Rakuten Group Q3 FY2025 financial results highlights

- Rakuten Group achieves Q3 consolidated Non-GAAP operating profit for second consecutive year, and record-high EBITDA of 118.7 billion yen
- Rakuten Group achieves consolidated IFRS operating profit for the first time in six years for Q1-Q3, at 1.3 billion yen

Overall Performance

・The Rakuten Group recorded year-on-year (YoY) revenue growth in all three segments in Q3 FY2025: Internet Services, FinTech and Mobile. Consolidated revenue reached 628.6 billion yen, a record high for the third quarter, up 10.9％YoY.

・The third quarter saw a significant increase in revenue, especially in FinTech and Mobile. In Internet Services, a rush in demand driven by revisions to the Furusato Nozei hometown tax program's point award rules contributed to consolidated Non-GAAP operating income of 38.6 billion yen, up 212.8% YoY. IFRS operating income also greatly improved to 8.0 billion yen, up 1,379.7％ YoY. The Group posted IFRS operating income of 1.3 billion yen from January to September, marking its first profitable Q1–Q3 period in six years. Consolidated EBITDA^*1, an indicator the Rakuten Group uses to assess the ability to generate cash flow,  reached the highest ever for a third quarter with an increase of 28.8% YoY to 118.7 billion yen.

・In October 2025, Rakuten Group issued its first domestic perpetual subordinated bonds to replace the USD-denominated perpetual subordinated bonds that have an initial call date in April 2026. The Group is the first non-financial company to issue domestic perpetual subordinated bonds receiving capital credit from rating agencies at a significant scale in the Japanese market.

In addition, Rakuten Group’s rating outlook from domestic rating agencies was upgraded to "Stable" with the market responding favorably to strengthening financial stability, leading to continued improvement in the company’s credit profile. The Group aims to further enhance credit and maintain mid-term financial stability, based on a strategy of building a stable financial base and increasing corporate value through judicious capital allocation.

Internet Services Segment

・The Internet Services segment achieved growth in both revenue and profit in Q3 FY2025, with revenue of 349.6 billion yen, up 11.1％ YoY. Non-GAAP operating income was 24.2 billion yen, up 14.5％ YoY.

・Domestic e-commerce^*2 gross merchandise sales (GMS)^*3 in the third quarter reached 1.71 trillion yen, up 14.5％YoY, driven by strong growth in services including Rakuten Ichiba, as a result of accelerated demand triggered by revisions to the hometown tax program’s point award rules from October onwards. Rakuten Travel also contributed significantly to growth due to robust domestic and inbound travel demand, particularly for the Osaka-Kansai Expo. In addition, Non-GAAP operating income reached 33.9 billion yen, up 33.6% YoY, with significant contributions from core businesses such as Rakuten Ichiba and Rakuten Travel, as well as improved profitability due to revised rates in the Logistics business.

・The International business unit^*2,4 achieved revenue of USD 486.9 million, up 5.4％ YoY. Non-GAAP operating income was USD 4.2 million, up 78.8％ YoY.Strong performance in Rakuten Kobo’s device and content sales, robust communications and ad revenue from Rakuten Viber, and reduced losses through cost structure optimization in the international advertising business all contributed to an increase in profit. 

FinTech Segment

・The FinTech segment delivered both significant revenue and profit growth in Q3 FY2025, with revenue of 250.5 billion yen, up 20.3％ YoY, and Non-GAAP operating income of 55.2 billion yen, up 37.9％ YoY. Customer base and transaction volume continued to expand across all services, leading to increased revenue in all businesses.

・Rakuten Card’s quarterly shopping gross transaction value (GTV) continued to expand, reaching 6.7 trillion yen, up 11.7％ YoY, driven by its expanding membership base, increased spending per customer and increased shopping GTV due to accelerated demand from Japan’s hometown tax program. This contributed to both revenue and profit growth, along with an increase in the revolving payment fee rate.

