PayPay Corp 6-K, filed Nov 3, 2026
PayPay Corp (PAYP)
About this 6-K
PayPay Corp filed this 6-K on November 3, 2026.
PayPay Corporation reported second-quarter revenue up 28% year-on-year to ¥118.1 billion and profit for the period of ¥18.4 billion. It raised fiscal-year guidance to ¥474 to ¥478 billion revenue and ¥159 to ¥163 billion Adjusted EBITDA. AI summary
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2026
Commission File Number 001-43184
PayPay Corporation
(Translation of registrant’s name into English)
Yotsuya Tower, 1-6-1 Yotsuya
Shinjuku-ku
Tokyo 160-0004 Japan
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
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Form 20-F ☒ |
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Form 40-F ☐ |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 4, 2026 |
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PAYPAY CORPORATION |
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By: |
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/s/ Wataru Kagechika |
Name: |
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Wataru Kagechika |
Title: |
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Managing Corporate Officer and CFO |
PayPay Corporation Reports
Second Quarter Ended September 30, 2026 Financial Results
Another strong quarter, with Total Revenue up 28% year-on-year, Profit for the period of ¥18.4 billion and Adjusted EBITDA Margin of 36%, exceeding guidance
Raises guidance for the fiscal year ending March 31, 2027, with Total Revenue expected to reach ¥474 to ¥478 billion and Adjusted EBITDA of ¥159 to ¥163 billion
TOKYO, Japan, November 4 (November 3 EST), 2026 – PayPay Corporation (NASDAQ: PAYP) ("PayPay" or the "Company") today released its unaudited financial results for the second quarter ended September 30, 2026, prepared in accordance with IFRS Accounting Standards, as well as managerial results.
Financial Highlights
Second Quarter ended September 30, 2026
1
2
Key Financial and Operating Metrics
The following table sets forth a summary of key financial and operating metrics for the six-month periods ended September 30, 2026, and 2025, and the three-month periods ended September 30, 2026 and 2025.
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For the six-month |
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For the three-month |
|
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|
2025 |
|
|
2026 |
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2025 |
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2026 |
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(in millions of yen, unless otherwise indicated) |
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Total Revenue |
|
¥ |
178,632 |
|
|
¥ |
227,903 |
|
|
¥ |
92,478 |
|
|
¥ |
118,115 |
|
Settlement related costs |
|
¥ |
23,901 |
|
|
¥ |
27,102 |
|
|
¥ |
12,329 |
|
|
¥ |
13,912 |
|
Provision for loss allowance |
|
¥ |
11,313 |
|
|
¥ |
17,736 |
|
|
¥ |
6,073 |
|
|
¥ |
9,422 |
|
Interest expenses |
|
¥ |
4,570 |
|
|
¥ |
8,316 |
|
|
¥ |
2,367 |
|
|
¥ |
4,776 |
|
Total Transaction Cost |
|
¥ |
39,784 |
|
|
¥ |
53,154 |
|
|
¥ |
20,769 |
|
|
¥ |
28,110 |
|
Operating profit |
|
¥ |
36,452 |
|
|
¥ |
63,037 |
|
|
¥ |
20,488 |
|
|
¥ |
33,172 |
|
Operating profit margin |
|
|
20 |
% |
|
|
28 |
% |
|
|
22 |
% |
|
|
28 |
% |
Profit for the period |
|
¥ |
84,029 |
|
|
¥ |
38,189 |
|
|
¥ |
73,220 |
|
|
¥ |
18,440 |
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Profit for the period margin |
|
|
47 |
% |
|
|
17 |
% |
|
|
79 |
% |
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
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||||
Non-IFRS Financial Measure: |
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|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA(1) |
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¥ |
50,686 |
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|
¥ |
79,469 |
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|
¥ |
27,180 |
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|
¥ |
42,074 |
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Adjusted EBITDA Margin(2) |
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|
28 |
% |
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35 |
% |
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29 |
% |
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36 |
% |
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Operating Metrics: |
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(in trillions of yen, unless otherwise indicated) |
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Consolidated |
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|
|
|
|
|
|
|
|
|
|
||||
Total GMV(3) |
|
¥ |
9.19 |
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|
¥ |
11.14 |
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|
¥ |
4.73 |
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|
¥ |
5.65 |
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Payment segment |
|
|
|
|
|
|
|
|
|
|
|
|
||||
PayPay Balance GMV(4) |
|
¥ |
5.20 |
|
|
¥ |
6.05 |
|
|
¥ |
2.68 |
|
|
¥ |
3.07 |
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PayPay Credit GMV(5) |
|
¥ |
2.20 |
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¥ |
2.80 |
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¥ |
1.12 |
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¥ |
1.40 |
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PayPay Card GMV(6) |
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¥ |
1.63 |
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¥ |
2.09 |
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|
¥ |
0.84 |
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|
¥ |
1.08 |
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Payment Segment GMV(7) |
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¥ |
9.03 |
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|
¥ |
10.95 |
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|
¥ |
4.65 |
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¥ |
5.56 |
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Take Rate(8) |
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|
1.63 |
% |
|
|
1.69 |
% |
|
|
1.64 |
% |
|
|
1.74 |
% |
Cost Rate(9) |
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|
1.28 |
% |
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|
1.25 |
% |
|
|
1.28 |
% |
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|
1.26 |
% |
PayPay MTU (millions of users)(10) |
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|
38.89 |
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|
|
42.22 |
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|
38.89 |
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|
|
42.22 |
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PayPay Number of Transactions (millions of transactions)(11) |
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|
4,514 |
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|
|
5,216 |
|
|
|
2,346 |
|
|
|
2,672 |
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Financial service segment |
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|
|
|
|
|
|
|
|
|
|
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PayPay Bank Balance of Deposits (billions of yen)(12) |
|
¥ |
2,092.9 |
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|
¥ |
2,433.0 |
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|
¥ |
2,092.9 |
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|
¥ |
2,433.0 |
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PayPay Bank Balance of Loans (billions of yen)(13) |
|
¥ |
1,020.3 |
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|
¥ |
1,397.7 |
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|
¥ |
1,020.3 |
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|
¥ |
1,397.7 |
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Notes:
(1) Adjusted EBITDA is defined as profit for the period plus income tax expense (benefit), share of loss of investments accounted for using the equity method, depreciation and amortization, loss on disposal of property and equipment and intangible assets, share-based payment expense, amortization of contract cost, listing-related expenses, M&A-related expenses and net interest expense (income) from corporate borrowings and treasury assets. Share of profit (loss) of investments accounted for using the equity method includes share of loss of a joint venture accounted for using the equity method.
(2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue.
(3) Total GMV, or gross merchandise value, is defined as the total of PayPay Balance GMV, PayPay Credit GMV, PayPay Card GMV and PayPay Bank Visa Debit Card GMV, excluding the GMV of cancelled transactions. PayPay Bank Visa Debit Card GMV is defined as payments made using PayPay Bank Visa Debit Card (physical card) and Cardless Visa Debit transaction volume for both personal and corporate use, excluding the GMV of PayPay Debit and ATM withdrawal amounts when using the cash card function, excluding the GMV of any cancelled transactions.
(4) PayPay Balance GMV is defined as payments made using PayPay Balance, PayPay Debit, PayPay Balance Card, other credit card payment linked to the PayPay app and payments made through other payment services and networks such as Alipay+ and HIVEX® via PayPay code payment, excluding top-ups to PayPay Balance with PayPay Card and excluding the GMV of cancelled transactions.
(5) PayPay Credit GMV is defined as payments made using PayPay Credit, top-ups to PayPay Balance made using PayPay Card and GMV made by linking a PayPay Card to the PayPay app without linking a PayPay account, excluding the GMV of cancelled transactions.
3
(6) PayPay Card GMV is defined as payment made using PayPay Card (physical card), excluding top-ups to PayPay Balance with PayPay Card and excluding the GMV of cancelled transactions.
(7) Payment Segment GMV is defined as the total of PayPay Balance GMV, PayPay Credit GMV and PayPay Card GMV, excluding the GMV of cancelled transactions.
(8) Take Rate is defined as Payment Segment’s Total Revenue divided by Payment Segment GMV (which includes PayPay Balance, PayPay Credit, and PayPay Card GMV).
(9) Cost Rate is defined as Payment Segment’s operating expenses divided by Payment Segment GMV (which includes PayPay Balance, PayPay Credit, and PayPay Card GMV).
