Rakuten Returns to Profit With ¥27.3 Billion Net Income, Unveils Major FinTech Reorganization
Japanese internet giant reports first positive quarterly result in six years as it consolidates banking, securities, and card businesses under Rakuten Bank umbrella.
Return to Profitability
Rakuten Group reported net income of ¥27.3 billion for the second quarter of fiscal 2026, marking its first positive quarterly result since Q2 2020 (earnings call, 2026-08-10). The Japanese internet conglomerate, with a market capitalization of approximately $12 billion, achieved record consolidated revenue of ¥665.5 billion, representing 11.6% year-over-year growth.
Chairman and CEO Hiroshi Mikitani emphasized that the profitability milestone was "not only a one-off, but this needs to be a perpetuating result that we would like to achieve on the coming years" (earnings call, 2026-08-10). Consolidated EBITDA reached a second-quarter record of ¥115.3 billion, up 11.7% year-over-year, while non-GAAP operating income more than doubled to ¥42 billion.
Major FinTech Restructuring
The company announced a significant reorganization of its financial services businesses, consolidating Rakuten Card, Rakuten Bank, and Rakuten Securities under the Rakuten Bank umbrella beginning in October. The three entities hold commanding market positions: Rakuten Card processed ¥27.7 trillion in shopping gross transaction value, Rakuten Bank serves 18.46 million accounts with ¥13.3 trillion in deposits, and Rakuten Securities manages 14.39 million general accounts (earnings call, 2026-08-10).
Management projects the integration will generate approximately ¥25 billion in financial synergies and ¥8 billion in marketing impact for the fiscal year ending March 2028, with total synergy effects reaching ¥85 billion by March 2030 (earnings call, 2026-08-10). The company cited data showing customers using both Rakuten Card and Rakuten Bank maintain deposit balances 4.3 times higher than card-only customers.
Segment Performance
The Internet Services segment posted revenue of ¥338.1 billion, up 4.2% year-over-year, with non-GAAP operating income surging 68.6% to ¥23.1 billion. Domestic e-commerce gross merchandise sales grew 5.3% to ¥1.5 trillion, while Rakuten Travel's gross transaction value jumped 17.2%, driven by a 78.5% increase in global-related bookings (earnings call, 2026-08-10).
The FinTech segment delivered robust results with revenue of ¥295.4 billion, up 25% year-over-year, and non-GAAP operating income of ¥69.2 billion, representing 60.1% growth. Rakuten Securities attracted significant inflows from younger investors opening NISA tax-advantaged accounts, surpassing 8 million such accounts in July with growth exceeding 20% year-over-year. Assets under custody reached ¥58.7 trillion, up 48.3% (earnings call, 2026-08-10).
Mobile Business Progresses
The Mobile segment generated revenue of ¥121.4 billion, up 8.3% year-over-year, with non-GAAP operating income improving by ¥4.1 billion. Pre-marketing cash flow, which excludes customer acquisition costs, reached ¥28 billion in positive territory. The business now serves 10.8 million accounts while reducing churn rates and gradually increasing average revenue per user (earnings call, 2026-08-10).
Rakuten disclosed it would close its France marketing press operation, acknowledging the unit "has not been able to achieve the ambitious goal" (earnings call, 2026-08-10). The company is next scheduled to report third-quarter results on November 13, 2026, according to MarginX data.
This article was generated by MarginX from the earnings call on 2026-08-10. It is not investment advice.