# LY Corporation: business model and financials

> Latest period: FY ending Mar 2026, consolidated, IFRS
> Unit: JPY millions
> Sources: 訂正有価証券報告書－第31期(2025/04/01－2026/03/31) (S100YTT6)
> Page: https://vizora.meequs.com/en/company/ly
> Retrieved: 2026-09-30T19:09:16.778Z

## Company

LY Corporation, founded in 1996, is a company in Internet Services & Apps listed on TSE Prime. It has 29,863 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | LY Corporation |
| Ticker | 4689 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/4689.T) |
| Listing | TSE Prime |
| Head office | 東京都千代田区紀尾井町1番3号 |
| Representative (per filing) | 代表取締役社長CEO 出澤剛 |
| Founded | Jan 1996 |
| Share capital | ¥252.1B |
| Employees (consolidated) | 29,863 |
| Average salary (parent only) | ¥9M |
| Fiscal year end | March |
| Website | www.lycorp.co.jp (https://www.lycorp.co.jp/) |
| Corporate number | 4010401039979 |
| EDINET | E05000 |
| Industries (Vizora) | Internet Services & Apps, E-commerce, Credit Cards & Consumer Credit, Cashless Payments, Advertising |

> Profile source: annual securities report (S100YTT6, filed 2026-08-03). As of filing

## Five-axis industry profile

Primary industry: E-commerce (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 66 | 25 |
| Profitability | 86.8 | 34 |
| Cash conversion | 72.2 | 27 |
| Efficiency | 4.4 | 34 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 42% of LY Corporation's sales come from Commerce, with Media business and Strategy making up much of the rest.
- Out of every ¥100 of sales, about ¥17 is left as operating profit.
- Revenue changed +6.2% from the prior year, operating profit +8.3%.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥2.04T |  |
| Operating income | ¥341.3B | Margin 16.8% |
| Net income | ¥193.7B | Margin 9.5% |
| Free cash flow | — |  |
| Largest business | Commerce | of segment revenue 42.0% |
| Employees (consolidated) | 29,863 |  |
| EPS | ¥27.97 |  |
| Diluted EPS | ¥27.85 |  |
| Book value per share | ¥319.46 |  |
| Equity ratio | 26.8% | Derived from disclosed figures |
| Shares outstanding | 6,884,244,000 |  |
| Treasury shares | 5,439,700 |  |
| Shareholders | 269,316 |  |
| Average salary (parent only) | ¥9M | Filing company only |
| Cash ratio | 9.5% | Cash ÷ revenue 52.4% |
| Vs. industry median margin | +11.8 pp | E-commerce |
| ROE | 6.5% | Derived from disclosed figures |
| ROA | 1.9% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 3.4× net income
- FY2026, buybacks were 3.0× dividends
- FY2026, segment profit share differs by 21 points

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥1205846000000 | ¥2036366000000 | +68.9% |
| Operating income | ¥162125000000 | ¥341322000000 | +110.5% |
| Operating margin | 13.4% | 16.8% | +3.3 pp |
| Employees | 22,531 people | 29,863 people | +32.5% |
| Cash and equivalents | ¥1065726000000 | ¥1068032000000 | +0.2% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| メディア事業 → メディア事業 | 30.3% |
| コマース事業 → コマース事業 | 42.0% |
| コマース事業 → 事業再編・廃止 | 19.8% |
| 戦略事業 → 戦略事業 | 7.1% |
| その他 → その他 | 0.5% |
| その他 → 事業再編・廃止 | 0.4% |
| 新設・再編 → メディア事業 | 5.5% |
| 新設・再編 → 戦略事業 | 14.6% |

Segment revenue source references: 8 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Commerce | 5 years | +2.8% | ¥854892000000 | 10.2% | 2 |
| Media business | 5 years | +14.8% | ¥729339000000 | 28.9% | 2 |
| Strategy | 5 years | +38.9% | ¥442277000000 | 15.5% | 2 |
| Other | 5 years | -1.1% | ¥9857000000 | 62.4% | 2 |

