GMO Internet, Inc.
4784・Prime Market・Services
Business
GMO Internet, Inc. took over the Internet Infrastructure Business and the Internet Advertising & Media Business from GMO Internet Group, Inc. through an absorption-type company split in January 2025, and changed its name to its current trade name at that time. It conducts business together with 12 consolidated subsidiaries (GMO NIKKO, Inc., GMO Insight, Inc., overseas subsidiaries, etc.). In the Internet Infrastructure Business, the company provides domain, cloud/rental server, and internet connection services, with the number of domestic contracts reaching 12.63 million as of the end of December 2025. In the Internet Advertising & Media Business, the company engages in advertising agency services, an ad-tech platform (GMOSSP), and operation of Proprietary Web Media/Tools. Its main customers are internet users in general, both corporate and individual, in Japan and overseas, and the company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The Internet Infrastructure Business, which accounts for approximately 84% of net sales, employs a recurring-billing (stock-type) business model for domain, server, and connection services, steadily building stable revenue with a low churn rate. The Internet Advertising & Media Business (approximately 16% of net sales) complements earnings through advertising agency operations, ad-tech, and media management. Cash flow from operating activities in FY2025 (ending March 2025) stood at ¥13,669 million, reflecting strong cash-generating capability, which serves as the funding source for capital expenditures and M&A.
Company Strengths
As of the end of December 2025, the number of domestic internet infrastructure service contracts stood at 12.63 million. The company holds a high domestic share in domain registration/sales and cloud/rental servers, and boasts high customer satisfaction in internet connection services. The recurring revenue model structurally underpins the accumulation of earnings.
Following the absorption-type split in January 2025, revenue expanded approximately sixfold, from ¥12,998 million in the previous fiscal year to ¥78,548 million. Operating profit also surged from ¥140 million to ¥8,224 million, and net income turned to a profit of ¥5,563 million. Total assets also expanded to ¥51,528 million (up ¥41,172 million year on year) due to the business transfer.
GMO GPU Cloud, a GPU hosting service launched in November 2024, achieved standalone profitability for the business in the fourth quarter of 2025 following upfront investment during the launch phase. Including the receipt of ¥1,925 million in government subsidies, the service is contributing to the expansion of the business foundation as a new revenue source capturing AI-related demand.
ENVALITH's Perspective
Performance Trend
After a sharp shift in performance for FY2025 (ending December 2025) due to a corporate split (absorption-type split), with revenue of ¥78,548 million and operating profit of ¥8,224 million, the company achieved revenue of ¥20,378 million (up 6.8% year on year), operating profit of ¥2,440 million (up 49.5% year on year), and quarterly net income attributable to owners of the parent of ¥1,652 million (up 30.7% year on year) in Q1 of FY2026 (ending December 2026). The main driver was GMO GPU Cloud entering a profit-contributing phase within the Internet Infrastructure Business, and the synergy with a reduction in SG&A expenses (down 6.3% year on year) led to a significant improvement in operating profit margin. Although revenue in the Advertising & Media Business continued to decline, profit recovered due to the effects of organizational restructuring. There is no change to the full-year earnings forecast (revenue of ¥82,000 million and operating profit of ¥9,460 million), and the rapid expansion of the GPU server market is providing a tailwind as an external environmental factor.
Growth Strategy
Medium- to long-term growth built on four pillars: expansion of stock-type recurring revenue, growth of the GPU Cloud business, cross-business synergies, and M&A
Approximately ¥16,557 million raised through the public equity offering is planned to be allocated to capital investment in new GPU server equipment by the end of December 2027 (acquisitions to proceed sequentially from August 2026). Through partnerships with Turing Inc. and CTC, the company will promote adoption across a diverse range of industries to establish a stable revenue base.
Strengthening bedrock stock-type recurring revenue through optimization of the sales mix with a focus on proprietary offerings such as "GMO Tokutoku BB". The company will continue to build up stable revenue through the subscription-based business model covering domain, server, and connection services.
While continuing to optimize the cost structure through organizational restructuring and personnel reallocation, the company is promoting stock-type monetization through "GMO AI Kantan Shukyaku" (GMO AI Easy Customer Acquisition). It aims to create cross-business synergies through customer acquisition support services that leverage the customer base of the Infrastructure Business.
The company is expanding its Overseas Infrastructure Business under the Z.com Brand across Asian countries, primarily Vietnam and Thailand. In the first quarter of the previous fiscal year, nine overseas subsidiaries were added to the scope of consolidation, and goodwill of ¥1,643 million was recorded, reflecting expansion through M&A.
Last updated: July 17, 2026