In the first quarter, revenue rose 22.8% year-on-year to 2,221,747 thousand yen, while operating income declined by 45.3%, ordinary income by 46.3%, and net income for the quarter by 47.3%. The full-year forecast remains at the previously disclosed figure. Movements related to treasury stock are to be described later in connection with a revised equity compensation trust plan. AI and data integration services for new and existing customers are being expanded.<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","meta":{"Ticker":"","DATE":"","longName":"","company_name_ja":"","fullTimeEmployees":0,"address":"","phone":"","website":"","industry":"","sector":"","regularMarketPrice":0,"financialCurrency":"","marketCap":0,"fiftyTwoWeekLow":0,"fiftyTwoWeekHigh":0,"epsTrailingTwelveMonths":0,"epsForward":0,"bookValue":0,"totalRevenue":0,"OperatingIncome":0,"operatingMargins":0,"NetIncome":0,"profitMargins":0,"ebitda":0,"trailingPE":0,"forwardPE":0,"priceToBook":0,"returnOnEquity":0,"recommendationMean":0,"recommendationKey":"","targetMeanPrice":0,"numberOfAnalystOpinions":0,"analyst_earnings_data":"","dividendRate":0,"dividendYield":0,"payoutRatio":0,"totalEsg":0,"environmentScore":0,"socialScore":0,"governanceScore":0,"title":"","providerPublishTime":"","link":"","longBusinessSummary":"","longBusinessSummary_ja":"","quarterly_revenue":0,"quarterly_net_income":0,"quarterly_operating_profit":0,"enterprise_value":0,"company_officer_1_name":"","company_officer_1_title":"","company_officer_2_name":"","company_officer_2_title":"","company_officer_3_name":"","company_officer_3_title":"","company_officer_4_name":"","company_officer_4_title":"","company_officer_5_name":"","company_officer_5_title":"","company_officers_update_time":"","get_dividend_history_year1":0,"get_dividend_history_year2":0,"get_dividend_history_year3":0,"get_dividend_history_year4":0,"get_dividend_history_year5":0,"get_dividend_history_year6":0,"get_dividend_history_year7":0,"get_dividend_history_year8":0,"get_dividend_history_year9":0,"get_dividend_history_year10":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"jir_stock_code":"4414","jir_company_name":"Freact Co., Ltd.","jir_importance":"\u2605\u2605\u2605\u2605\u2606","jir_publication_date":"2026-08-13","jir_source_link":"https:\/\/japanir.jp\/wp-content\/uploads\/2026\/08\/4414-20260813-01.pdf","jir_short_summary":"In the first quarter, revenue rose 22.8% year-on-year to 2,221,747 thousand yen, while operating income declined by 45.3%, ordinary income by 46.3%, and net income for the quarter by 47.3%. The full-year forecast remains at the previously disclosed figure. Movements related to treasury stock are to be described later in connection with a revised equity compensation trust plan. AI and data integration services for new and existing customers are being expanded.","jir_summary":"### Performance overview\nIn the DX space centering on cloud solutions, revenue in the first quarter surged year over year, while quarterly profits declined sharply due to temporary cost increases from workforce expansion, affecting operating income, ordinary income, and net income. Although the number of contract customers with major enterprises increased, gross margin declined by 2.4 percentage points versus the previous period. For new customers, orders related to AI agents are expanding, and investments in human resources continue.\n\n### Financial position and outlook\nThe financial position shows assets of 3,528,717 thousand yen and net assets of 2,289,118 thousand yen. Cash and deposits increased while accounts receivable declined. The full-year performance forecast is maintained from the May 2026 disclosure. A plan to acquire shares through a revised stock-based compensation trust has been announced, with extension of the employee stock incentive trust and linking it to performance planned.","jir_financial_highlights":"Revenue: 2,221,747\u5343\u5186 (Year-over-Year 22.8% increase)\nOperating income: 64,466\u5343\u5186 (Year-over-Year \u25b345.3%)\nOrdinary income: 63,238\u5343\u5186 (Year-over-Year \u25b346.3%)\nQuarterly net income: 37,947\u5343\u5186 (Year-over-Year \u25b347.3%)\nFull-year revenue forecast: 10,400\u767e\u4e07\u5186 (Up 26.0% vs. previous year (full year))","jir_category":"","jir_hashtags":"#Freact, #Earnings, #DX, #CloudSolutions","jir_key_figures":"Revenue: 2,221,747\u5343\u5186\nOperating income: 64,466\u5343\u5186\nQuarterly net income: 37,947\u5343\u5186","jir_meta_title":"\u3010Frect Co., Ltd.\u3011Q1 FY2027 Financial Summary | Revenue 2,221 million yen, Operating income 64 million yen","jir_meta_description":"Summary of Frect Co., Ltd.'s Q1 FY2027 financial results. Revenue rose 22.8% YoY to 2,221 million yen, while operating income, ordinary income, and net income declined significantly. Full-year outlook maintained. Progress on AI utilization and data integration; explanation of key figures and forward outlook.","jir_og_title":"\u3010Frect\u3011Q1 FY2027 Financial Summary | Revenue 2,221 million yen","jir_og_description":"Frect's Q1 shows revenue growth but a substantial drop in profit. 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