EX-99.1

Key Financial and Operating Metrics

The following table sets forth a summary of key financial and operating metrics for the years ended March 31, 2026 and 2025, and the three-month periods ended March 31, 2026 and 2025.


	For the years ended March 31,						For the three-month period ended March 31,
	2025			2026			2025			2026
	(in millions of yen, unless otherwise indicated)
Total Revenue	¥	299,078		¥	380,662		¥	78,631		¥	102,184
Settlement related costs	¥	43,662		¥	48,731		¥	11,193		¥	12,383
Provision for loss allowance	¥	23,942		¥	24,923		¥	6,701		¥	7,527
Interest expenses	¥	4,254		¥	10,590		¥	1,531		¥	3,343
Total Transaction Cost	¥	71,858		¥	84,244		¥	19,425		¥	23,253
Operating profit	¥	35,510		¥	80,082		¥	7,326		¥	19,074
Operating profit margin		12	%		21	%		9	%		19	%
Profit for the year (period)	¥	39,157		¥	117,810		¥	10,200		¥	14,473
Profit for the year (period) margin		13	%		31	%		13	%		14	%

Non-IFRS Financial Measure:
Adjusted EBITDA(1)	¥	58,650		¥	111,130		¥	14,003		¥	28,593
Adjusted EBITDA Margin(2)		20	%		29	%		18	%		28	%



Operating Metrics:	(in trillions of yen, unless otherwise indicated)
Consolidated
Total GMV(3)	¥	15.68		¥	19.36		¥	4.12		¥	5.07
Payment segment
PayPay Balance GMV(4)	¥	9.07		¥	10.84		¥	2.34		¥	2.79
PayPay Credit GMV(5)	¥	3.48		¥	4.64		¥	0.94		¥	1.22
PayPay Card GMV(6)	¥	2.84		¥	3.55		¥	0.76		¥	0.97
Payment Segment GMV(7)	¥	15.39		¥	19.03		¥	4.05		¥	4.98
Take Rate(8)		1.61	%		1.64	%		1.60	%		1.65	%
Cost Rate(9)		1.42	%		1.30	%		1.45	%		1.38	%
PayPay MTU (millions of users)(10)		37.23			40.97			37.23			40.97
PayPay Number of Transactions (millions of transactions)(11)		7,807			9,243			1,996			2,359
Financial service segment
PayPay Bank Balance of Deposits (billions of yen)(12)	¥	1,841.0		¥	2,269.1		¥	1,841.0		¥	2,269.1
PayPay Bank Balance of Loans (billions of yen)(13)	¥	926.9		¥	1,238.6		¥	926.9		¥	1,238.6

Notes:

(1) Adjusted EBITDA is defined as profit for the year (period) plus income tax expense (benefit), share of loss of investments accounted for using the equity method, depreciation and amortization, loss on disposal of property and equipment and intangible assets, share-based payment expense, amortization of contract cost, listing-related expenses, M&A-related expenses and net interest expense (income) from corporate borrowings and treasury assets. Share of profit (loss) of investments accounted for using the equity method includes share of loss of a joint venture accounted for using the equity method.

(2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue.

(3) Total GMV, or gross merchandise value, is defined as the total of PayPay Balance GMV, PayPay Credit GMV, PayPay Card GMV and PayPay Bank Visa Debit Card GMV, excluding the GMV of cancelled transactions. PayPay Bank Visa Debit Card GMV is defined as payments made using PayPay Bank Visa Debit Card (physical card) and Cardless Visa Debit transaction volume for both personal and corporate use, excluding the GMV of PayPay Debit GMV and ATM withdrawal amounts when using the cash card function, excluding the GMV of any cancelled transactions.

(4) PayPay Balance GMV is defined as payments made using PayPay Balance, PayPay Debit, PayPay Balance Card, other credit card payment linked to the PayPay app and payments made through other payment services and networks such as Alipay+ and HIVEX® via PayPay code payment, excluding top-ups to PayPay Balance with PayPay Card and excluding the GMV of cancelled transactions.

(5) PayPay Credit GMV is defined as payments made using PayPay Credit, top-ups to PayPay Balance made using PayPay Card and GMV made by linking a PayPay Card to the PayPay app without linking a PayPay account, excluding the GMV of cancelled transactions.

(6) PayPay Card GMV is defined as payment made using PayPay Card (physical card), excluding top-ups to PayPay Balance with PayPay Card and excluding the GMV of cancelled transactions.

(7) Payment Segment GMV is defined as the total of PayPay Balance GMV, PayPay Credit GMV and PayPay Card GMV, excluding the GMV of cancelled transactions.

(8) Take Rate is defined as Payment segment’s Total Revenue divided by Payment Segment GMV (which includes PayPay Balance, PayPay Credit, and PayPay Card GMV).

(9) Cost Rate is defined as Payment segment’s operating expenses divided by Payment Segment GMV (which includes PayPay Balance, PayPay Credit, and PayPay Card GMV).

(10) PayPay MTU is defined as the number of unique users who completed at least one payment per month that contributes to PayPay Balance or PayPay Credit GMV, but excluding P2P (peer-to-peer) money transfers and cancelled transactions. PayPay MTU over a quarterly or annual period represents the figure from the last month in the relevant period.

