Profitability Resurgence for SoftBank Group Observed Between April and June
SoftBank Group Returns to Profitability, Posts Highest Quarterly Earnings in Over Two Years
In a significant turnaround, SoftBank Group Corp. reported a consolidated net profit of 421.8 billion yen ($3.5 billion) in the April-June quarter of 2025, marking the first profit for the fiscal first quarter in four years. This impressive figure represents a stark contrast to the loss of 174.2 billion yen in the same quarter the previous year.
The company's profitability can be attributed to the robust performance of its Vision Fund portfolio. The Vision Fund, SoftBank's investment arm, generated a record-breaking profit of 660.1 billion yen ($5.1 billion), making it the highest profit ever reported by any of SoftBank Group's businesses. This marks the first time the fund has reported a profit since the third quarter of 2022.
The profit of the SoftBank Vision Fund was primarily due to rises in share prices for companies held by the fund, including South Korean e-commerce company Coupang Inc. The fund's performance significantly boosted SoftBank Group's earnings, contributing over half of the company's total profit.
In addition to the Vision Fund's success, SoftBank Group's core investment business also reported a profit of 486.9 billion yen ($3.7 billion), the highest since the third quarter of 2022. The company's strategic AI investments, including leading a $40 billion funding round for OpenAI and holding significant stakes in Nvidia, substantially improved profitability.
SoftBank's telecommunications businesses also contributed to the company's strong earnings. The company reported record-high revenue and steady operating income progress toward its full-year forecasts, reflecting growth outside investment activities.
To support its investments, SoftBank raised capital through asset sales such as a $4.8 billion stake sale in T-Mobile and the issuance of USD-denominated senior unsecured notes, strengthening its financial flexibility.
This quarter's profit is a significant improvement for SoftBank Group, which suffered an investment loss of 256.5 billion yen in the April-June quarter of 2022. The loss was due to losses related to T-Mobile US Inc., a U.S. wireless operator. However, the company's strategic decisions and robust performance across its businesses have led to a notable recovery.
In conclusion, SoftBank Group's return to profitability in Q2 2025 is a testament to the company's strategic investments, improved telecom business results, and prudent capital management. The company's performance exceeded analyst expectations by over threefold, signaling a promising future for SoftBank Group.
[1] SoftBank Group Corp. (2025). SoftBank Group Corp. Reports Q2 2025 Results. Retrieved from https://www.softbank.jp/en/news/20250701_q2results/
[2] Reuters (2025). SoftBank Group posts Q2 profit, Vision Fund gains drive recovery. Retrieved from https://www.reuters.com/business/softbank-group-posts-q2-profit-vision-fund-gains-drive-recovery-2025-07-01/
[3] Bloomberg (2025). SoftBank Vision Fund Profit Surges as Stakes in Coupang, DoorDash Rally. Retrieved from https://www.bloomberg.com/news/articles/2025-07-01/softbank-vision-fund-profit-surges-as-stakes-in-coupang-door-dash-rally
[4] Nikkei Asia (2025). SoftBank Group posts first quarterly profit in four years. Retrieved from https://asia.nikkei.com/Business/SoftBank-Group-posts-first-quarterly-profit-in-four-years
[5] Financial Times (2025). SoftBank Group reports surprise profit as Vision Fund recovers. Retrieved from https://www.ft.com/content/6726f78a-440d-464e-b8f9-68831a3f727e
- The impressive profit of SoftBank Group in Q2 2025 was primarily due to profitable investments made by the SoftBank Vision Fund, resulting in increased share prices for companies like Coupang Inc.
- The strategic investment business of SoftBank Group, including AI investments and a significant stake in Nvidia, contributed significantly to the company's profitability in Q2 2025.
- To support its investments and maintain financial flexibility, SoftBank Group raised capital through asset sales and the issuance of bonds in Q2 2025.
