Freee K.k. · TSE:4478
Freee K.k — Q1 FY2026.6 Earnings Presentation
52 slides from Freee K.k's earnings presentation, Nov 13, 2025
Slide 1: Q1 FY2026.6 Financial Results
Q1 FY2026.6 Financial Results freee K.K. November 13, 2025
Slide 2: Highlights for the First Quarter of Fiscal Year Ending June 30, 2026
Highlights for the First Quarter of Fiscal Year Ending June 30, 2026 Q1 Revenue grew over 30% YoY, progressing on track to achieve the full-year earnings guidance. ● Q1 revenue grew +32.1% YoY, supported by the uplift from pricing revisions implemented in FY25, and is progressing in line with the ea
Slide 3: Important KPIs and Financial Results
Important KPIs and Financial Results Subscription ARR(1) Number of Paying Customers(2) ARPU(3) JPY 35.5Bn (YoY +27.1%) 621K+ (YoY +13.7%) JPY 57.1K (YoY +11.8%) Corporate Segment: Corporate Segment: Corporate Segment: JPY27.8Bn (YoY +30.0%) 245K+ (YoY +18.1%) JPY113.4K (YoY +10.1%) Revenue for Q1 Ad
Slide 4: Financial Highlights - Platform Business -
Financial Highlights ‐ Platform Business ‐ 4
Slide 5: Platform ARR
Platform ARR ● We started disclosing Platform ARR, which combines Subscription ARR(1), previously reported as ARR, with Transaction ARR(2). ○ Transaction ARR recorded strong YoY growth of +91.5%, driven by the expansion of the credit card business leveraging integration with freee Accounting. ○ Subs
Slide 6: Number of Paying Customers/ARPU (Subscription)
Number of Paying Customers/ARPU (Subscription) ● Expanding on a substantial user base, the number of new paying customers in the Corporate segment exceeded 10k, bringing the total paying customers to 621,963 with +13.7% YoY growth. ● The Corporate segment ARPU increased to 113,416 yen, representing
Slide 7: Revenue
Revenue ● Revenue was JPY 9,743MM, up +32.1% YoY. ○ As the impact of the freee Accounting pricing revisions gradually decreases over the course of the fiscal year, the full-year revenue growth rate is expected to land within the earnings guidance range of 23.0% to 25.0%. YoY +32.1％ Revenue(1)（Quarte
Slide 8: Gross Profit
Gross Profit ● Gross profit was JPY 7,882MM, and gross profit margin was 80.9%. Gross Profit(1)（Quarterly） Gross Profit Margin(1)（Quarterly） JPY MM % ※ Gross profit margin in () excludes the impact of software amortization (82.8%) (83.6%) (83.9%) (82.4%) (82.8%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q
Slide 9: Adjusted Operating Profit
Adjusted Operating Profit ● Adjusted operating profit was JPY 690MM, and adjusted operating profit margin was 7.1%. Adjusted Operating Profit(1)(2)(Quarterly) Adjusted Operating Profit(1)(2)(Quarterly) JPY MM % YoY +0.6pts Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2024.6 FY2025.6 FY202
Slide 10: Breakdown of SG&A (% of Revenue)
Breakdown of SG&A (% of Revenue) ● S&M ratio continued to improve driven by productivity gains even as we expanded our sales reps. ● R&D ratio remained stable on a software capitalization-adjusted basis, as we strategically increased headcount to enhance our product offerings and address industry-sp
Slide 11: FY2026.6 Financial Outlook
FY2026.6 Financial Outlook 11
Slide 12: Earnings Guidance for FY2026.6 (no change)
Earnings Guidance for FY2026.6 (no change) ● For FY2026.6, we expect revenue to grow by 23.0 to 25.0% YoY, driven by consistent growth in both new customer acquisitions and revenue from existing customers. ● We expect the adjusted operating profit(1) margin and adjusted free cash flow(2) margin to r
Slide 13: Continuing Investment to Strengthen Positioning in the Corporate Segment
Continuing Investment to Strengthen Positioning in the Corporate Segment (no change) ● Investments for growth in Corporate segment will be continued to build strong position and ensure profitability in both Small and Mid Corporate segments, supported by brand recognition established in Self-employed
Slide 14: Strong Small Segment Positioning Drives Customer Base Expansion and Productivity Gains
Strong Small Segment Positioning Drives Customer Base Expansion and Productivity Gains ● Small segment customer acquisition remains strong following completion of pricing revisions by the end of FY2025.6. ● In our direct channel, we continue to efficiently acquire customers through strong brand reco
Slide 15: Driving Growth Through Core Business Investment and Cost Optimization