(11) PayPay Number of Transactions is defined as the total number of completed transactions that contribute to PayPay Balance GMV or PayPay Credit GMV, but excluding P2P (peer-to-peer) money transfers and cancelled transactions.

(12) PayPay Bank Balance of Deposits is defined as the sum of demand deposit and time deposit.

(13) PayPay Bank Balance of Loans is defined as the sum of mortgage loans, overdraft and other.

The following tables reconcile Adjusted EBITDA from profit for the year (period), which is the most directly comparable financial measure calculated and presented in accordance with IFRS, for the periods presented. The adjustments presented below are primarily depreciation expenses that do not result in a cash outflow, temporary expenses and non-operating income and expenses.


	For the year ended March 31						For the three-month period ended March 31,
	2025			2026			2025			2026
	(in millions of yen, except percentages)
Profit for the year (period)	¥	39,157		¥	117,810		¥	10,200		¥	14,473
Add: Income tax expense (benefit)		(4,196	)		(37,865	)		(3,040	)		4,363
Add: Share of loss of investments accounted for using the equity method(1)		549			137			166			238
Add: Depreciation and amortization		20,093			23,758			5,607			6,208
Add: Share-based payment expenses(2)	-				1,730		-				1,730
Add: Amortization of contract cost		1,297			1,724			349			481
Add: Loss on disposal of property and equipment and intangible assets		702			1,356			207			811
Add: Listing-related expenses(3)		302			2,202			302			286
Add: M&A-related expenses(4)		330			593			153			162
Add: Net interest expense (income) from corporate borrowings and treasury assets(5)		416			(316	)		59			(159	)
Adjusted EBITDA	¥	58,650		¥	111,130		¥	14,003		¥	28,593
Divided by: Total Revenue		299,078		¥	380,662			78,631		¥	102,184
Adjusted EBITDA Margin(6)		20	%		29	%		18	%		28	%

Notes:

(1) Share of loss of investments accounted for using the equity method includes share of loss of a joint venture accounted for using the equity method.

(2) Share-based payment expenses represent compensation granted to directors, officers, and employees in exchange for their services, consisting of equity-settled awards (non-cash expenses) and cash-settled awards (expenses involving future cash outflows). These expenses are recognized by allocating the fair value of each award over its respective vesting period. Following the completion of PayPay’s IPO, the cumulative expense recognition commenced in the fourth quarter ended March 31, 2026. Notably, in the calculation of Adjusted EBITDA, only equity-settled share-based payment expenses are adjusted as non-cash items, while cash-settled expenses are not adjusted.

(3) Listing-related expenses consist of the fees and expenses of the professional advisors that we hired in connection with the preparations for our initial public offering.

(4) M&A-related expenses, which consist of the fees and expenses of the professional advisors that we hired in connection with acquisitions and investments, such as our acquisition of PayPay Bank Corporation and PayPay Securities Corporation and accrued expenses related to holdbacks in connection with a prior acquisition.

(5) Net interest expense (income) from corporate borrowings and treasury assets comprises interest expense on borrowings from LY Corporation, offset by interest income derived from guarantee deposits, cash and cash equivalents, and government securities within the payment segment.

(6) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue.

Financial Guidance


	For the year ending March 31,					For the three-month period ending June 30,
	2027					2026
	(in millions of yen)
Total Revenue	¥	454,000	to	¥	462,000	¥	103,000	to	¥	105,000

Adjusted EBITDA	¥	134,500	to	¥	140,500	¥	30,500	to	¥	32,500

Conference Call

PayPay will host a conference call to discuss earnings at 7:00 am Eastern Time, 8:00 pm JST on Thursday, May 7, 2026. The conference call will be live on PayPay's investor relations website at https://ir.paypay.ne.jp/. A replay of the call will be available on the same website following the call.

Participating on the call will be:

•

Ichiro Nakayama, Representative Director President, Corporate Officer, Chief Executive Officer,

•

Wataru Kagechika, Managing Corporate Officer, Chief Financial Officer,

•

Toshiki Motoda, Corporate Officer, Head of Corporate Strategy Division and Finance Division,

•

Kotaro Emae, Head of Investor Relations

Contact

Investor Relations: investor.relations@paypay-corp.co.jp

Public Relations: pr@paypay-corp.co.jp

Cautionary Note Regarding Forward-Looking Statements and Financial Guidance

This release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. Forward-looking statements generally relate to future events or future financial or operating performance. In some cases, you can identify these statements by forward-looking words such as “expectation,” “forecast,” “anticipation,” “intention,” “plan,” “possibility,” “may,” “will,” “should,” “anticipate,” “could,” “would,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “goal,” “objective,” “seek,” or “continue,” the negative of these terms and other comparable terminology. Forward-looking statements in this release may relate to, but are not limited to, expectations of future results of operations or financial performance of the Company, including expectations related to full-year and quarter Total Revenue growth and Adjusted EBITDA, expectations regarding certain of our key financial and operating metrics, our business and growth strategy, including future product development plans, our market opportunity, the performance of newly launched products and innovations, our technological capabilities, the demand for the Company’s products and services, our expectations and management of future growth and acceleration, and our expectations regarding our industry and traditional banks, as well as assumptions relating to the foregoing. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include risks related to our ability to manage our growth effectively; our ability to attract new users, retain our active users and expand the scope of our relationship with our active users; our ability to attract new merchants to utilize our services, grow our relationships with our existing merchants, and increase transaction volumes across our payment settlement services; our ability to maintain and expand synergies between our code-based payment settlement services and our credit card payment services; our ability to maintain and strengthen the ecosystem effects of our platform; our alliances with the shareholders of our consolidated subsidiaries and equity-method affiliates; changes in the expansion and development of the cashless payments industry and the digital financial services industry in Japan; our ability to implement pricing strategies and expand our service offerings; our ability to maintain, protect, and enhance our strong and trusted brand; our ability to maintain or improve our technology infrastructure; and the complex and evolving laws and regulations applicable to our business and the banking ecosystem. Statements regarding our financial guidance and targets are forward-looking and involve known and unknown risks and uncertainties that may cause actual results to differ materially from those projected. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. These forward-looking statements reflect the Company’s views with respect to future events as of the date of this release and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Further information on these risks and other factors that could affect our financial results are set forth in our regulatory filings and periodic reports. Except required by law, the Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this release.

