Company Reports

Japan's online consumer-to-consumer, or C2C, secondhand goods trading market is about JPY 2.4 trillion and Mercari is the top platform with over 40% market share and 24 million monthly active users. Mercari charges sellers a 10% take rate on the platform due to its large buyer base and superior turnover speed.

Mercari's fiscal 2026 (ending June 2026) revenue and core operating profit grew 19% and 60% year on year, driven by 15% growth in marketplace gross merchandise value.

Japan's online consumer-to-consumer, or C2C, secondhand goods trading market is about JPY 2.4 trillion and Mercari is the top platform with over 40% market share and 23 million monthly active users. Mercari charges sellers a 10% take rate on the platform due to its large buyer base and superior turnover speed.

Mercari's March-quarter revenue and operating income grew 22% and 66% year on year, respectively. Management raised fiscal 2026 (ending June 2026) guidance to JPY 220 billion for revenue and JPY 40 billion for operating income, up 14% and 45% respectively, and aims to exceed these targets.

Mercari's December-quarter revenue and operating income grew 15% and 54% year on year. 2026 guidance for revenue and operating income is now JPY 210 billion-JPY 220 billion and JPY 32 billion-JPY 36 billion (up JPY 10 billion and JPY 4 billion), mainly due to an upward revision for marketplace.

Japan's online consumer-to-consumer, or C2C, secondhand goods trading market is about JPY 2.4 trillion and Mercari is the top platform with over 40% market share and 23 million monthly active users. Mercari charges sellers a 10% take rate on the platform due to its large buyer base and superior turnover speed.

Japan's online consumer-to-consumer, or C2C, secondhand goods trading market is about JPY 2.4 trillion and Mercari is the top platform with over 40% market share and 23 million monthly active users. Mercari charges sellers a 10% take rate on the platform due to its large buyer base and superior turnover speed.

Mercari's September-quarter revenue and operating income grew by 10.1% and 18.9% year on year, respectively, driven by 4.95% growth in marketplace gross merchandise value despite lower promotion costs for the marketplace and financial technology segments.

Japan's online consumer-to-consumer, or C2C, secondhand goods trading market is about JPY 2.4 trillion and Mercari is the top platform with over 40% market share and 23 million monthly active users. Mercari charges sellers a 10% take rate on the platform due to its large buyer base and superior turnover speed.

Mercari announced the discontinuation of Mercari Hallo, its on-demand work matching service, on Dec. 18, 2025. Hallo was launched in March 2024 and accumulated over 12 million users by June 2025. It began charging commission fees from partners in March 2025.

For fiscal 2025 (ending June 2025), Mercari’s marketplace gross merchandise value, or GMV, grew by 4%, which is below the 10% guidance. Meanwhile, its core operating profit of JPY 28 billion exceeded the guidance due to an overshoot in the fintech segment.

Japan's online consumer-to-consumer, or C2C, secondhand goods trading market is about JPY 2.4 trillion and Mercari is the top platform with over 40% market share and 23 million monthly active users. Mercari charges sellers a 10% take rate on the platform due to its large buyer base and superior turnover speed.

While Mercari's low-single-digit revenue growth for the fiscal third quarter was below guidance of 7%-12%, cumulative operating profit of JPY 20 billion put the firm on track to exceed its guidance of JPY 22 billion-JPY 25 billion for the fiscal year ending June.

Japan's online consumer-to-consumer secondhand goods trading market is about JPY 2.2 trillion (roughly 28.9% of total used goods value). The market is split into two segments: auction (JPY 1 trillion) and marketplace applications, or apps (JPY 1.2 trillion). Mercari is the top platform of the latter, with over 70% market share and 22 million monthly active users. Its main competitors in the market are Rakuma and Yahoo Flea Market, with 5 million MAU each. Mercari charges sellers a 10% take rate on the platform, much higher than its competitors' 5%-6%, because of access to a much larger buyer base and superior turnover speed.