(10) PayPay MTU is defined as the number of unique users who completed at least one payment per month that contributes to PayPay Balance or PayPay Credit GMV, but excluding P2P (peer-to-peer) money transfers and cancelled transactions. PayPay MTU over a quarterly or annual period represents the figure from the last month in the relevant period.
(11) PayPay Number of Transactions is defined as the total number of completed transactions that contribute to PayPay Balance GMV or PayPay Credit GMV, but excluding P2P (peer-to-peer) money transfers and cancelled transactions.
(12) PayPay Bank Balance of Deposits is defined as the sum of demand deposit and time deposit.
(13) PayPay Bank Balance of Loans is defined as the sum of mortgage loans, overdraft and other.
4
The following table reconciles profit—the most directly comparable financial measure calculated and presented in accordance with IFRS—to Adjusted EBITDA for the six-month periods ended September 30, 2026 and 2025, and the three‑month periods ended September 30, 2026 and 2025. The adjustments presented below are primarily depreciation expenses that do not result in a cash outflow, temporary expenses and non-operating income and expenses.
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For the six-month period |
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For the three-month period |
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2025 |
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2026 |
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2025 |
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2026 |
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(in millions of yen, except percentages) |
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Profit for the period |
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¥ |
84,029 |
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|
¥ |
38,189 |
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|
¥ |
73,220 |
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|
¥ |
18,440 |
|
Add: Income tax expense (benefit) |
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|
(47,740 |
) |
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|
20,170 |
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|
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(52,790 |
) |
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|
10,114 |
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Add: Share of loss of investments accounted |
|
|
163 |
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|
|
4,678 |
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|
|
58 |
|
|
|
4,618 |
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Add: Depreciation and amortization |
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|
11,484 |
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|
|
12,321 |
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|
|
5,755 |
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|
|
6,196 |
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Add: Share-based payment expenses(2) |
|
- |
|
|
|
462 |
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|
- |
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|
|
233 |
|
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Add: Amortization of contract cost |
|
|
797 |
|
|
|
1,084 |
|
|
|
411 |
|
|
|
562 |
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Add: Loss on disposal of property and equipment and |
|
|
356 |
|
|
|
1,772 |
|
|
|
174 |
|
|
|
1,524 |
|
Add: Listing-related expenses(4) |
|
|
1,380 |
|
|
|
27 |
|
|
|
441 |
|
|
- |
|
|
Add: M&A-related expenses(5) |
|
|
309 |
|
|
|
1,055 |
|
|
|
35 |
|
|
|
572 |
|
Add: Net interest expense (income) from corporate |
|
|
(92 |
) |
|
|
(288 |
) |
|
|
(124 |
) |
|
|
(185 |
) |
Adjusted EBITDA |
|
¥ |
50,686 |
|
|
¥ |
79,469 |
|
|
¥ |
27,180 |
|
|
¥ |
42,074 |
|
Divided by: Total Revenue |
|
¥ |
178,632 |
|
|
¥ |
227,903 |
|
|
¥ |
92,478 |
|
|
¥ |
118,115 |
|
Adjusted EBITDA Margin(7) |
|
|
28 |
% |
|
|
35 |
% |
|
|
29 |
% |
|
|
36 |
% |
Notes:
(1) Share of loss of investments accounted for using the equity method includes share of loss of a joint venture accounted for using the equity method.
(2) Share-based payment expenses represent compensation granted to directors, officers, and employees in exchange for their services, consisting of equity-settled awards (non-cash expenses) and cash-settled awards (expenses involving future cash outflows). These expenses are recognized by allocating the fair value of each award over its respective vesting period. Following the completion of PayPay’s IPO, the cumulative amount relating to prior periods was recognized in a lump sum in the fourth quarter ended March 31, 2026. Notably, in the calculation of Adjusted EBITDA, only equity-settled share-based payment expenses are adjusted as non-cash items, while cash-settled expenses are not adjusted.
(3) Includes one-time expenses associated with the early termination of license agreements in connection with the transition to in-house system development.
(4) Listing-related expenses consist of the fees and expenses of the professional advisors that we hired in connection with the preparations for our initial public offering.
(5) M&A-related expenses consist of the fees and expenses of the professional advisors that we hired in connection with acquisitions and investments and accrued expenses related to holdbacks in connection with a prior acquisition.
(6) Net interest expense (income) from corporate borrowings and treasury assets comprises interest expense on our interest-bearing debt incurred for general corporate purposes, offset by interest income derived from guarantee deposits, cash and cash equivalents, and Japanese government securities within the payment segment. Corporate borrowings exclude funding raised in the ordinary course of our banking, credit card and other financial services operations.
(7) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue.
5
Financial Guidance
Based on our performance to date, we raise our full-year financial guidance, and provide guidance for the three-month period ending December 31, 2026.
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For the year ending March 31, |
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For the three-month period ending |
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2027 |
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2026 |
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(in millions of yen) |
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Total Revenue |
|
¥ |
474,000 |
|
to |
¥ |
478,000 |
|
|
¥ |
121,000 |
|
to |
¥ |
123,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Adjusted EBITDA |
|
¥ |
159,000 |
|
to |
¥ |
163,000 |
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|
¥ |
41,500 |
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to |
¥ |
43,500 |
|
6
Conference Call
PayPay will host two conference briefings to discuss its earnings. Both briefings will be webcast live on PayPay's investor relations website at https://ir.paypay.ne.jp/, with replays available on the same website following the calls.
Earnings Briefing (Overview & Key Highlights)
The first call, tailored for media, institutional investors and sell-side analysts, will take place from 9:00 to 10:30 a.m. JST on Wednesday, November 4, 2026 (7:00 to 8:30 p.m. EST on Tuesday, November 3).
Ichiro Nakayama, Representative Director, President, Corporate Officer, Chief Executive Officer will provide an overview of our FY2026 Q2 financial results and key business highlights.
Participating on the call will be:
Investor Briefing (Financial Deep Dive)
The second call, tailored for institutional investors and sell-side analysts, will take place from 8:00 to 9:00 p.m. JST on Wednesday, November 4, 2026 (6:00 to 7:00 a.m. EST on Wednesday, November 4).
Wataru Kagechika, Managing Corporate Officer and Chief Financial Officer, will provide a detailed review of our financial performance.
Participating on the call will be:
Contact
Investor Relations: investor.relations@paypay-corp.co.jp
Public Relations: pr@paypay-corp.co.jp
7
Cautionary Note Regarding Forward-Looking Statements and Financial Guidance
This release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. Forward-looking statements generally relate to future events or future financial or operating performance. In some cases, you can identify these statements by forward-looking words such as “expectation,” “forecast,” “anticipation,” “intention,” “plan,” “possibility,” “may,” “will,” “should,” “anticipate,” “could,” “would,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “goal,” “objective,” “seek,” or “continue,” the negative of these terms and other comparable terminology. Forward-looking statements in this release may relate to, but are not limited to, expectations of future results of operations or financial performance of the Company, including expectations related to full-year and quarter Total Revenue growth and Adjusted EBITDA, expectations regarding certain of our key financial and operating metrics, our business and growth strategy, including future product development plans, our market opportunity, the performance of newly launched products and innovations, our technological capabilities, the demand for the Company’s products and services, our expectations and management of future growth and acceleration, and our expectations regarding our industry and traditional banks, as well as assumptions relating to the foregoing. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include risks related to our ability to manage our growth effectively; our ability to attract new users, retain our active users and expand the scope of our relationship with our active users; our ability to attract new merchants to utilize our services, grow our relationships with our existing merchants, and increase transaction volumes across our payment settlement services; our ability to maintain and expand synergies between our code-based payment settlement services and our credit card payment services; our ability to maintain and strengthen the ecosystem effects of our platform; our alliances with the shareholders of our consolidated subsidiaries and equity-method affiliates; changes in the expansion and development of the cashless payments industry and the digital financial services industry in Japan; our ability to implement pricing strategies and expand our service offerings; our ability to maintain, protect, and enhance our strong and trusted brand; our ability to maintain or improve our technology infrastructure; and the complex and evolving laws and regulations applicable to our business and the banking ecosystem. Statements regarding our financial guidance and targets are forward-looking and involve known and unknown risks and uncertainties that may cause actual results to differ materially from those projected. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. These forward-looking statements reflect the Company’s views with respect to future events as of the date of this release and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Further information on these risks and other factors that could affect our financial results are set forth in our regulatory filings and periodic reports. Except as required by law, the Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this release.
