Here's What Analysts Are Forecasting For freee K.K. (TSE:4478) After Its Annual Results

It's been a good week for freee K.K. (TSE:4478) shareholders, because the company has just released its latest yearly results, and the shares gained 7.6% to JP¥2,463. The results overall were pretty much dead in line with analyst forecasts; revenues were JP¥25b and statutory losses were JP¥174 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on freee K.K after the latest results.

Check out our latest analysis for freee K.K

After the latest results, the eight analysts covering freee K.K are now predicting revenues of JP¥33.5b in 2025. If met, this would reflect a huge 32% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 93% to JP¥11.56. Yet prior to the latest earnings, the analysts had been forecasting revenues of JP¥33.4b and losses of JP¥19.41 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very favorable reduction to losses per share in particular.

The average price target held steady at JP¥3,065, seeming to indicate that business is performing in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values freee K.K at JP¥4,600 per share, while the most bearish prices it at JP¥2,000. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 32% growth on an annualised basis. That is in line with its 30% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.8% per year. So although freee K.K is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for freee K.K going out to 2027, and you can see them free on our platform here..

You can also see our analysis of freee K.K's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.