Non-IFRS Financial Measures and Key Metrics

This release includes financial information prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS”). This release also includes non-IFRS financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measures calculated in accordance with IFRS. Some of the non-IFRS financial measures that are included in this release are Adjusted EBITDA and Adjusted EBITDA Margin. We use these non-IFRS financial measures in conjunction with IFRS measures to evaluate our operating performance, formulate business plans, prepare budgets and forecasts, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We believe that these non-IFRS financial measures provide useful information to investors, analysts, and others about our business and financial performance, enhance their overall understanding of our performance, and can assist in providing a more consistent and comparable overview of our financial performance across periods. There are a number of limitations related to the use of these non-IFRS financial measures and their nearest IFRS equivalents. For example, the Company’s definitions of non-IFRS financial measures may differ from non-IFRS financial measures used by other companies. For reconciliations to the most directly comparable IFRS measure, see the financial tables attached to this release. However, the Company is unable to provide a reconciliation of certain non-IFRS guidance measures to the corresponding IFRS measures on a forward-looking basis without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-IFRS measures. Notwithstanding the foregoing, it is important to note that material changes to reconciling items could have a significant effect on future IFRS results. Additionally, this release includes key operating metrics that we use to evaluate our operating performance, formulate business plans, and make strategic decisions.

Unaudited Financial Information

Please note that the financial information for the periods presented in this release is unaudited and derived from the Company's management accounts.

Industry and Market Data

This release may contain information, estimates and other statistical data derived from third-party sources. While the Company believes such information forms a reasonable basis for such statements, such information may be limited or incomplete, and the Company has not independently verified such data.

TABLE OF CONTENTS

      Consolidated Financial Statements and Notes to Consolidated Financial Statements (Unaudited)

     


Consolidated Statements of Financial Position (Unaudited)	10
Consolidated Statements of Profit or Loss for the year (Unaudited)	11
Consolidated Statements of Profit or Loss for the three months (Unaudited)	12
Consolidated Statements of Comprehensive Income for the year (Unaudited)	13
Consolidated Statements of Comprehensive Income for the three months (Unaudited)	13
Consolidated Statements of Changes in Equity for the year ended (Unaudited)	14
Consolidated Statements of Cash Flows for the year (Unaudited)	15
Notes to Consolidated Financial Statements (Unaudited)
1. Segment Information	16
2. Cash and Cash Equivalents	18
3. Guarantee Deposits	18
4. Loans and Advances to Customers	19
5. Securities	19
6. Deposits	20
7. Borrowings	20
8. Revenue	21
9. Operating Expenses	23

Consolidated Statements of Financial Position (Unaudited)


	(In millions of yen)
	Notes	March 31, 2025			March 31, 2026
Assets
Cash and cash equivalents	2		369,811			363,083
Guarantee deposits	3		244,229			74,139
Call loans			63,000			40,014
Accounts receivable			141,054			150,372
Loans and advances to customers	4		1,927,607			2,512,851
Securities	5		1,075,748			1,736,835
Other financial assets			23,130			32,293
Property and equipment			14,493			14,879
Right-of-use assets			14,799			12,175
Intangible assets			65,672			66,466
Goodwill			15,157			15,157
Investments accounted for using the equity method			1,012			12,762
Deferred tax assets			49,392			107,275
Other assets			37,001			37,711
Total assets			4,042,105			5,176,012
Liabilities
Deposits	6		2,385,939			2,952,495
Accounts payable			949,397			1,122,338
Income tax payables			6,477			13,073
Borrowings	7		399,578			564,956
Other financial liabilities			34,207			48,116
Provisions			7,041			7,403
Lease liabilities			12,097			9,549
Deferred tax liabilities			377			206
Other liabilities			23,261			27,115
Total liabilities			3,818,374			4,745,251
Shareholders’ equity
Issued capital			91,434			200,635
Share premium			13,727			86,730
Retained earnings (Accumulated deficit)			(4,887	)		109,869
Accumulated other comprehensive loss			(379	)		(3,055	)
Equity attributable to owners of the parent company			99,895			394,179
Non-controlling interests			123,836			36,582
Total shareholders’ equity			223,731			430,761
Total liabilities and shareholders’ equity			4,042,105			5,176,012

See Notes to Consolidated Financial Statements (Unaudited)

Consolidated Statements of Profit or Loss (Unaudited)


