Interim report
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English Translation This is a translation of the original release in Japanese . In the event of any discrepancy , the original release in Japanese shall prevail . mercari Consolidated Financial Results for the Fiscal Year Ended June 30 , 2026 Company name : Mercari , Inc. Stock exchange listing : Tokyo Stock Exchange [ IFRS ] Standards Financial Acc Accounting FASF MEMBERSHIP August 5 , 2026 Code number : 4385 URL : https://about.mercari.com/en/ Representative : Shintaro Yamada , Representative Executive Officer and CEO Contact : Sayaka Eda , Executive Officer , Senior Vice President of Corporate , and Chief Financial Officer Phone : + 81-3-6804-6907 Scheduled date of annual general meeting of shareholders : September 29 , 2026 Scheduled date of filing annual securities report : September 17 , 2026 Scheduled date of commencing dividend payments : - Availability of supplementary briefing material on annual financial results : Available Schedule of annual financial results briefing session : Scheduled ( for institutional investors and securities analysts ) ( Amounts of less than one million yen are rounded down . ) 1. Consolidated Financial Results for the Fiscal Year Ended June 30 , 2026 ( the " Period ” ) ( July 1 , 2025 , to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( % indicates changes from the previous corresponding period . ) Profit Total comprehensive income Revenue Core operating profit Operating profit Profit attributable to owners of parent Millions of Fiscal year ended June 30 , 2026 June 30 , 2025 yen 229,293 192,633 % 19.0 2.8 Millions of yen 44,181 60.2 27,574 46.1 % Millions of yen 43,905 % 57.7 Millions of yen 35,428 % 35.3 35,401 Millions of yen % 27,840 59.2 26,178 94.6 26,114 Millions of yen 35.6 36,411 94.0 % 39.2 26,153 75.4 ( Reference ) Profit before tax : Fiscal year ended June 30 , 2026 : ¥ 44,188 million [ 51.7 % ] Fiscal year ended June 30 , 2025 : ¥ 29,120 million [ 62.8 % ] ( Note ) Core operating profit is calculated by deducting other income and other expenses from operating profit . Fiscal year ended June 30 , 2026 June 30 , 2025 Diluted earnings per share Ratio of core operating profit Basic earnings per share Return on equity attributable to owners of parent Ratio of profit before tax to total assets to revenue Yen 214.74 Yen 209.06 % % % 30.0 7.0 19.3 159.05 154.85 30.5 5.6 14.3 ( 2 ) Consolidated Financial Position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets per share As of June 30 , 2026 As of June 30 , 2025 Millions of yen 726,622 543,763 Millions of yen 137,468 Millions of yen 137,069 % 18.9 99,640 99,269 18.3 Equity attributable to owners of parent Yen 829.62 603.28
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. (3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at the end of period Fiscal year ended Millions of yen Millions of yen Millions of yen Millions of yen June 30, 2026 (9,512) (29,240) 73,473 184,069 June 30, 2025 (11,949) (31,364) 504 147,028 2. Dividends Annual dividends Total dividends Payout ratio (Consolidated) Ratio of dividends to equity attributable to owners of parent (Consolidated ) 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Fiscal year ended Yen Yen Yen Yen Yen Millions of yen % % June 30, 2025 - 0.00 - 0.00 0.00 - - - June 30, 2026 - 0.00 - 0.00 0.00 - - - Fiscal year ending June 30, 2027 (Forecast) - 0.00 - 0.00 0.00 - 3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2027 (July 1, 2026, to June 30, 2027) (% indicates changes from the previous corresponding period.) Revenue Core operating profit Fiscal year ending June 30, 2027 Millions of yen % Millions of yen % 260,000 13.4 45,000 1.9 to 290,000 to 26.5 (Note) The Company expects core operating profit of ¥45,000 million or more.
