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SoftBank Group Issuer Flash

SoftBank Group Issuer Flash

Report date: 2026-05-13
Event date: 2026-05-13
Event title: FY2025 Results

1. Flash Conclusion

SoftBank Group's (SBG) FY2025 full-year results provide moderate short-term support for its credit profile. As of March 31, 2026, NAV reached ¥40.1 trillion, and LTV improved to 17.0% from 20.6% at the end of December 2025. Net profit hit a record ¥5.0 trillion, driven primarily by the revaluation of unlisted AI assets, led by OpenAI, and the market capitalization gains of Arm, boosting overall asset value. The prior assessment that a liquidity crisis is not an immediate base-case scenario remains unchanged.

However, the credit view remains cautiously held with a positive bias. The March-end LTV does not reflect the subsequent execution of the $10 billion OpenAI follow-on investment on April 1 or the $20 billion total bridge borrowings in April. While partial repayment of foreign-currency senior notes has occurred, the remaining bridge balance and the timing of its resolution are still uncertain. SBG continues to be treated as an investment holding company credit highly sensitive to event risk.

2. What Was Announced

On May 13, 2026, SBG released its FY2025 results. Consolidated figures include net sales of ¥7,798.7 billion, net income attributable to parent owners of ¥5,002.3 billion, and investment gains of ¥7,286.5 billion. The sharp rise in net income from ¥1,153.3 billion in the prior year was driven by investment returns rather than recurring operating profits from operating companies. Of the SoftBank Vision Funds' FY2025 investment gains of $44.7 billion, $42.1 billion came from OpenAI-related holdings.

Key metrics are summarized below:

Metric Mar-2025 / FY2024 Mar-2026 / FY2025 Credit Implications
NAV ¥25.7 trillion ¥40.1 trillion Asset values increased, mainly due to Arm and OpenAI, driving LTV improvement.
LTV 18.0% 17.0% Within company policy of <25% under normal conditions; static improvement observed.
Cash Position ¥3.4 trillion ¥3.5 trillion Liquidity remained intact at year-end despite large investments.
Net Income Attributable to Parent ¥1.15 trillion ¥5.00 trillion Accounting profit improved sharply, largely reflecting non-cash valuation gains.
Investment Gains ¥3.70 trillion ¥7.29 trillion Mark-to-market gains, notably from OpenAI, lifted asset valuations.

Regarding OpenAI, the cumulative investment cost as of March 31, 2026, was $34.6 billion, with a fair value of $79.6 billion, generating a $45.0 billion valuation gain. The $30.0 billion follow-on investment agreed in February 2026 is structured to be executed in three $10.0 billion tranches in April, July, and October; the April tranche has already been executed. Funding-wise, post-March, $10.0 billion for the first OpenAI tranche and $10.0 billion for general corporate purposes were drawn from a $40.0 billion bridge facility. The bridge is unsecured, unguaranteed, and due March 25, 2027.

3. Credit Read-Through

The most constructive element is the LTV decline to 17.0% at March-end, which alleviates pre-OpenAI follow-on investment concerns. Prior assessments flagged the possibility of LTV rising toward 25% as the key risk. As of March 31, 2026, the increase in asset values, primarily Arm and OpenAI, outpaced debt growth, leaving buffer under the <25% LTV policy.

This improvement, however, is not pure de-leveraging. The calculated equity value of ¥48.26 trillion largely reflects Arm shares and unlisted OpenAI holdings. OpenAI's fair value of $79.6 billion contributes to NAV but only generates repayment capacity upon sale, listing, transfer to co-investors, or other monetization.

From a liquidity perspective, the March-end cash balance of ¥3.5 trillion is supportive, but post-April developments are critical. Partial repayment of foreign-currency senior notes on April 16 addresses only a portion of the bridge. The funding sources for the remaining OpenAI tranches in July and October will be the next key credit consideration.

Secured financing presents a dual effect. March-end LTV calculations include ¥4.62 trillion of adjustments for asset-backed financing against Arm, SoftBank Corp., and T-Mobile-related assets. While this indicates financing capacity, some prime assets are pledged senior to unsecured creditors. How LTV <25% is maintained—through asset sales or additional secured borrowing—affects unsecured creditor protection, even at identical LTVs.

Overall, FY2025 results demonstrate "stronger-than-expected asset values" alongside "unfinished funding arrangements." The 17.0% LTV is positive in the short term, but the peak challenges from the OpenAI follow-on investment and bridge extension remain in FY2026. The results do not contradict ongoing holding, yet continued monitoring of unlisted AI assets, collateralization, and short-term large borrowings is warranted.

4. What To Watch Next

5. Sources

6. Unverified / Pending