		(In millions of yen)
		For the year ended
	Notes	March 31, 2025			March 31, 2026
Transaction and service income			203,595			251,041
Interest income			88,442			116,488
Gains (losses) on financial instruments			5,529			10,250
Other operating income			1,512			2,883
Total revenue	1, 8		299,078			380,662
Point expenses			(50,362	)		(60,195	)
Settlement related cost			(43,662	)		(48,731	)
Employee benefit expenses			(41,483	)		(47,641	)
Professional and outsourcing services expenses			(28,767	)		(28,099	)
Provision for loss allowance			(23,942	)		(24,923	)
Other operating expenses			(75,352	)		(90,991	)
Total operating expenses	1, 9		(263,568	)		(300,580	)
Operating profit	1		35,510			80,082
Share of loss of investments accounted for using the equity method			(549	)		(137	)
Profit before tax			34,961			79,945
Income tax benefit			4,196			37,865
Profit for the period			39,157			117,810
Attributable to
Owners of the parent company			36,170			115,034
Non-controlling interests			2,987			2,776
					(In yen)
Earnings per share
Earnings per share attributable to owners of the parent company (1)
Basic earnings per share			65.76			180.42
Diluted earnings per share			65.76			178.55

(1) The share split occurred and became effective on November 15, 2025 and earnings per share has been retrospectively adjusted.

See Notes to Consolidated Financial Statements (Unaudited)

Consolidated Statements of Profit or Loss (Unaudited)


		(In millions of yen)
		For the three months ended
	Notes	March 31, 2025			March 31, 2026
Transaction and service income			52,850			65,716
Interest income			24,016			32,937
Gains (losses) on financial instruments			1,587			2,593
Other operating income			178			938
Total revenue	1, 8		78,631			102,184
Point expenses			(13,028	)		(15,707	)
Settlement related cost			(11,193	)		(12,383	)
Employee benefit expenses			(10,867	)		(14,831	)
Professional and outsourcing services expenses			(7,676	)		(6,799	)
Provision for loss allowance			(6,701	)		(7,527	)
Other operating expenses			(21,840	)		(25,863	)
Total operating expenses	1, 9		(71,305	)		(83,110	)
Operating profit	1		7,326			19,074
Share of loss of investments accounted for using the equity method			(166	)		(238	)
Profit before tax			7,160			18,836
Income tax benefit (expenses)			3,040			(4,363	)
Profit for the period			10,200			14,473
Attributable to
Owners of the parent company			9,687			13,513
Non-controlling interests			513			960
					(In yen)
Earnings per share
Earnings per share attributable to owners of the parent company (1)
Basic earnings per share			17.61			20.98
Diluted earnings per share			17.61			20.75

(1) The share split occurred and became effective on November 15, 2025 and earnings per share has been retrospectively adjusted.

See Notes to Consolidated Financial Statements (Unaudited)

Consolidated Statements of Comprehensive Income (Unaudited)


	(In millions of yen)
		For the year ended
	Notes	March 31, 2025			March 31, 2026
Profit for the period			39,157			117,810
Other comprehensive income (loss) for the period, net of tax
Items that may be reclassified subsequently to profit or loss
Changes in the fair value of debt instruments at FVTOCI			(3,525	)		(3,342	)
Reclassification to profit or loss of debt instruments at FVTOCI on derecognition			71			(58	)
Exchange differences on translation of foreign operations			(10	)		(10	)
Total comprehensive income for the period, net of tax			35,693			114,400

Total comprehensive income for the period, net of tax attributable to
Owners of the parent company			35,910			112,390
Non-controlling interests			(217	)		2,010


	(In millions of yen)
		For the three months ended
	Notes	March 31, 2025			March 31, 2026
Profit for the period			10,200			14,473
Other comprehensive income (loss) for the period, net of tax
Items that may be reclassified subsequently to profit or loss
Changes in the fair value of debt instruments at FVTOCI			(1,713	)		(1,627	)
Exchange differences on translation of foreign operations			(12	)		(14	)
Total comprehensive income for the period, net of tax			8,475			12,832

Total comprehensive income for the period, net of tax attributable to
Owners of the parent company			9,572			12,310
Non-controlling interests			(1,097	)		522

Consolidated Statements of Changes in Equity (Unaudited)


For the year ended March 31, 2025
	(In millions of yen)
		Equity attributable to owners of the parent company
	Notes	Issued capital			Share premium			Accumulated deficit			Accumulated other comprehensive loss			Total			Non- controlling interests			Total shareholders’ equity
Balance as of April 1, 2024 (Restated)			94,180			14,617			(43,516	)		(119	)		65,162			126,089			191,251
Profit for the period			—			—			36,170			—			36,170			2,987			39,157
Other comprehensive loss			—			—			—			(260	)		(260	)		(3,204	)		(3,464	)
Total Comprehensive income (loss) for the period			—			—			36,170			(260	)		35,910			(217	)		35,693
Dividends paid to non-controlling interests			—			—			—			—			—			(2,519	)		(2,519	)
Dividends paid to the ultimate parent company			—			—			(283	)		—			(283	)		—			(283	)
Transfer from issued capital to share premium			(2,746	)		2,746			—			—			—			—			—
Transfer from share premium to accumulated deficit			—			(2,746	)		2,746			—			—			—			—
Changes in interests in subsidiaries			—			(485	)		—			—			(485	)		485			—
Other			—			(405	)		(4	)		—			(409	)		(2	)		(411	)
Total transactions with owners and other transactions			(2,746	)		(890	)		2,459			—			(1,177	)		(2,036	)		(3,213	)
Balance as of March 31, 2025			91,434			13,727			(4,887	)		(379	)		99,895			123,836			223,731