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. * Notes: (1) Significant changes in the scope of consolidation during the period: No (2) Changes in accounting policies and changes in accounting estimates 1) Changes in accounting policies required by IFRS: No 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No (3) Total number of issued shares (common stock) 1) Total number of issued shares at the end of the Period (including treasury shares): June 30, 2026: 165,220,952 shares June 30, 2025: 164,548,524 shares 2) Total number of treasury shares at the end of the Period: June 30, 2026: 656 shares June 30, 2025: 287 shares 3) Average number of shares during the Period: Fiscal year ended June 30, 2026: 164,857,074 shares Fiscal year ended June 30, 2025: 164,189,575 shares (Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended June 30, 2026 (July 1, 2025, to June 30, 2026) (1) Non-consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Net profit Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 129,959 16.5 32,013 43.2 32,428 46.6 21,816 5.5 June 30, 2025 111,511 3.4 22,352 (1.1) 22,127 (2.3) 20,674 111.5 Basic earnings per share Diluted earnings per share Fiscal year ended Yen Yen June 30, 2026 132.34 128.83 June 30, 2025 125.92 122.60 (2) Non-consolidated Financial Position Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen % Yen As of June 30, 2026 207,051 113,547 54.6 683.77 As of June 30, 2025 165,478 90,000 53.8 541.52 (Reference) Equity: As of June 30, 2026: ¥112,973 million As of June 30, 2025: ¥89,106 million * Consolidated Financial Results are exempt from audits conducted by certified public accountants or audit firms. * Explanation of the proper use of financial results forecast and other notes The forward-looking statements, including the financial results forecast, contained in these materials are based on information currently available to the Company and certain assumptions deemed reasonable by the Company. As such, they do not constitute guarantees by the Company of future performance.
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 1 Appendix Table of Contents 1. Overview of Operating Results, etc. 2 (1) Overview of Operating Results for the Period 2 (2) Overview of Financial Position for the Period 3 (3) Overview of Cash Flows for the Period 4 (4) Future Outlook 4 2. Basic Policy Regarding Selection of Accounting Standards 5 3. Consolidated Financial Statements and Primary Notes 6 (1) Consolidated Statement of Financial Position 6 (2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income 8 (3) Consolidated Statement of Changes in Equity 10 (4) Consolidated Statement of Cash Flows 12 (5) Notes to the Consolidated Financial Statements 13 Notes on going concern assumption 13 Segment information 13 Per share information 17 Significant subsequent events 18 Additional information 18
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 2 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Period The Group has set its Group mission as “Circulate all forms of value to unleash the potential in all people,” and is currently working to achieve it. During the fiscal year ended June 30, 2026, the Group worked toward achieving its financial results forecast, under the policy of essentially aiming for top-line growth that will lead to increased profits and expanding businesses centered around Group synergy. As a result, consolidated revenue was ¥229.2 billion, and core operating profit was ¥44.1 billion, which allowed the Group to achieve its financial results forecast while setting a new record high. In the Marketplace domain, the Group prioritized enhancing the product’s core experience centered around building a secure and safe marketplace and worked to strengthen crossborder transactions, a high-growth area. During the current fiscal year, by enhancing the core experience, the Group established a foundation where the number of users, average transaction value, and transaction frequency grew in a well-balanced manner. As a result, the GMV (Note 1) for the current fiscal year was ¥1,285.6 billion, up 14.7% year-on-year, bringing the Group back to double-digit growth for the first time since the fiscal year ended June 30, 2023. Due to this top-line upswing, core operating profit was ¥42.9 billion (40.6% increase year-on-year), significantly exceeding the initial guidance and further solidifying the Group’s earnings base. Crossborder transactions, which are a focus area, are growing steadily, with a GMV of ¥112.2 billion (approximately 9% of the overall Marketplace GMV) due to the Group capturing strong demand in the Entertainment & Hobbies category. Initiatives for future growth, such as expanding the selection of items on Mercari through collaboration with Suruga-ya and launching a new global app, are making steady progress. In the Fintech domain, the Group worked to create the foundation to become a product that is chosen by users for all payment/credit use cases. Credit balance (Note 2) has grown steadily to ¥358.1 billion, up 44.4% year-on- year, due to an increase in transaction volume within Mercari, driven by strong GMV growth in the Marketplace business, as well as the growth of external transaction volume resulting from the steady acquisition of Mercard holders and the expansion of use cases. The collection rate (Note 3) maintained a high level at 99.4% due to strict credit control that utilizes the Group’s unique AI credit check and other measures. As a result, revenue was ¥65.1 billion, up 29.2% year-on-year. Core