| Metric | Current | Prior | YoY |
|---|---|---|---|
| Revenue | ¥495.2B | ¥532.7B | - |
| Operating Income | ¥158.7B | ¥89.3B | +77.8% |
| Ordinary Income | ¥152.6B | ¥84.3B | +80.9% |
| Net Income | ¥102.5B | ¥46.5B | +120.2% |
| ROE | 19.3% | 9.6% | - |
FY2025 results for GMO Financial Holdings demonstrated significant profit expansion despite revenue contraction. Revenue declined 7.0% YoY to ¥495.2B (Prior: ¥532.7B), while Operating Income surged 77.8% to ¥158.7B (Prior: ¥89.3B), Ordinary Income increased 80.9% to ¥152.6B (Prior: ¥84.3B), and Net Income more than doubled with a 120.2% gain to ¥102.5B (Prior: ¥46.5B), marking record-high profitability. The dramatic profit improvement stemmed primarily from a sharp reduction in bad debt provisions at the Thailand securities business, which fell from ¥9.53B in the prior period to ¥0.08B in the current period, combined with tighter cost controls that reduced SG&A expenses. Operating margin expanded to 32.0% from 16.8% YoY, while net profit margin reached 20.7% versus 8.7% in the prior period. ROE of 19.7% was achieved largely through high financial leverage of 26.5x, raising sustainability concerns amid elevated debt levels (Debt/EBITDA: 10.8x, D/E: 25.5x). Short-term debt concentration at 72.1% of total liabilities presents material refinancing risk despite adequate current ratio of 107.9%.
Revenue declined 7.0% YoY to ¥495.2B, driven primarily by weaker trading volumes in the retail FX, CFD, and cryptocurrency segments amid range-bound markets in the second half of the period. The Securities & FX segment posted revenue of ¥401.3B (down 8.4% YoY) as retail FX and CFD volumes declined, while the Cryptocurrency segment recorded revenue of ¥66.7B (down 11.2% YoY) due to reduced volatility and trading activity.
Despite revenue contraction, operating profit surged 77.8% YoY to ¥158.7B, yielding an operating margin of 32.0% versus 16.8% in the prior period. The primary driver of this dramatic margin expansion was the near-elimination of bad debt provisions related to Thailand securities operations, which declined by ¥9.45B YoY from ¥9.53B to ¥0.08B. Additionally, SG&A expenses decreased from ¥40.3B to ¥29.7B (down 26.3% YoY), reflecting cost discipline and operational efficiency gains. Selling expenses fell from ¥34.9B to ¥23.0B, contributing materially to profit improvement.
Ordinary income increased 80.9% to ¥152.6B, closely tracking operating profit growth. Net income rose 120.2% to ¥102.5B, with the effective tax rate at approximately 30.4%. The gap between operating income (¥158.7B) and net income (¥102.5B) is attributable primarily to ordinary tax burden rather than extraordinary items, as no material impairments, restructuring charges, or asset disposals were disclosed. The convergence of operating and ordinary income (difference of ¥6.1B or 3.8% of operating income) indicates minimal non-operating impact.
Non-recurring factors: The substantial reduction in bad debt provisions for Thailand securities (down ¥9.45B YoY) represents a normalization from elevated prior-year levels rather than a structural improvement, thus partially qualifying as non-recurring relief. Outstanding contractual repayment claims declined from approximately ¥11.0B to ¥7.9B, with collateral coverage ratio maintained at 215.7% and plans to recover over 90% of principal by end-2026.
This performance exemplifies a "revenue down, profit up" pattern driven predominantly by cost reduction and normalization of credit provisions rather than underlying business momentum or pricing power gains. The sustainability of margin expansion depends on maintaining cost discipline and avoiding recurrence of credit losses.
The Securities & FX segment is the core business, contributing ¥401.3B in revenue (81.0% of total) and ¥134.2B in operating profit (84.6% of total operating profit). This segment's operating margin expanded dramatically to 33.5% from 13.4% YoY, driven primarily by the sharp decline in bad debt provisions related to Thailand securities operations (from ¥9.53B to ¥0.08B). Despite an 8.4% revenue decline due to weaker retail FX and CFD trading volumes, the segment achieved a 152.7% surge in operating profit, making it the primary driver of overall profit growth.
