Mercari (4385): FY2025 Results Summary — Record Revenue and Core Operating Profit, First Share Buyback

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

Mercari, Inc. (TSE Prime: 4385) reported record-high consolidated results for the fiscal year ended June 30, 2026. Revenue rose 19% year on year to 229.2B JPY, returning to double-digit growth for the first time since FY2023.6, and core operating profit surged 60% year on year to 44.1B JPY. Both figures exceeded the forecast that had been revised upward at Q3. The company also announced its first-ever purchase of treasury shares, of up to 10B JPY.

Note: Mercari’s fiscal year ends on June 30, and the company labels the fiscal year ended June 30, 2026 as “FY2026.6” and the following year as “FY2027.6.” This article classifies the period as FY2025 under this site’s convention for the most recent completed fiscal year, while all labels in the text and tables follow the company’s materials.

Consolidated Results (Full-Year Actual)

Consolidated revenue was 229.2B JPY (+19% YoY) and core operating profit, which Mercari defines as IFRS operating profit excluding other income/expenses, etc., was 44.1B JPY (+60% YoY). The forecast at the start of the period was revenue of 200.0-210.0B JPY and core operating profit of 28.0-32.0B JPY; this was revised upward at Q3 to revenue of 220.0B JPY or more and core operating profit of 40.0B JPY or more, and the final results surpassed even the revised forecast to reach record highs. The company attributes the year to increased income and profit across all three main businesses, and notes that company-wide investment in AI improved productivity and contributed to strengthening the revenue base.

Item	FY2026.6	FY2025.6	YoY
Revenue	229.2B JPY	192.6B JPY	+19%
Core operating profit	44.1B JPY	27.5B JPY	+60%

Segment Results

Marketplace: GMV grew 15% year on year to 1,285.6B JPY and MAU surpassed 24M (24.1M, +5% YoY). Revenue rose 16% year on year to 129.5B JPY, and core operating profit landed at 42.9B JPY (+41% YoY) with a core operating margin of 33% (+6 ppts YoY), significantly surpassing the guidance set at the start of the period. Crossborder transactions were a focus area, with GMV growing to 112.2B JPY, approximately 9% of Marketplace’s overall GMV, helped by strong demand in Entertainment & Hobbies categories, the launch of direct crossborder transactions in the US through the new global app, and inventory expansion through a partnership with Suruga-ya.

Fintech: Revenue increased 29% year on year to 65.1B JPY and core operating profit more than doubled to 9.1B JPY (+103% YoY, +4.6B JPY YoY), significantly surpassing the initial guidance of 5.0-7.5B JPY. Credit balance reached 358.1B JPY (+44% YoY) while the 11-month collection rate remained high at 99.4%. Mercard reached 6.32M cards issued as of June 30, 2026, and cryptoasset trading accounts opened reached 4M as of March 31, 2026.

US: GMV grew 11% year on year to 810M USD, achieving double-digit full-year GMV growth, with MAU of 4.2M (+4% YoY). Revenue rose 12% year on year to 40.7B JPY, and core operating profit landed at 2.0B JPY while the business maintained disciplined investment. The Mercari global app was released in the US in FY2026.6 Q4, and on July 1, 2026, Jeff LeBeau was appointed CEO of Mercari, Inc. (US), while Shintaro Yamada focuses on the mid- to long-term strategy for the US business as Mercari Group CEO.

Business	Metric	FY2026.6	FY2025.6
Marketplace	GMV	1,285.6B JPY	1,120.9B JPY
Marketplace	MAU	24.1M users	23.0M users
Marketplace	Revenue	129.5B JPY	111.2B JPY
Marketplace	Core operating profit	42.9B JPY	30.5B JPY
Fintech	Revenue	65.1B JPY	50.3B JPY
Fintech	Core operating profit	9.1B JPY	4.5B JPY
US	GMV	810M USD	728M USD
US	Revenue	40.7B JPY	36.4B JPY
US	Core operating profit	2.0B JPY	0.9B JPY

FY2027.6 Forecast

For FY2027.6, Mercari forecasts revenue of 260.0-290.0B JPY (+13-27% YoY) and core operating profit of 45.0B JPY or more (+2% or more YoY). The company states that it aims to balance ongoing high growth with investment for mid- to long-term growth, and that, in consideration of the uncertainty of one-year investment plans, it discloses the minimum value for core operating profit, with revisions considered as necessary based on first-half performance. Per business, Marketplace targets a GMV growth rate of +10-15% YoY and core operating profit of 45.0B JPY or more, Fintech targets core operating profit of 10.0B JPY or more, and the US business targets a GMV growth rate of +10% or more YoY while continuing to break even.

Item	FY2027.6 Forecast	FY2026.6 (Actual)
Revenue (consolidated)	260.0-290.0B JPY (+13-27% YoY)	229.2B JPY
Core operating profit (consolidated)	45.0B JPY or more (+2% or more YoY)	44.1B JPY
Marketplace: GMV growth rate	+10-15% YoY	+15% YoY
Marketplace: Core operating profit	45.0B JPY or more	42.9B JPY
Fintech: Core operating profit	10.0B JPY or more	9.1B JPY
US: GMV growth rate	+10% or more YoY	+11% YoY
US: Core operating profit	Continue to break even	2.0B JPY

Shareholder Returns

Mercari announced its first purchase of treasury shares. The company achieved positive retained earnings in FY2026.6 both on a consolidated basis and for Mercari, Inc. on a non-consolidated basis, and, based on its previously disclosed approach to capital allocation and the current relatively low stock price level, decided to carry out the buyback in addition to other investments toward its FY2027.6 mid-term objectives and long-term growth. Under its approach to capital allocation, the company prioritizes stock buybacks over dividends from the perspective of maintaining flexibility to make quick decisions, and states it will flexibly consider additional purchases of treasury shares in light of the relative benefits compared to growth investments, its financial situation, stock price levels, and other factors.

Item	Details
Total number of shares to be purchased	Up to 4M shares (2.4% of the total number of issued shares, excluding treasury shares)
Total purchase price of shares	Up to 10B JPY
Purchase period	From August 6, 2026, to October 30, 2026
Method of purchase	Open-market purchase on the Tokyo Stock Exchange based on a discretionary trading agreement
Scheduled cancellation date	November 12, 2026

Medium-Term Plan / Topics

Mercari’s mid-term policy for FY2027.6 targets double-digit revenue CAGR and a core operating profit CAGR of 25% or higher (CAGR from FY2024.6). The company states that the core operating profit target was achieved in FY2026.6, that it anticipates achieving the target revenue, and that it expects to achieve the mid-term policy for FY2027.6 while aiming for further growth.

One year after its AI-Native declaration, the company reports that 100% of employees use AI tools, that productivity improvements reached approximately 495,000 hours out of an estimated 1 million-hour potential, and that average development output per engineer has increased 7.6 times compared to before adopting AI (FY2024.6). The former CTO has been appointed CHRO and CAIO (Chief AI Officer) to establish an integrated AI and HR framework. In crossborder, Mercari plans to expand the Mercari global app to at least 50 countries and regions by 2028 and at least 100 in the mid-to-long term. In addition, the Compensation Committee resolved to introduce performance stock units (PSUs) for executive officers, with a performance condition that the company’s market capitalization be at least 2T JPY for 60 consecutive business days within five years of the grant date.

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.