## Income statement（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 2,036,366 | 100.0% | S100YTT6 |
| Cost of revenue | 530,095 | 26.0% | S100YTT6 |
| Gross profit | 1,506,271 | 74.0% | 算出 |
| SG&A | 1,220,903 | 60.0% | S100YTT6 |
| Operating income | 341,322 | 16.8% | S100YTT6 |
| Pretax income | 294,231 | 14.4% | S100YTT6 |
| Income tax | 11,140 | 0.5% | S100YTT6 |
| Net income | 283,090 | 13.9% | S100YTT6 |
| Net income attributable to owners | 193,692 | 9.5% | S100YTT6 |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 26 |
| SG&A | 60 |
| Other operating | -3 |
| Operating income | 17 |
| (Ref.) Net income | 10 |

### Margin funnel

Gross margin 74.0% → Operating margin 16.8% → Net margin 9.5%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +6.2%; Core profit growth: +8.3%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 1.35×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 1,917,478 | 2,036,366 | 118,888 | +6.2% |
| Gross profit | 1,387,956 | 1,506,271 | 118,315 | +8.5% |
| Operating income | 315,033 | 341,322 | 26,289 | +8.3% |
| Net income attributable to owners | 153,465 | 193,692 | 40,227 | +26.2% |
| Operating cash flow | 519,590 | 662,854 | 143,264 | +27.6% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 1,052,943 | 152,276 | 14.5% | 81,675 | 241,578 | 156,452 | S100LZZB |
| FY ending Mar 2021 | 1,205,846 | 162,125 | 13.4% | 70,145 | 207,921 | 137,180 | S100O94C |
| FY ending Mar 2022 | 1,567,421 | 189,503 | 12.1% | 77,316 | 266,314 | -6,319 | S100T8XQ |
| FY ending Mar 2023 | 1,672,377 | 314,533 | 18.8% | 178,868 | 93,051 | 209 | S100TM4A |
| FY ending Mar 2024 | 1,814,663 | 208,191 | 11.5% | 113,199 | 316,477 | 245,468 | S100X0SC |
| FY ending Mar 2025 | 1,917,478 | 315,033 | 16.4% | 153,465 | 519,590 | 419,850 | S100YTT6 |
| FY ending Mar 2026 | 2,036,366 | 341,322 | 16.8% | 193,692 | 662,854 | — | S100YTT6 |

## People and productivity（FY ending Mar 2026, consolidated, IFRS）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥68.2M |
| Operating income per employee (consolidated) | ¥11.4M |
| Net income per employee (consolidated) | ¥6.5M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 23,705 | 28,385 | 28,196 | 27,003 | 29,863 |
| Average salary (parent company) | ¥10.7M | ¥9.1M | ¥8.2M | ¥8.8M | ¥9M |
| Average age (parent company) | 42.9 years | 43.5 years | 37.3 years | 38.4 years | 39.0 years |
| Average tenure (parent company) | 10.6 years | 10.1 years | 7.4 years | 8.8 years | 9.6 years |

Year over year: Employees (consolidated) +10.6% · Revenue (consolidated) +6.2%

## Segments（FY ending Mar 2026, consolidated, IFRS、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Media business | 729,339 | 35.8% | 210,838 | 28.9% |
| Commerce | 854,892 | 42.0% | 87,390 | 10.2% |
| Strategy | 442,277 | 21.7% | 68,424 | 15.5% |
| Other | 9,857 | 0.5% | 6,154 | 62.4% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Media business | 35.8% | 56.6% | 20.7 | 28.9% |
| Commerce | 42.0% | 23.4% | -18.5 | 10.2% |
| Strategy | 21.7% | 18.4% | -3.4 | 15.5% |
| Other | 0.5% | 1.7% | 1.2 | 62.4% |

Segment → industry: Media business → Internet Services & Apps / Commerce → E-commerce / Strategy → Credit Cards & Consumer Credit / Strategy → Cashless Payments / Media business → Advertising

