FreeBit Co., Ltd.
3843・Prime Market・Information & Communication
Business
FreeBit Co., Ltd. is an internet-related services company founded in 2000. Under its corporate philosophy of "Being The NET Frontier!", it operates three segments: communications infrastructure support for ISPs and MVNOs (5G Infrastructure Support Business), internet, mobile, real estate, and Web3 services for apartment complexes (5G Lifestyle Support Business), and internet marketing, ad technology, and creator support (5G DX Support Business for Enterprises and Creators). Consolidated net sales for FY2025 (ended April 2025) were ¥55,073 million. The company is listed on the Prime Market of the Tokyo Stock Exchange. Through a capital and business alliance with SoftBank and the conversion of Gigaprize into a wholly owned subsidiary (in terms of voting rights), the company is pursuing a category change toward becoming a "Web3 implementation company born from telecommunications."
Business Model
Revenue is built on three segments. (1) 5G Infrastructure Support Business (net sales of ¥10,568 million) generates B2B recurring revenue through Business Support Services for MVNOs (MVNE) and ISPs. (2) 5G Lifestyle Support Business (net sales of ¥26,308 million) is a monthly subscription-based consumer service centered on internet connectivity for apartment complexes (1,342,366 units provided). (3) 5G DX Support Business for Enterprises and Creators (net sales of ¥20,699 million) generates advertising and commission revenue through affiliate, ad-tech, and creator platform operations. This structure allows recurring-revenue telecom services to stabilize the earnings base, while the marketing business supplements it with variable revenue.
Company Strengths
The number of units subscribed to the internet service for apartment complexes "5G Homestyle," provided through Gigaprize, reached 1,342,366 units as of the end of April 2025 (up 132,844 units from the end of the previous fiscal year). Expansion continues in both new and existing properties, forming a stable, monthly-billed recurring revenue base.
The company has provided Business Support Services for ISPs and MVNOs (MVNE) for many years, and sales of the 5G Infrastructure Support Business for FY2025 (ended April 2025) were ¥10,568 million (up 6.4% year on year). It holds long-term contracts with major telecom carriers, including wholesale 5G, Xi, and FOMA service agreements with NTT DOCOMO and interconnection agreements with NTT East and NTT West, ensuring the stability of its infrastructure base.
In April 2025, a third-party allotment to SoftBank (1,600,000 shares, raising ¥2,042 million) was completed. A business alliance covering six areas was concluded, including Web3/AI social implementation, development of communication lines for IoT and unmanned devices, collaboration in the apartment complex market, and mobile line bundle discounts. The contract term is five years, with an automatic renewal clause.
ENVALITH's Perspective
Performance Trend
For the cumulative nine months of Q3 FY2026 (fiscal year ending April 2026), net sales were ¥46,188 million (up 13.9% year on year), operating profit was ¥5,110 million (up 9.0%), ordinary profit was ¥4,893 million (up 5.5%), and profit attributable to owners of parent was ¥3,303 million (up 30.7%). Looking at the trend over the past five fiscal years, after a temporary decline in FY2022, both net sales and operating profit maintained a recovery and expansion trend from FY2023 through FY2025. In FY2025, operating profit was roughly flat compared with FY2024 (¥5,884 million), but FY2026 has returned to a profit-growth trend. The substantial increase in net income was aided by a decrease in profit attributable to non-controlling interests (from ¥783 million in the same period of the previous year to ¥140 million in the current period). On the financial front, repayment of long-term borrowings has progressed (from ¥15,158 million at the end of the previous fiscal year to ¥11,450 million at the end of the current period), and the equity ratio improved from 16.0% to 22.9%. In terms of the external environment, the expansion of generative AI investment and acceleration of DX in the domestic IT market are providing a tailwind, while persistently high network costs and upfront investment costs are constraining the rise in profit margins.
Growth Strategy
Leveraging the SoftBank partnership and full consolidation of Gigaprize, the company is transforming into a Web3/AI implementation enterprise, targeting net sales of ¥63,000–70,000 million and operating profit of ¥8,000 million for FY2027 (ending April 2027)
Under the three-year plan for FY2025–FY2027 (ending April), the company targets an average annual net sales growth rate of 7–10%, with FY2026 (ending April 2026) planned at a 8.9% year-on-year increase (¥60,000 million). Through the cumulative third quarter, net sales grew 13.9% year-on-year, outpacing the plan, and the likelihood of achieving the second-year target is high.
The company is pursuing cost reductions and stronger sales capabilities through joint procurement, joint sales, and joint technology/service development frameworks. In the 5G Infrastructure Support Business, MVNE scale expansion (net sales up 12.7% and profit up 39.0% year-on-year) reflects certain synergies materializing in the figures.
The number of housing units served under the internet service for apartment complexes expanded from 1,342 thousand units at the end of the previous fiscal year to 1,433 thousand units (an increase of 90 thousand units). Through the establishment of a unified group management structure, segment profit in the 5G Lifestyle Support Business continued to grow steadily, up 13.3% year-on-year.
The company is promoting the creation of a decentralized platform utilizing "Portfolia," a fully Web3-implemented infrastructure technology, and advancing the social implementation of diverse use cases such as decentralized identifiers (DID), medical data management, and creator support. At present, this remains in the upfront investment stage, with limited contribution to earnings.
The company is expanding transaction volume in the Affiliate Business and building an overseas business foundation. Net sales achieved strong growth, up 17.4% year-on-year, but segment profit declined significantly, down 36.5% year-on-year, due to sales expansion costs and upfront investment. Monetizing the creator platform "StandAlone" remains a future challenge.
Last updated: July 17, 2026