SoftBank: a ¥1,115.3bn Q2 net loss, but ¥12,460bn off net asset value, ¥9,700bn of it on Arm's share price

In the second quarter of its financial year, from July to September 2026, SoftBank Group lost ¥1,115.3bn in net income attributable to owners of the parent. Its net asset value, the value of its holdings less its net debt, fell by ¥12,460bn, ¥9,700bn of it on Arm's share price, to ¥59,840bn at 30 September. That share price stays outside net income: net asset value took the hit.

Why it matters for SoftBank shareholders: net asset value per share, ¥10,499 at 30 September, is the figure SoftBank publishes to say what a share contains on a look-through basis. Arm makes up ¥38,160bn of the ¥71,140bn of adjusted holdings, or 53.6%, against 60.1% at 30 June, ¥49,910bn of ¥83,110bn (Opulion calculation, values net of asset-backed financing). Arm is a consolidated subsidiary, and SoftBank states that share price changes of its consolidated subsidiaries, including Arm and SoftBank Corp, do not affect its consolidated profit or loss. For shareholders, the quarter is read in net asset value: two specific transactions add up to most of the pre-tax accounting loss, the effect of a single share price to most of the fall in value.

The bridge published by SoftBank, in amounts rounded to the nearest ¥100bn, breaks down the fall in net asset value: ¥9,800bn of share price changes, of which ¥9,700bn for Arm, ¥2,000bn of currency effect, with the dollar falling from 162.39 to 157.35 yen, and ¥700bn of other items, ¥12,500bn in all against the ¥12,460bn calculated from the published net asset values, the ¥40bn gap being due to rounding. The net loss has other causes. SoftBank records a ¥597.2bn loss on power generation equipment for AI data centres in the United States, after a revision of its procurement plans, including a ¥457.0bn loss on non-refundable advance payments. It adds a ¥321.9bn derivative loss: in August, it raised $7.4bn through prepaid forward sales backed by Intel shares, and Intel's share price rose after signing. Both amounts are before tax: together, ¥919.1bn, equivalent to 89.4% of the quarter's pre-tax loss of ¥1,027.9bn (Opulion calculation: ¥597.2bn + ¥321.9bn = ¥919.1bn, divided by ¥1,027.9bn).

Our analysis of 13 September described a first quarter in which the value of holdings rose faster than the cash available. The second shows the other side of the same dependence, and the move continued after the quarter end. At the 9 November share prices of Arm, SoftBank Corp and Intel and 9 November exchange rates, with other listed shares at their 30 September prices, and on the asset and liability composition at 30 September, SoftBank publishes a pro forma net asset value of ¥44,700bn, rounded to ¥100bn, before tax, 25.3% less than at 30 September (Opulion calculation: ¥59,840bn − ¥44,700bn = ¥15,140bn, divided by ¥59,840bn). In the meantime, in October, SoftBank invested a further $10.0bn in OpenAI, the third and final tranche, a payment made after the composition used for this calculation. It presents these values as reference points, with no guarantee of future values.

For SoftBank shareholders, two figures will settle the matter with the third-quarter results, as of 31 December. The loan-to-value ratio will first show where the value of holdings and net debt, after the $10.0bn paid to OpenAI in October, place SoftBank against the 25% ceiling it sets itself in normal circumstances, and 35% in extraordinary circumstances. Net asset value will then be compared with the ¥44,700bn pro forma net asset value of 9 November, for a share that contained ¥12,686 at 30 June and ¥10,499 at 30 September.