operating profit increased by ¥4.6 billion year-on-year to ¥9.1 billion, driven by improved profitability from steady growth in Credit, despite proactive investments. As a result of the above, Japan Business (Note 4) reported revenue of ¥180,858 million (up 20.7% year-on-year) and segment profit of ¥51,316 million (up 47.2% year-on-year) for the fiscal year ended June 30, 2026. In the US, the Group’s operations created a synergistic effect from enhancements to the product’s core experience and effective marketing, including CRM measures targeting specific categories and a promotion offering discounts on shipping costs. Furthermore, by capturing strong demand in the Entertainment & Hobbies category, GMV (Note 1) for the current fiscal year increased by 11.2% year-on-year to US$810 million (¥125.3 billion; the exchange rate conversion is the total of the amounts calculated for each month using the average rate during the month), achieving double-digit growth, and revenue amounted to ¥40,782 million (up 12.0% year-on- year). Core operating profit was ¥2,062 million as the Group maintained disciplined investment while making marketing investments. Additionally, steady product refinement led to positive effects on business performance sooner than anticipated. As a result, segment profit was ¥1,664 million (up 125.8% year-on-year), allowing US to continue to break even while realizing positive GMV growth. As a result, for the fiscal year ended June 30, 2026, the Group recorded revenue of ¥229,293 million (19.0% increase year-on-year), operating profit of ¥43,905 million (57.7% increase year-on-year), and profit attributable to owners of parent of ¥35,401 million (35.6% increase year-on-year). (Note 1) GMV (Gross Merchandise Value) is the total value of merchandise sold during a specified period. (Note 2) Merpay Deferred Payments (lump-sum payment, fixed-amount payment, and installment payment) and Merpay Smart Money credit balance as of June 30, 2026 (excludes debt converted into bankruptcy reorganization debt, etc.). (Note 3) Average aggregated rate of the quarterly cumulative collections completed within the past 11 months compared to the amount of Merpay Deferred Payments (lump-sum payment, fixed-amount payment, and installment payment) and Merpay Smart Money billed in the past 11 months (excludes debt converted into bankruptcy reorganization debt, etc.). (Note 4) Effective from the first quarter of the fiscal year ended June 30, 2026, the segment name “Japan Region” has been changed to “Japan Business.” This change is only a change in the name of the reportable segment and has no impact on segment information.
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 3 (2) Overview of Financial Position for the Period (Assets) Total assets at the end of the current fiscal year increased by ¥182,859 million from the end of the previous fiscal year to ¥726,622 million. The main reasons for any increases and decreases are as follows. - The main reasons for any increases and decreases in cash and cash equivalents are outlined in the Overview of Cash Flows for the Period section below. - Trade and other receivables increased by ¥109,225 million compared to the end of the previous fiscal year, primarily due to an increase in the use of Merpay Deferred Payments (lump-sum payment, fixed-amount payment, and installment payment) and Merpay Smart Money. - Other financial assets (current assets) increased by ¥126,483 million from the end of the previous fiscal year, primarily due to payments into time deposits and money held in trust. - Guarantee deposits decreased by ¥66,495 million from the end of the previous fiscal year, primarily due to the return of deposits for Merpay. (Liabilities) Total liabilities at the end of the current fiscal year increased by ¥145,032 million from the end of the previous fiscal year to ¥589,154 million. The main reasons for any increases and decreases are as follows. - Trade and other payables increased by ¥4,104 million from the end of the previous fiscal year due to an increase in accounts payable. - Bonds and borrowings (current liabilities) increased by ¥69,047 million from the end of the previous fiscal year, primarily due to changes in the liquidation of receivables for Merpay Deferred Payments (lump-sum payments, fixed-amount payments, and installment payments) and Merpay Smart Money, as well as the reclassification of a portion of convertible-bond-type bonds with stock acquisition rights to current liabilities. - Deposits received increased by ¥46,892 million from the end of the previous fiscal year, primarily due to higher spending on Mercari and Merpay. - Bonds and borrowings (non-current liabilities) increased by ¥6,131 million from the end of the previous fiscal year, primarily due to the liquidation of receivables for fixed-amount payments and installment payments. (Equity) Total equity at the end of the current fiscal year increased by ¥37,827 million from the end of the previous fiscal year to ¥137,468 million. The main reasons for any increases and decreases are as follows. - Share capital increased by ¥1,005 million from the end of the previous fiscal year following the issuance of new shares. - Capital surplus increased by ¥888 million from the end of the previous fiscal year following the issuance of new shares and share-based payment transactions. - Retained earnings increased by ¥35,441 million from the end of the previous fiscal year primarily due to the recording of profit attributable to owners of parent.
