FREKF (Freee KK) Operating Income: $56.5 Mil (TTM As of Dec. 2025)


FREKF Freee KK FREKF
64 GF Score
Price $11.85
GF Value $34.08
Valuation Possible Value Trap
! 4 Warning Signs
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What is Freee KK Operating Income?

Freee KK FREKF 64 Operating Income is $56.5 Mil as of Dec. 2025. GuruFocus rates FREKF with a GF Score™ of 64/100 and a GF Value™ of $34.08 (Possible Value Trap). The stock has 4 warning signs investors should review.

Freee KK's Operating Income for the three months ended in Dec. 2025 was $1.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $56.5 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Freee KK's Operating Income for the three months ended in Dec. 2025 was $1.7 Mil. Freee KK's Revenue for the three months ended in Dec. 2025 was $65.4 Mil. Therefore, Freee KK's Operating Margin % for the quarter that ended in Dec. 2025 was 2.55%.

Freee KK's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Freee KK's annualized ROC % for the quarter that ended in Dec. 2025 was 2.60%. Freee KK's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 237.14%.

Freee KK  (OTCPK:FREKF) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Freee KK's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=6.668 * ( 1 - 4.61% )/( (239.599 + 249.306)/ 2 )
=6.3606052/244.4525
=2.60 %

where

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=343.36 - 9.962 - ( 222.054 - max(0, 197.67 - 291.469+222.054))
=239.599

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=342.304 - 8.477 - ( 207.132 - max(0, 201.238 - 285.759+207.132))
=249.306

Note: The Operating Income data used here is four times the quarterly (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Freee KK's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=4.968/( ( (0.827 + max(-66.035, 0)) + (3.363 + max(-61.407, 0)) )/ 2 )
=4.968/( ( 0.827 + 3.363 )/ 2 )
=4.968/2.095
=237.14 %

where Working Capital is:

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(22.576 + 0 + 46.839) - (9.962 + 0 + 125.488)
=-66.035

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(23.451 + 0 + 45.316) - (8.477 + 0 + 121.697)
=-61.407

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Freee KK's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=1.667/65.405
=2.55 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Freee KK Operating Income Related Terms

Freee KK Operating Income Historical Data

* Premium members only.

The historical data trend for Freee KK's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Freee KK Operating Income Chart

Freee KK Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Income
Get a 7-Day Free Trial -22.18 -22.71 -56.02 -53.13 4.23

Freee KK Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -52.52 52.41 1.84 1.67 0.58
FREKF
64GF Score
Freee KK FREKF
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Freee KK Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $56.5 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $56.5 Mil mean?
Freee KK (FREKF) has a Operating Income of $56.5 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Freee KK and its competitors.
Is Freee KK's Operating Income too high?
Freee KK's current Operating Income is $56.5 Mil. Overall, Freee KK has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Freee KK's Operating Income compare to UBER and SHOP?
Freee KK's Operating Income of $56.5 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Freee KK and its competitors. Freee KK's current Operating Income is $56.5 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freee KK stock overvalued right now?
Based on GuruFocus' analysis, Freee KK (FREKF) is currently considered Possible Value Trap. The stock's GF Value™ is $34.08, compared to a current price of $11.85 — trading 65.2% below its estimated fair value. The current Operating Income is $56.5 Mil. Freee KK's overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Freee KK (FREKF), the current Operating Income is $56.5 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Freee KK (FREKF) Overvalued in 2026?

Based on GuruFocus' analysis, Freee KK stock appears to be undervalued. The current stock price of $11.85 is trading 65.2% below its estimated GF Value™ of $34.08. GuruFocus considers Freee KK to be Possible Value Trap.

Key valuation signals for FREKF:

  • Operating Income: $56.5 Mil
  • GF Value™: $34.08 vs. price of $11.85 (65.2% below fair value)
  • GF Score™: 64/100 with 4 warning signs

No single metric tells the full story. See the FREKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Freee KK Business Description

Other Exchanges 4478:Japan
Address 2-8-1 Nishi-Gotanda, Shinagawa-ku, Gotanda First Building 9th Floor, Tokyo, JPN, 141-0031
Freee KK is a developer of cloud-based software. Its software products include Cloud Accounting software, Cloud HR Labor software, Cloud ERP for Midsize companies, among others.
64GF Score

Get the complete analysis for FREKF

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$11.85
Price
$34.08
GF Value