Non-IFRS Financial Measures and Key Metrics
This release includes financial information prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS”). This release also includes non-IFRS financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measures calculated in accordance with IFRS. Some of the non-IFRS financial measures that are included in this release are Adjusted EBITDA and Adjusted EBITDA Margin. We use these non-IFRS financial measures in conjunction with IFRS measures to evaluate our operating performance, formulate business plans, prepare budgets and forecasts, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We believe that these non-IFRS financial measures provide useful information to investors, analysts, and others about our business and financial performance, enhance their overall understanding of our performance, and can assist in providing a more consistent and comparable overview of our financial performance across periods. There are a number of limitations related to the use of these non-IFRS financial measures and their nearest IFRS equivalents. For example, the Company’s definitions of non-IFRS financial measures may differ from non-IFRS financial measures used by other companies. For reconciliations to the most directly comparable IFRS measure, see the financial tables attached to this release. However, the Company is unable to provide a reconciliation of certain non-IFRS guidance measures to the corresponding IFRS measures on a forward-looking basis without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-IFRS measures. Notwithstanding the foregoing, it is important to note that material changes to reconciling items could have a significant effect on future IFRS results. Additionally, this release includes key operating metrics that we use to evaluate our operating performance, formulate business plans, and make strategic decisions.
Unaudited Financial Information
Please note that the financial information for the periods presented in this release is unaudited and derived from the Company's management accounts.
Industry and Market Data
This release may contain information, estimates and other statistical data derived from third-party sources. While the Company believes such information forms a reasonable basis for such statements, such information may be limited or incomplete, and the Company has not independently verified such data.
8
TABLE OF CONTENTS
Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements (Unaudited) |
Condensed Consolidated Statements of Financial Position (Unaudited) |
10 |
Condensed Consolidated Statements of Profit or Loss for the periods (Unaudited) |
11 |
Condensed Consolidated Statements of Comprehensive Income for the periods (Unaudited) |
13 |
Condensed Consolidated Statements of Changes in Equity for the periods (Unaudited) |
14 |
Condensed Consolidated Statements of Cash Flows for the periods (Unaudited) |
15 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
|
16 |
|
18 |
|
18 |
|
19 |
|
19 |
|
20 |
|
20 |
|
21 |
|
23 |
9
Condensed Consolidated Statements of Financial Position (Unaudited)
|
|
(In millions of yen) |
|
|||||||
|
|
Notes |
|
March 31, 2026 |
|
|
September 30, 2026 |
|
||
Assets |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
2 |
|
|
363,083 |
|
|
|
570,085 |
|
Guarantee deposits |
|
3 |
|
|
74,139 |
|
|
|
49,384 |
|
Call loans |
|
|
|
|
40,014 |
|
|
|
51 |
|
Accounts receivable |
|
|
|
|
150,372 |
|
|
|
193,801 |
|
Loans and advances to customers |
|
4 |
|
|
2,512,851 |
|
|
|
2,737,424 |
|
Securities |
|
5 |
|
|
1,736,835 |
|
|
|
1,881,558 |
|
Other financial assets |
|
|
|
|
32,293 |
|
|
|
39,358 |
|
Property and equipment |
|
|
|
|
14,879 |
|
|
|
15,311 |
|
Right-of-use assets |
|
|
|
|
12,175 |
|
|
|
10,761 |
|
Intangible assets |
|
|
|
|
66,466 |
|
|
|
65,886 |
|
Goodwill |
|
|
|
|
15,157 |
|
|
|
15,157 |
|
Investments accounted for using the equity method |
|
|
|
|
12,762 |
|
|
|
8,174 |
|
Deferred tax assets |
|
|
|
|
107,275 |
|
|
|
102,282 |
|
Other assets |
|
|
|
|
37,711 |
|
|
|
40,929 |
|
Total assets |
|
|
|
|
5,176,012 |
|
|
|
5,730,161 |
|
Liabilities |
|
|
|
|
|
|
|
|
||
Deposits |
|
6 |
|
|
2,952,495 |
|
|
|
3,215,443 |
|
Accounts payable |
|
|
|
|
1,122,338 |
|
|
|
1,081,409 |
|
Income tax payables |
|
|
|
|
13,073 |
|
|
|
13,790 |
|
Borrowings |
|
7 |
|
|
564,956 |
|
|
|
861,699 |
|
Other financial liabilities |
|
|
|
|
48,116 |
|
|
|
57,057 |
|
Provisions |
|
|
|
|
7,403 |
|
|
|
7,595 |
|
Lease liabilities |
|
|
|
|
9,549 |
|
|
|
8,443 |
|
Deferred tax liabilities |
|
|
|
|
206 |
|
|
|
165 |
|
Other liabilities |
|
|
|
|
27,115 |
|
|
|
21,662 |
|
Total liabilities |
|
|
|
|
4,745,251 |
|
|
|
5,267,263 |
|
Shareholders’ equity |
|
|
|
|
|
|
|
|
||
Issued capital |
|
|
|
|
200,635 |
|
|
|
201,041 |
|
Share premium |
|
|
|
|
86,730 |
|
|
|
87,507 |
|
Retained earnings |
|
|
|
|
109,869 |
|
|
|
145,608 |
|
Accumulated other comprehensive loss |
|
|
|
|
(3,055 |
) |
|
|
(8,358 |
) |
Equity attributable to owners of the parent company |
|
|
|
|
394,179 |
|
|
|
425,798 |
|
Non-controlling interests |
|
|
|
|
36,582 |
|
|
|
37,100 |
|
Total shareholders’ equity |
|
|
|
|
430,761 |
|
|
|
462,898 |
|
Total liabilities and shareholders’ equity |
|
|
|
|
5,176,012 |
|
|
|
5,730,161 |
|
See Notes to Condensed Consolidated Financial Statements (Unaudited)
10
Condensed Consolidated Statements of Profit or Loss (Unaudited)
|
|
|
|
(In millions of yen) |
|
|||||
|
|
|
|
For the six months ended |
|
|||||
|
|
Notes |
|
September 30, 2025 |
|
|
September 30, 2026 |
|
||
Transaction and service income |
|
|
|
|
118,907 |
|
|
|
146,830 |
|
Interest income |
|
|
|
|
53,313 |
|
|
|
73,327 |
|
Gains (losses) on financial instruments |
|
|
|
|
5,523 |
|
|
|
6,065 |
|
Other operating income |
|
|
|
|
889 |
|
|
|
1,681 |
|
Total revenue |
|
1, 8 |
|
|
178,632 |
|
|
|
227,903 |
|
Point expenses |
|
|
|
|
(28,421 |
) |
|
|
(32,484 |
) |
Settlement related cost |
|
|
|
|
(23,901 |
) |
|
|
(27,102 |
) |
Employee benefit expenses |
|
|
|
|
(21,729 |
) |
|
|
(23,620 |
) |
Provision for loss allowance |
|
|
|
|
(11,313 |
) |
|
|
(17,736 |
) |
Professional and outsourcing services expenses |
|
|
|
|
(14,814 |
) |
|
|
(13,292 |
) |
