Key Positives From The Results
Against a backdrop of increased retail investor activity, brokerage commissions, net financial income, and FX P&L all expanded. For the 9M period, net operating revenue came in at JPY 34,952M (+23.4% YoY) and operating income at JPY 16,509M (+32.3% YoY), highlighting operating leverage. SG&A rose on upfront spending such as advertising, but profitability continues to trend higher.
- Operating revenue JPY 37,293M (+25.6% YoY) and recurring profit JPY 16,905M (+36.0% YoY), delivering strong earnings growth
- Brokerage commissions JPY 17,217M (+19.7% YoY) driven by higher trading activity; equities, etc. brokerage trading value also up +26% YoY (company presentation)
- Net financial income JPY 12,451M (+23.6% YoY) supported by rising rates and higher client deposits, expanding a key earnings pillar
- Trading gain/loss JPY 4,419M (+44.8% YoY) led by FX, providing upside to earnings
- Recurring profit margin (recurring profit / operating revenue) improved to around 45% (company presentation)
Key Concerns From The Results
The business model remains structurally exposed to equity market volumes/volatility and interest-rate levels. In addition, one-off costs were incurred from higher advertising spend and fraud-related responses (compensation and provisions).
- SG&A JPY 18,443M (+16.4% YoY) continues to rise; advertising expense in particular increased to JPY 2,549M (+39.0% YoY)
- Financial expenses JPY 2,341M (+70.4% YoY) surged, posing a risk that net financial income growth could be offset depending on the rate cycle
- Margin trading income declined due to lower long outstanding balances, per the company; even in a rising-rate environment, upside may be capped depending on margin balance levels
- Equity ratio 6.0% (6.8% at FY-end) declined; need to monitor capital efficiency and regulatory metrics as the balance sheet expands..
Focus Areas / Items To Monitor Going Forward
- Confirm sustainability of net financial income: focus on maintaining deposits of JPY 773,912M (+24.6% vs FY-end) and the trajectory of the balance versus higher funding costs (financial expenses)
- Assess ROI of higher SG&A: quantitative evaluation needed for how advertising investments (e.g., TV commercials featuring Alice Hirose) translate into account growth, AUM, and trading turnover
- Likelihood of monetising new initiatives: key will be executing synergies and clarifying KPIs for the investment in Agent IGH (acquisition cost approx. JPY 0.95B; voting rights ratio 27.4%) (company presentation)
- Breakdown of brokerage trading value growth (company +26% vs market +21%): contribution from new clients, trading turnover of existing clients, and by product
- ROI metrics for the increase in advertising expense (+39.0% YoY) (new accounts, active accounts, AUM, CAC, etc.) and the expected pace of spend
- Decomposition of the drivers of net financial income expansion (deposit investment yield, margin interest, funding costs) and the validity of interest-rate sensitivity assumptions
- Fraud-related items (insurance proceeds received JPY 212M, compensation paid JPY 359M, provision for liability reserves JPY 803M): recurrence-prevention measures and outlook for incremental costs
- Drivers behind the decline in margin trading income (long balances, rates, competitive environment) and measures to recover
- Sustainability of FX revenue upside (whether spread tightening is structural, impact from app enhancements, changes in open interest and turnover)
- KPIs for US equities pre-market support and information tool offerings (active accounts, trading value, revenue)
- Revenue model for the Agent IGH alliance (customer referrals, insurance sales, higher customer LTV) and governance framework
- Timing for year-end dividend policy decision and approach to managing DOE/dividend payout ratio (post interim dividend of 25円)
- Target range for capital adequacy (equity) ratio and prioritisation of capital allocation (returns, investment, risk-taking)
Key Financial Highlights
| Account | Value | YoY |
|---|---|---|
| Operating Revenue | JPY 37,293M | +25.6% |
| └ Fees Received | JPY 18,083M | +19.0% |
| └ Brokerage Commissions | JPY 17,217M | +19.7% |
| └ Trading Gain/Loss | JPY 4,419M | +44.8% |
| Financial Revenue | JPY 14,792M | +29.2% |
| Financial Expenses | JPY 2,341M | +70.4% |
| Net Financial Income (Financial Revenue - Financial Expenses) | JPY 12,451M | +23.6% |
| Net Operating Revenue | JPY 34,952M | +23.4% |
| SG&A | JPY 18,443M | +16.4% |
| Operating Income | JPY 16,509M | +32.3% |
| Recurring Profit | JPY 16,905M | +36.0% |
| Quarterly Net Income before tax | JPY 15,934M | +30.4% |
| Quarterly Net Income | JPY 11,069M | +30.5% |
| EPS | JPY42.98 | +30.5% |
Performance By Business Segment
| Segment | Revenue | YoY | Operating Income | YoY | Margin |
|---|---|---|---|---|---|
| Online Brokerage Services | JPY 37,293M | +25.6% | JPY 16,509M | +32.3% | 44.3% |
- Equities, beneficiary securities, etc. (breakdown of brokerage commissions): JPY 16,457M (+21.5% YoY) supported by stronger retail trading activity
- FX (primarily trading gain/loss): JPY4,419M(+44.8% YoY), increasing earnings contribution
- Futures and options trading (breakdown of brokerage commissions): JPY 759M (-9.5% YoY), relatively sluggish
Progress Versus Full-Year Guidance
The company does not disclose guidance (due to the significant impact of market conditions and the difficulty of forecasting). Accordingly, progress versus the full-year plan cannot be calculated. That said, 9M recurring profit of JPY16,905M(+36.0% YoY) maintains a strong growth profile; assuming the current trading and interest-rate environment persists, the earnings base appears to be stepping up.