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 662,854 | 32.6% | S100YTT6 |
| Investing cash flow | -809,247 | -39.7% | S100YTT6 |
| Financing cash flow | 153,309 | 7.5% | S100YTT6 |
| Dividends paid | 49,860 | 2.4% | S100YTT6 |
| Share buyback | 148,666 | 7.3% | S100YTT6 |
| Change in cash | 24,087 | 1.2% | S100YTT6 |
| Cash and equivalents | 1,068,032 | 52.4% | S100YTT6 |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 1,127,523 | 1,651,851 | 1,420,430 | 1,043,944 | 1,068,032 | S100TM4A, S100X0SC, S100YTT6 |
| Total assets | 7,110,386 | 8,588,722 | 9,043,969 | 9,158,346 | 11,205,191 | S100T8XQ, S100TM4A, S100X0SC, S100YTT6 |
| Net assets | 2,982,197 | 3,317,900 | 3,446,985 | 3,418,915 | 3,713,509 | S100TM4A, S100X0SC, S100YTT6 |
| Share capital | 237,980 | 247,094 | 248,144 | 250,128 | 252,134 | S100T8XQ, S100TM4A, S100X0SC, S100YTT6 |
| Property, plant and equipment | 164,783 | 213,839 | 238,399 | 262,172 | 259,634 | S100T8XQ, S100TM4A, S100X0SC, S100YTT6 |
| Goodwill | 1,788,481 | 2,074,779 | 2,067,862 | 2,073,470 | 2,191,690 | S100T8XQ, S100TM4A, S100X0SC, S100YTT6 |
| Total liabilities | 4,128,188 | 5,270,822 | 5,596,983 | 5,739,431 | 7,491,682 | S100T8XQ, S100TM4A, S100X0SC, S100YTT6 |
| Equity attributable to owners of parent | 2,684,377 | 2,919,399 | 3,037,088 | 2,998,170 | 2,998,805 | S100T8XQ, S100TM4A, S100X0SC, S100YTT6 |
| Retained earnings | 401,322 | 647,347 | 723,884 | 838,017 | 996,061 | S100T8XQ, S100TM4A, S100X0SC, S100YTT6 |
| Treasury stock | -54,086 | -70,436 | -70,037 | -11,704 | -13,338 | S100T8XQ, S100TM4A, S100X0SC, S100YTT6 |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 9% | S100YTT6 |
| Property, plant and equipment | 2% | S100YTT6 |
| Intangibles and goodwill | 20% | — |
| Other assets | 69% | S100YTT6 |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 67% | S100YTT6 |
| Equity | 33% | S100YTT6 |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 7,110,386 | 8,588,722 | 9,043,969 | 9,158,346 | 11,205,191 |
| Equity | 2,982,197 | 3,317,900 | 3,446,985 | 3,418,915 | 3,713,509 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 1,127,523 | 1,651,851 | 1,420,430 | 1,043,944 | 1,068,032 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 12.7% | S100YTT6 |
| Fixed assets ÷ total assets | 2.3% | S100YTT6 |
| Goodwill ÷ parent equity | 73.1% | S100YTT6 |