Other operating expenses |
|
|
|
|
(42,002 |
) |
|
|
(50,632 |
) |
Total operating expenses |
|
1, 9 |
|
|
(142,180 |
) |
|
|
(164,866 |
) |
Operating profit |
|
1 |
|
|
36,452 |
|
|
|
63,037 |
|
Share of loss of investments accounted for using the equity method |
|
|
|
|
(163 |
) |
|
|
(4,678 |
) |
Profit before tax |
|
|
|
|
36,289 |
|
|
|
58,359 |
|
Income tax benefit (expense) |
|
|
|
|
47,740 |
|
|
|
(20,170 |
) |
Profit for the period |
|
|
|
|
84,029 |
|
|
|
38,189 |
|
Attributable to |
|
|
|
|
|
|
|
|
||
Owners of the parent company |
|
|
|
|
83,097 |
|
|
|
35,739 |
|
Non-controlling interests |
|
|
|
|
932 |
|
|
|
2,450 |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
(In yen) |
|
||
Earnings per share |
|
|
|
|
|
|
|
|
||
Earnings per share attributable to owners of the parent company (1) |
|
|
|
|
|
|
|
|
||
Basic earnings per share |
|
|
|
|
131.01 |
|
|
|
52.77 |
|
Diluted earnings per share |
|
|
|
|
131.01 |
|
|
|
52.44 |
|
11
|
|
|
|
(In millions of yen) |
|
|||||
|
|
|
|
For the three months ended |
|
|||||
|
|
Notes |
|
September 30, 2025 |
|
|
September 30, 2026 |
|
||
Transaction and service income |
|
|
|
|
62,091 |
|
|
|
76,869 |
|
Interest income |
|
|
|
|
27,878 |
|
|
|
38,183 |
|
Gains (losses) on financial instruments |
|
|
|
|
1,962 |
|
|
|
2,261 |
|
Other operating income |
|
|
|
|
547 |
|
|
|
802 |
|
Total revenue |
|
1, 8 |
|
|
92,478 |
|
|
|
118,115 |
|
Point expenses |
|
|
|
|
(15,268 |
) |
|
|
(16,443 |
) |
Settlement related cost |
|
|
|
|
(12,329 |
) |
|
|
(13,912 |
) |
Employee benefit expenses |
|
|
|
|
(10,946 |
) |
|
|
(11,854 |
) |
Provision for loss allowance |
|
|
|
|
(6,073 |
) |
|
|
(9,422 |
) |
Professional and outsourcing services expenses |
|
|
|
|
(7,077 |
) |
|
|
(6,774 |
) |
Other operating expenses |
|
|
|
|
(20,297 |
) |
|
|
(26,538 |
) |
Total operating expenses |
|
1, 9 |
|
|
(71,990 |
) |
|
|
(84,943 |
) |
Operating profit |
|
1 |
|
|
20,488 |
|
|
|
33,172 |
|
Share of loss of investments accounted for using the equity method |
|
|
|
|
(58 |
) |
|
|
(4,618 |
) |
Profit before tax |
|
|
|
|
20,430 |
|
|
|
28,554 |
|
Income tax benefit (expense) |
|
|
|
|
52,790 |
|
|
|
(10,114 |
) |
Profit for the period |
|
|
|
|
73,220 |
|
|
|
18,440 |
|
Attributable to |
|
|
|
|
|
|
|
|
||
Owners of the parent company |
|
|
|
|
72,586 |
|
|
|
17,311 |
|
Non-controlling interests |
|
|
|
|
634 |
|
|
|
1,129 |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
(In yen) |
|
||
Earnings per share |
|
|
|
|
|
|
|
|
||
Earnings per share attributable to owners of the parent company (1) |
|
|
|
|
|
|
|
|
||
Basic earnings per share |
|
|
|
|
113.85 |
|
|
|
25.56 |
|
Diluted earnings per share |
|
|
|
|
113.85 |
|
|
|
25.42 |
|
See Notes to Condensed Consolidated Financial Statements (Unaudited)
12
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
|
|
(In millions of yen) |
|
|||||||
|
|
|
|
For the six months ended |
|
|||||
|
|
Notes |
|
September 30, 2025 |
|
|
September 30, 2026 |
|
||
Profit for the period |
|
|
|
|
84,029 |
|
|
|
38,189 |
|
Other comprehensive income (loss) for the period, net of tax |
|
|
|
|
|
|
|
|
||
Items that will not be reclassified to profit or loss |
|
|
|
|
|
|
|
|
||
Changes in the fair value of equity instruments at FVTOCI |
|
|
|
|
— |
|
|
|
(3,280 |
) |
Total items that will not be reclassified to profit or loss |
|
|
|
|
— |
|
|
|
(3,280 |
) |
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
|
||
Changes in the fair value of debt instruments at FVTOCI |
|
|
|
|
(53 |
) |
|
|
(2,694 |
) |
Exchange differences on translation of foreign operations |
|
|
|
|
(13 |
) |
|
|
(44 |
) |
Total items that may be reclassified subsequently to profit or loss |
|
|
|
|
(66 |
) |
|
|
(2,738 |
) |
Total other comprehensive income (loss) for the period, net of tax |
|
|
|
|
(66 |
) |
|
|
(6,018 |
) |
Total comprehensive income for the period, net of tax |
|
|
|
|
83,963 |
|
|
|
32,171 |
|
|
|
|
|
|
|
|
|
|
||
Total comprehensive income for the period, net of tax attributable to |
|
|
|
|
|
|
|
|
||
Owners of the parent company |
|
|
|
|
82,933 |
|
|
|
30,436 |
|
Non-controlling interests |
|
|
|
|
1,030 |
|
|
|
1,735 |
|
|
|
(In millions of yen) |
|
|||||||
|
|
|
|
For the three months ended |
|
|||||
|
|
Notes |
|
September 30, 2025 |
|
|
September 30, 2026 |
|
||
Profit for the period |
|
|
|
|
73,220 |
|
|
|
18,440 |
|
Other comprehensive income (loss) for the period, net of tax |
|
|
|
|
|
|
|
|
||
Items that will not be reclassified to profit or loss |
|
|
|
|
|
|
|
|
||
Changes in the fair value of equity instruments at FVTOCI |
|
|
|
|
— |
|
|
|
(3,280 |
) |
Total items that will not be reclassified to profit or loss |
|
|
|
|
— |
|
|
|
(3,280 |
) |
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
|
||
Changes in the fair value of debt instruments at FVTOCI |
|
|
|
|
(925 |
) |
|
|
(2,585 |
) |
Exchange differences on translation of foreign operations |
|
|
|
|
(4 |
) |
|
|
(51 |
) |
Total items that may be reclassified subsequently to profit or loss |
|
|
|
|
(929 |
) |
|
|
(2,636 |
) |
Total other comprehensive income (loss) for the period, net of tax |
|
|
|
|
(929 |
) |
|
|
(5,916 |
) |
Total comprehensive income for the period, net of tax |
|
|
|
|
72,291 |
|
|
|
12,524 |
|
|
|
|
|
|
|
|
|
|
||
Total comprehensive income for the period, net of tax attributable to |
|
|
|
|
|
|
|
|
||
Owners of the parent company |
|
|
|
|
71,882 |
|
|
|
12,096 |
|
Non-controlling interests |
|
|
|
|
409 |
|
|
|
428 |
|
13
Condensed Consolidated Statements of Changes in Equity (Unaudited)
For the six months ended September 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
(In millions of yen) |
|
|||||||||||||||||||||||||||
|
|
|
|
Equity attributable to owners of the parent company |
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
Notes |
|
Issued |
|
|
Share |
|
|
Retained |
|
|
Accumulated |
|
|
Total |
|
|
Non- |
|
|
Total |
|
|||||||
Balance as of April 1, 2025 |
|
|
|
|
91,434 |
|
|
|
13,727 |
|
|
|
(4,887 |
) |
|
|
(379 |
) |
|
|
99,895 |
|
|
|
123,836 |
|
|
|
223,731 |
|
Profit for the period |
|
|
|
|
— |
|
|
|
— |
|
|
|
83,097 |
|
|
|
— |
|
|
|
83,097 |
|
|
|
932 |
|
|
|
84,029 |
|
Other comprehensive income (loss) |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(164 |
