mercari Hallo and 43% excluding it, Fintech core operating profit was JPY 4.5 billion, and the U.S. business posted core operating profit of JPY 900 million for its first full year of profitability. Management also said July Mercard issuance surpassed 5 million, Fintech credit balance grew 32% YoY, and cross-border transaction GMV exceeded JPY 90 billion. For FY2026, Mercari guided revenue of JPY 200 billion to JPY 210 billion, up 4% to 9%, and core operating profit of JPY 28 billion to JPY 32 billion; Marketplace GMV is expected to grow 3% to 5% with core operating profit of JPY 32 billion to JPY 36 billion, and Fintech core operating profit is targeted at JPY 5 billion to JPY 7.5 billion.

Shintaro Yamada framed the year as proof that Mercari can grow profits while building a larger ecosystem, noting all three core businesses achieved profit growth and the group posted a record consolidated profit. He emphasized three strategic pillars: improving the core marketplace experience with AI, expanding supply through B2C and cross-border transactions, and strengthening Fintech around credit. His tone was confident but candid that the top line has slowed and that Mercari is only halfway toward being a truly safe and secure marketplace.

Sayaka Eda highlighted that FY2025 core operating profit exceeded the upper end of guidance at JPY 27.5 billion, while revenue was JPY 192.6 billion, up 3% YoY. She pointed to Marketplace GMV growth of 4% versus a 10% target, but said profitability stayed strong, with Marketplace adjusted core operating profit margin at 38% including Mercari Hallo and 43% excluding it. In Fintech, core operating profit reached JPY 4.5 billion versus an initial target of over JPY 3 billion, and the U.S. business reached JPY 900 million in core operating profit. She also said the company will simplify reporting by moving away from internal adjustments, start capitalizing development-related labor costs, and prioritize share buybacks over dividends, while noting a JPY 8.3 billion corporate income tax benefit tied to dividends from Mercari Inc. to the parent.

There was limited analyst Q&A in the transcript, so most of the discussion came from management’s prepared remarks. The main concerns raised were slower top-line growth, only 4% Marketplace GMV growth versus the prior 10% goal, and midyear fraud issues that hurt customer sentiment. Management answered by pointing to AI-based fraud detection, stronger authentication measures, product changes, and a new focus on cross-border, B2C, and credit growth to reaccelerate the business.