Mercari, Inc.

Business Details

The Japan Business segment consists of the Marketplace domain, which operates the domestic CtoC/BtoC marketplace "Mercari," and the Fintech domain, which offers smartphone payments and the "Mercard" credit card, among other services. Leveraging a user base of approximately 23 million MAU and group synergies utilizing proprietary AI credit scoring as its strengths, this segment accounts for approximately 79% of consolidated revenue and serves as the core revenue-generating segment of the Mercari Group. For the nine months ended (cumulative Q3) FY2026 (ending June 2026), revenue was ¥131,380 million and segment profit was ¥39,985 million.

Recent Overview

Cumulative Q3 revenue up 17.5% and segment profit up 52.8% year on year, with profit margin improving to over 30%

In the nine months ended cumulative Q3 FY2026 (ending June 2026), Marketplace GMV expanded 11.0% year on year to ¥939.4 billion, driven by improved active user rates from strengthening the core product experience and strong performance in the entertainment and hobby categories. Marketplace core operating profit increased ¥10.5 billion year on year to ¥33.2 billion, aided by the fact that second-half investment is concentrated in Q4 and there was no large-scale investment in Q3. In Fintech, revenue grew 27.0% year on year on the back of expanded payments both inside and outside "Mercari" and credit limit expansion leveraging the AI credit scoring model, while the receivables balance grew 45.0% year on year to ¥328.1 billion, maintaining a high collection rate of 99.4%. The segment profit margin improved significantly from 23.4% in the same period of the prior year to 30.4%.

Key Products

Growth Drivers

• Continued expansion of Marketplace GMV: GMV for the nine months ended cumulative Q3 FY2026 grew 11.0% year on year to ¥939.4 billion, driven by continued improvement in active user rates from strengthening the core product experience and strong performance in the entertainment and hobby categories
• High growth in Cross-Border Trade: Continued prioritized reinforcement aimed at building a foundation for accelerating GMV growth from FY2027 (ending June 2027) onward, driving revenue expansion in the Marketplace domain
• Continued high growth in Fintech: Fintech revenue continued to grow strongly, up 27.0% year on year, driven by expanded payments both inside and outside "Mercari" and gradual credit limit expansion leveraging the proprietary AI credit scoring model
• Steady buildup of receivables balance: The receivables balance expanded 45.0% year on year to ¥328.1 billion due to increased usage of Merpay deferred payment and Merpay Smart Money, contributing to an increase in interest income (¥27,421 million)
• Expansion of group synergies: Expanded use of "Mercard" payments and credit leveraging the "Mercari" user base contributed to increased Fintech revenue
• UI/UX renewal through AI/LLM utilization: Improvement of purchase and listing conversion rates through product initiatives, and enhanced customer support efficiency

Risks

• Fraud and safety risk: Maintaining a safe and secure trading environment is a top priority, and fraudulent use poses a risk of affecting customer sentiment
• Fintech credit risk: As the receivables balance expands to ¥328.1 billion (as of end-March 2026), maintaining the precision of AI credit control and the continuation of the collection rate (99.4%) are essential
• Investment timing risk: Investment is structurally concentrated in the second half (especially Q4), and Q4 performance will significantly affect achievement of the full-year core operating profit forecast of ¥40,000 million
• Intensifying competition risk: Possibility of user attrition and slowing GMV growth due to intensifying competition with rival services in the flea market app market
• Regulatory and compliance risk: Possible impact on Fintech domain business operations from tightening of financial regulations such as the Funds Settlement Act and Money Lending Business Act, and changes in cryptocurrency-related regulations
• Macroeconomic environment risk: Risk that deteriorating consumer sentiment and rising prices affect demand for buying and selling used goods and payment usage