Rakuten Group Q2 FY2026 financial results highlights

- First quarterly net income in six years. 
- Record-high second quarter consolidated revenue and record-high second quarter Non-GAAP operating income since entering the MNO business.

Overall Performance

・The Rakuten Group recorded year-on-year (YoY) revenue growth in all three segments in Q2 FY2026: Internet Services, FinTech and Mobile. Rakuten Group achieved record-high Q2 consolidated revenue of 665.5 billion yen (up 11.6% YoY).

・Driven by strong operating income growth in Internet Services and FinTech that even outpaced revenue growth and continuous steady reductions in losses in the Mobile segment, the Group reported consolidated Non-GAAP operating income of 42.0 billion yen (up 109.6% YoY) and IFRS operating income of 20.0 billion yen (up 126.9% YoY). EBITDA*¹, a key indicator for cash flow generation, reached a Q2 record of 115.3 billion yen, up 11.7% YoY. The Group achieved its first quarterly pre-tax income in eight years and its first quarterly net income in six years. Net income attributable to owners of the parent company reached 7.7 billion yen for the quarter, an improvement of 58.7 billion yen YoY, marking Rakuten Group’s first profitable quarter at this level in six years.

・In May 2026, Rakuten raised approximately 200 billion yen through the sale of held securities. The company completed the full redemption of its U.S. dollar-denominated perpetual subordinated bonds in April and its yen-denominated senior bonds in June*². Funding for all 2026 bond redemptions is secured. Regarding redemptions from 2027 onwards, the company intends to proactively and flexibly control funding needs by combining various methods.

Internet Services Segment

・The Internet Services segment achieved growth in both revenue and profit in Q2 FY2026, with revenue*³ of 338.1 billion yen, up 4.2% YoY, and Non-GAAP operating income*³ of 23.1 billion yen, up 68.6% YoY.

・Domestic e-commerce gross merchandise sales (GMS)*⁴ in Q2 FY2026 reached 1.53 trillion yen, up 5.3% YoY. Non-GAAP operating income increased significantly to 29.7 billion yen, up 30.8% YoY, driven by steady growth in core businesses including Rakuten Ichiba and Rakuten Travel, which successfully captured demand from leisure-seeking customers, alongside improved profitability in growth investment businesses.

・The international business unit*⁵ achieved revenue of 499.7 million USD, up 3.9% YoY. Non-GAAP operating income was 9.67 million USD, down 4.1% YoY.Rakuten Rewards improved profit through the discontinuation of a low-margin service and effective cost control, while Rakuten Viki achieved revenue and profit growth driven by subscriber expansion and pricing revisions.

・The advertising business achieved high growth with revenue reaching 65.6 billion yen, up 15.6% YoY*⁶, driven by AI-powered search and targeted banner advertising on Rakuten Ichiba and Rakuten Travel.

FinTech Segment

・The FinTech segment achieved growth in both revenue and profit in Q2 FY2026, with revenue of 295.4 billion yen, up 27.0% YoY, and Non-GAAP operating income of 69.2 billion yen, up 60.1% YoY. Results were driven by customer base expansion and expanded gross transaction value (GTV) across the FinTech businesses, as well as effective cost controls.

・Rakuten Card shopping GTV reached 7.1 trillion yen in Q2 FY2026, up 9.4% YoY.Revenue and profit increased due to an expanded membership base and higher spending per customer.

・Rakuten Bank reached 18.46 million accounts^*7 as of the end of June 2026, up 8.1% YoY, with total deposits reaching 13.3 trillion yen*^7,8, up 13.9% YoY,supported by progress in becoming customers’ primary bank for everyday life.Interest income grew significantly due to Bank of Japan policy rate hikes and asset growth, resulting in record-high quarterly ordinary income and profit.

・Rakuten Securities steadily grew new account acquisitions, reaching 14.39 million accounts as of the end of June 2026, up 14.5% YoY*⁸. NISA accounts reached 7.92 million as of the end of June 2026, up 21.3%, and surpassed 8 million in July. The company recorded its highest-ever quarterly operating income, bolstered by financial income amid an active market environment and higher fees received for accumulating investment trust balances and other products.

・The Insurance business achieved successful results through effective marketing activities leveraging the Rakuten Ecosystem. Life insurance benefited from improvements in its product and channel strategy and increased productivity, improving profitability. General insurance saw profit growth driven by a shift toward strategic products, with automobile insurance continuing to show significant expansion.

・Rakuten Payment achieved revenue growth driven by increased transaction volume, supported by the expansion of its customer base centered on the Rakuten Pay app. Cost control measures also proved effective, leading to steady profit growth.

Mobile Segment

・In Q2 FY2026, the Mobile segment recorded revenue of 121.4 billion yen, up 8.3% YoY. Non-GAAP operating losses narrowed to 33.1 billion yen, an improvement of 4.1 billion yen YoY.

・Rakuten Mobile recorded revenue of 101.3 billion yen, up 11.9% YoY, with Non-GAAP operating losses*⁹ narrowing to 32.3 billion yen, an improvement of 6.7 billion yen, and EBITDA reaching 5.9 billion yen, up 6.4% YoY.

・Total Rakuten Mobile subscriptions*¹⁰ reached 10.75 million as of the end of June 2026, a net increase of 1.78 million YoY. The company has established a sustainable growth structure centered on loyal customers by curbing short-term subscriptions, and net additions have continued to increase steadily even after the peak sales season. In addition, net ARPU*¹¹, which is directly linked to Non-GAAP operating income and EBITDA profitability, was 2,516 yen, up 42 yen YoY, driven by strong performance in Option ARPU.

・Capital expenditure*¹² reached 39.3 billion yen for the quarter. To improve network quality, the company is accelerating base station construction by concentrating internal human resources and reforming construction processes, including bringing certain operations in-house. There is no change to the FY2026 capital investment plan of 200 billion yen.

Notes:

*1 EBITDA is an indicator the Rakuten Group uses to assess the ability for business activities to generate cash flow. It is calculated by adding Non-GAAP operating income to depreciation costs, etc.
*2 Perpetual subordinated bonds were fully redeemed on the first optional redemption date.
*3 From Q1/26, a portion of AI-related development costs are allocated to each business. Retroactive adjustments were made to segment and business performance from Q1/25 onwards.
*4 Retroactive adjustments were made due to a reclassification of domestic EC GMS in Q2/26.
*5 Open Commerce is the total of Rakuten Rewards (USA, Europe, Canada), Fillr, and overseas Ads business. EU is the total of Rakuten TV and Rakuten France. Other is the total of Rakuten Kobo, Rakuten Viber, Rakuten Viki, etc. This does not include Rakuten Symphony businesses, Taiwan e-commerce, or overseas financial subsidiaries.
*6 Total domestic ad revenue recorded for all segments (Internet Services, FinTech and Mobile). Includes intra-company transactions.
*7 Figures are rounded down to the nearest unit.
*8 J-GAAP.
*9 Includes mobile-related investment profit/loss from Q4/25.
*10 Total number of MNO, MVNE and MVNO subscribers, including BCP lines.
*11 ARPU is calculated using the average of MNO subscribers at the end of the most recent and previous quarters, excluding MVNE and BCP and other contracts. Within ARPU, the cost of sales associated with the revenue uplift from Rakuten Mobile's MNO subscribers and the effect of referring customers from Group companies to the Mobile business are deducted from Ecosystem ARPU. Mobile Ecosystem Contribution is calculated as (Net ARPU x number of MNO contract subscriptions), and is recorded in Rakuten Mobile, Inc.'s income statement after revenue and operating expenses.
*12 Network-related capital expenditure.