For the year ended March 31, 2026
	(In millions of yen)
		Equity attributable to owners of the parent company
	Notes	Issued capital		Share premium			Retained earnings (Accumulated deficit)			Accumulated other comprehensive loss			Total			Non- controlling interests			Total shareholders’ equity
Balance as of April 1, 2025			91,434		13,727			(4,887	)		(379	)		99,895			123,836			223,731
Profit for the period			—		—			115,034			—			115,034			2,776			117,810
Other comprehensive loss			—		—			—			(2,644	)		(2,644	)		(766	)		(3,410	)
Total Comprehensive income (loss) for the period			—		—			115,034			(2,644	)		112,390			2,010			114,400
Dividends paid to non-controlling interests			—		—			—			—			—			(2,909	)		(2,909	)
Dividends paid to the ultimate parent company			—		—			(311	)		—			(311	)		—			(311	)
Issuance of new shares			109,201		107,818			—			—			217,019			—			217,019
Issuance of share acquisition rights			—		2,014			—			—			2,014			—			2,014
Changes due to business combinations of entities under common control - PayPay Securities Corporation and PayPay Bank Corporation			—		(36,827	)		—			—			(36,827	)		(86,358	)		(123,185	)
Other			—		(2	)		33			(32	)		(1	)		3			2
Total transactions with owners and other transactions			109,201		73,003			(278	)		(32	)		181,894			(89,264	)		92,630
Balance as of March 31, 2026			200,635		86,730			109,869			(3,055	)		394,179			36,582			430,761

Consolidated Statements of Cash Flows (Unaudited)


	(In millions of yen)
		For the year ended
	Notes	March 31, 2025			March 31, 2026
Cash flows from (used in) operating activities
Profit before tax			34,961			79,945
Adjustments for:
Depreciation and amortization			21,391			25,482
Loss on disposal of property and equipment and intangible assets			696			1,338
Share-based payment expenses		—				1,847
Other income and costs			618			(1,517	)
Changes in assets and liabilities:
Guarantee deposits	3		77,656			170,090
Call loans			53,083			22,986
Accounts receivable			(3,266	)		(9,327	)
Loans and advances to customers	4		(399,055	)		(585,244	)
Securities	5		(31,256	)		(72,277	)
Deposits	6		249,362			566,556
Accounts payable			145,558			173,856
Other financial assets			1,890			(7,005	)
Other financial liabilities			2,327			13,393
Provisions			(1,864	)		6
Other			10,030			6,865
Cash provided by operations			162,131			386,994
Income tax paid			(6,870	)		(12,573	)
Income tax refunded			588			876
Net cash provided by operating activities			155,849			375,297

Cash flows from (used in) investing activities
Purchases of securities	5		(463,314	)		(779,962	)
Proceeds from sale of securities	5		177,885			189,284
Purchases of property and equipment			(4,822	)		(6,369	)
Purchases of intangible assets			(17,264	)		(17,823	)
Payment for acquisition of subsidiaries			(5,759	)		—
Purchase of investment accounted for using the equity method			(1,360	)		(11,655	)
Other			(5,343	)		(2,302	)
Net cash used in investing activities			(319,977	)		(628,827	)

Cash flows from (used in) financing activities
Net increase (decrease) in short-term borrowings	7		(128,700	)		199,982
Proceeds from long-term borrowings	7		842,300			722,600
Repayments of long-term borrowings	7		(917,898	)		(757,203	)
Repayments of lease liabilities			(2,820	)		(2,744	)
Proceeds from issuance of new common shares		—				217,522
Payments for the purchase of the equity interest of subsidiaries, through business combinations of entities under common control		—				(130,185	)
Dividends paid to non-controlling interests			(2,519	)		(2,909	)
Dividends paid to the ultimate parent company			(283	)		(311	)
Other			(405	)		—
Net cash provided by (used in) financing activities			(210,325	)		246,752

Effect of exchange rate changes on cash and cash equivalents			(59	)		50
Decrease in cash and cash equivalents			(374,512	)		(6,728	)
Cash and cash equivalents at the beginning of the year	2		744,323			369,811
Cash and cash equivalents at the end of the year	2		369,811			363,083

See Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited)

1. Segment Information

Profit or Loss for the Group's Reportable Segments


For the year ended March 31, 2025
	(In millions of yen)
	Payment			Financial service			Inter-segment eliminations			Consolidated
Transaction and service income
Revenue from external customers		176,597			26,998			—			203,595
Inter-segment revenue		1,454			1,362			(2,816	)		—
Total transaction and service income		178,051			28,360			(2,816	)		203,595
Interest income		68,623			19,819			—			88,442
Gains (losses) on financial instruments		276			5,253			—			5,529
Other operating income		1,304			208			—			1,512
Total revenue		248,254			53,640			(2,816	)		299,078
Operating expenses		(217,898	)		(48,486	)		2,816			(263,568	)
Segment profit		30,356			5,154			—			35,510

