freee K.K. (4478) AI Stock Analysis

• Market Cap: ¥199.40B
• Dividend Yield: N/A
• Average Volume (3M): 425.28K
• Price to Earnings (P/E): 143.8
• Beta (1Y): 1.15
• Revenue Growth: 30.83%
• EPS Growth: N/A
• Country: JP
• Employees: 1,722
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 6.08
• Shares Outstanding: 59,611,107
• 10 Day Avg. Volume: 390,490
• 30 Day Avg. Volume: 425,280
• PEG Ratio: 0.71
• Price to Book (P/B): 8.15
• Price to Sales (P/S): 5.43
• P/FCF Ratio: -18.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,100.00
• Price Target Upside: 25.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥3,597.00 ▲(10.17% Upside)

The overall stock score is primarily influenced by strong financial performance, with significant revenue growth and improved cash flow. However, high operating expenses and a negative return on equity are concerns. Technical indicators suggest neutral momentum, while the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits further insights.

freee K.K. Business Overview & Revenue Model

Company Description

freee K.K. (4478) is a Japanese technology company that specializes in cloud-based accounting and business management software. Founded in 2012, the company primarily serves small to medium-sized enterprises (SMEs) by offering solutions that streamline financial operations, including bookkeeping, payroll, and invoicing. freee's platform integrates various business functions, enabling users to manage their finances efficiently and comply with tax regulations. The company aims to empower SMEs with accessible financial tools that enhance productivity and decision-making.

How the Company Makes Money

freee K.K. generates revenue primarily through subscription fees for its cloud-based software services. The company offers various pricing tiers based on the features and services utilized by its customers, which include small businesses and freelancers. Additionally, freee earns revenue from add-on services such as payroll management, tax filing assistance, and premium support options. Strategic partnerships with financial institutions and other technology providers further enhance its offerings and may provide additional revenue opportunities, such as referral fees or co-marketing initiatives. Overall, the company's focus on recurring revenue from subscriptions is a key driver of its financial performance.

freee K.K. Financial Statement Overview

Summary

The company has demonstrated strong revenue growth and improved profitability metrics, with a healthy gross profit margin. However, high operating expenses are impacting net profit margins. The balance sheet is stable with a moderate debt-to-equity ratio, but return on equity remains negative. Cash flow has improved significantly, though historical volatility poses a risk.

Income Statement

The company has shown a strong revenue growth rate of 15.09% in the latest year, indicating a positive trajectory. Gross profit margin is healthy, reflecting efficient cost management. However, the net profit margin is low due to high operating expenses, impacting overall profitability. The EBIT and EBITDA margins have improved significantly, moving from negative to positive, which is a positive sign of operational improvement.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity is still negative, but there is an improvement compared to previous years, suggesting better utilization of equity. The equity ratio is strong, showing a solid capital structure with a good proportion of equity financing.

Cash Flow

The company has achieved a significant turnaround in free cash flow, moving from negative to positive, which is a strong indicator of improved cash management. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash efficiently relative to its net income. However, the historical volatility in cash flows poses a risk to stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.86B	33.27B	25.43B	19.22B	14.38B	6.90B
Gross Profit	25.58B	27.36B	20.99B	16.07B	11.54B	5.34B
EBITDA	-142.45M	901.21M	-10.06B	-12.32B	-11.72B	-2.50B
Net Income	-503.51M	1.37B	-10.15B	-12.34B	-11.61B	-2.97B
Balance Sheet
Total Assets	48.15B	52.60B	39.95B	42.79B	47.41B	17.90B
Cash, Cash Equivalents and Short-Term Investments	32.81B	35.79B	31.75B	36.41B	42.55B	15.64B
Total Debt	8.10B	9.60B	4.70B	0.00	576.00M	0.00
Total Liabilities	29.39B	32.93B	23.00B	15.73B	10.98B	4.04B
Stockholders Equity	18.76B	19.66B	16.95B	26.06B	36.43B	13.85B
Cash Flow
Free Cash Flow	0.00	3.62B	-7.43B	-5.48B	-3.17B	-2.10B
Operating Cash Flow	0.00	3.66B	-6.77B	-4.75B	-1.07B	-1.38B
Investing Cash Flow	0.00	-4.60B	-1.09B	-1.94B	-4.48B	-1.31B
Financing Cash Flow	0.00	4.98B	3.71B	543.86M	451.99M	11.97B

freee K.K. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3265.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4478, the sentiment is Negative. The current price of 3265 is below the 20-day moving average (MA) of 3478.50, below the 50-day MA of 3433.30, and below the 200-day MA of 3648.52, indicating a bearish trend. The MACD of -61.30 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 10.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4478.