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 4 (3) Overview of Cash Flows for the Period Cash and cash equivalents (hereinafter referred to as “cash”) for the current fiscal year increased by ¥37,040 million from the end of the previous fiscal year and amounted to ¥184,069 million at the end of the current fiscal year. The status of cash flows and their contributing factors for the current fiscal year are as follows. (Cash flows from operating activities) Cash used in operating activities amounted to ¥9,512 million. This is primarily attributable to profit before tax of ¥44,188 million, an increase in trade and other receivables of ¥108,732 million, an increase in trade and other payables of ¥4,405 million, an increase in deposits received of ¥45,203 million, net increase in money held in trust of ¥56,500 million, a decrease in guarantee deposits (proceeds from return of deposits) of ¥66,500 million, income taxes paid of ¥5,242 million, and income taxes refunded of ¥2,567 million. (Cash flows from investing activities) Cash used in investing activities amounted to ¥29,240 million. This is primarily attributable to purchase of investment securities of ¥4,299 million, purchase of property, plant and equipment of ¥1,413 million, purchase of intangible assets of ¥3,686 million, payments into time deposits of ¥40,000 million, and proceeds from withdrawal of time deposits of ¥20,000 million. (Cash flows from financing activities) Cash provided by financing activities amounted to ¥73,473 million. This is primarily attributable to an increase in short-term borrowings of ¥51,956 million, proceeds from issuance of bonds and long-term borrowings of ¥55,900 million, and redemption of bonds and repayments of long-term borrowings of ¥32,844 million. (4) Future Outlook Toward achieving the Group mission, the Group’s policy is to continue to essentially aim for top-line growth that will lead to increased profits. For the fiscal year ending June 30, 2027, consolidated revenue is forecast to be between ¥260,000 million and ¥290,000 million (up 13.4–26.5% year-on-year) and consolidated core operating profit to be ¥45,000 million or more (up 1.9% or more year-on-year).
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 5 2. Basic Policy Regarding Selection of Accounting Standards The Group has voluntarily adopted International Financial Reporting Standards (IFRS) to improve international comparability and usability of financial information.
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 6 3. Consolidated Financial Statements and Primary Notes (1) Consolidated Statement of Financial Position (Millions of yen) As of June 30, 2025 As of June 30, 2026 Assets Current assets Cash and cash equivalents 147,028 184,069 Trade and other receivables 254,728 363,953 Deposits paid 6,370 3,138 Other financial assets 1,195 127,678 Other current assets 10,918 4,157 Total current assets 420,241 682,996 Non-current assets Property, plant and equipment 1,428 2,621 Right-of-use assets 8,563 8,008 Intangible assets 1,270 4,088 Deferred tax assets 8,478 17,518 Guarantee deposits 67,328 832 Other financial assets 35,607 9,958 Other non-current assets 845 597 Total non-current assets 123,522 43,626 Total assets 543,763 726,622
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 7 (Millions of yen) As of June 30, 2025 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 15,049 19,154 Bonds and borrowings 74,196 143,243 Lease liabilities 1,450 1,571 Income taxes payable 718 16,384 Deposits received 217,268 264,161 Other financial liabilities 1,834 3,033 Other current liabilities 8,992 10,825 Total current liabilities 319,511 458,373 Non-current liabilities Bonds and borrowings 116,754 122,886 Lease liabilities 6,975 6,621 Provisions 666 745 Deferred tax liabilities 88 90 Other non-current liabilities 124 437 Total non-current liabilities 124,610 130,780 Total liabilities 444,122 589,154 Equity Share capital 48,176 49,182 Capital surplus 50,998 51,887 Retained earnings (3,014) 32,426 Treasury shares (0) (2) Other components of equity 3,109 3,575 Equity attributable to owners of parent 99,269 137,069 Non-controlling interests 371 398 Total equity 99,640 137,468 Total liabilities and equity 543,763 726,622