Goodwill over 4 years: 1,788,481 → 2,191,690 JPY; total investing cash flow: -1,743,053 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 9.5% |
| Cash ÷ revenue | 52.4% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 194.2% |
| Cash vs. profit gap | 469,162 JPY mn (of net income 242.2%) |
| Shareholder returns / net income | 102.5% |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 25.7% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | — |
| Investing CF relative to operating CF | 122.1% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 4.9% | 0.22× | 1.1% | 2.65× | 2.9% | S100T8XQ |
| 2023 | 10.7% | 0.21× | 2.3% | 2.80× | 6.4% | S100TM4A |
| 2024 | 6.2% | 0.21× | 1.3% | 2.96× | 3.8% | S100X0SC |
| 2025 | 8.0% | 0.21× | 1.7% | 3.02× | 5.1% | S100YTT6 |
| 2026 | 9.5% | 0.20× | 1.9% | 3.40× | 6.5% | S100YTT6 |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| Aホールディングス㈱ | Major shareholder | 62.4% | 2026-03-31 |
| 日本マスタートラスト信託銀行㈱(信託口) | Major shareholder | 6.5% | 2026-03-31 |
| ㈱日本カストディ銀行(信託口) | Major shareholder | 2.1% | 2026-03-31 |
| THE CHASE MANHATTAN BANK, N.A. LONDONSECS LENDING OMNIBUS ACCOUNT(常任代理人 ㈱みずほ銀行決済営業部) | Major shareholder | 1.3% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505001(常任代理人 ㈱みずほ銀行決済営業部) | Major shareholder | 1.1% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505103(常任代理人 ㈱みずほ銀行決済営業部) | Major shareholder | 1.0% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505223(常任代理人 ㈱みずほ銀行決済営業部) | Major shareholder | 0.8% | 2026-03-31 |
| THE CHASE MANHATTAN BANK, N.A. LONDON(常任代理人 ㈱みずほ銀行決済営業部) | Major shareholder | 0.6% | 2026-03-31 |
| JP MORGAN CHASE BANK 385781(常任代理人 ㈱みずほ銀行決済営業部) | Major shareholder | 0.6% | 2026-03-31 |
| JPモルガン証券㈱ | Major shareholder | 0.5% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Mar 2026 was ¥2.04T, up +6.2% from ¥1.92T.
- Operating income grew a little faster, rising +8.3% to ¥341.3B.
- Net income attributable to owners rose much more, up +26.2% to ¥193.7B, and operating cash flow climbed +27.6% to ¥662.9B.

### Drivers

- In the strategy business, the PayPay group (PayPay, PayPay Card, PayPay Bank and others) kept growing and led the revenue gain
- In commerce, bringing BEENOS and LINE MAN in as consolidated subsidiaries added to sales
- The rise in operating income came mainly from a remeasurement gain booked when LINE MAN became a subsidiary

### Risks

- Cyberattacks and data leaks can hurt results and trust, as the ransomware attack that disrupted subsidiary ASKUL showed
- Generative AI is changing how people search and shop; if AI-based ads and paid AI features don't pay off as planned, or AI costs keep rising, margins could shrink
- Rules on personal data and online platforms are getting stricter in Japan and abroad, which could add compliance work or limit some services

Cited: Amended annual securities report (MD&A) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Amended annual securities report (business risks) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 訂正有価証券報告書－第31期(2025/04/01－2026/03/31) | S100YTT6 | 2026-08-03 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YTT6,, |
| 訂正有価証券報告書－第30期(2024/04/01－2025/03/31) | S100X0SC | 2025-11-10 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100X0SC,, |
| 有価証券報告書－第29期(2023/04/01－2024/03/31) | S100TM4A | 2024-06-17 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TM4A,, |
| 訂正有価証券報告書－第28期(2022/04/01－2023/03/31) | S100T8XQ | 2024-04-10 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100T8XQ,, |
| 有価証券報告書－第27期(令和3年4月1日－令和4年3月31日) | S100O94C | 2022-06-16 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100O94C,, |
| 訂正有価証券報告書－第26期(令和2年4月1日－令和3年3月31日) | S100LZZB | 2021-07-15 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LZZB,, |

## Key alliances (from the filing's material contracts)

| Partner | Type | Description | Source |
| --- | ---: | ---: | ---: |
| ブロードバンドタワー | Capital alliance | 業務・資本提携（データセンターサービス提供、取締役候補者1名の選任） | S100WZGB |
| ブロードバンドタワー | Supply/OEM | 当社がLINEヤフーにデータセンターサービスを提供 | S100WZGB |
| グーグル・アジア・パシフィック・プライベート・リミテッド | Co-development | Googleから検索技術・検索連動型広告配信技術の提供を受ける契約 | S100YTT6 |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).