The Cryptocurrency segment generated ¥66.7B in revenue (13.5% of total) and ¥32.5B in operating profit (20.5% of total). Revenue declined 11.2% YoY while operating profit fell 18.1%, resulting in an operating margin of 48.7% versus 50.0% in the prior period. Range-bound market conditions in the latter half suppressed trading activity and revenue per account. Customer accounts increased by 80,000 to 775,000, but customer assets under custody declined 8.6% to ¥40.5B, indicating lower engagement per user. The segment is shifting toward stock-type (recurring) services to stabilize revenue streams.
The Other segment (primarily virtual office services via GMO Office Support) reported revenue of ¥27.2B and operating loss of ¥8.0B. Cumulative user base expanded by 15,000 to 39,000 users across 19 nationwide locations. ARPU improvement initiatives through value-added services are underway but have yet to achieve profitability. This segment remains subscale and dilutive to overall margins.
Segment margin differential is pronounced: Securities & FX at 33.5%, Cryptocurrency at 48.7%, and Other at negative margin. The core Securities & FX business drove both revenue base and profit recovery, while Cryptocurrency margins contracted modestly, and Other remains a drag. Overall performance improvement is attributable almost entirely to the core segment's normalization of credit costs.
Profitability: ROE 19.7% (no prior period disclosed), Operating Margin 32.0% (prior period 16.8%), Net Profit Margin 20.7% (prior period 8.7%), EBITDA Margin 36.1%. ROE expansion was achieved predominantly through high financial leverage of 26.5x rather than operational efficiency, as asset turnover remains low at 0.035 turns.
Cash Quality: Operating CF ¥119.0B against Net Income ¥102.5B yields OCF/Net Income ratio of 1.14x, indicating cash-backed earnings. However, cash conversion rate (OCF/EBITDA) of 0.67x trails the 0.7x benchmark, suggesting room for improvement in converting EBITDA to cash. Free Cash Flow of ¥126.2B provides ample dividend coverage.
Investment: CapEx of ¥4.1B versus Depreciation of ¥19.9B yields CapEx/D&A ratio of 0.21x, well below the 1.0x threshold that indicates growth investment. This signals underinvestment and potential constraints on future capacity expansion or technological refresh, which may impair long-term competitiveness.
Financial Health: Equity Ratio 3.8% (prior period 3.5%), Current Ratio 107.9%. The extremely low equity ratio reflects asset-intensive financial services operations but underscores material leverage. Interest-bearing debt totals ¥192.7B against equity of ¥53.0B, yielding Debt/Equity of 3.6x at the liability level (financial leverage of 26.5x at the ROE level reflects total assets). Current ratio marginally above 100% provides minimal liquidity cushion.
Efficiency: Asset Turnover 0.035x, reflecting the capital-intensive nature of financial brokerage operations. Tax Burden Coefficient 0.696 and Interest Burden Coefficient 0.946 indicate moderate tax and interest costs relative to operating profit.
Operating CF: ¥119.0B (1.14x Net Income), indicating cash-backed earnings quality. The OCF/Net Income ratio above 1.0x is a positive signal of earnings quality, as profits are supported by cash generation. However, cash conversion rate (OCF/EBITDA) of 0.67x suggests inefficiencies in converting EBITDA to operating cash, likely due to working capital movements or non-cash adjustments. Accounts receivable increased 48.6% from ¥0.14B to ¥0.21B, a modest absolute change but material percentage increase warranting monitoring for collection trends.
Investing CF: ¥126.2B outflow is atypical; the data suggest net investing cash generation of positive ¥126.2B when combined with operating CF, implying asset disposals or investment recoveries. CapEx of ¥4.1B represents maintenance-level investment only, far below Depreciation of ¥19.9B. CapEx/D&A of 0.21x signals chronic underinvestment, risking obsolescence of technology platforms and systems critical to competitive positioning in digital financial services.
Financing CF: Details not fully disclosed in XBRL. Dividend payments and debt servicing are expected components. Total interest-bearing debt of ¥192.7B comprises short-term borrowings of ¥138.9B and long-term debt of ¥53.8B.
FCF: ¥126.2B (Operating CF of ¥119.0B plus net investing inflows) provides substantial dividend capacity. With annual dividend guidance of ¥57.58 per share and payout ratio of 65%, FCF coverage appears strong at 14.3x based on presented data, though this calculation may be distorted by investing cash inflows not fully detailed.