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 8 (2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income (Consolidated Statement of Profit or Loss) (Millions of yen) For the fiscal year ended June 30, 2025 For the fiscal year ended June 30, 2026 Revenue 192,633 229,293 Cost of sales 54,374 60,387 Gross profit 138,258 168,906 Selling, general and administrative expenses 110,684 124,724 Other income 920 498 Other expenses 654 774 Operating profit 27,840 43,905 Finance income 1,948 1,286 Finance costs 668 1,002 Profit before tax 29,120 44,188 Income tax expense 2,941 8,760 Profit 26,178 35,428 Profit attributable to Owners of parent 26,114 35,401 Non-controlling interests 64 27 Profit 26,178 35,428 Earnings per share Basic earnings per share (yen) 159.05 214.74 Diluted earnings per share (yen) 154.85 209.06
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 9 (Consolidated Statement of Comprehensive Income) (Millions of yen) For the fiscal year ended June 30, 2025 For the fiscal year ended June 30, 2026 Profit 26,178 35,428 Other comprehensive income (after considering tax effects) Items that will not be reclassified to profit or loss Net gain (loss) on revaluation of financial assets measured at fair value through other comprehensive income 962 415 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations (467) 477 Effective portion of change in fair value of cash flow hedges (519) 90 Total other comprehensive income (after considering tax effects) (24) 982 Comprehensive income 26,153 36,411 Comprehensive income attributable to Owners of parent 26,090 36,384 Non-controlling interests 62 26 Comprehensive income 26,153 36,411
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 10 (3) Consolidated Statement of Changes in Equity For the fiscal year ended June 30, 2025 (Millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Share award rights Share acquisition rights Exchange differences on translation of foreign operations Balance as of July 1, 2024 47,349 50,192 (29,125) (0) – 1,613 1,308 Profit 26,114 Other comprehensive income (467) Comprehensive income – – 26,114 – – – (467) Issuance of shares 827 212 (1,024) Purchase of treasury shares (0) Share-based payment transactions 733 731 Transfer from other components of equity to retained earnings (3) Redemption of convertible- bond-type bonds with stock acquisition rights (139) Total transactions with owners 827 806 (3) (0) – (292) – Balance as of June 30, 2025 48,176 50,998 (3,014) (0) – 1,321 840 Equity attributable to owners of parent Non- controlling interests Total equity Other components of equity Total equity attributable to owners of parent Effective portion of change in fair value of cash flow hedges Net gain (loss) on revaluation of financial assets measured at fair value through other comprehen- sive income Total Balance as of July 1, 2024 531 (32) 3,422 71,836 308 72,145 Profit 26,114 64 26,178 Other comprehensive income (519) 963 (23) (23) (1) (24) Comprehensive income (519) 963 (23) 26,090 62 26,153 Issuance of shares (1,024) 15 15 Purchase of treasury shares (0) (0) Share-based payment transactions 731 1,465 1,465 Transfer from other components of equity to retained earnings 3 3 – – Redemption of convertible- bond-type bonds with stock acquisition rights (139) (139) Total transactions with owners – 3 (289) 1,341 – 1,341 Balance as of June 30, 2025 12 934 3,109 99,269 371 99,640
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 11 For the fiscal year ended June 30, 2026 (Millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Share award rights Share acquisition rights Exchange differences on translation of foreign operations Balance as of July 1, 2025 48,176 50,998 (3,014) (0) – 1,321 840 Profit 35,401 Other comprehensive income 477 Comprehensive income – – 35,401 – – – 477 Issuance of shares 1,005 12 (129) (846) Purchase of treasury shares (1) Share-based payment transactions 875 264 234 Transfer from other components of equity to retained earnings 40 Total transactions with owners 1,005 888 40 (1) 134 (611) – Balance as of June 30, 2026 49,182 51,887 32,426 (2) 134 709 1,317 Equity attributable to owners of parent Non- controlling interests Total equity Other components of equity Total equity attributable to owners of parent Effective portion of change in fair value of cash flow hedges Net gain (loss) on revaluation of financial assets measured at fair value through other comprehen- sive income Total Balance as of July 1, 2025 12 934 3,109 99,269 371 99,640 Profit 35,401 27 35,428 Other comprehensive income 90 416 983 983 (0) 982 Comprehensive income 90 416 983 36,384 26 36,411 Issuance of shares (975) 42 42 Purchase of treasury shares (1) (1) Share-based payment transactions 499 1,374 1,374 Transfer from other components of equity to retained earnings (40) (40) – – Total transactions with owners – (40) (516) 1,415 – 1,415 Balance as of June 30, 2026 103 1,310 3,575 137,069 398 137,468
