Freee revenue rose 27.6% in year ended June 30, 2026
Adjusted operating profit increased 41.3% from the previous fiscal year.
Freee K.K. (TSE-4478) reported revenue of 42,441 million yen for the fiscal year ended June 30, 2026, an increase of 27.6% from the previous fiscal year.
Operating profit at Freee rose 78.6% from the previous fiscal year to 1,091 million yen for the fiscal year ended June 30, 2026.
Freee's adjusted operating profit increased 41.3% from the previous fiscal year to 2,663 million yen for the fiscal year ended June 30, 2026.
Net profit attributable to Freee's parent-company shareholders fell 21.3% from the previous fiscal year to 1,077 million yen for the fiscal year ended June 30, 2026.
Freee's revenue growth was driven mainly by expansion in annual recurring revenue, supported by increases in paying business customers and average revenue per user for its accounting and human-resources software.
Annual recurring revenue in Freee's platform business reached 43,595 million yen at the fiscal year-end, an increase of 21.8% from the end of the previous fiscal year.
The number of paying business customers in Freee's platform business reached 694,586 at the fiscal year-end, up 14.0% from the end of the previous fiscal year.
Average revenue per user in Freee's platform business increased 6.8% from the end of the previous fiscal year to 62,772 yen at the fiscal year-end.
Freee invested in development during the fiscal year to improve the functionality of its services, concentrating on its principal accounting and human-resources products.
Freee promoted the acquisition of new customers through accounting firms during the fiscal year as part of its activities supporting its principal software services.
Freee promoted sales of additional services to its existing customer base during the fiscal year, using those established customer relationships to support cross-selling.
Gross profit at Freee reached 34,397 million yen for the fiscal year, compared with 27,361 million yen in the previous fiscal year.
The increase in Freee's cost of sales mainly reflected higher software amortization and rising server expenses associated with growth in the number of users of its services.
Freee continued investing in personnel and marketing under its medium- to long-term growth strategy during the fiscal year, increasing adjusted selling, general and administrative expenses.
Freee is shifting its services toward an experience in which customers entrust work itself to AI agents, reflecting a change from customers carrying out tasks to having tasks completed for them.
Freee began offering accounting firms an integrated AI agent service, freee Agent Hub, designed around their work for client businesses as part of its efforts to expand adoption of AI services.
Freee began offering corporate customers freee AI Assistant, a service that allows them to create AI agents suited to their own business workflows, as part of its efforts to expand AI adoption.
Freee targets a combined annual revenue-growth rate and adjusted operating margin of 40% for the fiscal year ending June 2028 under its medium- to long-term strategy.
Freee aims to raise its adjusted operating margin to at least 15% as part of its effort to achieve high growth together with improved profitability.
Freee expects adjusted free cash flow to expand to the same level as adjusted operating profit in the fiscal year ending June 2028.