Cash generation: Adequate in the near term but constrained by low investment rates and high leverage. Strong operating cash generation supports dividend sustainability and debt servicing, but the combination of underinvestment (CapEx/D&A 0.21x), elevated short-term debt (72.1% of liabilities), and cash conversion rate below benchmark (0.67x) warrant monitoring for potential cash flow stress under adverse scenarios.
Ordinary vs Net Income: Ordinary Income of ¥152.6B and Net Income of ¥102.5B result in a gap of ¥50.1B or 32.8% of Ordinary Income. This differential is primarily explained by normal tax expense at an effective rate of approximately 30.4%, with no material extraordinary gains or losses disclosed. The absence of significant non-operating items or special losses/gains suggests stable, recurring earnings structure post-normalization of Thailand securities provisions.
Non-recurring factors: The reduction in bad debt provisions by ¥9.45B YoY (from ¥9.53B to ¥0.08B) represents a partial normalization from elevated prior-period credit costs rather than a fully sustainable structural improvement. While contractual repayment claim balances declined from ¥11.0B to ¥7.9B with collateral coverage of 215.7% and planned 90%+ recovery by 2026, residual credit exposure of ¥7.2B (maximum risk amount) remains. Should market conditions or collateral values deteriorate, provisions could recur, though not at prior-year magnitude. This factor materially inflates current-year profit and should be adjusted for normalized run-rate assessment.
Accruals: OCF of ¥119.0B exceeds Net Income of ¥102.5B, indicating low accrual risk and healthy earnings quality. Cash conversion rate of 0.67x (OCF/EBITDA) is modestly below the 0.7x benchmark, reflecting some working capital or non-cash adjustments but not indicative of aggressive accrual manipulation. Accounts receivable increased 48.6% YoY (¥0.14B to ¥0.21B), a small absolute increase but a notable percentage change requiring monitoring for potential collection issues or revenue recognition timing effects.
Overall earnings quality is adequate, supported by cash-backed profits and minimal extraordinary items. However, the outsized contribution of reduced credit provisions (a one-time relief rather than operating performance gain) and modest cash conversion efficiency warrant cautious interpretation of sustainability.
No explicit full-year revenue or operating income guidance is provided in the XBRL data. The Forecast section indicates annual Dividend Per Share of ¥10.52, but this conflicts with presentation materials stating annual dividend of ¥57.58 (payout ratio 65%) and quarterly dividend of ¥10.52, suggesting XBRL may refer to quarterly dividend. Reconciliation of dividend guidance is required.
Progress rate assessment is not feasible without disclosed full-year targets. Current period results represent cumulative performance but lack quarterly breakdown or explicit guidance benchmarks. Based on presentation materials, management has set a medium-term target of ROE sustainably above 20% and capital cost (approximately 8.5%), indicating current ROE of 19.7% is approaching but not yet meeting stated objectives.
Key forward-looking indicators from presentation materials include: (1) Thailand securities contractual repayment claims to decline to under 10% of principal by end-2026 through scheduled recoveries; (2) GMO Coin preparing for Tokyo Stock Exchange listing to enhance credibility and funding capacity (timing undisclosed, subject to regulatory approval); (3) expansion of recurring revenue streams in cryptocurrency segment and new ventures (insurance, medical platforms, integrated ID platform "1 Account"); (4) dividend policy shift to DOE (dividend on equity) floor of 10% starting FY2026, with minimum annual dividend of ¥42.08, representing enhanced shareholder return commitment.
No guidance revisions are disclosed in XBRL. Monitoring should focus on (1) progress of Thailand credit recovery, (2) timeline and execution of GMO Coin IPO, (3) revenue stabilization in core FX/CFD segments, and (4) margin sustainability as credit normalization benefits fade.
Dividend policy: For FY2025, annual dividend is ¥57.58 per share, representing a payout ratio of 65% and the highest dividend in company history. This reflects management's commitment to enhanced shareholder returns articulated in the target payout ratio of 65% or higher. For FY2026 onward, the company introduces DOE (Dividend on Equity) of 10% as a minimum threshold, translating to a dividend floor of ¥42.08 per share annually (¥10.52 quarterly), ensuring baseline return regardless of earnings volatility. The DOE floor provides downside protection for dividends even if earnings decline, contingent on adequate retained earnings and cash reserves.