Driving Growth Through Core Business Investment and Cost Optimization ● We will make strategic investments focused on key areas of R&D and S&M in FY2026.6 to drive mid-to-long-term growth, while continuing to improve cost efficiency through AI implementation. ● Expected headcount to be around 2,100
Slide 16: Mid-to-Long-term Growth Strategy Initiatives
Mid-to-Long-term Growth Strategy Initiatives 16
Slide 17: Drivers for Achieving the Rule of 40 in FY2028.6
Drivers for Achieving the Rule of 40 in FY2028.6 1 Driving Customer Base Expansion Through Industry-Focused Solutions in Core Businesses Increasing Revenue Contribution from New Businesses 2 with High Growth Potential Aiming to Become the De Facto Standard Infrastructure 3 for Accounting Firms Advan
Slide 18: Card Business Achieving Strong Growth Through Integrated Value Proposition with freee Accounting
Card Business Achieving Strong Growth Through Integrated Value Proposition with freee Accounting ● Transaction ARR, which converts revenue based on credit card processing and usage volume into an annual recurring revenue equivalent, continues to grow at a strong CAGR of approximately 80%. ○ Credit c
Slide 19: Accounting Firms Leverage freee as Infrastructure and AI Expert
Accounting Firms Leverage freee as Infrastructure and AI Expert ● We hosted the fifth annual freee Advisor Day in 2025, expanding to three cities—Tokyo, Osaka, and Fukuoka, and establishing it as one of the industry's premier events for accounting firms. ● We're accelerating highly anticipated AI ad
Slide 20: HR Domain Transformed and Elevated Through AI
HR Domain Transformed and Elevated Through AI ● Announced AI-driven payroll outsourcing services and talent management products in October, significantly enhancing efficiency and time-to-value in the HR domain. AI-Driven Payroll Outsourcing Service freee Payroll Outsourcing AI-Driven Talent Manageme
Slide 21: Appendix 1 Mid-to-Long-term Growth Strategy
Appendix 1 Mid-to-Long-term Growth Strategy 21
Slide 22: Sustaining High Growth and Improving Margins to Achieve Rule of 40 in FY2028.6
Sustaining High Growth and Improving Margins to Achieve Rule of 40 in FY2028.6 ● During the three-year period starting FY2026.6, we will continue to drive strong top-line growth through strategic initiatives, while steadily improving our adjusted free cash flow to build capacity for the future inves
Slide 23: Supplementary: Relationship Between Adjusted Operating Profit Margin and Adjusted FCF Margin
Supplementary: Relationship Between Adjusted Operating Profit Margin and Adjusted FCF Margin Reconciliation Items for Adj. Operating Profit and Adj. FCF Software Capitalization Impact on Adj. Operating Profit and Adj. FCF JGAAP Key Operating Metrics (Adjusted) Software Capitalization and Amortizatio
Slide 24: Business Model Enabling 40%+ Adjusted Operating Margin in Long-term
Business Model Enabling 40%+ Adjusted Operating Margin in Long-term Mid-to-Long-term Financial Model FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY30 Gross Margin 78.2% 77.4% 79.5% 80.7% 83.6% 82.5% 82.2% 75%-80% adj. R&D(1)(2)(3) 35.9% 28.4% 25.6% 25.8% 35.7% 32.8% 14.2% 8%-13% % of Revenue adj. S&M(1)(2)(4
Slide 25: Cloud Penetration in Japan's Small Business Continues to Expand
Cloud Penetration in Japan’s Small Business Continues to Expand Growing demand due to labor shortage Generational succession accelerating cloud shift Increase in new company incorporations ● Labor shortage in small businesses are about ● Business succession and generational 10x more severe than in l
Slide 26: Our Services for 6.6 Million Potential Customers
Our Services for 6.6 Million Potential Customers and over 70% of Total Employees Small business accounts for more than 70% out freee’s target segment of the 57 million employees in Japan Large Enterprise # of potential Ratio of total employees by company size(3) (1) （1,000EE+ ） customers(2) Mid （20-
Slide 27: Our Goal: "De Facto Standard for Small Business"
Our Goal: “De Facto Standard for Small Business” Delivering integrated Expanding scope of Accelerating network Unlocking potential in Building strong experience that drives automation and effects through SaaS-adjacent services: ecosystem with meaningful business management support exponential growth
