PayPay Corporation reported a strong second quarter with total revenue reaching ¥118.1 billion, driven by double-digit growth in both its Payment and Financial Service segments. The company demonstrated significant operating leverage as Adjusted EBITDA grew 55% year-over-year to ¥42.1 billion. Based on this performance, management raised its full-year 2027 revenue and EBITDA guidance.
Key Highlights
- Total Revenue grew 28% YoY to ¥118.1 billion, led by a 38% surge in the Financial Service segment and 27% growth in the Payment segment.
- Platform Take Rate improved to 1.74%, beating the 1.66% analyst estimate and 1.64% in the prior year period, driven by higher-margin online payments and credit card interest income.
- Adjusted EBITDA rose 55% YoY to ¥42.1 billion, resulting in a margin expansion to 36% from 30% in the prior year quarter.
- Monthly Transacting Users (MTU) grew 9% YoY to 42.22 million, while Payment Segment GMV increased 20% to ¥5.56 trillion despite weather-related headwinds in offline activity.
- Profit for the period was ¥18.4 billion; while down YoY, the previous year included a ¥57.5 billion one-time tax benefit, and current profit increased on an underlying basis.