freee K.K. (4478) investor relations material

Executive summary

• Launched freee Agent Hub, an integrated AI agent for accounting firms, emphasizing professional accuracy, security, and automation of advisory services.

• Net sales for the nine months ended March 31, 2026, rose 29.3% year-over-year to ¥30,843 million, driven by customer base expansion and enhanced platform value.

• Achieved record-high ARR net additions in the self-employed segment, leveraging AI to dispel replacement concerns and drive sustainable growth.

• Platform ARR increased 23.2% year-over-year to ¥42,481 million, with paying customers up 13.6% to 712,265 and ARPU up 8.5% to ¥59,647.

• Strategic initiatives included new product launches, M&A activity, and AI-driven service enhancements.

Financial highlights

• Platform ARR reached JPY 42.4Bn, up 23.2% year-over-year; Corporate segment ARR grew 26.8% YoY.

• Q3 revenue was JPY 10.90Bn, up 26.8% YoY, with gross profit at JPY 9,001MM and gross margin at 82.6%.

• Adjusted operating profit for Q3 was JPY 445MM, with a margin of 4.1%.

• Adjusted operating profit for the nine months was ¥1,797 million, down 15.0% year-over-year.

• Profit attributable to owners of parent dropped 67.5% year-over-year to ¥328 million.

Outlook and guidance

• Full-year net sales forecast for fiscal year ending June 30, 2026, revised upward to ¥41,930 million, a 26.0% year-over-year increase.

• Adjusted operating profit projected at ¥2,520 million, up 33.7% year-over-year.

• Adjusted free cash flow expected in the range of ¥1,260–2,520 million.

• Strategic investments in S&M and R&D to drive mid- to long-term growth, with continued focus on AI integration and operational efficiency.

• No dividends are planned for the fiscal year.