(Reconciliation to profit before tax)
Share of loss of investments accounted for using the equity method											(549	)
Profit before tax											34,961


For the year ended March 31, 2026
	(In millions of yen)
	Payment			Financial service			Inter-segment eliminations			Consolidated
Transaction and service income
Revenue from external customers		220,770			30,271			—			251,041
Inter-segment revenue		1,124			870			(1,994	)		—
Total transaction and service income		221,894			31,141			(1,994	)		251,041
Interest income		84,574			32,674			(760	)		116,488
Gains (losses) on financial instruments		2,327			7,923			—			10,250
Other operating income		2,422			628			(167	)		2,883
Total revenue		311,217			72,366			(2,921	)		380,662
Operating expenses		(246,722	)		(56,779	)		2,921			(300,580	)
Segment profit		64,495			15,587			—			80,082

(Reconciliation to profit before tax)
Share of loss of investments accounted for using the equity method											(137	)
Profit before tax											79,945


For the three months ended March 31, 2025
	(In millions of yen)
	Payment			Financial service			Inter-segment eliminations			Consolidated
Transaction and service income
Revenue from external customers		45,806			7,044			—			52,850
Inter-segment revenue		477			205			(682	)		—
Total transaction and service income		46,283			7,249			(682	)		52,850
Interest income		18,183			5,833			—			24,016
Gains (losses) on financial instruments		133			1,454			—			1,587
Other operating income		113			65			—			178
Total revenue		64,712			14,601			(682	)		78,631
Operating expenses		(58,750	)		(13,237	)		682			(71,305	)
Segment profit		5,962			1,364			—			7,326

(Reconciliation to profit before tax)
Share of loss of investments accounted for using the equity method											(166	)
Profit before tax											7,160


For the three months ended March 31, 2026
	(In millions of yen)
	Payment			Financial service			Inter-segment eliminations			Consolidated
Transaction and service income
Revenue from external customers		57,519			8,197			—			65,716
Inter-segment revenue		54			211			(265	)		—
Total transaction and service income		57,573			8,408			(265	)		65,716
Interest income		23,335			10,362			(760	)		32,937
Gains (losses) on financial instruments		350			2,243			—			2,593
Other operating income		955			150			(167	)		938
Total revenue		82,213			21,163			(1,192	)		102,184
Operating expenses		(68,753	)		(15,549	)		1,192			(83,110	)
Segment profit		13,460			5,614			—			19,074

(Reconciliation to profit before tax)
Share of loss of investments accounted for using the equity method											(238	)
Profit before tax											18,836

2. Cash and Cash Equivalents

Cash and cash equivalents are as follows:


	(In millions of yen)
	March 31, 2025		March 31, 2026
Payment:
Cash and demand deposits		141,289		53,439
Restricted cash related to transfers of credit card receivables		734		697
Subtotal		142,023		54,136
Financial service:
Cash and demand deposits		15,530		16,322
Deposits with the Bank of Japan		212,258		292,622
Other		—		3
Subtotal		227,788		308,947
Total		369,811		363,083

3. Guarantee Deposits

Guarantee deposits are as follows:


	(In millions of yen)
	March 31, 2025		March 31, 2026
Payment:
Guarantee deposits under Payment Services Act (1)(2)(3)(4)		219,466		49,734
Subtotal		219,466		49,734
Financial service:
Other		24,763		24,405
Subtotal		24,763		24,405
Total		244,229		74,139

(1) In accordance with the Payment Services Act, the Group is required to safeguard unused prepaid balances held by users of PayPay settlement services through prescribed measures, including making a security deposit (the "guarantee deposit") or investing in government securities with the Legal Affairs Bureau. The balance is required to cover 100% of the total unused prepaid balance of PayPay Money and 50% of the total unused prepaid balance of PayPay Money Lite.

(2) In addition to maintaining the guarantee deposits and government securities with Legal Affairs Bureau, the Group adopted an additional method for safeguarding the unused prepaid balances through the establishment of a consolidated trust during the year ended March 31, 2026, and the Group reports the trust arrangement to the Kanto Local Finance Bureau. Through this trust arrangement, the trust made security deposit at PayPay Bank Corporation instead of making a deposit with the Legal Affairs Bureau. The trust's funds held by PayPay Bank Corporation are managed in the normal course of the banking business.

(3) The total balance of the guarantee deposits, the government securities, and the assets held by the trust amounts to 250,329 million yen and 306,747 million yen as of March 31, 2025 and 2026, respectively. The Company has deposited 196,500 million yen to PayPay Bank Corporation under the trust arrangement as of March 31, 2026.

(4) The balance also includes regulatory safeguarding assets maintained in connection with digital wage payment services pursuant to the Ordinance for Enforcement of the Labor Standards Act. The balance was 5,002 million yen and 5,011 million yen as of March 31, 2025 and 2026, respectively.

4. Loans and advances to customers

Loans and advances to customers are as follows:


	(In millions of yen)
	March 31, 2025			March 31, 2026
Payment:
Credit card receivables		1,045,681			1,321,827
Loss allowance		(43,739	)		(45,312	)
Subtotal		1,001,942			1,276,515
Financial service:
Mortgage loans (1)		664,594			909,483
Overdraft		261,943			312,255
Other		383			16,879
Loss allowance		(1,255	)		(2,281	)
Subtotal		925,665			1,236,336
Total		1,927,607			2,512,851

(1) Mortgage loans include the loans acquired from a financial institution with a guarantee up to 1% provided by the seller, which amounts to 187,471 million yen and 175,950 million yen as of March 31, 2025 and 2026, respectively.

