Freebit Raises FY2026 Earnings Forecast on 5G Business Growth
Freebit (TSE:3843) has upwardly revised its earnings guidance for the fiscal year ending April 2026, citing stronger-than-expected performance across its 5G infrastructure and digital transformation support divisions.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 60.0bn | JPY 62.5bn | +4.2% |
| Operating Profit | JPY 6.10bn | JPY 6.65bn | +9.0% |
| Ordinary Income | JPY 5.77bn | JPY 5.77bn | +0.0% |
| Net Profit | JPY 3.50bn | JPY 3.50bn | +0.0% |
| EPS | JPY 160.54/share | JPY 160.54/share | +JPY 0.00/share |
The company raised revenue guidance by JPY 2.5bn to JPY 62.5bn and operating profit by JPY 550M to JPY 6.65bn. Management attributed the upward revision to accelerating MVNO support services for 5G infrastructure clients, expanded internet offerings for multi-unit residential properties, and increased affiliate transaction volumes within its enterprise and creator digital transformation segment. Improved cost efficiency from integrated group operations also bolstered operating margins.
However, the company held ordinary income (keijo rieki)—a Japan-specific metric combining operating profit with non-operating items—and net profit flat at JPY 5.77bn and JPY 3.50bn respectively. Management cited ongoing investigations by a special committee and pending audit results as sources of potential volatility in final figures. The earnings revision represents preliminary guidance subject to change pending completion of the special committee’s review and delayed financial statement publication. International investors should note that ordinary income differs materially from operating profit due to inclusion of financial income and expenses, a distinction not standard in IFRS or US GAAP reporting frameworks.
A Note on the Governance Investigation
The special committee referenced above was established in May 2026 to examine Freebit’s September 2025 acquisition of CountUp Co., a Web3 technology developer, for JPY 493M. CountUp was founded in 2022 by Freebit’s own President and CEO, Hiroki Ishida. Following shareholder and external inquiries, the committee is investigating both the appropriateness of the acquisition price and decision-making process, and — more pointedly — whether two patents held by CountUp, which underpinned the deal’s rationale, were properly attributed to CountUp rather than having originated from Freebit’s own resources during Ishida’s tenure as CEO. The committee’s scope explicitly includes checking for similar undisclosed transactions, suggesting the company itself has not ruled out this being more than an isolated incident. Until the committee’s findings and the delayed FY2026 results are published, the stock carries elevated governance risk that goes beyond the headline revenue and operating-profit beat.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.