GMO Pepabo, Inc.
3633・Standard Market・Information & Communication
Domain & Rental Server (Hosting) Business
GMO Pepabo's core stock-revenue business underpinning its earnings base
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment net sales (Q1 FY2026, ending March 2026) | ¥1,592 million | ¥1,523 million (Q1 FY2025, ending March 2025) | ↑ |
| Segment profit (Q1 FY2026, ending March 2026) | ¥504 million | ¥472 million (Q1 FY2025, ending March 2025) | ↑ |
| Segment profit margin (Q1 FY2026, ending March 2026) | 31.7% | 31.0% (Q1 FY2025, ending March 2025) | ↑ |
| Lolipop! number of contracts | 386,339 | 403,700 (end of same period of previous year, calculated from a 4.3% decrease from the end of the same period of the previous year) | ↓ |
| Lolipop! customer unit price | ¥558 | ¥535 (same period of previous year, calculated from a 4.3% increase year on year) | ↑ |
| MuuMuu Domain registered domains | 1,015,461 | 1,045,737 (end of same period of previous year, calculated from a 2.9% decrease from the end of the same period of the previous year) | ↓ |
Business Details
This segment is centered on the rental server service "Lolipop!", which caters to a wide range of uses from individuals to businesses, and the domain registration proxy service "MuuMuu Domain". It generates stable revenue through a subscription-based billing model and is the largest segment, accounting for approximately 60.9% of consolidated net sales in the first quarter of FY2026 (ending March 2026). It also operates "Heteml" for creators and the website creation service "Goope", maintaining a broad customer base ranging from first-time internet users to corporate clients.
Recent Overview
Segment net sales and profit both increased year on year on the back of the price revision and strong related options
Following the price revision to Lolipop! implemented in January 2026, customer unit price rose to ¥558 (up 4.3% year on year). MuuMuu Domain related options also performed well, resulting in segment net sales of ¥1,592 million (up 4.6% year on year) and segment profit of ¥504 million (up 6.9% year on year), achieving increases in both net sales and profit. On the other hand, investment expenses for new AI-related services based on Lolipop! in anticipation of AI agent usage have increased, and future expense trends warrant attention.
Key Products
Growth Drivers
- Increase in customer unit price due to the price revision of Lolipop! implemented in January 2026 (¥558, up 4.3% year on year)
- Accumulation of stock-type net sales due to an increase in MuuMuu Server contracts
- Expansion of revenue due to strong performance of MuuMuu Domain related options
- Development of new AI-related services based on the Lolipop! platform in anticipation of AI agent usage
- Improvement of ARPU due to a shift in contracts toward higher-priced plans
Risks
- Decrease in the number of contracts accompanying price revisions of lower-priced plans (Lolipop!: down 4.3% from the end of the same period of the previous year; MuuMuu Domain: down 2.9% from the end of the same period of the previous year)
- Risk of profit pressure due to increased investment expenses for new AI-related services
- Intensifying new entrants and price competition in the rental server market
- High dependence on revenue from the domain and rental server business (approximately 60.9% of consolidated net sales)
- Risk of system trouble occurrence and its impact on service stability
Last updated: March 19, 2026