Summary
Netstars achieved an operating income turnaround in FY12/2025, with gross payment volume (GPV) surging +33.2% YoY to JPY 2.1228T. For FY12/2026, the company guides for revenue of JPY 5,760M (+20.3%) and operating income of JPY 500M (+70.8%), projecting continued top- and bottom-line growth. The key focus in 1Q is the pace of early progress against this full-year plan. Leveraging its multi-QR code payment gateway "StarPay," the company boasts one of the broadest brand coverages in Japan. Recent initiatives—including stablecoin payments, off-app billing, and B2B payment solutions—underscore the platform's extensibility. In 1Q, investors should track a combination of new large merchant acquisition momentum, revenue contribution from DX-related services, and the stability of non-operating income including interest received.
Key Points for Next Quarter
| Key Points & Focus | Implications |
|---|---|
Revenue Growth1Q revenue progress rate vs. full-year guidance of JPY 5,760M | Based on prior-year 1Q revenue mix, early-20% range progress is the benchmark. Whether the +22.7% full-year growth momentum from FY12/2025 is sustained |
Gross Payment Volume1Q GPV YoY growth rate | GPV reached JPY 2.1228T at +33.2% in the prior year. A leading indicator of revenue—whether high growth is maintained after the large merchant onboarding effect normalizes |
Operating Income Margin1Q OPM level and SG&A trends | Recovered to 6.1% in FY12/2025. Progress toward the 8.7% full-year target, balancing upfront costs from DX investments and the entertainment business |
Non-Operating IncomeQuarterly trajectory of interest received | Surged to JPY 142M (vs. JPY 7M in the prior year). Stability of interest income derived from JPY 30,131M in deposits held is key to recurring profit |
New BusinessesRevenue contribution from StarPay-Entertainment (off-app billing) and USDC payments | Progress of the new wholly-owned subsidiary established December 2025 and stablecoin pilot will shape the credibility of the medium-term growth narrative |
Capital EfficiencyROE improvement trend | Improved to 6.6% (vs. -0.5% in the prior year). Focus on the pace of resolving JPY -4,685M in accumulated losses alongside the 19.9% equity ratio |
Key Issues from Previous Results (FY12/2025 Full-Year)
In FY12/2025, Netstars posted revenue of JPY 4,788M (+22.7%) and operating income of JPY 293M, achieving a turnaround from an operating loss of JPY -84M in the prior year. GPV surged +33.2% YoY, driven primarily by large merchant wins, with the "volume" dimension of growth exceeding expectations. However, while profitability was achieved, OPM remained at 6.1%, making improvement in the "quality" of earnings the central debate for FY12/2026.
1. GPV Growth Sustainability and Take Rate
- Prior Year:GPV reached JPY 2.1228T (+33.2%). Payment-related revenue grew steadily, driven by large merchant acquisitions
- This Year's Focus:After the large merchant onboarding effect normalizes, the degree of transition to organic growth via new SME acquisition and increased transaction volumes at existing merchants
- Key Metric:1Q GPV YoY growth and the take rate (revenue ÷ GPV; our estimate: ~0.23% in FY12/2025) trajectory
2. OPM Improvement and Cost Structure Shifts
- Prior Year:Maintained gross profit margin at 76.6% (vs. 76.3% prior year) while limiting SG&A growth to JPY 3,372M (+10.1%), well below the +22.7% revenue growth, enabling the operating income turnaround
- This Year's Focus:Whether the structural dynamic of SG&A growth lagging revenue growth continues, paving the way toward the full-year operating income target of JPY 500M (OPM 8.7%)
- Key Metric:1Q SG&A YoY growth rate (benchmark: +10.1% full-year in FY12/2025); quarterly trajectory of depreciation (JPY 242M in FY12/2025)
3. Sustainability of Interest Received and Non-Operating Income
- Prior Year:Interest received reached JPY 142M (vs. JPY 7M prior year). Interest income generated from JPY 30,131M in deposits held was a material component of the JPY 443M recurring profit
- This Year's Focus:Confirm quarterly stability of interest received amid BOJ monetary policy developments and fluctuations in deposit balances