・Rakuten Bank leveraged Group synergies to bring customer accounts (non-consolidated) up to 17.32 million as of the end of September 2025, an increase of 6.9％ YoY^*5. With even more customers using Rakuten Bank as their primary bank account, the total balance of deposits (non-consolidated) steadily increased to 12.2 trillion yen, as of the end of September 2025, an increase of 10.1% YoY^*5,6. The increase in managed assets and the Bank of Japan’s policy interest rate hike improved yields and boosted interest income, leading to substantial revenue and profit growth.

・Rakuten Securities’ total number of general securities accounts exceeded 13 million as of November 2025, due to ongoing customer base expansion amid positive market conditions. Rakuten Securities achieved record-high quarterly revenue^*6 due to growth in fees and financial income. Operating profit significantly increased as a result of revenue growth combined with controlled expense increases.

・At Rakuten Payment, increased transaction volume continued due to the expanding customer base centered on the Rakuten Pay app. In addition to increased revenue, cost levels were kept low, and profitability continued. Non-GAAP operating income expanded, reaching 2.6 billion yen for the quarter, up 78.8％ YoY. 

Mobile Segment

・In Q3 FY2025 the Mobile segment recorded revenue of 118.7 billion yen, up 12.0％YoY, as a result of increasing Rakuten Mobile subscribers, rising Net ARPU^*7and a boost in Rakuten Symphony’s revenue from software deliveries to major customers. The segment recorded Non-GAAP operating losses of 38.6 billion yen, an improvement of 10.1 billion yen YoY. 

・Rakuten Mobile as an individual business recorded revenue^*8 of 95.2 billion yen, up 31.2％ YoY, while Non-GAAP operating losses^*8 were 37.2 billion yen, an improvement of 13.4 billion yen YoY. EBITDA^*1,8 reached 7.8 billion yen, marking an improvement of 17.5 billion yen YoY. Steady progress is being made towards achieving full-year EBITDA profitability in 2025.

・The total number of Rakuten Mobile subscriptions^*9 reached 9.33 million as of the end of September 2025, a net increase of 405,000 from the previous quarter, before surpassing 9.5 million subscriptions as of November 7, 2025. In addition to increased acquisitions and net MNP compared to Q2 FY2025, Rakuten Mobile’s relative appeal grew and the churn rate decreased amidst a continuing inflationary macro environment. Net ARPU, a key indicator for Rakuten’s operating income and EBITDA profitability, was 2,471 yen, up 110 yen YoY, with data ARPU continuing to be a major growth driver due to higher data consumption.

Notes:
*1 EBITDA is calculated by adding depreciation and amortization expenses to Non-GAAP operating income.
*2 Retroactive adjustments were made due to a reclassification of Internet Services segment businesses in Q1/25 and Q2/25.
*3 Domestic e-commerce GMS = Rakuten Ichiba, Rakuten Travel (GTV on checkout basis), Rakuten Books, Rakuten Books Network, golf business, Rakuten Fashion, Rakuten Dream businesses, Rakuten Beauty, Rakuten 24 and other first-party daily necessities shops, Rakuten Car, Rakuten Rakuma, Rakuten Rebates, Rakuten Mart, Rakuten Ticket, cross border trading, etc. Excludes some tax-exempt businesses and includes consumption tax.
*4. Total of Rakuten Rewards (USA, Europe, Canada), Fillr, overseas Ads business, Rakuten TV, Rakuten France, Rakuten Kobo, Rakuten Viber and Rakuten Viki, etc. This does not include Rakuten Symphony businesses, Taiwan e-commerce, or overseas financial subsidiaries.
*5 Figures are rounded down to the nearest unit.
*6 J-GAAP.
*7 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.
*8 Rakuten Energy, Inc. was merged into Rakuten Mobile, Inc. in February 2025. Additionally, part of the Rakuten Communications business was absorbed into Rakuten Mobile, Inc. in April 2025.
*9 Total number of MNO, MVNE and MVNO subscribers, including BCP lines.