Expansion into overseas markets, including the US and UK

「In September 2025, we began offering the globally standardized “Mercari Global App” in Taiwan and Hong Kong, and in June 2026 also began offering it in the United States.」

「In the US, strengthening the core product experience, together with holiday-season marketing campaigns and efficient category-specific coupon initiatives, was effective in raising the growth rate. As a result, during the interim consolidated accounting period, Mercari GMV increased 6.0% year on year to US$390 million (¥58.9 billion, accumulated using the average monthly exchange rate), while revenue was ¥19,751 million, up 6.2% year on year.」

「Cross-border sales have continued to expand steadily and are now available to customers in more than 120 countries and regions worldwide.」

「Cross-border sales have continued to expand steadily, the number of cross-border e-commerce operators connected to the service has increased, and cross-border sales are now available to customers in more than 110 countries and regions worldwide.」

「In the US, our business policy for the current fiscal year is to return to a growth trajectory by refining the product to strengthen retention of existing users, while also focusing on engaging Generation Z to support future growth. To stimulate transactions through increased listings, we pursued bold initiatives, including changing the party responsible for payment of fees from sellers to buyers for the first time among major US marketplaces.」

「In the US, our business policy for the current fiscal year is to return to a growth trajectory by refining the product to strengthen retention of existing users, while also focusing on engaging Generation Z to support future growth. We advanced various product initiatives, including efficient marketing focused on reactivating existing users, in-person transaction pilot programs in selected regions mainly targeting Generation Z, and the launch of community features. Purchasing continued to slow due to external factors including inflation, and US GMV decreased by US$58 million year on year to US$470 million in the cumulative second quarter of the current consolidated fiscal year (¥68.8 billion, accumulated using the average monthly exchange rate), while MAU increased for the second consecutive quarter to 5.07 million. Revenue was ¥22,171 million, down 3.7% year on year. Meanwhile, continued cost reviews through leaner management significantly improved the segment loss to ¥2,137 million, compared with a loss of ¥6,389 million in the previous corresponding period.」

「The Group entered the US in 2014 and began its overseas expansion, including launching cross-border sales in 2019 that enable customers overseas to purchase items listed on Mercari in Japan. We believe potential business opportunities are expanding in regions where we have not yet entered, based on Mercari's steady growth in the US and the purchasing needs of overseas users in cross-border sales. In 2022, we invested in Beebs SAS, which plans, develops, and operates Beebs, a flea-market app dedicated to baby and children's products in France and Belgium.」

「In the US, our business policy for the period has been to focus on refining the product to promote both listing and purchasing. Headwinds for the online resale market have continued as consumers prioritize spending on essentials amid high inflation and primary-market sellers offer aggressive discounts. As a result, GMV decreased by US$92 million year on year to US$787 million in the cumulative third quarter of the current consolidated fiscal year (¥108.1 billion, accumulated using the average monthly exchange rate), while revenue was ¥34,085 million, up 10.2% year on year.」

「With awareness reaching a certain level, targeted and effective advertising increased the number of new users, bringing MAU to 5.16 million. Meanwhile, GMV continued to be affected by slower purchasing due to inflation and other factors, falling by US$52 million year on year to US$528 million in the cumulative second quarter of the current consolidated fiscal year (¥73.9 billion, translated using the average monthly exchange rate). As a result, US revenue for the cumulative second quarter was ¥23,022 million, up 13.9% year on year, and segment loss was ¥6,324 million, compared with a loss of ¥4,567 million in the previous corresponding period.」

「While continuous product improvements to simplify listing were effective and the number of listings increased, the business was affected by prolonged inflation. As a result, US GMV was US$258 million (¥35.7 billion, calculated using the average exchange rate during the period of ¥138.37 per US dollar) in the current first quarter, down US$12 million year on year, while MAU was 4.93 million.」

「In addition to further expanding Mercari US, the Company plans to pursue new overseas expansion proactively while maintaining investment discipline.」

「At Mercari US, we promoted marketing initiatives and continued improving features to make listing easier and establish Mercari as synonymous with C2C commerce. As a result, the number of new users grew and MAU reached a record 5.90 million in January alone. Brand awareness also reached a record high, surpassing the level of some competitors for the first time. Meanwhile, GMV growth slowed year on year due to the reaction to government cash payments in the previous third quarter and greater-than-expected changes in the external environment, including inflation. As a result, Mercari GMV was US$879 million (¥99.7 billion, calculated using the average exchange rate during the period of ¥113.34 per US dollar) in the cumulative third quarter of the current consolidated fiscal year, up US$6 million year on year, while MAU was 5.67 million.」

