Worth reading
72In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
27.6
Year-on-year revenue growth (%)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsFiscal year ending June 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥42,441 million+27.6%
Gross Profit Margin
Rate81.0% (83.8% excluding software amortization)
Operating profit margin
RateAdjusted operating margin: 6.3%
Year on year against the same period last yearImproved by 0.6 percentage points year on year (from 5.7% to 6.3%)
Selling, general and administrative expensesS&M ratio, R&D ratio and adjusted G&A ratio disclosed. Amount: Not disclosed
Results for the three months of the current quarterTrends in revenue, gross profit and adjusted operating profit for Q4 of the fiscal year ended June 2026 disclosed in a chart. Individual figures: Not disclosed
Full-year earnings forecast
Fiscal year ending June 2027
Net Sales
¥52,210 million
Adjusted operating profit
¥5,750 million
Adjusted operating margin
11 %
Adjusted free cash flow margin
5～10
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue came in above the earnings forecast, adjusted operating profit came in above the earnings forecast and in line with the plan, while adjusted free cash flow fell short of the earnings forecastKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- AI monetization is already reflected in the business plan, while AI-related revenue contributions are viewed as upside to revenue.
- The factors behind the decline in adjusted FCF have been identified, and recovery is expected from the next fiscal year onward.
- The management metric for the Rule of 40 was changed from adjusted FCF margin to adjusted operating margin.
- The company determined that its share price was undervalued and decided to conduct a share repurchase and off-market purchases for J-ESOP.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Office expansion
- Increase in consumption tax payments
- Cash outflow for accounts payable accumulated at the end of the previous fiscal year
- Accumulation of deferred revenue
- Cash outflow for prepaid expenses related to IT tools
The company identifies the factors but does not state the amount attributable to each one.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Revenue growth rate for the fiscal year ending June 202723.0%
- Expected ARR growth rate for the corporate Mid platform25%
- Expected ARR growth rate for the corporate Small platform20% or higher
- Expected ARR growth rate for the self-employed platform10%
- COGS ratio for the fiscal year ending June 202719～22%
- R&D ratio for the fiscal year ending June 202712～15%
- S&M ratio for the fiscal year ending June 202745～48%
- Adjusted G&A ratio for the fiscal year ending June 20277～8%
New initiatives
- Released a beta version of the freee AI Assistant for corporate customers in June 2026
- Scheduled to launch the full version of freee Agent Hub on 28 August 2026
- Plans to strengthen outsourcing services using AI agents
- Launch of the talent management series
- Promotion of partnerships with AI-native accounting firms
- Market purchases for the share repurchase and additional contributions to J-ESOP
Key KPIsA metric the company considers important as a management benchmark.
- Platform ARR¥43,595 millionYear on year against the same period last year+21.8%
- Number of paying customer companies694,586 EngagementsYear on year against the same period last year+14.0%
- Number of corporate paying customer companies274,629 EngagementsYear on year against the same period last year+16.8%
- Number of self-employed paying customer companies419,957 EngagementsYear on year against the same period last year+12.2%
- Corporate ARPU¥126,655Year on year against the same period last year+6.1%
- 12-month average monthly churn rate1 %Year on year against the same period last yearImproving trend
- Mid-segment net new ARR¥1,250 millionYear on year against the same period last yearRecord high
- Mid-segment ARR¥16,772 millionYear on year against the same period last year+27.2%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Number of paying customer companies and ARPU disclosed. Number of corporate users: 274,629 companies; corporate ARPU: ¥126,655Segment results
KPIs for the self-employed and corporate segments disclosed. Segment revenue and profit: Not disclosedMedium-term management plan targets
- Target30% penetration of freee products in the corporate segmentTarget fiscal yearMedium term
- TargetRule of 40: 40% or higherTarget fiscal yearFiscal year ending June 2028
- TargetAdjusted operating margin of 15% or higherTarget fiscal yearFiscal year ending June 2028
- TargetCorporate NRR of 110% or higherTarget fiscal yearFiscal year ending June 2027
Financial targets
Rule of 40 of 40% or higher (fiscal year ending June 2028), adjusted operating margin of 15% or higher (fiscal year ending June 2028), and adjusted operating margin above 40% over the long termRisk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The company expects a reversal of the approximately ¥1.1 billion impact that temporarily depressed adjusted FCF in the previous fiscal yearMarket Size / Share
- freee's share among Japan's top 100 accounting firms81 firms
- Back-office labor cost marketApproximately ¥33.5 trillion
- B2B payments market among small and midsize companiesApproximately ¥369 trillion
- freee product penetration (corporate segment, fiscal year ended June 2025)Approximately 10%
Acquisition of treasury shares
Total acquisition priceUp to ¥5 billion
Number of shares acquiredUp to 2.4 million shares
Period14 August 2026 to 12 February 2027 (予定)
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Fiscal year ending June 2026 |
| Net Sales | ¥42,441 million (YoY +27.6%) |
| Gross Profit Margin | Rate 81.0% (83.8% excluding software amortization) / Year on year against the same period last year Not disclosed |
| Operating profit margin | Rate Adjusted operating margin: 6.3% / Year on year against the same period last year Improved by 0.6 percentage points year on year (from 5.7% to 6.3%) |
| Selling, general and administrative expenses | S&M ratio, R&D ratio and adjusted G&A ratio disclosed. Amount: Not disclosed |
