Message to investors
We would like to express our sincere gratitude for your continued support and understanding.
Regarding our financial results for the fiscal year ended December 2025, we achieved year-on-year revenue growth. Although revenue from the Financial Support Business from September onward was excluded from the scope of consolidation due to the transfer of shares in GMO Creators Network, Inc., our recurring revenue remained solid. This was driven by the positive impact of price revisions for our web hosting service, Lolipop!, and an increase in the number of contracts for MuuMuu Server. In terms of profitability, we also achieved a year-on-year increase, bolstered by a higher ratio of premium plan contracts in our e-commerce platform, Color Me Shop, as well as improved operational efficiency through the utilization of AI in our original goods creation and sales service, SUZURI.
As a result, consolidated net sales increased by 0.3% year-on-year to 10.9 billion yen, and operating profit rose by 12.5% year-on-year to 930 million yen.
For the fiscal year ending December 2026, while the Financial Support Business will remain excluded from the scope of consolidation following the share transfer of GMO Creators Network, Inc., we plan to expand our earnings base by accelerating the rollout of corporate services that operate on a recurring revenue model.
In the Domain and Web Hosting business—the core of our recurring revenue model—we aim to capture demand from remote work and mobile usage by expanding the number of licenses for Lolipop! Fixed IP Access, a VPN service providing fixed IP addresses. Furthermore, for our domain registration service, MuuMuu Domain, we will strengthen the cross-selling of domain-related options such as MuuMuu Server and Google Workspace to further accumulate user accounts. Consequently, we are projecting net sales of 11.0 billion yen and an operating profit of 1.05 billion yen (a 12.6% year-on-year increase).
In closing, we remain fully committed to driving sustainable growth and enhancing our corporate value so that you, our shareholders, can continue to invest in us with absolute confidence. We sincerely ask for your continued guidance and support.
Kentaro Sato
Representative Director and CEO
GMO Pepabo, Inc.