Slide 28: Path to Establishing De Facto Standard Position
Path to Establishing De Facto Standard Position ● Strategic investments will drive freee product penetration rate to 30% in the Corporate segment in mid-term, with a longer-term goal of establishing it as the de facto standard in small business market. ● Leverage network effects from higher penetrat
Slide 29: Key to Develop Small Business Market is Meeting Needs for Cross-functional Streamlining
Key to Develop Small Business Market is Meeting Needs for Cross-functional Streamlining and Maximizing Profitability ERP Software Market Characteristics Implications for Competitive Landscape ● High unit prices. ● Needs for module-based products are high: business process is subdivided and the impor
Slide 30: Into Phase of Expanding Customer Base and Improving Productivity through Cross-Selling
Into Phase of Expanding Customer Base and Improving Productivity through Cross-Selling Driven by Integrated Value Competitive Advantage “A Flywheel” Driving as an Integrated Management Platform Customer Base Growth and Productivity Gains Deliver seamless integration across accounting, HR, and other
Slide 31: Drivers for Achieving the Rule of 40 in FY2028.6
Drivers for Achieving the Rule of 40 in FY2028.6 1 Driving Customer Base Expansion Through Industry-Focused Solutions in Core Businesses Increasing Revenue Contribution from New Businesses 2 with High Growth Potential Aiming to Become the De Facto Standard Infrastructure 3 for Accounting Firms Advan
Slide 32: Driving Customer Base Expansion Through Industry-Focused Solutions in Core Businesses
Drivers for Achieving Rule of 40 in FY2028.6： ①Driving Customer Base Expansion Through Industry-Focused Solutions in Core Businesses ● Accelerating industry-specific product adaptations in core business areas such as freee Accounting and freee HR, and expand PMF(1) coverage. Deliver integrated value
Slide 33: Increasing Revenue Contribution from New Businesses with High Growth Potential
Drivers for Achieving Rule of 40 in FY2028.6： ②Increasing Revenue Contribution from New Businesses with High Growth Potential ● Strengthening the revenue foundation for sustainable growth by increasing contributions from rapidly growing new businesses such as freee Order Management and the credit ca
Slide 34: Aiming to Become the De Facto Standard Infrastructure for Accounting Firms
Drivers for Achieving Rule of 40 in FY2028.6： ③Aiming to Become the De Facto Standard Infrastructure for Accounting Firms ● Leveraging our industry's only(1) cloud platform to provide end-to-end online solutions from bookkeeping, tax filing and business management support, we will promote further ex
Slide 35: Advancing AI Integration to Strengthen Product Value and Increase Operational Productivity
Drivers for Achieving Rule of 40 in FY2028.6： ④Advancing AI Integration to Strengthen Product Value and Increase Operational Productivity ● We aim to enhance product value by expanding operational automation capabilities and enabling high-precision management insights, ultimately driving customer bu
Slide 36: Appendix 2 - Financial Data -
Appendix 2 - Financial Data - 36
Slide 37: ARR/Number of Paying Customers/ARPU
ARR/Number of Paying Customers/ARPU (1) FY2024.6 FY2025.6 FY2026.6 Platform ARR Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Platform ARR JPY MM 22,286 23,846 26,441 26,834 28,787 31,071 34,469 35,796 37,120 Self-employed 5,636 5,773 7,231 6,594 6,604 6,988 8,656 7,745 7,765 Corporates 16,650 18,073 19,210 20,240 22,
Slide 38: Mid Segment Growth in the Post-Invoice System Demand
Mid Segment Growth in the Post-Invoice System Demand ● Subscription ARR in the Mid Segment continued to grow steadily, even after demand related to the invoice system normalized, expanding +26.3% to JPY 12,964 MM in Q1. YoY Subscription ARR Trends in the Mid Segment +26.3％ JPY MM Expansion of Mid Se
Slide 39: Consolidated Income Statement for Platform Business
Consolidated Income Statement for Platform Business Platform Business(1) JPY MM FY2025.6 FY2026.6 FY2021.6 FY2022.6 FY2023.6 FY2024.6 FY2025.6 Q1 Q1 Revenue 10,258 13,987 19,219 25,430 33,270 7,376 9,743 YoY Growth 48.8% 36.4% 37.4% 32.3% 30.8% 29.0% 32.1% Cost of Revenue 2,100 2,701 3,153 4,439 5,9
Slide 40: Reconciliation Table for Consolidated Income Statement for Platform Business