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 12 (4) Consolidated Statement of Cash Flows (Millions of yen) For the fiscal year ended June 30, 2025 For the fiscal year ended June 30, 2026 Cash flows from operating activities Profit before tax 29,120 44,188 Depreciation and amortization 1,831 2,876 Gain on redemption of bonds (1,113) – Interest and dividend income (825) (1,286) Interest expenses 500 642 Decrease (increase) in trade and other receivables (59,505) (108,732) Decrease (increase) in deposits paid (2,678) 3,285 Increase (decrease) in trade and other payables (6,396) 4,405 Increase (decrease) in deposits received 17,733 45,203 Net decrease (increase) in money held in trust – (56,500) Other (1,418) (7,619) Subtotal (22,754) (73,536) Interest received 783 644 Interest paid (309) (475) Decrease (increase) in guarantee deposits 14,280 66,500 Income taxes paid (4,096) (5,242) Income taxes refund 112 2,567 Other 34 28 Net cash provided by (used in) operating activities (11,949) (9,512) Cash flows from investing activities Purchase of investment securities (30,454) (4,299) Purchase of property, plant and equipment (300) (1,413) Purchase of intangible assets (863) (3,686) Payments of leasehold and guarantee deposits (606) (86) Payments into time deposits – (40,000) Proceeds from withdrawal of time deposits – 20,000 Other 859 247 Net cash provided by (used in) investing activities (31,364) (29,240) Cash flows from financing activities Net increase (decrease) in short-term borrowings 2,065 51,956 Proceeds from issuance of bonds and long-term borrowings 46,200 55,900 Redemption of bonds and repayments of long-term borrowings (46,463) (32,844) Proceeds from issuance of shares 15 14 Repayments of lease liabilities (1,312) (1,552) Net cash provided by (used in) financing activities 504 73,473 Effect of exchange rate changes on cash and cash equivalents (2,160) 2,319 Net increase (decrease) in cash and cash equivalents (44,969) 37,040 Cash and cash equivalents at the beginning of period 191,998 147,028 Cash and cash equivalents at the end of period 147,028 184,069 (Note) In the Consolidated Statement of Cash Flows for the previous fiscal year, the “Purchase of intangible assets” previously included under “Other” in “Cash flows from investing activities” has been presented separately starting from the current fiscal year due to its increased materiality. To reflect this change in presentation, the consolidated financial statements for the previous fiscal year have been reclassified. As a result, in the Consolidated Statement of Cash Flows for the previous fiscal year, ¥(3) million previously presented under “Other” in “Cash flows from investing activities” has been reclassified as ¥(863) million under “Purchase of intangible assets” and ¥859 million under “Other.”
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 13 (5) Notes to the Consolidated Financial Statements Notes on going concern assumption Not applicable. Segment information (1) Overview of reportable segments The business segments of Mercari Group are defined as those units of the Company and its subsidiaries for which separate financial information is available and are regularly reviewed by the Board of Directors and the Executive Committee to make decisions on the allocation of management resources and to assess business results. The Group classifies the reportable segments as “Japan Business,” for which the Group operates its core business of the Mercari marketplace in Japan, and “US,” for which the Group operates the Mercari (US) marketplace app in the United States of America. The Group also proposes and determines Group strategies along these segment lines. There are no aggregated business segments when deciding the reportable segments. Note that the principal information included in each reportable segment is as follows. Japan Business Marketplace Operation of a marketplace app in Japan Fintech Payment-, finance-, and cryptoasset-related business in Japan US Marketplace Operation of a marketplace app in the US (2) Information regarding profit or loss by reportable segments Intersegment revenue is based on actual market price.
