freee K.K. (4478) Q1 2026 earnings summary

Executive summary

• Q1 FY2026.6 revenue increased 32.1% year-over-year to ¥9,743 million, driven by pricing revisions, strong recurring revenue, and SaaS expansion, positioning the company on track to meet full-year guidance of 23–25% revenue growth.

• Adjusted operating profit for Q1 rose 43.6% year-over-year to ¥690 million, with a margin of 7.1%.

• Platform ARR increased 28.9% year-over-year to ¥37,120 million, with paying customers up 13.7% to 624,916 and ARPU up 13.4% to ¥59,407.

• Ordinary profit decreased 8.8% year-over-year to ¥149 million, and profit attributable to owners of parent fell 9.1% to ¥154 million.

• Acquisition of FREENANCE and integration of other companies expanded the finance service lineup and contributed to ARR.

Financial highlights

• Q1 revenue was ¥9,743 million (+32.1% YoY); gross profit was ¥7,882 million with a gross margin of 80.9%.

• Adjusted operating profit for Q1 was ¥690 million, with a margin of 7.1%.

• Comprehensive income for the quarter was ¥250 million, up from ¥7 million in the prior year.

• Basic earnings per share were ¥2.61, down from ¥2.90 year-over-year.

• Total assets as of September 30, 2025, were ¥50,770 million, down from ¥52,595 million at June 30, 2025.

Outlook and guidance

• FY2026.6 revenue is projected to grow 23–25% YoY, with adjusted operating profit expected at ¥2,460–2,500 million (up 30.5–32.6% YoY) and margin expected to remain at or improve to 6%.

• Adjusted free cash flow margin is forecasted at 3–6%, with continued investments in R&D and sales to support long-term growth.

• No dividends are planned for the fiscal year.

• Platform ARR growth outlook: 25%+ for Mid Corporate, 20%+ for Small, and 10% for Self-employed segments.