Reconciliation Table for Consolidated Income Statement for Platform Business R&D(1) FY2024.6 FY2025.6 FY2026.6 FY2024.6 FY2025.6 JPY MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 R&D 8,346 4,742 1,994 2,083 2,050 2,218 1,004 1,069 1,175 1,491 1,402 - ) Share-based compensation 0 0 0 0 0 0 0 0 0 0 0 expenses - ) Exp
Slide 41: Reconciliation Table for Consolidated Income Statement for Platform Business
Reconciliation Table for Consolidated Income Statement for Platform Business G&A(1) FY2024.6 FY2025.6 FY2026.6 FY2024.6 FY2025.6 JPY MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 G&A 4,070 4,274 994 1,005 1,108 961 1,023 1,004 1,067 1,178 1,421 - ) Share-based compensation 736 972 156 181 221 176 237 236 233 264 26
Slide 42: Reconciliation Table (Breakdown of COGS and R&D)
Reconciliation Table for Consolidated Income Statement for Platform Business (Breakdown of COGS and R&D) COGS FY2024.6 FY2025.6 FY2026.6 FY2024.6 FY2025.6 JPY MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 COGS 4,439 5,909 1,001 1,074 1,193 1,169 1,279 1,343 1,486 1,799 1,860 - ) Software Amortization 0 310 0 0 0 0
Slide 43: Consolidated Balance Sheet and Consolidated Cash Flow Statement
Consolidated Balance Sheet and Consolidated Cash Flow Statement Consolidated Balance Sheet Consolidated Cash Flow Statement JPY MM JPY MM FY2023.6 FY2024.6 FY2025.6 FY2026.6 Q1 FY2023.6 FY2024.6 FY2025.6 FY2026.6 Q1 Net Cash Provided Total Current Assets 41,210 38,431 45,874 43,097 by (Used in) Oper
Slide 44: Reconciliation Table for Consolidated Cash Flow Statement for Platform Business
Reconciliation Table for Consolidated Cash Flow Statement for Platform Business Adjusted Free Cash Flow FY2023.6 FY2024.6 FY2025.6 JPY MM FY2023.6 FY2024.6 FY2025.6 H1 H2 H1 H2 H1 H2 Operating Cash Flow -4,753 -6,767 3,661 -2,489 -2,264 -6,420 -347 -1,926 5,588 + ) Increase in advances paid 771 1,27
Slide 45: Shareholder Structure (As of June 30, 2025)
Shareholder Structure (As of June 30, 2025) Based on Total Shares Outstanding Excluding Shares Held by freee Executives and Pre-IPO VC / Strategic Shareholders Individual investors(1) etc. Individual investors(1) etc. freee executives Domestic corporations and institutional 8.5 % Domestic corporatio
Slide 46: Appendix 3 - Product Pricing -
Appendix 3 - Product Pricing - 46
Slide 47: Pricing - freee Accounting
Pricing - freee Accounting Plan(1) Price(1) Features(1) Financial Expense Internal Monthly Payment Annual Payment Statements Management Budgeting Workflow Support Controls Chat / Enterprise *Quoted price *Quoted price E-mail / Dedicated Support Team ● Base fee: JPY 51,980 ● Base fee: JPY 477,360 Cha
Slide 48: Pricing - freee Accounting (for Self-employed)
Pricing - freee Accounting (for Self-employed) Plan(1) Price(1) Features(1) Book- Cash Flow Expense Monthly Payment Annual Payment Tax Return Support keeping Reports Management Chat / E-mail ● Base fee: JPY 39,800 (Preferential Premium *Annual payment only ● ID fee: JPY 3,600 treatment)/ (Free ID fo
Slide 49: Pricing - freee HR
Pricing - freee HR Plan(1) Price(1) Features(1) HR Attendance Advanced Per Month Payroll Employee Support Procedures Management Management (3) Chat / (2) Advanced ● ID fee: JPY 1,100 E-mail / Telephone Chat / Standard ● ID fee: JPY 800(2) E-mail Chat / Starter ● ID fee: JPY 600(2) E-mail Chat / Mini
Slide 50: Pricing - freee Sign
Pricing - freee Sign Plan(1) Price(1) Features(1) Certified No. of No. of (2) Templates Contracts Workflow API Annual Payment Electronic Signature Electronic Signature Registered Transmitted JPY 100 per contract JPY 200 Enterprise *Quoted price (Free for up to 1,000 Unlimited Unlimited per contract
Slide 51: Pricing - Other Services
Pricing - Other Services freee A/R & A/P Management (1) freee Order Management(1)(2) Base fee : JPY 3,580 per month Annually Base fee : JPY 357,600 per annum Monthly ID fee : JPY 600 per month (Free ID for up to 1 member) freee Expense Reimbursement Plus(1) Base fee : JPY 2,980 per month Annually Ba
Slide 52: Disclaimer
Disclaimer This document has been prepared solely for the purpose of disclosing relevant information regarding freee K.K. (referred to herein as the "Company", "we" or "us") and, depending on the context, its consolidated subsidiary. This document does not constitute an offer to sell or the solicita