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freee K.K. (4478) investor relations material
freee K.K. Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue/net sales grew 30.8% year-over-year to JPY 33,270 million, surpassing guidance, driven by cross-selling, new customer acquisition, and Platform business expansion.
Achieved profitability in adjusted operating profit (JPY 1,885 million), a turnaround from a JPY 7,562 million loss, and adjusted free cash flow (JPY 1,381 million).
Profit attributable to owners of parent was JPY 1,370 million, compared to a loss of JPY 10,150 million in the prior year.
ARR reached JPY 34.3 billion, up 31.8% year-over-year, with paying customers up 13.9% to 606,533 and ARPU up 15.8% to JPY 56,704.
Strategic investments in product development, AI-driven productivity, and M&A contributed to performance improvements.
Financial highlights
Gross profit for FY2025.6 was JPY 27,361 million, with a gross margin of 82.2%.
Adjusted operating profit margin improved to 5.7% from -29.7% the previous year.
Cash and cash equivalents at period-end were JPY 35,789 million, up from JPY 31,750 million.
Number of paying customers increased 13.9% year-over-year to 606,533; ARPU rose 15.8% to JPY 56,704.
Net cash provided by operating activities was JPY 3,661 million, a significant improvement from a JPY 6,767 million outflow in the previous year.
Outlook and guidance
FY2026.6 revenue is projected to grow 23.0–25.0% year-over-year to JPY 40.9–41.6 billion.
Adjusted operating profit margin expected to remain at or improve to 6%, with adjusted FCF margin at 3–6%.
Strategic investments in R&D and S&M will continue, with headcount expected to reach 2,100.
Targeting Rule of 40 achievement by FY2028, with revenue growth rate and adjusted FCF margin both above 20% by then.
Continued focus on expanding the SaaS customer base and enhancing customer value.
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