) |
|
|
(164 |
) |
|
|
98 |
|
|
|
(66 |
) |
Total comprehensive income for the period |
|
|
|
|
— |
|
|
|
— |
|
|
|
83,097 |
|
|
|
(164 |
) |
|
|
82,933 |
|
|
|
1,030 |
|
|
|
83,963 |
|
Dividends paid to non-controlling interests |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,909 |
) |
|
|
(2,909 |
) |
Dividends paid to the ultimate parent company |
|
|
|
|
— |
|
|
|
— |
|
|
|
(311 |
) |
|
|
— |
|
|
|
(311 |
) |
|
|
— |
|
|
|
(311 |
) |
Issuance of new shares |
|
|
|
|
60,971 |
|
|
|
60,360 |
|
|
|
— |
|
|
|
— |
|
|
|
121,331 |
|
|
|
— |
|
|
|
121,331 |
|
Changes due to business combinations of |
|
|
|
|
— |
|
|
|
(36,827 |
) |
|
|
— |
|
|
|
— |
|
|
|
(36,827 |
) |
|
|
(86,358 |
) |
|
|
(123,185 |
) |
Other |
|
|
|
|
— |
|
|
|
— |
|
|
|
34 |
|
|
|
(31 |
) |
|
|
3 |
|
|
|
1 |
|
|
|
4 |
|
Total transactions with owners and other transactions |
|
|
|
|
60,971 |
|
|
|
23,533 |
|
|
|
(277 |
) |
|
|
(31 |
) |
|
|
84,196 |
|
|
|
(89,266 |
) |
|
|
(5,070 |
) |
Balance as of September 30, 2025 |
|
|
|
|
152,405 |
|
|
|
37,260 |
|
|
|
77,933 |
|
|
|
(574 |
) |
|
|
267,024 |
|
|
|
35,600 |
|
|
|
302,624 |
|
For the six months ended September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
(In millions of yen) |
|
|||||||||||||||||||||||||||
|
|
|
|
Equity attributable to owners of the parent company |
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
Notes |
|
Issued |
|
|
Share |
|
|
Retained |
|
|
Accumulated |
|
|
Total |
|
|
Non- |
|
|
Total |
|
|||||||
Balance as of April 1, 2026 |
|
|
|
|
200,635 |
|
|
|
86,730 |
|
|
|
109,869 |
|
|
|
(3,055 |
) |
|
|
394,179 |
|
|
|
36,582 |
|
|
|
430,761 |
|
Profit for the period |
|
|
|
|
— |
|
|
|
— |
|
|
|
35,739 |
|
|
|
— |
|
|
|
35,739 |
|
|
|
2,450 |
|
|
|
38,189 |
|
Other comprehensive loss |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,303 |
) |
|
|
(5,303 |
) |
|
|
(715 |
) |
|
|
(6,018 |
) |
Total comprehensive income for the period |
|
|
|
|
— |
|
|
|
— |
|
|
|
35,739 |
|
|
|
(5,303 |
) |
|
|
30,436 |
|
|
|
1,735 |
|
|
|
32,171 |
|
Dividends paid to non-controlling interests |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,379 |
) |
|
|
(1,379 |
) |
Issuance of new shares |
|
|
|
|
406 |
|
|
|
213 |
|
|
|
— |
|
|
|
— |
|
|
|
619 |
|
|
|
— |
|
|
|
619 |
|
Share-based payment transactions |
|
|
|
|
— |
|
|
|
564 |
|
|
|
— |
|
|
|
— |
|
|
|
564 |
|
|
|
— |
|
|
|
564 |
|
Capital contribution from non-controlling interests |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
162 |
|
|
|
162 |
|
Total transactions with owners and other transactions |
|
|
|
|
406 |
|
|
|
777 |
|
|
|
— |
|
|
|
— |
|
|
|
1,183 |
|
|
|
(1,217 |
) |
|
|
(34 |
) |
Balance as of September 30, 2026 |
|
|
|
|
201,041 |
|
|
|
87,507 |
|
|
|
145,608 |
|
|
|
(8,358 |
) |
|
|
425,798 |
|
|
|
37,100 |
|
|
|
462,898 |
|
14
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
(In millions of yen) |
|
|||||||
|
|
|
|
For the six months ended |
|
|||||
|
|
Notes |
|
September 30, 2025 |
|
|
September 30, 2026 |
|
||
Cash flows from (used in) operating activities |
|
|
|
|
|
|
|
|
||
Profit before tax |
|
|
|
|
36,289 |
|
|
|
58,359 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
|
12,281 |
|
|
|
13,405 |
|
Share of loss of investments accounted for using the equity method |
|
|
|
|
163 |
|
|
|
4,678 |
|
Loss on disposal of property and equipment and intangible assets |
|
|
|
|
339 |
|
|
|
779 |
|
Share-based payment expenses |
|
|
|
— |
|
|
|
418 |
|
|
Other income and costs |
|
|
|
|
(542 |
) |
|
|
(435 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||
Guarantee deposits |
|
3 |
|
|
28,810 |
|
|
|
24,755 |
|
Call loans |
|
|
|
|
(43,000 |
) |
|
|
39,963 |
|
Accounts receivable |
|
|
|
|
(42,164 |
) |
|
|
(43,537 |
) |
Loans and advances to customers |
|
4 |
|
|
(166,975 |
) |
|
|
(224,573 |
) |
Securities |
|
5 |
|
|
(57,209 |
) |
|
|
(60,723 |
) |
Deposits |
|
6 |
|
|
345,207 |
|
|
|
262,948 |
|
Accounts payable |
|
|
|
|
4,921 |
|
|
|
(41,370 |
) |
Other financial assets |
|
|
|
|
(2,438 |
) |
|
|
(2,984 |
) |
Other financial liabilities |
|
|
|
|
19,670 |
|
|
|
8,571 |
|
Provisions |
|
|
|
|
(50 |
) |
|
|
196 |
|
Other |
|
|
|
|
(852 |
) |
|
|
(10,470 |
) |
Cash provided by operations |
|
|
|
|
134,450 |
|
|
|
29,980 |
|
Income tax paid |
|
|
|
|
(7,739 |
) |
|
|
(14,355 |
) |
Income tax refunded |
|
|
|
|
860 |
|
|
|
1,101 |
|
Net cash provided by operating activities |
|
|
|
|
127,571 |
|
|
|
16,726 |
|
|
|
|
|
|
|
|
|
|
||
Cash flows from (used in) investing activities |
|
|
|
|
|
|
|
|
||
Purchases of securities |
|
5 |
|
|
(308,161 |
) |
|
|
(211,302 |
) |
Proceeds from sales/redemption of securities |
|
5 |
|
|
90,146 |
|
|
|
121,991 |
|
Purchases of property and equipment |
|
|
|
|
(3,575 |
) |
|
|
(3,232 |
) |
Purchases of intangible assets |
|
|
|
|
(8,761 |
) |
|
|
(8,411 |
) |
Purchase of investment accounted for using the equity method |
|
|
|
|
(11,655 |
) |
|
|
— |
|
Other |
|
|
|
|
(2,358 |
) |
|
|
(3,274 |
) |
Net cash used in investing activities |
|
|
|
|
(244,364 |
) |
|
|
(104,228 |
) |
|
|
|
|
|
|
|
|
|
||
Cash flows from (used in) financing activities |
|
|
|
|
|
|
|
|
||
Net increase in short-term borrowings |
|
7 |
|
|
40,000 |
|
|
|
304,593 |
|
Proceeds from borrowings |
|
7 |
|
|
652,150 |
|
|
|
223,000 |
|
Repayments of borrowings |
|
7 |
|
|
(544,966 |
) |
|
|
(230,850 |
) |
Repayments of lease liabilities |
|
|
|
|
(1,526 |
) |
|
|
(1,176 |
) |
Proceeds from issuance of new common shares |
|
|
|
|
121,331 |
|
|
|
229 |
|
Payments for the purchase of the equity interest of subsidiaries, |
|
|
|
|
(130,185 |
) |
|
|
— |
|
Dividends paid to non-controlling interests |
|
|
|
|
(2,909 |
) |
|
|
(1,379 |
) |
Dividends paid to the ultimate parent company |
|
|
|
|
(311 |
) |
|
|
— |
|
Other |
|
|
|
|
— |
|
|
|
162 |
|
Net cash provided by financing activities |
|
|
|
|
133,584 |
|
|
|
294,579 |
|
|
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
|
|
|
(19 |
) |
|
|
(75 |
) |
Increase in cash and cash equivalents |
|
|
|
|
16,772 |
|
|
|
207,002 |
|
Cash and cash equivalents at the beginning of the period |
|
2 |
|
|
369,811 |
|
|
|
363,083 |
|
Cash and cash equivalents at the end of the period |
|
2 |
|
|
