A record half, carried by one segment
GMO Financial Holdings, Inc. (TSE: 7177) published consolidated results for the six months to June 30, 2026 on August 5, 2026 under Japanese GAAP. Operating revenue rose 9.9% to ¥29,544 million, net operating revenue 8.3% to ¥27,095 million and operating profit 5.9% to ¥10,350 million. Ordinary profit rose 13.3% to ¥10,261 million and interim profit attributable to owners of the parent 5.0% to ¥6,524 million, for earnings per share of ¥55.30 against ¥52.65. The company states these are record figures for an interim consolidated period.
The year-earlier comparison is worth keeping in view: in H1 FY12/2025 operating profit had nearly doubled (+97.7%) and ordinary profit more than doubled (+104.4%). Growing again from that base, rather than the mid-single-digit rate suggesting a soft half, is what makes this a record.
Securities and FX up 24%; crypto down 65%
The securities and FX segment lifted revenue 17.5% to ¥25,991 million and segment profit 23.8% to ¥10,416 million. Within it the mix shifted: over-the-counter FX revenue fell as foreign-exchange volatility subsided, but CFD revenue — while down from the record high set in the first quarter — stayed high and contributed to the overall result. Financial revenue grew on higher yields on customer deposits as interest rates rose, and margin-trading revenue was steady.
The crypto-asset segment moved the other way, with revenue down 40.8% to ¥2,054 million and segment profit down 64.5% to ¥574 million on a weak crypto market. Other businesses — including a medical platform and systems-related operations — widened their loss to ¥640 million from ¥252 million. The net effect is that the securities and FX segment now supplies essentially all of the group's profit.
A balance sheet that shrank because customers withdrew crypto
Total assets fell ¥91,160 million from the December year-end to ¥1,315,649 million. The single largest movement was a ¥111,666 million decline in user crypto assets, partly offset by a ¥34,830 million increase in margin-trading assets and reduced by a ¥26,751 million fall in cash and deposits. Liabilities fell ¥94,820 million to ¥1,258,972 million, mirroring the same ¥111,666 million decrease in crypto deposits held for customers against a ¥24,411 million rise in received margins.
Because customer crypto assets appear on both sides of the balance sheet, their withdrawal shrinks the total without touching shareholders' funds: net assets actually rose ¥3,660 million to ¥56,677 million on ¥3,908 million of retained earnings, and the equity ratio improved to 4.3% from 3.8%. That ratio is structurally low for the same reason — client money dominates the asset side of a brokerage balance sheet.
Operating cash flow was an outflow of ¥17,017 million, driven by the offsetting ¥111,666 million crypto inflow and outflow, a ¥34,830 million increase in margin-trading assets and a ¥12,647 million increase in the margin settlement account against a ¥24,357 million rise in received margins. Investing used ¥2,338 million and financing ¥7,609 million, including ¥9,813 million of bond redemptions and ¥2,618 million of dividends against ¥10,600 million of new long-term borrowings. Cash and equivalents closed at ¥111,949 million, down ¥26,871 million.
No guidance, and a dividend set by formula
GMO Financial Holdings does not publish consolidated earnings guidance. Its main businesses — securities and FX, and crypto assets — are, in the company's words, strongly affected by economic conditions and market environment, which makes a forecast impractical. Instead it discloses monthly operating indicators: FX trading volume, equity brokerage turnover, CFD turnover, crypto trading volume, customer account numbers and operating revenue.
The dividend follows a stated formula rather than a forecast: a payout ratio of at least 65% of net profit attributable to owners of the parent, with a consolidated dividend-on-equity ratio of 10% as a floor, paid quarterly. On that basis the FY12/2026 dividend is set at ¥57.04 per share for the year — a downward step from the ¥57.58 actually paid in FY12/2025, but an increase on the previous forecast, announced on July 27, 2026. One company, GMO Small Amount Short-Term Insurance Co., Ltd. — renamed from LASHIC Small Amount Short-Term Insurance on March 27, 2026 — was newly consolidated during the half.
| Metric | H1 FY12/2026 | H1 FY12/2025 | Change |
|---|---|---|---|
| Operating revenue (¥ million) | 29,544 | 26,893 | +9.9% |
| Net revenue (¥ million) | 27,095 | 25,026 | +8.3% |
| Operating profit (¥ million) | 10,350 | 9,776 | +5.9% |
| Ordinary profit (¥ million) | 10,261 | 9,054 | +13.3% |
| Net profit attrib. to owners of parent (¥ million) | 6,524 | 6,211 | +5.0% |
| Comprehensive income (¥ million) | 6,125 | 6,002 | +2.0% |
| EPS (¥) | 55.30 | 52.65 | +5.0% |
| Securities & FX — revenue (¥ million) | 25,991 | 22,118 | +17.5% |
| Securities & FX — segment profit (¥ million) | 10,416 | 8,413 | +23.8% |
| Crypto Assets — revenue (¥ million) | 2,054 | 3,468 | −40.8% |
| Crypto Assets — segment profit (¥ million) | 574 | 1,616 | −64.5% |
| Total assets (¥ million) | 1,315,649 | 1,406,809 | −6.5% |
| Net assets (¥ million) | 56,677 | 53,017 | +6.9% |
| Equity ratio | 4.3% | 3.8% | +0.5 pt |
| Annual dividend per share (¥) | 57.04 | 57.58 | −0.9% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.