Earnings quality
Compare earnings and operating cash flow for earnings quality.
Rakuten Group, Inc.
Ticker 4755 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-03-26 · Period end 2025-12-31
Takeaway
Dig deeperThe numbers send mixed signals — dig into cash flow and leverage before drawing a conclusion.
equity ratio is 3.4%.
Mixed signals — use cash flow and the balance sheet before treating the year as clean.
ActionDig deeper
OP margin—
Equity ratio3.4%
Last price—
Trailing P/E—
Look at next
- Compare operating cash flow to reported profit across the last two years.
- Open English IR for management commentary on outlook and capital allocation.
- Overlay peers on Compare before judging relative momentum.
About the company
楽天グループ株式会社 is a Japanese listed company. Its reportable segments include Fin Tech, Internet Services, Mobile.
- Fin Tech
- Internet Services
- Mobile
Segments Fin Tech · Internet Services · Mobile
Compare trends
Tel 050-5581-6910 · As of filing date 2026-03-26
Financial statements
Income statement
| Account | FY2024 (ended Dec 31, 2024) | FY2025 (ended Dec 31, 2025) |
|---|---|---|
| Revenue | — | — |
| Cost of sales* | — | — |
| Gross profit | — | — |
| Operating profit (loss) | ¥53.0B | ¥14.4B |
| Finance income | ¥82.3B | ¥63.4B |
| Finance costs | ¥109.9B | ¥99.4B |
| Income tax expense | ¥145.8B | ¥93.7B |
| Profit (loss) | -¥129.5B | -¥123.2B |
| Profit (loss) attributable to owners | -¥162.4B | -¥177.9B |
| Basic EPS (¥) | -75.61 | -82.24 |
Balance sheet
| Account | FY2024 (ended Dec 31, 2024) | FY2025 (ended Dec 31, 2025) |
|---|---|---|
| Cash and cash equivalents | ¥6.2T | ¥5.8T |
| Current assets | — | — |
| Non-current assets | — | — |
| Total assets | ¥26.5T | ¥28.8T |
| Short-term borrowings | — | — |
| Current liabilities | — | — |
| Non-current liabilities* | — | — |
| Total liabilities | ¥25.3T | ¥27.5T |
| Equity attributable to owners | ¥927.9B | ¥992.4B |
| Total equity | ¥1.2T | ¥1.4T |
Cash flow statement
| Account | FY2024 (ended Dec 31, 2024) | FY2025 (ended Dec 31, 2025) |
|---|---|---|
| Cash flows from operating activities | ¥1.2T | ¥424.1B |
| Cash flows from investing activities | -¥921.7B | -¥779.8B |
| Cash flows from financing activities | ¥757.5B | ¥14.1B |
| Net increase (decrease) in cash | ¥1.0T | -¥333.3B |
| Cash at end of period | ¥6.2T | ¥5.8T |
Five-year trends
Key metrics
| Metric | Trend | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|
| Revenue | ¥1.7T | ¥1.9T | ¥2.1T | ¥2.3T | ¥2.5T | |
| Operating profit | — | — | — | ¥53.0B | ¥14.4B | |
| Profit to owners | -¥133.8B | -¥377.2B | -¥339.5B | -¥162.4B | -¥177.9B | |
| Total assets | ¥16.8T | ¥20.4T | ¥22.6T | ¥26.5T | ¥28.8T | |
| Cash & equivalents | ¥4.4T | ¥4.7T | ¥5.1T | ¥6.2T | ¥5.8T | |
| Owners’ equity | ¥1.1T | ¥791.4B | ¥836.6B | ¥927.9B | ¥992.4B |
How we read these numbers
From the notes
No material one-offs extracted from this filing.
Mixed
The numbers send mixed signals — dig into cash flow and leverage before drawing a conclusion.
On the income statement, revenue moved from — to — (—), so the top line did not break. Gross profit only slipped from — to —, while operating profit swung from ¥53.0B to ¥14.4B — the damage is concentrated below gross profit.
Cash tells a different story than earnings. Operating cash flow was still ¥424.1B (prior ¥1.2T), and cash on the balance sheet rose to ¥5.8T from ¥6.2T. When profits collapse but operating cash stays positive, read the notes for impairments and other non-cash charges before assuming the business stopped generating cash.
Goodwill on the balance sheet fell from ¥647.5B to ¥647.2B, consistent with heavy write-downs of past acquisitions’ carrying values.
The balance sheet got heavier on leverage. Total liabilities rose to ¥27.5T while owners’ equity fell to ¥992.4B. ROE moved from -18.4% to -18.5%, and the equity ratio from 3.5% to 3.4%. Employee count is 29,419 vs 29,334 a year earlier.
Liquidity & leverage
Short-term borrowing levels look more stable year over year.
Capital buffer
Owners’ equity ratio fell from 3.5% to 3.4%; the balance sheet absorbed a heavy loss year.
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Source: EDINET S100XTNW
(楽天グループ株式会社), period end 2025-12-31.