FreakOut Holdings, inc.
6094・Growth Market・Services
Advertising Business
The group's largest revenue segment, operating in Japan, North America, and Asia
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales to external customers (cumulative interim period) | ¥16,878 million | ¥14,854 million | ↑ |
| Segment profit (cumulative interim period) | ¥471 million | ¥349 million | ↑ |
| EBITDA (cumulative interim period) | ¥1,210 million | ¥896 million | ↑ |
Business Details
In Japan, the company operates the advertising platform for premium media "Scarlet," the video contextual targeting product "GP," and the BPaaS business in the real estate sector (Sumika Co., Ltd.). Overseas, its U.S. subsidiary Playwire, LLC provides advertising revenue maximization support for media companies. The segment offers a suite of products that simultaneously maximize advertiser advertising effectiveness and media company revenue, and accounts for approximately 57% of the group's total net sales, making it the core segment.
Recent Overview
All metrics increased year on year, with the recovery of Playwire's Direct Sales contributing to growth
In the interim period of FY2026 (ending March 2026) (October 2025 to March 2026), external net sales for the Product Business were ¥16,878 million (up 13.6% year on year), segment profit was ¥471 million (up 35.1% year on year), and EBITDA was ¥1,210 million (up 35.1% year on year). Domestically, Scarlet remained solid despite the impact of changes in the distribution channel, GP continued to perform steadily, and Sumika contributed to profit. Overseas, the recovery in Playwire's Direct Sales contributed to increased profit.
Key Products
Growth Drivers
- Continued growth of the domestic premium media support business (Scarlet)
- Steady performance of GP against a backdrop of expanding demand for YouTube video advertising
- Continuation of the recovery trend in North American Playwire's Direct Sales
- Steady expansion of the real estate BPaaS business (Sumika)
- Expansion of the video advertising market driven by 5G adoption and the increase in Connected TV
- Global expansion of Japan-originated products in East Asia and Southeast Asia
Risks
- Uncertainty regarding the sustainability of the recovery in North American Playwire's Direct Sales
- Risk that the impact of the change in Scarlet's distribution channel becomes prolonged
- Impact of foreign exchange fluctuations (yen appreciation) on yen-denominated revenue from North American and Asian operations
- Intensifying competition in the internet advertising market and fluctuations in programmatic advertising unit prices
- Impact on targeting accuracy due to stricter privacy regulations and the elimination of third-party cookies
- Risk of reduced advertiser spending budgets due to geopolitical risks and overseas economic trends
Last updated: December 24, 2025