WillItSurvive

freee K.K. vs RAKUS Co., Ltd.

RAKUS holds the stronger position because it pairs rising profits with lighter competitive pressure, while freee faces heavier rival pressure from Money Forward and a sharp drop in net profit.

freee K.K.
Defensible for now

Cloud accounting and back-office SaaS for Japanese small and mid-size businesses

RAKUS Co., Ltd.
Defensible for now

Japanese SaaS maker of cloud expense management and business email tools for SMBs

Dimension by dimension
Dimensionfreee K.K.RAKUS Co., Ltd.
Staying power of the core productfreee competes in a more evenly matched accounting and payroll software market, where its position could shift either way.RAKUS shows steady demand for its Chatplus and Raku Raku Seisan tools among Japanese SMBs.
Exposure to AIAI also partly touches freee's accounting and payroll tools, with similar exposure levels.AI partly touches RAKUS products, but no major customer loss shows up in the evidence.
How easily a giant could copy themA giant could also possibly copy freee, whose accounting and payroll tools offer less differentiation to deter entrants.A giant could possibly copy RAKUS, though its established SMB customer base offers some resistance.
Pressure from rivalsfreee faces heavier direct pressure than RAKUS, with Money Forward growing faster from a larger base in the same market.RAKUS faces LayerX Bakuraku as the domestic AI-native threat to watch, but overall competitive pressure remains lighter.
Revenue growthfreee grew net sales 30.8% year over year to ¥33.27 billion in FY2025.6, with guidance for 26.0% growth to ¥41.93 billion in FY2026.6.RAKUS grew consolidated net sales 23.3% year over year to ¥60.3 billion in FY2026.3.
Profitabilityfreee's nine-month net profit fell 67.5% year over year through March 2026, even as revenue kept rising.RAKUS posted a 28.8% operating margin and net profit growth of 66.1% year over year in FY2026.3.
Questions people ask
Is freee losing money?
freee is not losing money outright, but its nine-month net profit dropped 67.5% year over year through March 2026 even as revenue climbed. RAKUS, by contrast, grew both revenue and net profit sharply in its most recent fiscal year.
Can AI easily replace RAKUS or freee's products?
Both companies show partial AI exposure, meaning AI touches parts of their offerings but has not fully absorbed either product line. Neither RAKUS nor freee shows a clear sign of full replacement in the current evidence.
Which company is growing faster, RAKUS or freee?
freee is growing revenue faster, with 30.8% year over year growth in FY2025.6 compared to RAKUS's 23.3% in FY2026.3. However, RAKUS is converting that growth into stronger profit gains, while freee's profit has fallen sharply.
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