Mercari Inc. reported a 46% jump in operating profit for fiscal 2025, exceeding its own forecasts even as Japan’s largest consumer-to-consumer marketplace fell short of revenue targets.
The Tokyo-listed company posted core operating profit of ¥27.5 billion ($183 million) for the year ended June 30, surpassing its guidance range of ¥22-25 billion. However, revenue of ¥192.6 billion ($1.28 billion) missed the company’s ¥200-210 billion target, rising just 2.8% year-over-year as growth slowed in its core marketplace and struggling US operations.
The earnings beat came largely from Mercari’s fintech division, which generated ¥4.5 billion in operating profit as credit services expanded. The unit’s revenue jumped 15% to ¥38.6 billion, driven by growth in its Merpay payment platform and credit card business.
More significantly, Mercari’s long-troubled US marketplace finally turned profitable with ¥0.9 billion in operating profit after years of losses. The turnaround followed cost cuts and strategic shifts under CEO Shintaro Yamada, who took direct control of US operations.
Despite the progress, challenges remain. Marketplace transaction volume grew just 4% as the company grappled with fraud issues that affected user trust. For fiscal 2026, Mercari projects revenue of ¥200-210 billion and operating profit of ¥28-32 billion.
