FreakOut Holdings,inc. [6094.T]
TOKYO, May 19 (Pulse News Wire) – Freakout Holdings,inc. (6094.T) held a briefing on May 19 to discuss its fiscal 2026 second quarter results released on May 15.
Despite achieving an impressive earnings progress rate of 72% for EBITDA and adjusted net income of 92.2%, the company maintained its full-year forecast without upward revision due to potential risks such as reduced gross margins in the third quarter and uncertainties in North American operations. Regarding the explosive growth of the creator business, which saw EBITDA increase more than fourfold compared to the previous year (439.2%), management emphasized that this growth is structural and sustainable. They noted that while some of the gains stemmed from a transition in Corporate Kinou, underlying performance remains robust, driven by strong existing businesses and continued growth in UUUM marketing.
On the acquisition of UDN Sports, aimed at maximizing human value that cannot be replicated by AI, FreakOut highlighted the target's high-margin business model centered around top athletes and estimated market valuation of ¥21.50 billion. By integrating FreakOut’s advertising capabilities and diversified monetization solutions developed through UUUM, the company expects to significantly boost fee revenues and drive further growth. Despite ongoing losses in North America (-¥100 million) due to seasonal factors affecting direct sales segments and increased operating expenses, revenue grew strongly by 39.4% year-over-year.
Management projects profitability recovery in subsequent quarters, maintaining confidence in reaching the full-year EBITDA target of ¥700 million.
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