FREKF (Freee KK) Operating Margin %: 2.55% (As of Dec. 2025)


FREKF Freee KK FREKF
68 GF Score
Price $11.85
GF Value $31.07
Valuation Possible Value Trap
! 4 Warning Signs
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What is Freee KK Operating Margin %?

Freee KK FREKF -0.84% 68 Operating Margin % is 2.55% as of Dec. 2025. GuruFocus rates FREKF with a GF Score™ of 68/100 and a GF Value™ of $31.07 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,818 Software companies, Freee KK ranks better than 85.63% on this metric.

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%.

The historical rank and industry rank for Freee KK's Operating Margin % or its related term are showing as below:

FREKF' s Operating Margin % Range Over the Past 10 Years
Min: -62.67   Med: -32.98   Max: 17.94
Current: 17.94


FREKF's Operating Margin % is ranked better than
85.63% of 2818 companies
in the Software industry
Industry Median: 3.875 vs FREKF: 17.94

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

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.


Freee KK  (OTCPK:FREKF) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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 Margin % Related Terms


Freee KK Operating Margin % Historical Data

* Premium members only.

The historical data trend for Freee KK's Operating Margin % 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 Margin % Chart

Freee KK Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Margin %
Get a 7-Day Free Trial -23.81 -21.16 -41.20 -32.98 1.84

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 Margin % 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 -246.74 51.00 2.79 2.55 0.84

FREKF vs CRM, SHOP, UBER: Operating Margin % Comparison

For the Software - Application subindustry, Freee KK's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Freee KK Operating Margin % vs Software Industry

For the Software industry and Technology sector, Freee KK's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Freee KK's Operating Margin % falls into.


FREKF
68GF Score
Freee KK FREKF
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Freee KK Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Freee KK's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as

Operating Margin %=Operating Income (A: Jun. 2025 ) / Revenue (A: Jun. 2025 )
=4.229 / 230.273
=1.84 %

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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 2.55% mean?
Freee KK (FREKF) has a Operating Margin % of 2.55% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Freee KK and its competitors. According to the industry distribution chart, Freee KK ranks #405 out of 2818 companies in the Software industry, placing it in the top 14.4%.
Is Freee KK's Operating Margin % too high?
Freee KK's current Operating Margin % is 2.55%. The Software industry median Operating Margin % is 3.88. Freee KK's value of 2.55% is 34.2% below this industry median. Based on the distribution chart, Freee KK ranks #405 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Freee KK has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Freee KK's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Freee KK ranks #405 out of 2818 companies for Operating Margin %. This places Freee KK in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Freee KK's value of 2.55% is 34.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Freee KK's current Operating Margin % of 2.55% is 34.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Freee KK and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freee KK's current Operating Margin % is 2.55%. 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 $31.07, compared to a current price of $11.85 — trading 61.9% below its estimated fair value. The current Operating Margin % is 2.55% and 34.2% below the Software industry median of 3.88. Freee KK's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Freee KK (FREKF), the current Operating Margin % is 2.55% 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 61.9% below its estimated GF Value™ of $31.07. GuruFocus considers Freee KK to be Possible Value Trap.

Key valuation signals for FREKF:

  • Operating Margin %: 2.55%
  • GF Value™: $31.07 vs. price of $11.85 (61.9% below fair value)
  • GF Score™: 68/100 with 4 warning signs
  • Industry Position: 34.2% below the Software median (#405 of 2818)

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.
68GF Score

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

$11.85
Price
$31.07
GF Value