- Key Metric:Contribution of interest received to the full-year recurring profit target of JPY 707M. Our estimate suggests interest income accounts for the majority of the JPY 207M gap between operating income of JPY 500M and recurring profit guidance
4. Progress in New Business Areas (Entertainment, Stablecoin, B2B Payments)
- Prior Year:Stepped up promotional activities for DX-related services, including trade show participation. Launched a stablecoin (USDC) payment pilot at Haneda Airport
- This Year's Focus:Ramp-up of the off-app billing business through StarPay-Entertainment (100%-owned subsidiary established January 2026); adoption metrics for B2B payment solution "StarPay-Biz for Hotel"
- Key Metric:Impact of new subsidiary start-up costs on 1Q operating income
5. Utilization of Deferred Tax Assets and Effective Tax Rate Normalization
- Prior Year:Recorded JPY -144M in deferred income tax adjustments, newly recognizing JPY 150M in deferred tax assets. Total income taxes were JPY -82M (profit uplift from tax effects)
- This Year's Focus:Full-year net income guidance of JPY 493M (slightly below 1.0x operating income) implies normalization of the effective tax rate. Confirm the impact of the prior-year tax benefit rolling off
- Key Metric:1Q effective tax rate level; utilization status of tax loss carryforwards from the JPY -4,685M in accumulated losses
Timely Disclosure & Industry Trends
- 2026/01/13Business alliance with Bank of the Ryukyus to promote cashless B2B payments — Expanding deployment of "StarPay-Biz for Hotel" targeting accommodation operators in Okinawa. Noteworthy as a new model for merchant acquisition through regional bank channels. Business alliance with Bank of the Ryukyus to promote cashless B2B payments
- 2025/12/23Japan's first in-store stablecoin (USDC) payment service launched at Haneda Airport — Service pilot utilizing QR codes at physical retail locations, supporting inbound tourist transactions. Service pilot utilizing QR codes at physical retail locations, supporting inbound tourist transactions
- 2025/12/19Entry into off-app billing business (establishment of 100%-owned subsidiary StarPay-Entertainment) — Launching online payment and game platform business for the entertainment sector. Expected to become a new revenue stream leveraging payment gateway technology, though upfront investment burden warrants attention. Netstars enters off-app billing business
Previous Quarter Results (FY12/2025 Full-Year Actuals)
Netstars is a fintech company that provides a unified gateway for 40+ domestic and international cashless payment brands, centered on its multi-QR code payment service "StarPay." Beyond its positioning as a payment processing platform, the company develops and sells DX-related services. In FY12/2025, GPV surged to JPY 2.1228T (+33.2%), and the company achieved +22.7% revenue growth and an operating income turnaround, driven primarily by large merchant acquisitions. For FY12/2026, the company targets revenue of JPY 5,760M (+20.3%) and operating income of JPY 500M (+70.8%), aiming for a phased improvement in profitability.
| Item | Amount | YoY | vs. Guidance | Remarks |
|---|---|---|---|---|
| Revenue | JPY 4,788M | +22.7% | - | Driven by +33.2% GPV growth |
| Operating Income | JPY 293M | Turnaround (vs. JPY -84M prior year) | - | OPM 6.1% (vs. -2.2% prior year) |
| Recurring Profit | JPY 443M | Turnaround (vs. JPY -22M prior year) | - | JPY 142M interest received contributed |
| Net Income | JPY 485M | Turnaround (vs. JPY -37M prior year) | - | Newly recognized JPY 149M in deferred tax assets |
| EPS | JPY 28.99 | Turnaround (vs. JPY -2.25 prior year) | - | Weighted average shares: 16,733,082 |
FY12/2026 Full-Year Company Guidance: Revenue JPY 5,760M (+20.3%), Operating Income JPY 500M (+70.8%), Recurring Profit JPY 707M (+59.7%), Net Income JPY 493M (+1.7%)
Company Information
- Company Name: NETSTARS Co., Ltd.
- Ticker: 5590
- Listed Exchange: Tokyo Stock Exchange Growth Market
- Fiscal Year-End: December
- Core Business: Cashless payment processing and DX-related services centered on multi-QR code payment service "StarPay" (single segment: fintech business)
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