freee K.K. (4478) Q4 2026 earnings summary

Executive summary

• Achieved strong revenue growth of 27.6% year-over-year for FY2026.6, with revenue reaching JPY 42.44Bn, driven by Platform business expansion and AI-related offerings, surpassing guidance.

• Adjusted operating profit rose 41.3% YoY to JPY 2.66Bn, exceeding guidance due to productivity gains from AI adoption and cost controls; operating profit surged 78.6% to JPY 1.09Bn.

• Platform ARR increased 21.8% YoY to JPY 43.6Bn, with robust growth in both Corporate and Self-employed segments, and paying customers up 14.0%.

• AI initiatives accelerated, solidifying leadership in the Agentic AI era and expanding the advisor ecosystem.

• Profit attributable to owners of parent declined 21.3% to JPY 1.08Bn, reflecting higher investments and expenses.

Financial highlights

• Gross profit for FY2026.6 was JPY 34.4Bn, with a gross margin of 81.0% (83.8% excluding software amortization).

• Adjusted free cash flow was negative JPY 351MM, impacted by office expansion, higher tax payments, and prior year payables.

• Platform ARPU increased 6.8% YoY to JPY 62.7K; Corporate ARPU rose 6.1% YoY to JPY 126.6K.

• Ordinary profit rose 81.0% to JPY 746MM; comprehensive income was JPY 1.13Bn, down 16.4% YoY.

• Cash and cash equivalents at period-end were JPY 36.18Bn.

Outlook and guidance

• FY2027.6 guidance targets JPY 52.2Bn revenue (+23.0% YoY) and 11% adjusted operating profit margin.

• Adjusted operating profit expected to more than double YoY to JPY 5.75Bn, with free cash flow margin projected at 5–10%.

• Committed to achieving the Rule of 40 (revenue growth + adj. OP margin ≥ 40%) by FY2028.6.