386,583 |
|
|
|
570,085 |
|
See Notes to Condensed Consolidated Financial Statements (Unaudited)
15
Notes to Condensed Consolidated Financial Statements (Unaudited)
1. Segment Information
Profit or Loss for the Group's Reportable Segments
For the six months ended September 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Transaction and service income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue from external customers |
|
|
104,501 |
|
|
|
14,406 |
|
|
|
— |
|
|
|
118,907 |
|
Inter-segment revenue |
|
|
484 |
|
|
|
390 |
|
|
|
(874 |
) |
|
|
— |
|
Total transaction and service income |
|
|
104,985 |
|
|
|
14,796 |
|
|
|
(874 |
) |
|
|
118,907 |
|
Interest income |
|
|
39,720 |
|
|
|
13,593 |
|
|
|
— |
|
|
|
53,313 |
|
Gains (losses) on financial instruments |
|
|
1,802 |
|
|
|
3,721 |
|
|
|
— |
|
|
|
5,523 |
|
Other operating income |
|
|
799 |
|
|
|
90 |
|
|
|
— |
|
|
|
889 |
|
Total revenue |
|
|
147,306 |
|
|
|
32,200 |
|
|
|
(874 |
) |
|
|
178,632 |
|
Operating expenses (1) |
|
|
(115,781 |
) |
|
|
(27,273 |
) |
|
|
874 |
|
|
|
(142,180 |
) |
Segment profit |
|
|
31,525 |
|
|
|
4,927 |
|
|
|
— |
|
|
|
36,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Reconciliation to profit before tax) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Share of loss of investments accounted for using the equity method |
|
|
|
|
|
|
|
|
|
|
|
(163 |
) |
|||
Profit before tax |
|
|
|
|
|
|
|
|
|
|
|
36,289 |
|
|||
For the six months ended September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Transaction and service income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue from external customers |
|
|
131,258 |
|
|
|
15,572 |
|
|
|
— |
|
|
|
146,830 |
|
Inter-segment revenue |
|
|
752 |
|
|
|
606 |
|
|
|
(1,358 |
) |
|
|
— |
|
Total transaction and service income |
|
|
132,010 |
|
|
|
16,178 |
|
|
|
(1,358 |
) |
|
|
146,830 |
|
Interest income |
|
|
51,037 |
|
|
|
23,588 |
|
|
|
(1,298 |
) |
|
|
73,327 |
|
Gains (losses) on financial instruments |
|
|
719 |
|
|
|
5,343 |
|
|
|
3 |
|
|
|
6,065 |
|
Other operating income |
|
|
1,561 |
|
|
|
254 |
|
|
|
(134 |
) |
|
|
1,681 |
|
Total revenue |
|
|
185,327 |
|
|
|
45,363 |
|
|
|
(2,787 |
) |
|
|
227,903 |
|
Operating expenses (1) |
|
|
(136,343 |
) |
|
|
(31,225 |
) |
|
|
2,702 |
|
|
|
(164,866 |
) |
Segment profit |
|
|
48,984 |
|
|
|
14,138 |
|
|
|
(85 |
) |
|
|
63,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Reconciliation to profit before tax) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Share of loss of investments accounted for using the equity method |
|
|
|
|
|
|
|
|
|
|
|
(4,678 |
) |
|||
Profit before tax |
|
|
|
|
|
|
|
|
|
|
|
58,359 |
|
|||
16
For the three months ended September 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Transaction and service income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue from external customers |
|
|
54,858 |
|
|
|
7,233 |
|
|
|
— |
|
|
|
62,091 |
|
Inter-segment revenue |
|
|
237 |
|
|
|
202 |
|
|
|
(439 |
) |
|
|
— |
|
Total transaction and service income |
|
|
55,095 |
|
|
|
7,435 |
|
|
|
(439 |
) |
|
|
62,091 |
|
Interest income |
|
|
20,459 |
|
|
|
7,419 |
|
|
|
— |
|
|
|
27,878 |
|
Gains (losses) on financial instruments |
|
|
239 |
|
|
|
1,723 |
|
|
|
— |
|
|
|
1,962 |
|
Other operating income |
|
|
494 |
|
|
|
53 |
|
|
|
— |
|
|
|
547 |
|
Total revenue |
|
|
76,287 |
|
|
|
16,630 |
|
|
|
(439 |
) |
|
|
92,478 |
|
Operating expenses (1) |
|
|
(59,258 |
) |
|
|
(13,171 |
) |
|
|
439 |
|
|
|
(71,990 |
) |
Segment profit |
|
|
17,029 |
|
|
|
3,459 |
|
|
|
— |
|
|
|
20,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Reconciliation to profit before tax) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Share of loss of investments accounted for using the equity method |
|
|
|
|
|
|
|
|
|
|
|
(58 |
) |
|||
Profit before tax |
|
|
|
|
|
|
|
|
|
|
|
20,430 |
|
|||
For the three months ended September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Transaction and service income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue from external customers |
|
|
69,078 |
|
|
|
7,791 |
|
|
|
— |
|
|
|
76,869 |
|
Inter-segment revenue |
|
|
342 |
|
|
|
343 |
|
|
|
(685 |
) |
|
|
— |
|
Total transaction and service income |
|
|
69,420 |
|
|
|
8,134 |
|
|
|
(685 |
) |
|
|
76,869 |
|
Interest income |
|
|
26,329 |
|
|
|
12,584 |
|
|
|
(730 |
) |
|
|
38,183 |
|
Gains (losses) on financial instruments |
|
|
208 |
|
|
|
2,050 |
|
|
|
3 |
|
|
|
2,261 |
|
Other operating income |
|
|
787 |
|
|
|
132 |
|
|
|
(117 |
) |
|
|
802 |
|
Total revenue |
|
|
96,744 |
|
|
|
22,900 |
|
|
|
(1,529 |
) |
|
|
118,115 |
|
Operating expenses (1) |
|
|
(70,282 |
) |
|
|
(16,147 |
) |
|
|
1,486 |
|
|
|
(84,943 |
) |
Segment profit |
|
|
26,462 |
|
|
|
6,753 |
|
|
|
(43 |
) |
|
|
33,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Reconciliation to profit before tax) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Share of loss of investments accounted for using the equity method |
|
|
|
|
|
|
|
|
|
|
|
(4,618 |
) |
|||
Profit before tax |
|
|
|
|
|
|
|
|
|
|
|
28,554 |
|
|||
17
2. Cash and Cash Equivalents
Cash and cash equivalents are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
September 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
Cash and demand deposits |
|
|
53,439 |
|
|
|
79,011 |
|
Time deposits (maturities of three months or less) |
|
|
— |
|
|
|
629 |
|
Restricted cash related to transfers of credit card receivables |
|
|
697 |
|
|
|
697 |
|
Subtotal |
|
|
54,136 |
|
|
|
80,337 |
|
Financial service: |
|
|
|
|
|
|
||
Cash and demand deposits |
|
|
16,322 |
|
|
|
16,762 |
|
Deposits with the Bank of Japan |
|
|
292,622 |
|
|
|
472,986 |
|
Other |
|
|
3 |
|
|
|
— |
|
Subtotal |
|
|
308,947 |
|
|
|
489,748 |
|
Total |
|
|
363,083 |
|
|
|
570,085 |
|
3. Guarantee Deposits
Guarantee deposits are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
September 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
Guarantee deposits under Payment Services Act (1)(2)(3) |
|
|
49,734 |
|
|
|
29,253 |
|
Subtotal |
|
|
49,734 |
|
|
|
29,253 |
|
Financial service: |
|
|
|
|
|
|
||
Other |
|
|
24,405 |
|
|
|
20,131 |
|
Subtotal |
|
|
24,405 |
|
|
|
20,131 |
|
Total |
|
|
74,139 |
|