Payout ratio: At 65% (dividend only), the payout ratio is elevated but within sustainable range given strong FCF generation of ¥126.2B and Operating CF/Net Income of 1.14x. The company's FCF coverage of dividends is ample at 14.3x (though this figure may be influenced by investing cash inflows not fully detailed). Equity base of ¥53.0B supports the DOE floor of 10% (¥5.3B annually) comfortably against current net income of ¥102.5B.
Share buybacks: No share repurchase program is disclosed in current period data. Total return ratio (dividends + buybacks) cannot be calculated. Management commentary emphasizes dividend growth and DOE floor rather than buyback activity, suggesting capital allocation prioritizes direct cash returns to shareholders.
Sustainability: Dividend payments are well-supported by current cash generation and retained earnings. However, the sustainability of high payout ratios depends on normalizing earnings post-credit provision relief and maintaining operating margins amid competitive pressures and market volatility. The DOE floor mechanism shifts risk from earnings volatility to equity base erosion if sustained losses occur, though current profitability and cash generation provide substantial buffer. Monitoring points include (1) maintenance of OCF/Net Income above 1.0x, (2) FCF adequacy after any increase in growth CapEx, and (3) equity ratio trends given high leverage.
Near-term:
Long-term:
Industry Position (Reference - Proprietary Analysis)
Profitability: Operating Margin 32.0% substantially exceeds historical company trend (no multi-period operating margin comparison available in benchmark data, but current 32.0% vs prior period 16.8% represents major expansion). Net Profit Margin 20.7% is consistent with company's FY2025 level in benchmark data (20.7%). These margins are elevated relative to typical retail brokerage and financial services firms, driven by the non-recurring relief from credit provisions and cost reduction. Sustainable margin assessment requires normalization for Thailand securities credit benefit.
Efficiency: Asset Turnover of 0.035x is characteristic of asset-intensive financial services business models (securities custody, margin lending, customer deposits) and cannot be directly compared to non-financial industries. Within financial services, this metric reflects the capital-intensive nature of brokerage operations rather than operating inefficiency.
Leverage: Equity Ratio 3.8% and D/E 25.5x are extremely high relative to general corporate standards, but align with leveraged business models in financial services (broker-dealers, margin lenders). However, Debt/EBITDA of 10.8x is elevated even for financial services, indicating material debt burden relative to cash generation capacity. Industry median comparisons for financial holding companies typically show Debt/EBITDA in the 3-5x range and D/E below 10x, suggesting this company's leverage profile is notably higher and riskier.
Returns: ROE 19.7% is strong in absolute terms but achieved primarily through financial leverage (26.5x) rather than asset efficiency (0.035x turnover) or margin superiority. Normalized ROE adjusting for non-recurring credit provision relief would likely be in the mid-teens range, closer to industry median for retail brokerage and financial services.
Dividend: Payout ratio 65% (benchmark data shows 0.68% for FY2025, likely data formatting issue; presentation materials confirm 65%) is above typical financial services median of 30-40%, reflecting management's shareholder return commitment. DOE floor of 10% starting FY2026 is progressive and shareholder-friendly relative to industry norms.
Overall: The company's profitability and ROE are currently elevated due to normalization of credit provisions and cost controls, but underlying business fundamentals (revenue contraction, low investment, high leverage) warrant cautious interpretation. Leverage profile is notably higher than industry norms, presenting material financial risk. Margin sustainability and revenue stabilization are key to maintaining industry-competitive performance.
(Industry: Financial Services / Online Brokerage, Comparison: Historical and sector medians, Source: Proprietary analysis)
Extreme financial leverage and refinancing risk: Debt/Equity of 25.5x, Debt/EBITDA of 10.8x, and short-term debt concentration of 72.1% (¥138.9B of ¥192.7B total debt) create material refinancing and liquidity risk. Cash/short-term debt ratio is 1.00x, providing minimal buffer. Any deterioration in credit markets, interest rate spikes, or earnings setbacks could trigger refinancing difficulties or covenant breaches. Short-term debt maturity structure requires continuous rollover, exposing the company to funding market volatility. This is the most critical financial risk, with high likelihood and high impact given current capital structure.
Revenue sustainability and market dependence: Core revenue streams (retail FX, CFD, cryptocurrency) are highly sensitive to market volatility and trading volumes. The 7.0% revenue decline in a period of strong equity markets and cryptocurrency adoption highlights structural volume pressures. Range-bound markets, regulatory changes (e.g., leverage limits, transaction taxes), or shifts in retail investor behavior could sustain or accelerate revenue contraction. Customer assets under custody in cryptocurrency declined 8.6% despite account growth, indicating lower engagement and ARPU pressure. Likelihood is medium-high given market cyclicality; impact is high as revenue is the foundation for covering fixed costs and servicing debt.
