FreakOut Holdings, inc.
6094・Growth Market・Services
Business
FreakOut Holdings, Inc. was founded in 2010 and listed in 2014 under the mission "Giving people work that is truly human." As an advertising technology holding company, it comprises 37 consolidated subsidiaries and 9 affiliated companies, operating businesses in Japan, North America, East Asia, and Southeast Asia. In its core Advertising Business, the company offers the DSP "Red," premium media support solution "Scarlet," YouTube advertising optimization tool "GP," and revenue maximization support for media companies through Playwire in North America. In the Influencer Marketing Business, the company develops creator support, tie-up advertising, and P2C (person-to-consumer) businesses centered on UUUM Co., Ltd. (made a wholly owned subsidiary in February 2025). In its Investment Business, the company also invests in IT ventures with global expansion potential. Net sales for FY2025 (ended September 2025) were ¥50,323 million.
Business Model
In the Advertising Business, the company operates a two-pronged approach: optimizing ad delivery for advertisers through the DSPs "Red" and "GP," and supporting ad revenue maximization for publishers through "Scarlet," creating a virtuous cycle by securing premium publishers. In North America, Playwire provides a publisher-facing platform combining programmatic sales with direct sales. In the Influencer Marketing Business, UUUM generates diverse revenue streams including AdSense revenue collection on behalf of creators, Tie-up Video & Promotion, and P2C merchandise sales. Google LLC is a major customer, accounting for 12.9% of net sales.
Company Strengths
Since its founding in 2010, the company has continuously evolved its products—DSP, DMP, premium media support, and YouTube ad optimization—while expanding its footprint into North America (Playwire), East Asia, and Southeast Asia. In FY2025 (ending September 2025), Advertising Business sales reached ¥30,367 million, accounting for approximately 60% of total company sales, maintaining stable growth of 3.0% year-on-year.
Centered on UUUM Co., Ltd., which became a consolidated subsidiary in September 2023 and a wholly owned subsidiary in February 2025, Influencer Marketing Business sales reached ¥19,454 million. Through structural reforms, segment loss narrowed significantly from ¥122 million in the prior year to ¥28 million. In October 2025, UUUM Marketing Co., Ltd. was newly established to promote business specialization.
In FY2025 (ending September 2025), Group EBITDA was ¥1,952 million (up 10.0% year-on-year). While operating profit remained low at ¥96 million, adjusted net income excluding goodwill amortization and stock compensation, among others, reached ¥691 million (up 44.1% year-on-year). This was driven by profit contribution from equity-method affiliate IRIS and increased earnings in the Japan advertising business.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, revenue expanded sharply to ¥51,711 million in FY2024 due to the UUUM integration, while operating profit fell to ¥2 million. In FY2025, revenue remained low at ¥50,323 million with operating profit of ¥97 million. In H1 of FY2026 (ending September 2026), revenue recovered sharply to ¥29,368 million (up 15.8% YoY) and operating profit to ¥1,143 million (up 848.3% YoY). Key drivers included the effects of structural reform in the Creator Business, gains on sale of shares booked in the Investment Business, and record-high profit at equity-method affiliate IRIS. As an external factor, foreign exchange gains of ¥322 million from yen depreciation also boosted ordinary profit. The full-year forecast calls for revenue of ¥55,600 million and operating profit of ¥1,300 million, with H1 progress rates of 52.8% for revenue and 87.9% for operating profit.
Growth Strategy
The three pillars are deepening the Product Business, revitalizing growth in the Creator Business, and expanding business domains through M&A
In Japan, the company is driving continued growth of Scarlet and GP alongside expansion of real estate BPaaS (Sumika), while in North America it is promoting the recovery of Direct Sales at Playwire. In the first half of FY2026 (ending March 2026), Product Business net sales reached ¥16,878 million with segment profit of ¥471 million (up 35.1% year on year), confirming a growth trajectory.
The business divestiture and specialization achieved through the establishment of UUUM Marketing Co., Ltd. in October 2025 has proven effective. In the first half of FY2026 (ending March 2026), segment profit improved substantially to ¥1,098 million (compared to ¥67 million in the same period of the previous year). Re-growth of existing businesses has also been confirmed, driven by initiatives such as top creator events.
The company has implemented strategic sales of held shares based on its policy of improving capital efficiency and optimizing its portfolio, recording Investment Business segment profit of ¥591 million in the first half of FY2026 (ending March 2026). Equity in earnings of the equity-method affiliate IRIS reached a record high of ¥478 million.
Consolidated subsidiary FreakOut Investment has decided to acquire a portion of the shares of UDN SPORTS Co., Ltd. (athlete management and social contribution activity support) and make it a consolidated subsidiary. The aim is to maximize athlete value by integrating advertising deal acquisition, ad-tech, and influencer know-how.
Last updated: July 17, 2026