|
|
49,384 |
|
18
4. Loans and Advances to Customers
Loans and advances to customers are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
September 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
Credit card receivables |
|
|
1,321,827 |
|
|
|
1,398,378 |
|
Loss allowance |
|
|
(45,312 |
) |
|
|
(55,971 |
) |
Subtotal |
|
|
1,276,515 |
|
|
|
1,342,407 |
|
Financial service: |
|
|
|
|
|
|
||
Mortgage loans (1) |
|
|
909,483 |
|
|
|
1,023,090 |
|
Overdraft |
|
|
312,255 |
|
|
|
348,432 |
|
Other |
|
|
16,879 |
|
|
|
26,201 |
|
Loss allowance |
|
|
(2,281 |
) |
|
|
(2,706 |
) |
Subtotal |
|
|
1,236,336 |
|
|
|
1,395,017 |
|
Total |
|
|
2,512,851 |
|
|
|
2,737,424 |
|
5. Securities
Securities are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
September 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
Japanese government bonds |
|
|
65,612 |
|
|
|
58,272 |
|
Equity securities (1) |
|
|
— |
|
|
|
96,803 |
|
Subtotal |
|
|
65,612 |
|
|
|
155,075 |
|
Financial service: |
|
|
|
|
|
|
||
Japanese government bonds and municipal bonds |
|
|
713,244 |
|
|
|
731,735 |
|
Corporate and other debt securities |
|
|
416,121 |
|
|
|
404,396 |
|
Asset-backed securities |
|
|
337,685 |
|
|
|
321,250 |
|
Exchange traded funds |
|
|
202,879 |
|
|
|
265,995 |
|
Equity securities |
|
|
1,294 |
|
|
|
3,107 |
|
Subtotal |
|
|
1,671,223 |
|
|
|
1,726,483 |
|
Total |
|
|
1,736,835 |
|
|
|
1,881,558 |
|
19
6. Deposits
Deposits are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
September 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
PayPay Users' deposits (1)(2) |
|
|
451,263 |
|
|
|
491,778 |
|
Subtotal |
|
|
451,263 |
|
|
|
491,778 |
|
Financial service: |
|
|
|
|
|
|
||
Deposits from customers in the banking business |
|
|
|
|
|
|
||
Demand deposits |
|
|
2,090,486 |
|
|
|
2,164,265 |
|
Time deposits |
|
|
178,594 |
|
|
|
268,744 |
|
Deposits from customers in the securities intermediary business |
|
|
221,374 |
|
|
|
279,576 |
|
Other |
|
|
10,778 |
|
|
|
11,080 |
|
Subtotal |
|
|
2,501,232 |
|
|
|
2,723,665 |
|
Total |
|
|
2,952,495 |
|
|
|
3,215,443 |
|
7. Borrowings
Borrowings are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
September 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
Loan payables |
|
|
280,825 |
|
|
|
513,075 |
|
Commercial papers |
|
|
73,000 |
|
|
|
64,000 |
|
Subtotal |
|
|
353,825 |
|
|
|
577,075 |
|
Financial service: |
|
|
|
|
|
|
||
Loan payables |
|
|
211,131 |
|
|
|
284,624 |
|
Subtotal |
|
|
211,131 |
|
|
|
284,624 |
|
Total |
|
|
564,956 |
|
|
|
861,699 |
|
20
8. Revenue
Disaggregation of Revenue
(1) Revenue recognized from contracts with customers and other sources
|
|
(In millions of yen) |
|
|||||
|
|
For the six months ended |
|
|||||
|
|
September 30, 2025 |
|
|
September 30, 2026 |
|
||
Revenue from contracts with customers |
|
|
|
|
|
|
||
Transaction and service income |
|
|
118,907 |
|
|
|
146,830 |
|
Revenue from other sources |
|
|
|
|
|
|
||
Interest income (1) |
|
|
53,313 |
|
|
|
73,327 |
|
Gains (losses) on financial instruments |
|
|
5,523 |
|
|
|
6,065 |
|
Other operating income |
|
|
889 |
|
|
|
1,681 |
|
Total |
|
|
178,632 |
|
|
|
227,903 |
|
|
|
(In millions of yen) |
|
|||||
|
|
For the three months ended |
|
|||||
|
|
September 30, 2025 |
|
|
September 30, 2026 |
|
||
Revenue from contracts with customers |
|
|
|
|
|
|
||
Transaction and service income |
|
|
62,091 |
|
|
|
76,869 |
|
Revenue from other sources |
|
|
|
|
|
|
||
Interest income (1) |
|
|
27,878 |
|
|
|
38,183 |
|
Gains (losses) on financial instruments |
|
|
1,962 |
|
|
|
2,261 |
|
Other operating income |
|
|
547 |
|
|
|
802 |
|
Total |
|
|
92,478 |
|
|
|
118,115 |
|
(1) The Group pays guarantee fees to third-party financial institutions to mitigate the credit risk of loans and advances to customers. These guarantee fees are an integral part of the loan arrangement. In accordance with IFRS 9 “Financial Instruments” , these guarantee fees are included in the calculation under the effective interest rate method and therefore reduce interest income. The guarantee fees were 10,584 million yen and 11,588 million yen for the six months ended September 30, 2025 and 2026, respectively, and 5,372 million yen and 5,879 million yen for the three months ended September 30, 2025 and 2026, respectively.
(2) Disaggregation of revenue from contracts with customers by type of service
For the six months ended September 30, 2025 |
|
|
|
|
|
|
|
|
|
|||
|
|
(In millions of yen) |
|
|||||||||
|
|
Payment |
|
|
Financial service |
|
|
Total |
|
|||
Payment Settlement Services |
|
|
|
|
|
|
|
|
|
|||
PayPay Settlement Services |
|
|
116,113 |
|
|
|
— |
|
|
|
116,113 |
|
Credit Payment Settlement Services and Acquiring Services (1) |
|
|
20,866 |
|
|
|
— |
|
|
|
20,866 |
|
Debit Payment Settlement Services |
|
|
— |
|
|
|
2,614 |
|
|
|
2,614 |
|
Payment settlement services deduction |
|
|
(46,281 |
) |
|
|
(684 |
) |
|
|
(46,965 |
) |
Subtotal |
|
|
90,698 |
|
|
|
1,930 |
|
|
|
92,628 |
|
Financial services |
|
|
— |
|
|
|
11,772 |
|
|
|
11,772 |
|
Other (2) |
|
|
13,803 |
|
|
|
704 |
|
|
|
14,507 |
|
Total |
|
|
104,501 |
|
|
|
14,406 |
|
|
|
118,907 |
|
For the six months ended September 30, 2026 |
|
|
|
|
|
|
|
|
|
|||
|
|
(In millions of yen) |
|
|||||||||
|
|
Payment |
|
|
Financial service |
|
|
Total |
|
|||
Payment Settlement Services |
|
|
|
|
|
|
|
|
|
|||
PayPay Settlement Services |
|
|
141,241 |
|
|
|
— |
|
|
|
141,241 |
|
Credit Payment Settlement Services and Acquiring Services (1) |
|
|
27,167 |
|
|
|
— |
|
|
|
27,167 |
|
Debit Payment Settlement Services |
|
|
— |
|
|
|
3,078 |
|
|
|
3,078 |
|
Payment settlement services deduction |
|
|
(54,238 |
) |
|
|
(785 |
) |
|
|
(55,023 |
) |
Subtotal |
|
|
114,170 |
|
|
|
2,293 |
|
|
|
116,463 |
|
Financial services |
|
|
— |
|
|
|
12,525 |
|
|
|
12,525 |
|
Other (2) |
|
|
17,088 |
|
|
|
754 |
|
|
|
17,842 |
|
Total |
|
|
131,258 |
|
|
|
15,572 |
|
|
|
146,830 |
|
21
For the three months ended September 30, 2025 |
|
|
|
|
|
|
|
|
|
|||
|
|
(In millions of yen) |
|
|||||||||
|
|
Payment |
|
|
Financial service |
|
|
Total |
|
|||
Payment Settlement Services |
|
|
|
|
|
|
|
|
|
|||
PayPay Settlement Services |
|
|
71,917 |
|
|
|
— |
|
|
|
71,917 |
