finance

Money Forward's Q3: A Strategic Pivot Masks Underlying Weakness in Core Business

Norbert Gehrke

19 Oct 2025 — 10 min read

Money Forward (3994.T) reported a mixed set of third-quarter results that revealed a company in the midst of a profound strategic transformation. While net sales for the period ending August 31, 2025, fell short of market expectations, a sharp focus on cost discipline allowed the company to significantly beat profit forecasts. The quarter was defined by a series of bold corporate maneuvers, including the divestiture of a major subsidiary and key acquisitions, signaling a deliberate pivot from a "growth-at-all-costs" model to one prioritizing profitability and a sharpened focus on its core enterprise software business.

Beneath the headline numbers, however, a deeper analysis reveals a critical vulnerability: the company's growth in its core Small and Medium-sized Business (SMB) segment was driven entirely by price revisions, masking what appears to be a stagnant or even slightly negative underlying organic performance. In response, Money Forward is aggressively reallocating capital towards a higher-margin "Digital Worker" strategy, leveraging acquisitions and a newly unveiled Artificial Intelligence (AI) vision to build its next engine of growth. This strategic overhaul, while promising, now faces the crucial test of execution as the company navigates a more challenging market environment.

First Round Selections for the Tokyo Financial Award "Financial Innovation Category"

The "Financial Innovation Category" of the Tokyo Financial Award invited financial businesses to apply for “Solutions” to “Themes to be solved” which are based on the needs and challenges related to financial services which were submitted by residents and businesses in Tokyo. The solutions submitted by applicants were

PayPay Launches "PayPay Gift"

PayPay Corporation has launched "PayPay Gift," which allows users to send digital gift certificates to friends and family for use at partner stores. Senders can set the gift certificate amount in 1-yen increments as desired, and send them with personalized messages such as "Thank you" or

Rakuten Issues Record-High Yield Bond

In a major move signaling rising credit costs in the Japanese market, Rakuten Group successfully priced a JPY 82 billion perpetual subordinated bond. Announced on October 17, 2025, the issuance carried the highest coupon for a local bond deal this year, immediately drawing significant attention from domestic and international investors.

Sony Bank Makes a Major Move: Applying for a U.S. National Trust Bank Charter

In a significant signal that global financial giants are eager to establish regulated footing in the U.S. digital asset market, Sony Bank has formally applied to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank. Dated October 6, 2025, the application outlines plans

Read more

First Round Selections for the Tokyo Financial Award "Financial Innovation Category"

PayPay Launches "PayPay Gift"

Rakuten Issues Record-High Yield Bond

Sony Bank Makes a Major Move: Applying for a U.S. National Trust Bank Charter