Rakuten records first quarterly net profit since entering the MNO business
News Highlights:
– First quarterly net profit since the full-scale launch of Rakuten’s MNO business in 2020
– Record-high Q2 consolidated revenue
– Operating income doubles YoY, driven by profitability growth in both Internet Services & FinTech segments
Six years since the full-scale launch of its mobile network operator (MNO) business, Rakuten has reached a significant milestone on its path back to profitability. In Q2 2026, the company recorded quarterly net profit for the first time since taking on the challenge to democratize the mobile industry.
Here are some of the key highlights from the company’s second quarter results, announced on August 10.
Overall performance
The Rakuten Group registered year-on-year (YoY) revenue growth for all segments in the second quarter of 2026: Internet Services, FinTech and Mobile. Consolidated revenue for Q2 reached a record high 665.5 billion yen, up 11.6% YoY.
The Group’s financial results reflect accelerating momentum across the Ecosystem, with consolidated Non-GAAP operating income more than doubling YoY to 42.0 billion yen, while IFRS operating income rose to 20.0 billion yen. Notably, the Group achieved its first after-tax profit in six years, with net profit reaching 27.2 billion yen*. Additionally, EBITDA hit a Q2 record of 115.3 billion yen, up 11.7% YoY. This was the result of especially strong profitability growth in both Internet Services and FinTech segments.
Strong growth in e-commerce and digital services
The Group’s Internet Services segment delivered both revenue and profit growth for the quarter, reporting revenue of 338.1 billion yen, up 4.2% YoY, and Non-GAAP operating income of 23.1 billion yen, an increase of 68.6% YoY. Domestic e-commerce gross merchandise sales (GMS) reached 1.53 trillion yen, up 5.3% YoY, driven by core business growth in Rakuten Ichiba and Rakuten Travel.
“Rakuten Ichiba is delivering the next generation of shopping experiences through AI. By deploying AI shop managers, we provide an experience that feels just like being served in-store — offering ‘Omotenashi,’ the Japanese art of hospitality, to tens of thousands of customers at once,” commented Rakuten Group Chairman and CEO Mickey Mikitani.
Notably, Rakuten Ichiba expanded the number of overseas merchants on the platform, especially from China, South Korea and the U.S. The travel business, meanwhile, benefited from substantial growth at Rakuten Travel Xchange, with global gross transaction volume (GTV) up over 78% YoY, thanks to expanded business with travel agencies worldwide.
The advertising business continued its strong momentum, with recorded revenue of 65.6 billion yen, an improvement of 15.6% YoY, fueled by AI-powered search and targeted banner advertising.
FinTech delivers substantial boost to operating income
Rakuten Group’s FinTech segment continued its robust growth in the quarter. Revenue reached 295.4 billion yen, an increase of 27% YoY, while Non-GAAP operating income reached 69.2 billion yen, up a significant 60.1% YoY, driven by customer base expansion and effective cost controls.
Key highlights from the segment include:
- Rakuten Card: Shopping gross transaction value reached 7.1 trillion yen (+9.4% YoY).
- Rakuten Bank: Reached 18.46 million accounts (+8.1% YoY) with total deposits of 13.3 trillion yen. The bank recorded record-high quarterly ordinary income and profit.
- Rakuten Securities: Recorded 14.39 million accounts (+14.5% YoY), with NISA accounts surpassing 8 million in July. The company recorded its highest-ever quarterly operating profit.
Rakuten Mobile continues path to profitability
Rakuten Mobile continued to strengthen its financial position in Q2 2026, supported by steady subscriber growth and improved operating efficiency.
The Mobile segment recorded revenue of 121.4 billion yen, a 8.3% increase compared to the same quarter last year. Non-GAAP operating losses narrowed to 33.1 billion yen, an improvement of 4.1 billion yen YoY. Rakuten Mobile, the segment’s core businesses, saw its Non-GAAP operating losses narrow to 32.3 billion yen, an improvement of 6.7 billion yen YoY, while EBITDA reached 5.9 billion yen, up 6.4% YoY.
The company also shared progress on initiatives to improve network quality for customers. As of June 2026, 5G networks had been deployed at 25 of the 30 stations on the JR Yamanote Line in Tokyo, and plans are underway to roll out capacity upgrades across Tokyo’s metro using MIMO technology. In total, 200 billion yen in capital expenditures is planned in 2026 to improve network coverage for customers.
Total Rakuten Mobile subscribers reached 10.75 million as of June 2026, a net increase of 1.78 million YoY. Net average revenue per user also trended upwards, reaching 2,516 yen, up 42 yen YoY, driven by strong performance in optional add-on services.
Rakuten AI supercharging the Rakuten Ecosystem
Following a performance overview of the company’s three core segments, Rakuten Group Chief AI & Data Officer Ting Cai gave a detailed update on Rakuten Group’s AI strategy and execution.
“Our expansion strategy focuses on three key concepts: Embed, Connect, and Extend, allowing Rakuten to engage users earlier in the purchase funnel and facilitate seamless cross-use across its diverse business portfolio,” Cai said.
By positioning Rakuten AI across web, mobile, and desktop—including strategic partnerships like Rakuten AI for Desktop launched for HP PCs in Japan—the company is capturing the industry-wide shift from traditional search to agent-based traffic. In addition, Rakuten is aggressively expanding its AI ecosystem by embedding agents into 17 services, with seven more in the pipeline and a roadmap to reach over 50 in the near future.
The effectiveness of this integration is already yielding significant transactional growth. On Rakuten Ichiba, the AI has reduced time-to-purchase by 41% and increased average order amounts by 17%.
Looking ahead, Rakuten is developing a Super Agent designed to handle complex, multi-service tasks and interact with third-party tools, further cementing its ability to manage the entire customer journey from discovery to post-purchase delivery.
For more business-by-business breakdowns of Rakuten’s Q2 FY2026 performance, see the full announcement here.
* Net income was 27.2 billion yen, and net income attributable to owners of the parent company was 7.7 billion yen.
