Rakuten records first Q2 Non-GAAP operating profit since 2019
On August 8, Rakuten announced financial results for the second quarter of 2025 from the company’s global headquarters in Tokyo. AI avatars of Rakuten Group Chairman and CEO Mickey Mikitani and other Group leaders shared updates and highlights from the company’s diverse portfolio of more than 70 services.
Rakuten recorded year-on-year (YoY) revenue growth in all three segments in Q2 FY2025: Internet Services, FinTech and Mobile.
Strong performance from major businesses, including Rakuten Ichiba, Rakuten Travel, Rakuten Card, Rakuten Bank, Rakuten Mobile and Rakuten Symphony, resulted in significant revenue growth. Total consolidated revenue reached 596.4 billion yen for the quarter, up 11.0% YoY.
First Q2 operating profit since 2019
Rakuten Group also achieved its first second quarter Non-GAAP operating income since 2019, recording 20.1 billion yen in profit, a marked improvement of 31.9 billion yen YoY.
“This marks the first time since 2019 that we’ve made an operating profit in the second quarter. This accomplishment is a direct result of revenue growth, stringent operational discipline and the advancement of efficiencies through data and AI,” noted Mikitani.
Rising GMS in e-commerce platforms drives growth
The Internet Services segment achieved notable growth in Q2, with revenue of 324.5 billion yen, up 6.8% YoY. Domestic e-commerce gross merchandise sales (GMS) rose 4.7% YoY in Q2, reaching 1.49 trillion yen. This growth was driven by an expanding user base on Rakuten Ichiba and the Rakuten Rebates point reward service along with strong performance from Rakuten Travel. The Group aims to accelerate this single digit growth rate by implementing various measures such as expanding ecosystem synergies.
The Rakuten International business unit achieved revenue of USD 481 million, up 1.9% YoY, while Non-GAAP operating income was USD 10.2 million, a significant increase of 52.1% YoY. Contributing to the increase in revenue and profits were Rakuten Viber’s communication services and advertising, and increased revenue from Rakuten Viki.
Expanding customer base fuels FinTech segment growth
The FinTech segment delivered both revenue and profit growth in the second quarter, with revenue of 232.7 billion yen, up 14.8% YoY, and Non-GAAP operating income of 43.4 billion yen, an increase of 12.2% YoY.
Rakuten Card’s shopping gross transaction value (GTV) continued to expand in Q2, reaching 6.5 trillion yen, up 10.2% YoY.
Rakuten Securities achieved record-high quarterly revenue of 35.6 billion yen, up 7.9% YoY, due in part to a strong, diversified revenue structure. The total number of general securities accounts exceeded 12.56 million as of the end of June 2025, up 10.9% YoY.
Rakuten Payment recorded continued growth in revenue and profit, with Non-GAAP operating income up a substantial 57.2% YoY. In addition, the Rakuten Pay app achieved first place in customer satisfaction for the QR code payment industry for three consecutive years for the first time ever, according to a notable market survey**.
Rakuten Bank leveraged Group synergies to grow the number of customer accounts (non-consolidated) to 17.07 million as of the end of June 2025, an increase of 7.5% YoY, as the customer base continues to steadily expand.
Mobile segment makes steady progress towards 2025 full-year EBITDA profitability
In the second quarter, the Mobile segment recorded revenue of 112.1 billion yen, up 18.1% YoY. As a result of increasing Rakuten Mobile subscribers, rising net ARPU and a boost in Rakuten Symphony’s revenue from software deliveries to major customers, Non-GAAP operating losses stood at 37 billion yen, an improvement of 16.9 billion yen YoY.
The total number of Rakuten Mobile subscribers reached 8.97 million, a net increase of 390,000 from the previous quarter. As of July 31, 2025, the number of subscribers was 9.08 million.
Accelerating growth with AI-powered initiatives
Rakuten Group Chief AI & Data Officer Ting Cai shared updates on the progress of Rakuten’s AI-nization plans – the company’s effort to infuse AI into everything it does for customers, partners and employees.
Outlining various products, AI features, innovations and products being deployed across the Rakuten Ecosystem, Cai remarked, “Our vision is to augment human creativity with the power of AI. By further leveraging our unique data and extensive channels – which are our strengths – we believe we can accelerate our growth flywheel more than ever before.”
In July this year, Personalized Search launched on Rakuten Ichiba. By leveraging AI, the platform can now display more relevant search results tailored to each individual user, based on demographic data, behavioral data, purchase history, brand affinity, and other signals.
Rakuten AI is also being used to optimize ad delivery across the ecosystem. Introducing AI-optimized ad delivery on the Rakuten Promotion Platform has helped increase return on ad spend (ROAS) for merchants across channels and time.
In addition, Rakuten has been selected for the third phase of the “GENIAC” project, promoted by the Ministry of Economy, Trade and Industry and NEDO. The project includes research and development of cutting-edge GenAI foundational models with enhanced memory and cost efficiency.
Rakuten’s agentic AI
Cai offered updates on the adoption of Rakuten AI for Rakutenians, the company’s internal GenAI tool empowering employees to work smarter, faster, and more efficiently. Over 20,000 custom AI tools and templates have been created by employees across a range of tasks, from creating more compelling marketing content, to coding, to administrative tasks like managing email and recapping meetings.
Cai also highlighted Rakuten AI, the newly launched agentic AI platform built to serve as a powerful assistant, enhancing users’ productivity and creativity in multiple aspects of their daily lives and business.
For more business-by-business breakdowns of Rakuten’s FY2025 Q2 performance, see the full announcement here.
*EBITDA is an indicator the Rakuten Group uses to assess the ability for business activities to generate cash flow. It is calculated by adding depreciation and amortization expenses to Non-GAAP operating income.
**Results from Japan Productivity Center’s 2nd 2025 Japanese Customer Satisfaction Index (JCSI) Survey. Rakuten Payment is the first in the QR code payment industry to win first place in customer satisfaction for three consecutive years (as of July 30, 2025).