5. Securities

Securities are as follows:


	(In millions of yen)
	March 31, 2025		March 31, 2026
Payment:
Japanese government securities		35,953		65,612
Subtotal		35,953		65,612
Financial service:
Japanese government securities		329,062		713,244
Corporate and other debt securities		295,707		416,121
Asset backed securities		282,333		337,685
Exchange traded funds		132,509		202,879
Equity securities		184		1,294
Subtotal		1,039,795		1,671,223
Total		1,075,748		1,736,835

6. Deposits

Deposits are as follows:


	(In millions of yen)
	March 31, 2025		March 31, 2026
Payment:
PayPay Users’ deposits (1)(2)		391,595		451,263
Subtotal		391,595		451,263
Financial service:
Demand deposits		1,688,643		2,090,486
Time deposits		152,393		178,594
Deposits from customers in the securities business		142,236		221,374
Other		11,072		10,778
Subtotal		1,994,344		2,501,232
Total		2,385,939		2,952,495

(1) PayPay Users’ deposits are PayPay Balance and Other Items held by PayPay Users in PayPay Settlement Services.

(2) PayPay Users' deposits include PayPay Money which PayPay Users can withdraw at users' discretion. The balance of PayPay Money amounts to 170,030 million yen and 212,179 million yen as of March 31, 2025 and 2026, respectively.

7. Borrowings

Components of Borrowings are as follows:


	(In millions of yen)
	March 31, 2025		March 31, 2026
Payment:
Loan payables		213,050		280,825
Commercial papers		84,000		73,000
Subtotal		297,050		353,825
Financial service:
Loan payables		102,528		211,131
Subtotal		102,528		211,131
Total		399,578		564,956

8. Revenue

(1) Disaggregation of Revenue

(i) Revenue recognized from contracts with customers and other sources


	(In millions of yen)
	For the year ended
	March 31, 2025		March 31, 2026
Revenue from contracts with customers
Transaction and service income		203,595		251,041
Revenue from other sources
Interest income (1)		88,442		116,488
Gains (losses) on financial instruments		5,529		10,250
Other operating income		1,512		2,883
Total		299,078		380,662


	(In millions of yen)
	For the three months ended
	March 31, 2025		March 31, 2026
Revenue from contracts with customers
Transaction and service income		52,850		65,716
Revenue from other sources
Interest income (1)		24,016		32,937
Gains (losses) on financial instruments		1,587		2,593
Other operating income		178		938
Total		78,631		102,184

(1) The Group pays guarantee fees to third-party financial institutions to mitigate the credit risk of loans and advances to customers. In accordance with IFRS 9, these guarantee fees, which represent amounts paid by the Group, are included in the calculation under the effective interest method and therefore reduce interest income. The guarantee fees were 18,163 million yen and 20,747 million yen for the year ended March 31, 2025 and 2026, respectively, and 4,725 million yen and 4,863 million yen for the three months ended March 31, 2025 and 2026, respectively.

(ii) Disaggregation of revenue from contracts with customers by type of service


For the year ended March 31, 2025
	(In millions of yen)
	Payment			Financial service			Total
Payment Settlement Services
PayPay Settlement Services		193,237			—			193,237
Credit Payment Settlement Services and Acquiring Services(1)		37,192			—			37,192
Debit Payment Settlement Services		—			5,077			5,077
Payment settlement services deduction		(77,161	)		(1,309	)		(78,470	)
Subtotal		153,268			3,768			157,036
Financial services		—			22,269			22,269
Other (2)		23,329			961			24,290
Total		176,597			26,998			203,595


For the year ended March 31, 2026
	(In millions of yen)
	Payment			Financial service			Total
Payment Settlement Services
PayPay Settlement Services		245,799			—			245,799
Credit Payment Settlement Services and Acquiring Services (1)		46,019			—			46,019
Debit Payment Settlement Services		—			5,468			5,468
Payment settlement services deduction		(100,358	)		(1,413	)		(101,771	)
Subtotal		191,460			4,055			195,515
Financial services		—			24,706			24,706
Other (2)		29,310			1,510			30,820
Total		220,770			30,271			251,041


For the three months ended March 31, 2025
	(In millions of yen)
	Payment			Financial service			Total
Payment Settlement Services
PayPay Settlement Services		52,179			—			52,179
Credit Payment Settlement Services and Acquiring Services(1)		9,921			—			9,921
Debit Payment Settlement Services		—			1,237			1,237
Payment settlement services deduction		(21,985	)		(335	)		(22,320	)
Subtotal		40,115			902			41,017
Financial services		—			5,685			5,685
Other (2)		5,691			457			6,148
Total		45,806			7,044			52,850


For the three months ended March 31, 2026
	(In millions of yen)
	Payment			Financial service			Total
Payment Settlement Services
PayPay Settlement Services		64,767			—			64,767
Credit Payment Settlement Services and Acquiring Services (1)		12,696			—			12,696
Debit Payment Settlement Services		—			1,412			1,412
Payment settlement services deduction		(27,557	)		(367	)		(27,924	)
Subtotal		49,906			1,045			50,951
Financial services		—			6,767			6,767
Other (2)		7,613			385			7,998
Total		57,519			8,197			65,716

(1) Revenue from Credit Payment Settlement Services and Acquiring Services is presented net of interchange fees charged by the credit card issuer in respect of Acquiring Services, as the Group recognizes revenue based on the settlement amount of the purchase transaction and the predetermined rate, less such interchange fees. The interchange fees were 10,819 million yen and 11,023 million yen for the year ended March 31, 2025 and 2026, respectively, and 2,607 million yen and 2,958 million yen for the three months ended March 31, 2025 and 2026, respectively.