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 14 For the fiscal year ended June 30, 2025 (Millions of yen) Reportable segments Other (Note 2) Total Adjust- ments (Note 3) Consoli- dated Japan Business US (Note 4) Total Revenue Marketplace 111,200 36,418 147,618 – 147,618 – 147,618 Fintech 38,597 – 38,597 – 38,597 – 38,597 Other 8 – 8 6,407 6,416 – 6,416 Total 149,807 36,418 186,225 6,407 192,633 – 192,633 Revenue from contracts with customers 122,297 36,418 158,715 6,407 165,123 – 165,123 Revenue from other sources 27,509 – 27,509 – 27,509 – 27,509 Total 149,807 36,418 186,225 6,407 192,633 – 192,633 Revenue from external customers (Note 5) 149,807 36,418 186,225 6,407 192,633 – 192,633 Intersegment revenue or transfers – – – 1,801 1,801 (1,801) – Total 149,807 36,418 186,225 8,208 194,434 (1,801) 192,633 Segment profit (loss) (Note 1) 34,860 737 35,597 385 35,983 (8,143) 27,840 Finance income – – – – – – 1,948 Finance costs – – – – – – 668 Profit before tax – – – – – – 29,120 (Other items) Depreciation and amortization 1,121 26 1,148 300 1,449 381 1,831 (Notes) 1. Total amount of the segment profit (loss) corresponds to operating profit described in the consolidated statements of income. 2. The “Other” column includes business segments that are not included in the reportable segments, such as the sports business. 3. Adjustments for segment profit (loss) mainly consist of general and administrative expenses that are not attributable to reportable segments. 4. For “US,” the amount of delivery revenue is recognized at the full amount of consideration received from the customer, which is recorded as ¥20,431 million. 5. “Revenue from external customers” includes revenue from contracts with customers and revenue from other sources. Revenue from other sources is primarily interest revenue in accordance with IFRS 9, which was ¥25,804 million. In addition, Mercoin, Inc. operates as a cryptoasset exchange service provider. For purchases and sales transactions of cryptoassets, the amounts were accounted for as derivatives in accordance with IFRS 9, and the associated revenue amounted to ¥1,705 million. 6. The amounts for segment assets and liabilities are not disclosed here because they are not included in the periodic review for determining the distribution of management resources and evaluating business results.
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 15 For the fiscal year ended June 30, 2026 (Millions of yen) Reportable segments Other (Note 2) Total Adjust- ments (Note 3) Consoli- dated Japan Business US (Note 4) Total Revenue Marketplace 129,526 40,782 170,308 – 170,308 – 170,308 Fintech 51,201 – 51,201 – 51,201 – 51,201 Other 130 – 130 7,653 7,783 – 7,783 Total 180,858 40,782 221,640 7,653 229,293 – 229,293 Revenue from contracts with customers 140,420 40,782 181,202 7,653 188,855 – 188,855 Revenue from other sources 40,437 – 40,437 – 40,437 – 40,437 Total 180,858 40,782 221,640 7,653 229,293 – 229,293 Revenue from external customers (Note 5) 180,858 40,782 221,640 7,653 229,293 – 229,293 Intersegment revenue or transfers – – – 2,514 2,514 (2,514) – Total 180,858 40,782 221,640 10,167 231,807 (2,514) 229,293 Segment profit (loss) (Note 1) 51,316 1,664 52,980 379 53,360 (9,454) 43,905 Finance income – – – – – – 1,286 Finance costs – – – – – – 1,002 Profit before tax – – – – – – 44,188 (Other items) Depreciation and amortization 1,374 63 1,438 718 2,156 719 2,876 (Notes) 1. Total amount of the segment profit (loss) corresponds to operating profit described in the consolidated statements of income. 2. The “Other” column includes business segments that are not included in the reportable segments, such as the sports business. 3. Adjustments for segment profit (loss) mainly consist of general and administrative expenses that are not attributable to reportable segments. 4. For “US,” the amount of delivery revenue is recognized at the full amount of consideration received from the customer, which is recorded as ¥22,370 million. 5. “Revenue from external customers” includes revenue from contracts with customers and revenue from other sources. Revenue from other sources is primarily interest revenue in accordance with IFRS 9, which was ¥38,864 million. In addition, Mercoin, Inc. operates as a cryptoasset exchange service provider. For purchases and sales transactions of cryptoassets, the amounts were accounted for as derivatives in accordance with IFRS 9, and the associated revenue amounted to ¥1,573 million. 6. The amounts for segment assets and liabilities are not disclosed here because they are not included in the periodic review for determining the distribution of management resources and evaluating business results.