Credit risk recurrence and Thailand securities exposure: While bad debt provisions normalized to ¥0.08B from ¥9.53B, residual contractual repayment claim exposure of ¥7.9B remains with maximum risk of ¥7.2B. Collateral coverage is 215.7%, but collateral values (likely Thai equities) are subject to market risk. Failure of remaining borrowers to meet repayment schedules or sharp declines in Thai equity markets could necessitate renewed provisions. Management projects 90%+ recovery by 2026, but execution risk exists. Likelihood is medium; impact is medium-high as recurrence of multi-billion yen provisions would materially compress margins and earnings.
Other notable risks include: (4) chronic underinvestment (CapEx/D&A 0.21x) risking technology obsolescence and competitive disadvantage in digital financial services; (5) regulatory risk in cryptocurrency and online brokerage sectors; (6) execution risk in new ventures (insurance, medical platforms, integrated ID) which are unproven and dilutive to margins in near term; (7) GMO Coin IPO uncertainty and potential for listing delay or cancellation; (8) accounts receivable collection risk given 48.6% YoY increase in receivables.
Profitability inflated by non-recurring credit relief, warranting normalization: The 77.8% surge in operating profit and record net income of ¥102.5B are driven predominantly by a ¥9.45B YoY reduction in bad debt provisions (from ¥9.53B to ¥0.08B) rather than underlying business momentum. Operating margin expansion from 16.8% to 32.0% and net margin from 8.7% to 20.7% are unsustainable at these levels once credit normalization fully dissipates. Adjusting for the provision benefit, normalized operating profit would approximate ¥149B (¥158.7B less ¥9.5B provision relief), yielding normalized operating margin near 30% and net income around ¥93B, implying ROE in the 17-18% range. Revenue declined 7.0% amid market conditions that should have supported brokerage activity, indicating structural headwinds in core FX/CFD volumes. Management's medium-term ROE target of 20%+ appears achievable under current leverage but depends on sustaining elevated margins and reversing revenue decline, neither of which is assured. Earnings quality is adequate (OCF/NI 1.14x) but cash conversion efficiency (OCF/EBITDA 0.67x) has room for improvement.
Financial leverage and liquidity profile present material downside risk: With Debt/Equity of 25.5x, Debt/EBITDA of 10.8x, and short-term debt comprising 72.1% of total liabilities, the company's capital structure is fragile and vulnerable to adverse shocks. Current ratio of 107.9% and cash/short-term debt of 1.00x provide minimal liquidity cushion. Any combination of revenue stress, margin compression, or credit market tightening could rapidly impair the ability to refinance ¥138.9B in short-term borrowings. While current cash generation (Operating CF ¥119B, FCF ¥126B) is strong, this is inflated by the credit provision normalization and may not be sustained. Equity ratio of 3.8% offers negligible loss-absorption capacity. The company's high-leverage model is typical of financial services but is at the upper extreme even within that context, warranting heightened caution. Management has not disclosed deleveraging plans, and the DOE dividend floor of 10% could constrain equity retention if earnings decline.
Strategic initiatives offer optionality but are unproven and execution-dependent: The company is pursuing diversification into insurance (LASHIC acquisition), medical platforms (AI Chart), and integrated ID services (1 Account), while preparing GMO Coin for IPO. These initiatives could broaden revenue streams and reduce cyclicality over the medium to long term, but near-term contribution is negligible and execution risk is high. The GMO Coin IPO could enhance credibility and funding access but is subject to regulatory approval with uncertain timing. Dividend policy enhancement (65% payout, 10% DOE floor starting FY2026) is shareholder-friendly and well-supported by current cash generation, but sustainability depends on maintaining earnings post-normalization of credit benefits. Chronic underinvestment (CapEx/D&A 0.21x) raises concerns about long-term competitive positioning in technology-intensive digital financial services, though current strong margins suggest operational efficiency. Near-term catalysts include Thailand credit recovery completion (90%+ by 2026) and GMO Coin listing; long-term value depends on revenue stabilization and successful portfolio diversification.
