FreakOut Holdings, Inc. (6094) AI Stock Analysis

• Market Cap: ¥13.01B
• Dividend Yield: N/A
• Average Volume (3M): 14.71K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.72
• Revenue Growth: -2.68%
• EPS Growth: 91.68%
• Country: JP
• Employees: 1,015
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 54.08
• Shares Outstanding: 18,022,924
• 10 Day Avg. Volume: 14,330
• 30 Day Avg. Volume: 14,710
• PEG Ratio: -0.30
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -36.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: ¥669.00 ▲(28.90% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held down primarily by weak financial performance—declining revenue, very low margins, higher leverage, and especially negative operating/free cash flow. Technicals are supportive due to a strong trend above moving averages, but overbought indicators increase near-term risk. Valuation is moderate based on the P/E, with no dividend data to add support.

Positive Factors

Recurring ad‑tech revenue streams

The company’s platform and services generate recurring fees from advertisers, agencies and publishers. This diversified ad‑tech revenue base creates sticky client relationships and predictable transaction flows, supporting stability in mid‑term revenues and retention.

Moderate gross profit margin

A gross profit margin near 27.7% provides a durable cushion to cover variable costs and support reinvestment in product and engineering. For an ad‑tech operator this margin helps fund platform development and sales efforts, enabling potential margin expansion if revenue stabilizes.

Improving return on equity

ROE rising to 2.52% signals incrementally better capital efficiency versus prior periods. While still modest, the trend reflects improved utilization of equity and, if sustained alongside operational improvements, supports longer‑term shareholder value creation.

Negative Factors

Declining revenue trend

A reported revenue decline (-1.49%) reduces operating leverage and erodes the platform’s scale. In programmatic advertising, losing top‑line momentum can weaken network effects and client spend, making multi‑quarter recovery harder without meaningful product or commercial progress.

Very thin operating margins

Extremely thin profitability leaves little buffer for cost shocks or competitive reinvestment. Low net and EBIT margins constrain the company’s ability to self‑fund R&D and sales growth, increasing strategic vulnerability if revenue volatility persists over coming quarters.

Negative operating and free cash flow

Persistent negative operating and free cash flows indicate cash conversion issues and ongoing burn. This creates liquidity pressure, heightens reliance on debt (debt/equity elevated), and limits capacity to invest or absorb ad‑spend cyclicality without corrective actions.

FreakOut Holdings, Inc. Business Overview & Revenue Model

Company Description

FreakOut Holdings, inc., through its subsidiaries, offers advertising solutions in Japan and internationally. It engages in the development and sale of DSPs and DMPs; data mining, development, and sale of ad applications; and advertisement consultation business. The company is also involved in IoT-based digital signage business; global app marketing, public relations, and media business; provision of trading desk and monetization platform for digital media; contextual intelligence platform for Youtube Ads; and development and operation of retail in-store media, as well as digital creative and performance agencies businesses. In addition, it operates a data-driven digital agency that specializes in software development, data science, and robot automation. FreakOut Holdings, inc. was formerly known as FreakOut, inc and changed its name to FreakOut Holdings, inc. in January 2017. The company was incorporated in 2010 and is based in Tokyo, Japan.

How the Company Makes Money

FreakOut Holdings generates revenue primarily through its programmatic advertising services, which include the sale of advertising space on various digital platforms. The company operates on a commission-based model, earning a percentage of the ad spend from clients utilizing its demand-side platform. Additionally, FreakOut offers premium analytics and reporting services, charging clients for advanced insights and performance tracking. Key partnerships with technology providers and digital publishers further enhance its revenue streams by expanding its market reach and enabling more effective ad placements. The company's ability to innovate and integrate new technologies into its offerings plays a significant role in sustaining its earnings and attracting new business.

FreakOut Holdings, Inc. Financial Statement Overview

Summary

Weak fundamentals overall: revenue declined (-1.49%), profitability is very thin (net margin ~0.55%, EBIT margin ~0.24%), leverage is elevated (debt-to-equity 1.59), and cash flow is a major concern with negative operating and free cash flows.

Income Statement

FreakOut Holdings, Inc. has experienced a decline in revenue growth, with a negative growth rate of -1.49% in the most recent year. The gross profit margin stands at approximately 27.7%, indicating moderate profitability. However, the net profit margin has improved to 0.55% from a negative margin in the previous year, showing some recovery. The EBIT and EBITDA margins are relatively low, at 0.24% and 3.74% respectively, suggesting challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.59, indicating a higher reliance on debt financing, which could pose financial risks. The return on equity has improved to 2.52%, reflecting better utilization of equity. The equity ratio is approximately 27.2%, showing a moderate level of equity financing relative to total assets.

Cash Flow

FreakOut Holdings, Inc. has negative operating and free cash flows, indicating cash flow challenges. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, highlighting potential liquidity issues.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	50.32B	51.71B	30.60B	28.97B	29.50B
Gross Profit	13.93B	14.65B	9.30B	7.84B	6.88B
EBITDA	1.88B	2.24B	11.96B	2.90B	1.88B
Net Income	275.47M	-3.19B	7.87B	1.36B	580.47M
Balance Sheet
Total Assets	40.21B	41.62B	44.89B	24.73B	20.53B
Cash, Cash Equivalents and Short-Term Investments	17.63B	20.84B	20.45B	7.29B	6.00B
Total Debt	17.73B	15.10B	11.51B	8.00B	7.26B
Total Liabilities	28.07B	24.67B	24.57B	14.69B	12.68B
Stockholders Equity	10.95B	13.19B	16.78B	8.67B	6.80B
Cash Flow
Free Cash Flow	-252.63M	-3.28B	2.01B	499.61M	1.63B
Operating Cash Flow	-36.59M	-2.70B	2.46B	877.17M	1.90B
Investing Cash Flow	-986.03M	244.79M	10.25B	-572.86M	-1.34B
Financing Cash Flow	-2.99B	3.06B	-848.08M	325.83M	-4.63B

FreakOut Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 519.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6094, the sentiment is Positive. The current price of 519 is below the 20-day moving average (MA) of 648.35, below the 50-day MA of 578.20, and below the 200-day MA of 527.96, indicating a bullish trend. The MACD of 55.98 indicates Negative momentum. The RSI at 79.85 is Negative, neither overbought nor oversold. The STOCH value of 69.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6094.

FreakOut Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	75 Outperform	¥30.06B	13.16	―	5.35%	58.08%	29.89%
7354	72 Outperform	¥15.09B	10.94	―	1.51%	7.96%	―
7095	66 Neutral	¥20.16B	7.57	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.94B	31.64	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.86B	19.09	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥13.01B	16.25	―	―	-2.68%	91.68%