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 16 (3) Matters related to changes in reportable segments, etc. Effective from the first quarter of the fiscal year ended June 30, 2026, the segment name “Japan Region” has been changed to “Japan Business.” This change is only a change in the name of the reportable segment and has no impact on segment information. Accordingly, segment information for the fiscal year ended June 30, 2025, is presented under the segment name after the change. (4) Revenue from external customers by product and service category This information is omitted because the same information is disclosed in the segment information. (5) Information by region This information is omitted because the same information is disclosed in the segment information. The “Other” category consists entirely of domestic sales. The information on non-current assets by region is omitted because the amount of non-current assets located in Japan accounts for the majority of non-current assets in the Consolidated Statement of Financial Position. (6) Information about major customers This information is omitted because, of revenue from external customers, there are no customers that account for 10% or more of revenue in the Consolidated Statement of Profit or Loss.
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 17 Per share information (1) Basic earnings per share and diluted earnings per share For the fiscal year ended June 30, 2025 For the fiscal year ended June 30, 2026 Basic earnings per share (yen) 159.05 214.74 Diluted earnings per share (yen) 154.85 209.06 (2) Basis for calculating basic earnings per share and diluted earnings per share For the fiscal year ended June 30, 2025 For the fiscal year ended June 30, 2026 Profit used to calculate basic earnings per share and diluted earnings per share Profit attributable to owners of parent (million yen) 26,114 35,401 Amount not attributable to common shareholders of parent (million yen) – – Profit used to calculate basic earnings per share (million yen) 26,114 35,401 Profit adjustment (million yen) – – Profit used to calculate diluted earnings per share (million yen) 26,114 35,401 Weighted average number of shares of common stock used to calculate basic earnings per share and diluted earnings per share Weighted average number of shares of common stock used to calculate basic earnings per share (thousands of shares) 164,189 164,857 Effect of dilutive potential common stock (thousands of shares) 4,449 4,481 Weighted average number of shares of common stock used to calculate diluted earnings per share (thousands of shares) 168,639 169,338 Outline of potential common stock excluded from the computation of diluted earnings per share due to its non- dilutive effect – – (Note) There were no significant transactions involving common stock or potential common stock between the end of the fiscal year and the date of approval of these consolidated financial statements.
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English Translation This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail. 18 Significant subsequent events Purchase and cancellation of treasury shares At a meeting of its Board of Directors held on August 5, 2026, the Company passed a resolution to purchase treasury shares of the Company based on Article 34 of the Company's Articles of Incorporation and pursuant to Article 459, Paragraph 1 of the Companies Act. In addition, the Company has decided to cancel treasury shares pursuant to Article 178 of the Companies Act as detailed below. 1. Reason for purchasing treasury shares The Company will purchase treasury shares based on its approach to capital allocation disclosed in the full- year financial results announcement for the fiscal year ended June 30, 2025. 2. Details of purchase (1) Type of shares to be purchased: Common shares of the Company (2) Total number of shares to be purchased: Up to 4 million shares Note: Percentage of the total number of issued shares (excluding treasury shares): 2.4% (3) Total purchase price of shares: Up to 10 billion JPY (4) Purchase period: From August 6, 2026, to October 30, 2026 (5) Method of purchase: Open-market purchase on the Tokyo Stock Exchange based on a discretionary trading agreement 3. Details of cancellation (1) Type of shares to be canceled: Common shares of the Company (2) Total number of shares to be canceled: All treasury shares purchased in 2 above. (3) Scheduled cancellation date: November 12, 2026 Additional information Regarding capitalization of software The Group provides services such as Mercari and Merpay and is focused on product development that utilizes technology. In recent years, in addition to providing value in new areas like digital asset transactions, the Group is seeking to enhance the user experience and strengthen the detection of fraudulent transactions. As the certainty of obtaining economic benefits from the software used in these businesses has increased, the Company has clarified development processes and strengthened the approval process for determining the certainty of obtaining future economic benefits through the usage of software created by the Company. As a result, the software production expenses recognized as certain to yield economic benefits are capitalized as software or software in progress.