GMO Financial Holdings, Inc.

Business Details

Centered on GMO Click Securities, Inc., this segment provides financial instruments trading services to individual investors, including online securities trading, OTC FX, CFD, and Exchange FX. Operating revenue of ¥14,261 million in Q1 FY2026 (ending December 2026) accounts for approximately 87.8% of the group total (¥16,234 million), making it the core business. Trading income/loss (¥12,064 million) forms the center of revenue, followed by Financial Income (¥1,870 million) and commissions received (¥316 million). CFD revenue expanded to more than three times the level of the same period of the prior year, achieving substantial growth in both revenue and profit.

Recent Overview

CFD revenue surged to more than three times the prior-year level, contributing to record quarterly results

In Q1 FY2026 (ending December 2026), CFD trading value increased significantly against a backdrop of brisk commodity markets such as gold and oil, and stock index price movements, with CFD revenue expanding to more than three times the level of the same period of the prior year. Meanwhile, OTC FX, which had been brisk in the same period of the prior year, saw a decline in revenue. Segment operating revenue reached ¥14,261 million (up 38.7% year on year), and segment profit reached ¥6,388 million (up 96.8% year on year), achieving substantial growth in both revenue and profit. The fact that the provision for doubtful accounts was negative (a reversal) also contributed to boosting profit.

Key Products

Growth Drivers

• Substantial increase in CFD trading value against a backdrop of brisk commodity markets such as gold and oil, and stock index price movements
• Expansion of Financial Income accompanying an increase in margin trading assets (up ¥13,952 million from the end of the prior fiscal year)
• Expansion of the customer base and increased brand recognition following the complete elimination of stock and mutual fund trading commissions in September 2025
• Expansion of the product lineup through the launch of the new Exchange CFD product "Click Kabu 365" (May 2025)
• Maintaining a combined share of over 20% among the three group companies in domestic OTC FX trading volume, and an upward trend in trading customer share

Risks

• Risk of declining profitability in OTC FX due to reduced foreign exchange market volatility and range-bound markets (revenue already declined year on year in Q1 FY2026, ending December 2026)
• Risk of a reactionary decline in CFD revenue due to reduced volatility in commodity markets and stock indices
• Continued low levels of commissions received due to the complete elimination of stock and mutual fund trading commissions
• Risk of declining profitability due to continued CFD spread-narrowing initiatives
• Risk of additional provisions for doubtful accounts related to non-performing receivables (net of allowance for doubtful accounts) at the Thai subsidiary (GMO-Z com Securities Thailand)
• Changes in the revenue structure of the Securities & FX Business associated with the planned share transfer of GMO-Z.com Forex HK Limited (scheduled from Q2 FY2026, ending December 2026, onward)