SBI ARUHI (7198): FY2025 Results Summary — Two Consecutive Years of Revenue and Profit Growth

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

SBI ARUHI Corporation (7198) announced its results for the fiscal year ended March 31, 2026 on May 12, 2026. In the company’s materials, this period is labeled FY2025 (March 2026). Operating revenue rose to ¥25,086 million (+12.5% YoY) and income before tax to ¥2,779 million (+14.5% YoY), marking two consecutive years of growth in revenue and profit. The number of loans executed increased +10.5% YoY, with fixed-rate products up +39.4% YoY, and the stock revenue ratio reached 50.1% (+3.6pt YoY).

Consolidated Results (Full-Year Actual)

On an IFRS basis, operating revenue for 1-4Q was ¥25,086 million (+12.5% YoY). While origination-related revenue decreased -1.3% YoY, recurring revenue increased +17.8% YoY and assets and other revenue increased +30.7% YoY. Operating expenses were ¥22,336 million (+12.6% YoY), as commission expenses increased due to the growth in the number of loans executed, and finance costs rose due to rising interest rates and business acquisitions. Income before tax was ¥2,779 million (+14.5% YoY). Net income was ¥1,779 million (-6.2% YoY), reflecting the impact of one-time tax related factors in FY2024 (Group restructuring, etc).

Item (¥ million)	FY2024 1-4Q	FY2025 1-4Q	Change (amount)	Change (%)
Operating revenue	22,292	25,086	2,793	12.5%
Origination-related revenue	9,621	9,496	-124	-1.3%
Recurring revenue	7,554	8,900	1,345	17.8%
Assets and other revenue	5,116	6,689	1,573	30.7%
Operating expenses	19,843	22,336	2,493	12.6%
Finance costs	4,649	6,141	1,491	32.1%
Personnel expenses	4,434	4,975	540	12.2%
Commission expenses	5,604	5,975	371	6.6%
Income before tax	2,427	2,779	351	14.5%
Net Income	1,897	1,779	-118	-6.2%

Revenue by Category and Major KPIs

Within origination-related revenue of ¥9,496 million, loan execution operations were ¥8,333 million (YoY +2.2%) and securitization related capital gains were ¥1,163 million (YoY -18.7%). Recurring revenue of ¥8,900 million included ¥8,268 million at ARUHI (loan servicing and insurance) and ¥615 million at SBI Guarantee (rent guarantee); loan servicing fee revenue increased +25.4% YoY due to the acquisition of the Flat 35 servicing business, insurance revenues rose +5.4% YoY, and rent guarantee revenue rose +14.7% YoY. Assets and other revenue of ¥6,689 million included ¥1,805 million at ARUHI (primarily FVTPL), ¥2,446 million at SBI Estate Finance (primarily interest income), and ¥2,315 million at SBI Smile (primarily real estate sales).

The total number of loan applications increased +12.8% YoY and the total number of loans executed increased +10.5% YoY. The number of loans executed for fixed-rate products increased +39.4% YoY, with refinancing from variable to fixed-rate products accounting for approximately 90% of total refinancing. In FY2025, the full-year market share of Flat 35 remained the highest at 27.7% (up 1.4pt from 26.3% in FY2024), ranking No.1 for the 16th consecutive year.

Item (# of loans)	FY2023	FY2024	FY2025
Number of loan applications	21,081	18,297	20,644
Number of loans executed	11,719	10,245	11,318

FY2026 Forecast

For FY2026 (fiscal year ending March 2027), the company is targeting over 10% YoY growth in operating revenue, income before tax and net income, aiming for three consecutive years of growth in revenue and profit. The company notes that the earnings forecast is based on assumptions deemed reasonable at the time it was made and may later be updated to reflect changes in the business environment, such as domestic interest rate and monetary policy trends.

Item (¥ million)	FY2025 (March 2026) Actual	YoY Change	FY2026 (March 2027) Forecast	YoY Change
Operating revenue	25,086	+12.5%	28,000	+11.6%
Income before tax	2,779	+14.5%	3,200	+15.1%
Net income	1,779	-6.2%	2,080	+16.9%

Shareholder Returns

The company plans to maintain stable dividends, with a payout ratio of 35%-40% and DOE (Dividend on Equity ratio) of approximately 4% set as minimum levels. For FY2025 (March 2026), the interim dividend was 20 yen per share and the year-end dividend is forecast at 20 yen per share, to be resolved at the 12th Annual General Meeting of Shareholders scheduled for June 2026. For FY2026 (March 2027), both the interim and year-end dividends are forecast at 20 yen per share.

Dividend (per share)	FY2025 (March 2026)	FY2026 (March 2027)
Interim	20 yen	20 yen (Forecast)
Year-end	20 yen (Forecast*)	20 yen (Forecast)

As part of shareholder returns, the company decided on a shareholder benefit program that provides XRP, a crypto asset handled by SBI VC Trade Co., Ltd., to eligible shareholders of 100 shares (1 unit) or more as of March 31, 2026. Shareholders holding 100 shares or more and less than 1,000 shares receive 500 yen worth of XRP; shareholders holding 1,000 shares or more receive 500 yen worth of XRP if held for less than one year, or 1,000 yen worth of XRP if held for one year or more.

Initiatives for FY2026 / Topics

Reviewing FY2025, the company cites a full-year Flat 35 market share of 27.7%, an increase in the number of partner financial institutions for SBI Credit Guarantee from 0 to 7 (as of May 12, 2026), and two consecutive years of growth in revenue and profit. For FY2026, it sets out three initiatives: moving from market share expansion to profitability expansion, expansion of the stock revenue ratio, and continued revenue and profit growth driven by revenue structure transformation.

Profitability per Flat 35 loan executed declined due to a decrease in securitization related capital gains amid rising interest rates, and the company aims to focus on unit profitability and improve overall margins by reducing operational costs and reviewing the risk balance, including optimizing business processes through AI and DX and promoting full digitalization. The company also aims to strengthen its revenue base by accumulating stock revenue across the group, with the stock revenue ratio rising from 19% in FY2020 to 50% in FY2025. In its SBI Credit Guarantee business, alliances commenced with THE SENDAI BANK, Kirayaka Bank, The Fukushima Bank, The Shimane Bank, THE TAIKO BANK and The Ashikaga Bank, expanding beyond SBI Group related regional banks.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.