freee K.K. (4478) investor relations material

Executive summary

• Q2 FY2026.6 revenue grew 29.5% YoY to JPY 10,197MM, with H1 net sales up 30.8% YoY to JPY 19,941MM, driven by platform business and customer base expansion.

• Platform ARR increased 26.0% YoY to JPY 39,151MM, with paying customers up 13.3% to 643,027 and ARPU up 11.2% to JPY 60,892.

• Adjusted operating profit for Q2 was JPY 662MM (+29.5% YoY), but H1 adjusted operating profit declined 7.1% YoY to JPY 1,352MM; profit attributable to owners dropped 61.6% YoY to JPY 305MM.

• Number of corporate paying customers surpassed 250K, with 21,265 net additions in H1, supported by accounting firm partnerships.

• Co-founder/CTO Ryu Yokoji appointed as Chief AI Officer to accelerate AI initiatives.

Financial highlights

• Gross profit for H1 was JPY 16,081MM, with a gross margin of 80.4% (82.7% excluding software amortization).

• Basic earnings per share for H1 was JPY 5.17, down from JPY 13.59 YoY.

• Total assets as of December 31, 2025, were JPY 53,370MM, with net assets at JPY 20,152MM and equity-to-asset ratio at 37.5%.

• Platform paying customers exceeded 643K (+13.3% YoY); corporate segment at 256K (+18.0% YoY).

• Platform ARPU increased 11.2% YoY to JPY 60.8K; Corporate segment ARPU rose 9.7% YoY to JPY 121.6K.

Outlook and guidance

• Full-year revenue guidance revised upward to JPY 41,930MM (+26.0% YoY) due to strong H1 performance.

• Adjusted operating profit guidance raised to JPY 2,520MM (+33.7% YoY); adjusted free cash flow guidance set at JPY 1,260MM to JPY 2,520MM.

• Strategic investments for mid- to long-term growth will continue, focusing on AI, productivity, and accounting firm partnerships.