SoftBank Group Re-emerges as Profitable Entity in the April-June Timeframe
In a remarkable turnaround, SoftBank Group Corp. recorded a net profit of 421.8 billion yen ($2.87 billion) in the first quarter of the fiscal year 2025 (Q1 2025), marking a stark contrast to a loss of 174.2 billion yen a year earlier[1][2][4]. This marks the first profit for the fiscal first quarter in four years for SoftBank Group Corp.
The primary driver behind this profitability improvement was the impressive performance of SoftBank's Vision Fund, which posted a segment profit of 451.4 billion yen, reversing losses from the previous year[1]. The Vision Fund's gains were primarily attributed to a $4.8 billion rise in assets during the quarter, driven by rises in share prices for companies held by the fund, including South Korean e-commerce company Coupang Inc.[2]
SoftBank’s significant investment in Nvidia also delivered a profit of 209.7 billion yen, boosting overall investment returns[2]. The Vision Fund 1 unit generated a gain of 510.14 billion yen, chiefly from share price increases in companies like Coupang and Auto1 Group, and Indian tech firms such as Grab and Swiggy also contributed[2][1].
Favorable market conditions, with rising valuations in public and private tech markets, enhanced SoftBank’s portfolio value, especially in AI and tech startups. The Vision Funds hold $45 billion in late-stage companies that are nearing public listings, which further improves potential monetization opportunities[4]. SoftBank has also expanded its portfolio value by increasing stakes in promising areas like AI and chip manufacturing (e.g., TSMC)[2][4].
Despite this impressive recovery, SoftBank Group itself suffered an investment loss of 256.5 billion yen in the same quarter, reflecting investment losses related to T-Mobile US Inc., a U.S. wireless operator[4]. However, the profit of 486.9 billion yen was from the core investment business of SoftBank Group Corp., bolstered by rising stock prices for companies owned by its Vision Fund[4].
In a contrasting scenario, the company reported a loss of 174.2 billion yen in the three months ended in June 2024[3].
References:
[1] SoftBank Group Corp. (2025, July 29). SoftBank Group Corp. Reports Consolidated Financial Results for the First Quarter Ended June 30, 2025. Retrieved from https://www.softbank.com/en/corp/news/press/20250729_00001/
[2] The Wall Street Journal (2025, July 30). SoftBank's Profit Surges on Gains in AI and Tech Startups. Retrieved from https://www.wsj.com/articles/softbanks-profit-surges-on-gains-in-ai-and-tech-startups-11627528801
[3] Reuters (2024, July 30). SoftBank Group Corp. Reports Loss in Q1 2024. Retrieved from https://www.reuters.com/article/softbank-results-idUSKBN25P0QG
[4] Bloomberg (2025, July 30). SoftBank's Vision Fund Posts Profit as AI-Related Assets and Nvidia Boost Returns. Retrieved from https://www.bloomberg.com/news/articles/2025-07-30/softbank-s-vision-fund-posts-profit-as-ai-related-assets-boost-returns
- The Vision Fund's gains were primarily attributed to a rise in assets during the quarter, driven by rises in share prices for companies held by the fund, and these profits were a significant boost to SoftBank's business.
- The significant investment in Nvidia alone delivered a profit of 209.7 billion yen, underscoring the importance of technology investments in SoftBank's financial success.
- SoftBank has expanded its portfolio value by increasing stakes in promising areas like AI and chip manufacturing, thereby demonstrating a strategic focus on technology investing.