freee K.K. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4071	74 Outperform	¥101.45B	25.00	―	1.23%	27.18%	35.88%
9928	74 Outperform	¥51.17B	11.10	―	3.16%	4.47%	11.37%
4776	72 Outperform	¥138.32B	26.32	―	1.00%	22.97%	107.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4478	57 Neutral	¥199.40B	143.84	―	―	30.83%	―
4443	54 Neutral	¥215.31B	201.22	―	―	27.65%	96.11%
3994	41 Neutral	€240.21B	-38.85	-19.16%	―	19.57%	-16.67%

freee K.K. Corporate Events

freee K.K. Completes Payment for New Restricted Shares Issuance

freee K.K. has completed the payment process for the issuance of new restricted shares, as resolved in their September 26, 2025 Board of Directors’ meeting. This issuance involves 29,621 common shares allocated to directors and employees, potentially enhancing the company’s governance and aligning interests with stakeholders.

The most recent analyst rating on (JP:4478) stock is a Hold with a Yen3780.00 price target. To see the full list of analyst forecasts on freee K.K. stock, see the JP:4478 Stock Forecast page.

freee K.K. Announces New Restricted Share Issuance to Align Director and Employee Interests

freee K.K. has announced a new issuance of restricted shares as part of a compensation plan for its directors and employees, aimed at aligning their interests with those of shareholders and promoting sustainable corporate growth. This strategic move is expected to strengthen the company’s governance and operational framework, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (JP:4478) stock is a Hold with a Yen3726.00 price target. To see the full list of analyst forecasts on freee K.K. stock, see the JP:4478 Stock Forecast page.

freee K.K. Announces Corrections to Financial Results

freee K.K. has issued corrections to its previously released Consolidated Financial Results for the fiscal year ended June 30, 2025. The corrections address errors in the Consolidated Balance Sheet and Statement of Cash Flows, specifically related to other payable and income taxes payable amounts. These corrections do not affect total current liabilities or cash flows from operating activities, ensuring the overall financial position remains stable.

The most recent analyst rating on (JP:4478) stock is a Hold with a Yen3726.00 price target. To see the full list of analyst forecasts on freee K.K. stock, see the JP:4478 Stock Forecast page.

freee K.K. Reports Turnaround with Strong FY2025 Results

freee K.K. reported significant improvements in its financial performance for FY2025 compared to FY2024, with net sales increasing by 30.8% and the company turning profitable. This positive shift was driven by steady revenue growth and enhanced productivity through improved sales and marketing expense efficiency and software capitalization.

The most recent analyst rating on (JP:4478) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on freee K.K. stock, see the JP:4478 Stock Forecast page.

freee K.K. Acquires GMO creators network to Enhance Services for Freelancers

freee K.K. has announced the acquisition of GMO creators network, Inc., making it a wholly owned subsidiary, effective September 1, 2025. This strategic move aims to expand freee K.K.’s service offerings for freelancers and sole proprietors, leveraging synergies with its existing cloud ERP system to enhance operational efficiency and strengthen its market position.

The most recent analyst rating on (JP:4478) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on freee K.K. stock, see the JP:4478 Stock Forecast page.

freee K.K. Reports Strong Financial Turnaround for FY 2025

freee K.K. reported its consolidated financial results for the fiscal year ended June 30, 2025, showing significant improvements compared to the previous year. The company achieved net sales of 33,270 million yen, marking a 30.8% increase year-on-year, and a comprehensive income of 1,346 million yen. Despite past losses, the company has turned around its financial performance, indicating a positive impact on its operations and market positioning. The forecast for the fiscal year ending June 30, 2026, anticipates continued growth in net sales and adjusted operating profit, driven by the expansion of its customer base in the SaaS business.

The most recent analyst rating on (JP:4478) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on freee K.K. stock, see the JP:4478 Stock Forecast page.