|
Credit Payment Settlement Services and Acquiring Services (1) |
|
|
10,794 |
|
|
|
— |
|
|
|
10,794 |
|
Debit Payment Settlement Services |
|
|
— |
|
|
|
1,337 |
|
|
|
1,337 |
|
Payment settlement services deduction |
|
|
(35,121 |
) |
|
|
(352 |
) |
|
|
(35,473 |
) |
Subtotal |
|
|
47,590 |
|
|
|
985 |
|
|
|
48,575 |
|
Financial services |
|
|
— |
|
|
|
5,788 |
|
|
|
5,788 |
|
Other (2) |
|
|
7,268 |
|
|
|
460 |
|
|
|
7,728 |
|
Total |
|
|
54,858 |
|
|
|
7,233 |
|
|
|
62,091 |
|
For the three months ended September 30, 2026 |
|
|
|
|
|
|
|
|
|
|||
|
|
(In millions of yen) |
|
|||||||||
|
|
Payment |
|
|
Financial service |
|
|
Total |
|
|||
Payment Settlement Services |
|
|
|
|
|
|
|
|
|
|||
PayPay Settlement Services |
|
|
73,407 |
|
|
|
— |
|
|
|
73,407 |
|
Credit Payment Settlement Services and Acquiring Services (1) |
|
|
14,104 |
|
|
|
— |
|
|
|
14,104 |
|
Debit Payment Settlement Services |
|
|
— |
|
|
|
1,513 |
|
|
|
1,513 |
|
Payment settlement services deduction |
|
|
(27,397 |
) |
|
|
(403 |
) |
|
|
(27,800 |
) |
Subtotal |
|
|
60,114 |
|
|
|
1,110 |
|
|
|
61,224 |
|
Financial services |
|
|
— |
|
|
|
6,296 |
|
|
|
6,296 |
|
Other (2) |
|
|
8,964 |
|
|
|
385 |
|
|
|
9,349 |
|
Total |
|
|
69,078 |
|
|
|
7,791 |
|
|
|
76,869 |
|
22
9. Operating Expenses
Operating expenses by nature are as follows:
For the six months ended September 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Point expenses (1) |
|
|
28,421 |
|
|
|
— |
|
|
|
— |
|
|
|
28,421 |
|
Settlement related cost (2) |
|
|
18,526 |
|
|
|
5,757 |
|
|
|
(382 |
) |
|
|
23,901 |
|
Employee benefit expenses |
|
|
16,936 |
|
|
|
4,795 |
|
|
|
(2 |
) |
|
|
21,729 |
|
Provision for loss allowance |
|
|
11,027 |
|
|
|
286 |
|
|
|
— |
|
|
|
11,313 |
|
Professional and outsourcing services expenses (3) |
|
|
10,328 |
|
|
|
4,624 |
|
|
|
(138 |
) |
|
|
14,814 |
|
Other operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
8,101 |
|
|
|
3,383 |
|
|
|
— |
|
|
|
11,484 |
|
License fees |
|
|
8,784 |
|
|
|
2 |
|
|
|
— |
|
|
|
8,786 |
|
Interest expenses |
|
|
1,550 |
|
|
|
3,074 |
|
|
|
(54 |
) |
|
|
4,570 |
|
Advertising and promotion expenses |
|
|
3,132 |
|
|
|
1,860 |
|
|
|
(157 |
) |
|
|
4,835 |
|
Taxes and charges |
|
|
1,230 |
|
|
|
1,041 |
|
|
|
— |
|
|
|
2,271 |
|
Amortization of contract cost |
|
|
797 |
|
|
|
— |
|
|
|
— |
|
|
|
797 |
|
Other |
|
|
6,949 |
|
|
|
2,451 |
|
|
|
(141 |
) |
|
|
9,259 |
|
Subtotal |
|
|
30,543 |
|
|
|
11,811 |
|
|
|
(352 |
) |
|
|
42,002 |
|
Total |
|
|
115,781 |
|
|
|
27,273 |
|
|
|
(874 |
) |
|
|
142,180 |
|
For the six months ended September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Point expenses (1) |
|
|
32,484 |
|
|
|
— |
|
|
|
— |
|
|
|
32,484 |
|
Settlement related cost (2) |
|
|
21,351 |
|
|
|
6,201 |
|
|
|
(450 |
) |
|
|
27,102 |
|
Employee benefit expenses |
|
|
18,128 |
|
|
|
5,570 |
|
|
|
(78 |
) |
|
|
23,620 |
|
Provision for loss allowance |
|
|
17,241 |
|
|
|
495 |
|
|
|
— |
|
|
|
17,736 |
|
Professional and outsourcing services expenses (3) |
|
|
9,756 |
|
|
|
3,620 |
|
|
|
(84 |
) |
|
|
13,292 |
|
Other operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
9,103 |
|
|
|
3,219 |
|
|
|
(1 |
) |
|
|
12,321 |
|
License fees |
|
|
10,308 |
|
|
|
561 |
|
|
|
— |
|
|
|
10,869 |
|
Interest expenses |
|
|
2,895 |
|
|
|
6,716 |
|
|
|
(1,295 |
) |
|
|
8,316 |
|
Advertising and promotion expenses |
|
|
3,381 |
|
|
|
931 |
|
|
|
(219 |
) |
|
|
4,093 |
|
Taxes and charges |
|
|
1,363 |
|
|
|
1,008 |
|
|
|
— |
|
|
|
2,371 |
|
Amortization of contract cost |
|
|
1,084 |
|
|
|
— |
|
|
|
— |
|
|
|
1,084 |
|
Other |
|
|
9,249 |
|
|
|
2,904 |
|
|
|
(575 |
) |
|
|
11,578 |
|
Subtotal |
|
|
37,383 |
|
|
|
15,339 |
|
|
|
(2,090 |
) |
|
|
50,632 |
|
Total |
|
|
136,343 |
|
|
|
31,225 |
|
|
|
(2,702 |
) |
|
|
164,866 |
|
23
For the three months ended September 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Point expenses (1) |
|
|
15,268 |
|
|
|
— |
|
|
|
— |
|
|
|
15,268 |
|
Settlement related cost (2) |
|
|
9,689 |
|
|
|
2,862 |
|
|
|
(222 |
) |
|
|
12,329 |
|
Employee benefit expenses |
|
|
8,463 |
|
|
|
2,485 |
|
|
|
(2 |
) |
|
|
10,946 |
|
Provision for loss allowance |
|
|
5,940 |
|
|
|
133 |
|
|
|
— |
|
|
|
6,073 |
|
Professional and outsourcing services expenses (3) |
|
|
5,049 |
|
|
|
2,099 |
|
|
|
(71 |
) |
|
|
7,077 |
|
Other operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
4,060 |
|
|
|
1,695 |
|
|
|
— |
|
|
|
5,755 |
|
License fees |
|
|
4,501 |
|
|
|
2 |
|
|
|
— |
|
|
|
4,503 |
|
Interest expenses |
|
|
786 |
|
|
|
1,610 |
|
|
|
(29 |
) |
|
|
2,367 |
|
Advertising and promotion expenses |
|
|
1,721 |
|
|
|
795 |
|
|
|
(69 |
) |
|
|
2,447 |
|
Taxes and charges |
|
|
606 |
|
|
|
428 |
|
|
|
— |
|
|
|
1,034 |
|
Amortization of contract cost |
|
|
411 |
|
|
|
— |
|
|
|
— |
|
|
|
411 |
|
Other |
|
|
2,764 |
|
|
|
1,062 |
|
|
|
(46 |
) |
|
|
3,780 |
|
Subtotal |
|
|
14,849 |
|
|
|
5,592 |
|
|
|
(144 |
) |
|
|
20,297 |
|
Total |
|
|
59,258 |
|
|
|
13,171 |
|
|
|
(439 |
) |
|
|
71,990 |
|
For the three months ended September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Point expenses (1) |
|
|
16,443 |
|
|
|
— |
|
|
|
— |
|
|
|
16,443 |
|
Settlement related cost (2) |
|
|
11,048 |
|
|
|
3,095 |
|
|
|
(231 |
) |
|
|
13,912 |
|
Employee benefit expenses |
|
|
9,027 |
|
|
|
2,900 |
|
|
|
(73 |
) |
|
|
11,854 |
|
Provision for loss allowance |
|
|
9,195 |
|
|
|
227 |
|
|
|
— |
|
|
|
9,422 |
|
Professional and outsourcing services expenses (3) |
|
|
4,974 |
|
|
|
1,837 |
|
|
|
(37 |
) |
|
|
6,774 |
|
Other operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
4,566 |
|
|
|
1,631 |
|
|
|
(1 |
) |
|
|
6,196 |
|
License fees |
|
|
5,166 |
|
|
|
308 |
|
|
|
— |
|
|
|
5,474 |
|
Interest expenses |
|
|
1,736 |
|
|
|
4,128 |
|
|
|
(1,088 |
) |
|
|
4,776 |
|
Advertising and promotion expenses |
|
|
1,517 |
|
|
|
449 |
|
|
|
(114 |
) |
|
|
1,852 |
|
Taxes and charges |
|
|
681 |
|
|
|
517 |
|
|
|
— |
|
|
|
1,198 |
|
Amortization of contract cost |
|
|
562 |
|
|
|
— |
|
|
|
— |
|
|
|
562 |
|
Other |
|
|
5,367 |
|
|
|
1,055 |
|
|
|
58 |
|
|
|
6,480 |
|
Subtotal |
|
|
19,595 |
|
|
|
8,088 |
|
|
|
(1,145 |
) |
|
|
26,538 |
|
Total |
|
|
70,282 |
|
|
|
16,147 |
|
|
|
(1,486 |
) |
|
|
84,943 |
|
24