(2) Other in the Payment segment includes revenues primarily earned from a monthly paid subscription plan for PayPay Merchants, and is presented net of a revenue deduction, which amounts to 3,408 million yen and 4,554 million yen for the year ended March 31, 2025 and 2026, respectively, and 1,093 million yen and 1,172 million yen for the three months ended March 31, 2025 and 2026, respectively. These deductions mainly relate to consideration payable to customers in connection with annual membership fees for PayPay Card Gold.

9. Operating Expenses

Operating expenses by nature are as follows:


For the year ended March 31, 2025
	(In millions of yen)
	Payment		Financial service		Inter-segment eliminations			Consolidated
Point expenses (1)		50,362		—		—			50,362
Settlement related cost (2)		33,645		10,592		(575	)		43,662
Employee benefit expenses		32,984		8,499		—			41,483
Professional and outsourcing services expenses		19,887		8,997		(117	)		28,767
Provision for loss allowance		23,368		574		—			23,942
Other operating expenses
Depreciation and amortization		14,705		5,388		—			20,093
License fees		18,027		—		—			18,027
Interest expenses		2,628		2,278		(652	)		4,254
Advertising and promotion expenses		6,896		4,528		(693	)		10,731
Tax and charges		3,038		2,014		—			5,052
Amortization of contract cost		1,297		—		—			1,297
Other		11,061		5,616		(779	)		15,898
Subtotal		57,652		19,824		(2,124	)		75,352
Total		217,898		48,486		(2,816	)		263,568


For the year ended March 31, 2026
	(In millions of yen)
	Payment		Financial service		Inter-segment eliminations			Consolidated
Point expenses (1)		60,195		—		—			60,195
Settlement related cost (2)		37,817		11,713		(799	)		48,731
Employee benefit expenses		36,790		10,865		(14	)		47,641
Professional and outsourcing services expenses		20,336		8,120		(357	)		28,099
Provision for loss allowance		23,861		1,062		—			24,923
Other operating expenses
Depreciation and amortization		17,018		6,740		—			23,758
License fees		18,060		839		—			18,899
Interest expenses		3,920		6,997		(327	)		10,590
Advertising and promotion expenses		7,281		3,028		(303	)		10,006
Tax and charges		3,889		2,054		—			5,943
Amortization of contract cost		1,724		—		—			1,724
Other		15,831		5,361		(1,121	)		20,071
Subtotal		67,723		25,019		(1,751	)		90,991
Total		246,722		56,779		(2,921	)		300,580


For the three months ended March 31, 2025
	(In millions of yen)
	Payment		Financial service		Inter-segment eliminations			Consolidated
Point expenses (1)		13,028		—		—			13,028
Settlement related cost (2)		8,667		2,674		(148	)		11,193
Employee benefit expenses		8,410		2,457		—			10,867
Professional and outsourcing services expenses		5,496		2,215		(35	)		7,676
Provision for loss allowance		6,527		174		—			6,701
Other operating expenses
Depreciation and amortization		4,032		1,575		—			5,607
License fees		4,668		—		—			4,668
Interest expenses		625		937		(31	)		1,531
Advertising and promotion expenses		2,426		1,493		(188	)		3,731
Tax and charges		1,284		338		—			1,622
Amortization of contract cost		349		—		—			349
Other		3,238		1,374		(280	)		4,332
Subtotal		16,622		5,717		(499	)		21,840
Total		58,750		13,237		(682	)		71,305


For the three months ended March 31, 2026
	(In millions of yen)
	Payment		Financial service		Inter-segment eliminations			Consolidated
Point expenses (1)		15,707		—		—			15,707
Settlement related cost (2)		9,651		2,940		(208	)		12,383
Employee benefit expenses		11,307		3,527		(3	)		14,831
Professional and outsourcing services expenses		5,108		1,803		(112	)		6,799
Provision for loss allowance		7,128		399		—			7,527
Other operating expenses
Depreciation and amortization		4,573		1,635		—			6,208
License fees		4,645		270		—			4,915
Interest expenses		1,441		2,140		(238	)		3,343
Advertising and promotion expenses		2,251		666		(67	)		2,850
Tax and charges		1,975		442		—			2,417
Amortization of contract cost		481		—		—			481
Other		4,486		1,727		(564	)		5,649
Subtotal		19,852		6,880		(869	)		25,863
Total		68,753		15,549		(1,192	)		83,110

(1) Point expenses are incurred primarily when the Group grants reward points to PayPay User through various reward programs, which PayPay users can use reward points at the merchants to pay off balance due in a purchase transaction.

(2) Settlement related cost includes fees paid to banks for users to charge their PayPay Balance from their bank accounts and brand or network fees paid to international card brands. Settlement related cost also includes interbank transaction fees.