「At Mercari US, marketing initiatives aligned with the holiday peak season were effective, accelerating monthly GMV growth from July 2021 onward, and MAU reached a record 5.30 million in December alone. As a result, Mercari GMV was US$580 million (¥64.9 billion, calculated using the average exchange rate during the period of ¥111.91 per US dollar) in the cumulative second quarter of the current consolidated fiscal year, up US$27 million year on year, while MAU was 5.12 million.」

「At Mercari US, we invested in developing new features and products and acquiring talent, including the nationwide rollout of the same-day delivery service Mercari Local to improve convenience and the launch of BNPL (Buy Now, Pay Later) payments through a partnership with Zip. However, because the current cumulative first quarter was compared with the cumulative first quarter of the previous fiscal year, when GMV grew sharply by 165% year on year partly due to COVID-19, Mercari GMV decreased by US$18 million year on year to US$271 million. MAU increased 18% year on year to 4.83 million.」

「At Mercari US, under the tagline “Mercari: Your Marketplace,” we operate Mercari, a marketplace where anyone can sell a wide range of items more easily and safely. In addition to increasing awareness and acquiring new users, we are optimizing listings and delivery, and MAU grew rapidly to 4.61 million as of the end of June 2021.」

「At Mercari US, under the tagline “Mercari is your marketplace,” we are working to increase awareness and acquire new users, as well as optimize listings and delivery, to establish and grow Mercari, a marketplace where anyone can sell a wide range of items more easily and safely. Payment processing fees introduced in the previous quarter were effective during the quarter, improving unit economics. As a result, Mercari GMV was ¥92.1 billion in the cumulative third quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥105.54 per US dollar, an increase of ¥49.1 billion year on year.」

「At Mercari US, under the tagline “Mercari is your marketplace,” we are working to increase awareness and acquire new users, as well as optimize listings and delivery, to grow Mercari, a marketplace where anyone can sell a wide range of items more easily and safely. As a result, Mercari GMV was ¥58.2 billion in the cumulative second quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥105.36 per US dollar, an increase of ¥32.6 billion year on year.」

「Meanwhile, at Mercari US, we are working to increase awareness and acquire new users, as well as optimize listings and delivery, to grow the Mercari marketplace, where people can sell more easily and safely. As a result, Mercari GMV was ¥30.7 billion in the cumulative first quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥106.22 per US dollar, an increase of ¥19.0 billion year on year.」

「As a result, US GMV was ¥73.6 billion in the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥108.16 per US dollar, an increase of ¥33.4 billion year on year.」

「Meanwhile, in the US, we are optimizing listings and delivery to increase awareness of the C2C marketplace Mercari and meet the diverse needs of customers. As a result, US GMV was ¥43.0 billion in the cumulative third quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥108.35 per US dollar, an increase of ¥13.7 billion year on year.」

「Meanwhile, in the US, we are optimizing listings and delivery to increase awareness of the C2C marketplace Mercari and meet the diverse needs of customers. As a result, US GMV was ¥25.6 billion in the cumulative second quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥108.06 per US dollar, an increase of ¥7.7 billion year on year.」

「During the cumulative first quarter of the current consolidated fiscal year, shares of Kashima Antlers F.C. Co., Ltd. were acquired and the company was included in the scope of consolidation. In addition, Merpay Ltd., formerly a consolidated subsidiary, was excluded from the scope of consolidation following the sale of all shares held by the Company.」

「At a Board of Directors meeting held on 25 July 2019, we resolved to transfer all shares of Merpay Ltd. (UK).」

「Business restructuring losses comprise various costs arising from the dissolution and liquidation of the UK subsidiaries Mercari Europe Ltd. and Merpay Ltd.」

「Meanwhile, in the US, to expand the C2C marketplace Mercari, we have continued to focus on developing and improving features to enhance service convenience. In addition, to further increase awareness and the user base, we have undertaken campaigns to increase the number of sellers and buyers through online media and TV commercials, in addition to online advertising capable of reaching a broad target audience. As a result, Mercari's US GMV was ¥29.2 billion in the cumulative third quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥111.52 per US dollar, an increase of ¥12.2 billion year on year.」

「In addition, during the second quarter of the current consolidated accounting period, we resolved to dissolve and liquidate the UK subsidiaries Mercari Europe Ltd. and Merpay Ltd.」

「Meanwhile, in the US, to expand the C2C marketplace Mercari, we are strengthening management while continuously focusing on developing and improving local features and enhancing delivery functions to improve service convenience. As a result, Mercari's US GMV was ¥8.0 billion in the cumulative first quarter of the current consolidated fiscal year, calculated using the average exchange rate for each month, an increase of ¥3.5 billion year on year.」

「While maintaining investment discipline, the Group will pursue strategic overseas expansion.」