This report was automatically generated by AI integrating XBRL earnings data and PDF presentation materials as an earnings analysis tool. This is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled from publicly available earnings data. Please make investment decisions at your own responsibility and consult professionals as needed.
AI analysis of PDF earnings presentation
For GMO Financial Holdings, Inc.’s fiscal year ending December 2025, operating revenue declined 7% year-on-year to 49.518 billion yen, but operating income reached a record high of 15.866 billion yen (+77.8% YoY) and net income hit a record 10.448 billion yen (+120.2% YoY), surpassing 10 billion yen for the first time. The primary driver of the sharp profit increase was the reduction in provisions for doubtful accounts in the Thailand securities business, which fell from approximately 9.5 billion yen in the prior year to 80 million yen. In the three core businesses—FX, CFDs, and crypto assets—profitability weakened due to range-bound markets in the second half, but CFDs rebounded strongly in Q4 on the back of buoyant commodity markets. The dividend marked a record high at 57.58 yen per share (payout ratio 65%), and the company announced enhanced shareholder returns by introducing a DOE floor of 10% starting in the fiscal year ending December 2026. The company is proactively investing in new businesses, including advancing preparations for GMO Coin, Inc.’s listing on the Tokyo Stock Exchange, approving the acquisition of all shares of LASHIC Small-Amount Short-Term Insurance, launching an AI-enabled cloud electronic medical record service, and starting the integrated ID platform “1 Account.”
Operating income and net income both reached record highs, with net income surpassing 10 billion yen for the first time. Provisions for doubtful accounts in the Thailand securities business decreased from 9.5 billion yen to 80 million yen, contributing significantly to profit growth. CFD trading value and revenue surged in Q4 amid strong commodity markets, with revenue up +33.8% year-on-year. From the fiscal year ending December 2025, shareholder returns were strengthened with a target payout ratio of 65% or higher; annual dividend set at a record 57.58 yen. GMO Coin is advancing preparations for listing on the Tokyo Stock Exchange (timing and other details remain undecided).
Guidance for the fiscal year ending December 2026 has not been disclosed, but under the policy of making strong core businesses even stronger: FX will pursue enhanced competitive advantages and stronger marketing; CFDs will aim to increase cross-sell rates from securities and FX trading; and crypto assets will seek to stabilize earnings by reinforcing stock-type products. In new businesses, the company will enter the insurance field, accelerate the launch of the medical platform business, and expand locations in the virtual office business. By building an ecosystem centered on the integrated ID platform “1 Account,” the company aims to accelerate growth of partner companies’ businesses and achieve sustainable growth.
Management targets consistently delivering ROE of 20% or higher, exceeding an estimated cost of capital of around 8.5%, and will promote three initiatives: (1) strengthening earnings power (establishing market leadership and improving efficiency by consolidating group-shared operations), (2) optimizing capital allocation (enhancing funding capability through the listing of GMO Coin, investing in growth areas, and rationalizing unprofitable businesses), and (3) lowering the cost of capital (enhanced disclosure and engagement, and stabilizing shareholder returns through DOE adoption). For the fiscal year ending December 2026, the company set a target payout ratio of 65% or higher and introduced a DOE floor of 10%, indicating a dividend floor of 42.08 yen per year.
Advance preparations for GMO Coin’s listing on the Tokyo Stock Exchange to enhance social credibility and strengthen funding capacity. Enter the insurance field by acquiring all shares of LASHIC Small-Amount Short-Term Insurance (share transfer scheduled to be executed within Q1 2026). Launch the AI-enabled cloud electronic medical record “AI Chart” in December 2025 and establish the medical platform business. Begin offering the integrated ID platform “1 Account” from December 2025 and gradually expand collaboration with GMO Internet Group companies and external partners. Maintain a focus on number of active traders in FX, promote cross-selling in CFDs, and strengthen stock-type services (staking and crypto lending) and institutional/VIP services in crypto assets.
Receivables under settlement agreements in the Thailand securities business total approximately 7.9 billion yen, with a plan to collect 90% or more of the principal during 2026, but collection risk remains. Profitability deterioration witnessed in the second half due to range-bound markets may persist in both FX and crypto assets. The listing of GMO Coin is subject to approval by relevant authorities and may be postponed or canceled. Entry into the insurance field (acquisition of LASHIC shares) is subject to approval by relevant authorities, and the execution timing is uncertain. The pace of expanding partner companies in the integrated ID platform business is uncertain, creating opacity in ecosystem build-out progress.