After reevaluating our moat ratings for our Japanese e-commerce coverage, we upgrade our moat ratings for both LY and Zozo to wide from narrow and maintain our narrow moat rating for Mercari and no-moat rating for Rakuten. Out of the four companies, we believe LY shares have the greatest upside potential as we believe the market is underappreciating the value of future synergies between Line, Yahoo, and PayPay, which are leaders in their respective markets.

After reevaluating our moat ratings for our Japanese e-commerce coverage, we upgrade our moat ratings for both LY and Zozo to wide from narrow and maintain our narrow moat rating for Mercari and no moat rating for Rakuten. Out of the four companies, we believe LY shares have the greatest upside potential as we believe the market is underappreciating the value of future synergies between Line, Yahoo, and PayPay, which are leaders in their respective markets.

Japan's online consumer-to-consumer secondhand goods trading market is about JPY 2.2 trillion (roughly 28.9% of total used goods value). The market is further split into two segments: auction (JPY 1 trillion) and marketplace applications, or apps (JPY 1.2 trillion). Mercari is the top platform of the latter, with over 70% market share, and 22 million monthly active users. Its main competitors in the market are Rakuma and Yahoo Flea Market, with 5 million MAU each. Mercari charges sellers a 10% take rate on the platform, much higher than its competitors' 5%-6%, because of access to a much larger buyer base and superior turnover speed.

We have mixed feelings about Mercari’s December-quarter results. On the one hand, we are concerned that monthly active users, or MAU, have been below the previous year for two consecutive quarters. On the other hand, the JPY 7 billion operating profit outperformed our expected JPY 5.4 billion, thanks to companywide cost-control efforts. We slightly bump up our fiscal-year 2025 (ending June 30) estimates based on higher margin assumptions for the marketplace and fintech businesses in the second half but leave our midterm forecasts broadly unchanged. Short-term weakness in the marketplace does not change our confidence in Mercari’s moat as the top flea market app in Japan, and the increase in purchase amount per user, as well as growing usage of fintech services, suggest that ecosystem synergies are strengthening. As a result, we maintain our fair value estimate of JPY 2,340, and we believe Mercari’s shares are currently undervalued. While it may be a good entry point now that much of the downside of slowing gross merchandise value, or GMV, growth should already have been priced in, we think a revitalization in the marketplace business’ top-line growth is necessary for a fundamental recovery in stock price.

Japan's online consumer-to-consumer secondhand goods trading market is about JPY 2.2 trillion (roughly 28.9% of total used goods value). The market is further split into two segments: auction (JPY 1 trillion) and marketplace applications, or apps (JPY 1.2 trillion). Mercari is the top platform of the latter, with over 70% market share, and 22 million monthly active users. Its main competitors in the market are Rakuma and Yahoo Flea Market, with 5 million MAU each. Mercari charges sellers a 10% take rate on the platform, much higher than its competitors' 5%-6%, because of access to a much larger buyer base and superior turnover speed.

We cut our fair value estimate for Mercari to JPY 2,340 from JPY 2,800 previously after lowering our mid to long-term top-line growth assumptions for marketplace and fintech segments. Although we had already lowered our gross merchandise value growth assumption following the previous earnings release, we are trimming our growth forecasts again, as the sluggish growth in monthly active users for the past few quarters casts further doubt on the effectiveness of future marketing strategies and highlights concerns about the lack of a fundamental growth driver for the company outside of its traditional marketplace business. Following the massive postearnings selloff, we believe that Mercari’s shares are undervalued as the market is overly pessimistic about Mercari’s margin expansion, which we believe is achievable through cost discipline and monetization of the fintech segment. Moreover, despite slowing market growth, we believe Mercari’s leadership position in the flea market application can protect its take rate of about 10% over the longer term. However, we acknowledge that Mercari’s shares lack near-term catalysts, and more visibility is needed on whether top-line growth can be revitalized through better marketing strategies and new business initiatives.