| Results for the three months of the current quarter | Trends in revenue, gross profit and adjusted operating profit for Q4 of the fiscal year ended June 2026 disclosed in a chart. Individual figures: Not disclosed |
| Full-year earnings forecast | Fiscal year ending June 2027 Net Sales ¥52,210 million / Adjusted operating profit ¥5,750 million / Adjusted operating margin 11 % / Adjusted free cash flow margin 5～10 |
| Self-assessment against the plan | Revenue came in above the earnings forecast, adjusted operating profit came in above the earnings forecast and in line with the plan, while adjusted free cash flow fell short of the earnings forecast |
| Segment results | KPIs for the self-employed and corporate segments disclosed. Segment revenue and profit: Not disclosed |
| Breakdown of Factors Affecting the Change | Factors Office expansion / Amount Not disclosed, Factors Increase in consumption tax payments / Amount Not disclosed, Factors Cash outflow for accounts payable accumulated at the end of the previous fiscal year / Amount Not disclosed, Factors Accumulation of deferred revenue / Amount Not disclosed, Factors Cash outflow for prepaid expenses related to IT tools / Amount Not disclosed |
| Key KPIs | Indicator name Platform ARR / Value ¥43,595 million / Year on year against the same period last year +21.8%, Indicator name Number of paying customer companies / Value 694,586 Engagements / Year on year against the same period last year +14.0%, Indicator name Number of corporate paying customer companies / Value 274,629 Engagements / Year on year against the same period last year +16.8%, Indicator name Number of self-employed paying customer companies / Value 419,957 Engagements / Year on year against the same period last year +12.2%, Indicator name Corporate ARPU / Value ¥126,655 / Year on year against the same period last year +6.1%, Indicator name 12-month average monthly churn rate / Value 1 % / Year on year against the same period last year Improving trend, Indicator name Mid-segment net new ARR / Value ¥1,250 million / Year on year against the same period last year Record high, Indicator name Mid-segment ARR / Value ¥16,772 million / Year on year against the same period last year +27.2% |
| Unit price and quantity metrics | Number of paying customer companies and ARPU disclosed. Number of corporate users: 274,629 companies; corporate ARPU: ¥126,655 |
| Assumptions Underlying the Business Outlook | Item Revenue growth rate for the fiscal year ending June 2027 / Value 23.0%, Item Expected ARR growth rate for the corporate Mid platform / Value 25%, Item Expected ARR growth rate for the corporate Small platform / Value 20% or higher, Item Expected ARR growth rate for the self-employed platform / Value 10%, Item COGS ratio for the fiscal year ending June 2027 / Value 19～22%, Item R&D ratio for the fiscal year ending June 2027 / Value 12～15%, Item S&M ratio for the fiscal year ending June 2027 / Value 45～48%, Item Adjusted G&A ratio for the fiscal year ending June 2027 / Value 7～8% |
| Risk amount incorporated into the outlook | The company expects a reversal of the approximately ¥1.1 billion impact that temporarily depressed adjusted FCF in the previous fiscal year |
| Medium-term management plan targets | Target 30% penetration of freee products in the corporate segment / Target fiscal year Medium term, Target Rule of 40: 40% or higher / Target fiscal year Fiscal year ending June 2028, Target Adjusted operating margin of 15% or higher / Target fiscal year Fiscal year ending June 2028, Target Corporate NRR of 110% or higher / Target fiscal year Fiscal year ending June 2027 |
| Financial targets | Rule of 40 of 40% or higher (fiscal year ending June 2028), adjusted operating margin of 15% or higher (fiscal year ending June 2028), and adjusted operating margin above 40% over the long term |
| Acquisition of treasury shares | Total acquisition price Up to ¥5 billion / Number of shares acquired Up to 2.4 million shares / Period 14 August 2026 to 12 February 2027 (予定) |
| Market Size / Share | Item freee's share among Japan's top 100 accounting firms / Value 81 firms, Item Back-office labor cost market / Value Approximately ¥33.5 trillion, Item B2B payments market among small and midsize companies / Value Approximately ¥369 trillion, Item freee product penetration (corporate segment, fiscal year ended June 2025) / Value Approximately 10% |
| Key points of the Q&A | AI monetization is already reflected in the business plan, while AI-related revenue contributions are viewed as upside to revenue., The factors behind the decline in adjusted FCF have been identified, and recovery is expected from the next fiscal year onward., The management metric for the Rule of 40 was changed from adjusted FCF margin to adjusted operating margin., The company determined that its share price was undervalued and decided to conduct a share repurchase and off-market purchases for J-ESOP. |
| New initiatives | Released a beta version of the freee AI Assistant for corporate customers in June 2026, Scheduled to launch the full version of freee Agent Hub on 28 August 2026, Plans to strengthen outsourcing services using AI agents, Launch of the talent management series, Promotion of partnerships with AI-native accounting firms, Market purchases for the share repurchase and additional contributions to J-ESOP |
Items this document does not state (10)
Operating profitOrdinary incomeNet incomeProgress against full-year forecastNumber of stores and locationsNumber of employeesAnnual DividendPayout ratioCapital expendituresOrders received and order backlog
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Revenue exceeded the forecast as customer acquisition through direct channels and partnerships with accounting firms remained solid. Adjusted operating profit exceeded the forecast due to productivity gains from the use of AI and cost controls. The deterioration in adjusted free cash flow was attributable to the expansion of office space, increased consumption tax payments, and cash outflows for accounts payable that had been accumulated at the end of the previous fiscal year.
How to read this page
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