Rakuten Group, Inc. (OTCMKTS: RKUNY) Returns to Quarterly Profitability in Q2 2026

• Rakuten Group, Inc. (OTCMKTS: RKUNY) reported its first quarterly net income in six years, ending a run of 22 consecutive loss-making quarters.
• Stronger results from Internet Services and FinTech, together with narrower losses in Mobile, lifted consolidated non-GAAP operating income by 109.6% year over year.
• Although Rakuten returned to quarterly profitability, its trailing earnings and leverage metrics show that financial risks remain.

Rakuten Group, Inc. (OTCMKTS: RKUNY) is a Japanese technology conglomerate operating in e-commerce, financial technology, digital services, and mobile telecommunications. The company released its second-quarter fiscal 2026 results on August 10, 2026. Its next quarterly report is expected in November 2026, although Rakuten has not yet confirmed the exact date. 

Rakuten reported record second-quarter consolidated revenue of ¥665.5 billion, an increase of 11.6% from the prior-year period. Net income attributable to owners of the parent reached ¥7.7 billion, improving by ¥58.7 billion year over year and marking the company’s first profitable quarter at this level since the second quarter of 2020. Total profit after tax, including amounts attributable to noncontrolling interests, was ¥27.2 billion. 

Consolidated non-GAAP operating income reached ¥42.0 billion, up 109.6% year over year. IFRS operating income increased 126.9% to ¥20.0 billion.

Internet Services and FinTech were the main contributors to the improvement. Internet Services revenue rose 4.2% to ¥338.1 billion, while non-GAAP operating income increased 68.6% to ¥23.1 billion. FinTech revenue advanced 27.0% to ¥295.4 billion, and non-GAAP operating income grew 60.1% to ¥69.2 billion.

The Mobile segment continued to operate at a loss but showed further improvement. Mobile revenue increased 8.3% to ¥121.4 billion, while its non-GAAP operating loss narrowed by ¥4.1 billion to ¥33.1 billion. Rakuten Mobile itself recorded an operating loss of ¥32.3 billion, an improvement of ¥6.7 billion from the prior-year quarter.

MarketBeat lists RKUNY with a consensus “Buy” rating, but this assessment is based on limited analyst coverage and should therefore be interpreted cautiously. The platform currently shows a trailing EPS loss of $0.19, meaning a conventional trailing P/E ratio is not meaningful. It also reports a current ratio of 1.15 and a relatively high debt-to-equity ratio of 4.43.

Rakuten’s return to quarterly profitability represents an important improvement, supported by strong FinTech earnings, growing Internet Services profits, and declining Mobile losses. However, investors should monitor whether the company can sustain profitability, continue reducing Mobile losses, and manage its substantial financial leverage.