| Account | Value (3Q Cumulative) | Full-Year Plan | Progress |
|---|---|---|---|
| Revenue (Operating Revenue) | JPY 37,293M | Not Disclosed | - |
| Operating Income | JPY 16,509M | Not Disclosed | - |
| Net Income | JPY 11,069M | Not Disclosed | - |
- Not applicable
Changes To Guidance
No guidance is disclosed (policy is that results are heavily dependent on market conditions and forecasting is difficult); therefore, the concept of revisions does not apply.
Commentary On Shareholder Returns
The full-year dividend forecast is TBD. An interim dividend of 25.00円 per share was paid (no change to dividend assumptions). The planned year-end dividend amount is scheduled to be announced in late February (company presentation).
Financial Position
The balance sheet is expanding amid growth in client assets under custody. Assets are building primarily via higher deposits, while liabilities are also increasing due to higher payables to customers and higher margin deposits received.
- Key Figures
- Leverage Metrics
| Account | Value | Additional Information |
|---|---|---|
| Cash and Deposits | JPY 68,474M | +1.6% vs FY-end |
| Deposits | JPY 773,912M | +24.6% vs FY-end |
| Margin Trading Assets | JPY 342,111M | +1.0% vs FY-end |
| └ Margin Loans | JPY 337,088M | +1.1% vs FY-end |
| Investment Securities | JPY 9,279M | +20.5% vs FY-end |
| Total Assets | JPY 1,283,314M | +14.4% vs FY-end |
| Deposits Received | JPY 484,986M | +33.3% vs FY-end |
| Margin Deposits Received | JPY 366,810M | +30.8% vs FY-end |
| Short-Term Borrowings | JPY 263,900M | -12.9% vs FY-end |
| Shareholders' Equity | - | - |
| EBITDA | - | - |
News Released Alongside The Earnings Announcement
- 2026/01/26Added 8 new US stocks; strengthened messaging around coverage exceeding 5,000 names—among the highest in the industry※（【US Stocks】We Will Begin Offering 8 New Stocks. Coverage Exceeds 5,000 Names, Among The Highest In The Industry※!） matsui.co.jp
- 2026/01/28Announced FY2026/3 3Q results (posted on the company IR schedule)（IR Schedule） matsui.co.jp
Major Announcements During The Quarter
- 2025/11/14Announced a capital and business alliance with Agent IG Holdings, including participation in a third-party allotment capital increase, etc.（Notice Regarding Capital and Business Alliance With Agent IG Holdings Inc., Participation in Third-Party Allotment Capital Increase, and Planned Acquisition of Its Common Shares） matsui.co.jp
- 2025/12/11Announced the launch of a new TV commercial featuring Alice Hirose, stepping up brand investment（New TV Commercial Featuring Alice Hirose, “Investing With Matsui” Version, To Air From Saturday, December 20） matsui.co.jp
- 2025/12/26Announced an increase in MATSUI Bank JPY savings deposit interest rate to 0.65% p.a. (pre-tax), among the highest levels in the industry（MATSUI Bank Raises JPY Savings Deposit Interest Rate to an Industry-Leading 0.65% p.a. (Pre-Tax)） matsui.co.jp
Large-Shareholding Filings / Material Proposals Over The Past Year
- Not applicable
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