LFS
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Earnings documents stored for LFS.
Investor releaseQuarter not tagged2026-06-18Leifras Q1 Earnings Fall, Revenue Rises
MT Newswires
Leifras Q1 Earnings Fall, Revenue Rises
Leifras (LFS) reported Q1 earnings late Thursday of 4.75 Japanese yen ($0.03) per diluted share, dow
Investor releaseQuarter not tagged2026-06-18LEIFRAS Co., Ltd. Reports Financial Results for the First Quarter of Fiscal Year 2026
PR Newswire
LEIFRAS Co., Ltd. Reports Financial Results for the First Quarter of Fiscal Year 2026
Record High Revenue, Adjusted Income from Operations, and Net Income, Up 10.0%, 1.0%, and 1.5% Year-over-Year, Respectively[1] TOKYO, June 18, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement and Japan's leading operator of children's sports schools and school club activity support businesses, today announced its unaudited financial results for the three months ended March 31, 2026. First Quarter of Fiscal Year 2026 Financial Highlights Revenue was JPY3.0 billion ($18.6 million), an increase of 10.0% from JPY2.7 billion for the same period last year. Income from operations was JPY153.3 million ($1.0 million), compared to JPY166.1 million for the same period last year. Net income was JPY124.3 million ($0.8 million), an increase of 1.5% from JPY122.5 million for the same period last year. Adjusted income from operations was JPY167.8 million ($1.1 million), an increase of 1.0% from JPY166.1 million for the same period last year. Basic and diluted earnings per share was JPY4.75 ($0.03), compared to JPY4.92 for the same period last year. First Quarter of Fiscal Year 2026 Operational Highlights Sports School Business Number of members was 60,960, compared to 62,495 for the same period last year. Revenue of the sports school business was JPY2.2 billion ($13.6 million), an increase of 5.6% from JPY2.0 billion for the same period last year. Social Business Number of club activities was 2,120, an increase of 7.6% from 1,971 for the same period last year. Revenue of the social business was JPY791.4 million ($5.0 million), an increase of 24.1% from JPY637.7 million for the same period last year. Management Commentary Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "For the first quarter of fiscal year 2026, we achieved record highs in revenue, adjusted income from operations, and net income.[1] "For the sports school business, despite a temporary slight decrease in membership due to graduations, revenue increased by 5.6% due to higher monthly fees. Moving forward, we plan to focus on expanding our sports school membership base through both organic growth and strategic M&A. "For the social business, the school club support business expanded under the tailwind of national policy, while the after-school d…Read full documentShow less
Record High Revenue, Adjusted Income from Operations, and Net Income, Up 10.0%, 1.0%, and 1.5% Year-over-Year, Respectively[1] TOKYO, June 18, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement and Japan's leading operator of children's sports schools and school club activity support businesses, today announced its unaudited financial results for the three months ended March 31, 2026. First Quarter of Fiscal Year 2026 Financial Highlights Revenue was JPY3.0 billion ($18.6 million), an increase of 10.0% from JPY2.7 billion for the same period last year. Income from operations was JPY153.3 million ($1.0 million), compared to JPY166.1 million for the same period last year. Net income was JPY124.3 million ($0.8 million), an increase of 1.5% from JPY122.5 million for the same period last year. Adjusted income from operations was JPY167.8 million ($1.1 million), an increase of 1.0% from JPY166.1 million for the same period last year. Basic and diluted earnings per share was JPY4.75 ($0.03), compared to JPY4.92 for the same period last year. First Quarter of Fiscal Year 2026 Operational Highlights Sports School Business Number of members was 60,960, compared to 62,495 for the same period last year. Revenue of the sports school business was JPY2.2 billion ($13.6 million), an increase of 5.6% from JPY2.0 billion for the same period last year. Social Business Number of club activities was 2,120, an increase of 7.6% from 1,971 for the same period last year. Revenue of the social business was JPY791.4 million ($5.0 million), an increase of 24.1% from JPY637.7 million for the same period last year. Management Commentary Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "For the first quarter of fiscal year 2026, we achieved record highs in revenue, adjusted income from operations, and net income.[1] "For the sports school business, despite a temporary slight decrease in membership due to graduations, revenue increased by 5.6% due to higher monthly fees. Moving forward, we plan to focus on expanding our sports school membership base through both organic growth and strategic M&A. "For the social business, the school club support business expanded under the tailwind of national policy, while the after-school daycare business grew in both scale and revenue, driving an increase in social business revenue by 24.1%. Although strategic investments and M&A-related expenses led to a slight decrease in operating income, we believe these investments are essential to supporting future expansion and unlocking long-term growth through business synergies. "Fiscal year 2026 marks the first year of the Japanese government's 'reform implementation period' for school club activities, during which these activities are being transitioned to private-sector providers. We plan to fully leverage this powerful policy tailwind and continue to execute with focus. We remain committed to supporting the smiles and growth of children across borders and appreciate the continued support from our valued customers, partners, and shareholders." Financial Condition As of March 31, 2026, the Company had cash of JPY2.48 billion ($15.6 million), compared to JPY2.52 billion as of December 31, 2025. Net cash used in operating activities was JPY140.9 million ($0.9 million), compared to JPY239.5 million for the same period last year. Net cash used in investing activities was JPY22.5 million ($0.1 million), compared to JPY4.9 million for the same period last year. Net cash provided by financing activities was JPY116.9 million ($0.7 million), compared to net cash used in financing activities of JPY181.6 million for the same period last year. Financial Guidance Following these financial results, there are no changes to Leifras' financial guidance last provided in its press release issued on April 8, 2026. Revenue is expected to be between $82.9 million and $95.7 million for the fiscal year ending December 31, 2026, an increase of approximately 10.8% to 27.9% from $74.8 million for the fiscal year ended December 31, 2025. Income from operations is expected to be between $4.5 million and $5.4 million for the fiscal year ending December 31, 2026, an increase of approximately 13.2% to 33.9% from $4.0 million for the fiscal year ended December 31, 2025. The guidance is based on the assumption that no business acquisitions, restructuring activities, or legal settlements will take place during the period. The guidance is translated at the FY2025 assumed exchange rate of ¥156.80 = $1.00 to eliminate the impact of foreign exchange volatility. Exchange Rate Information This announcement contains translations of certain Japanese Yen ("JPY") amounts into U.S. dollars ("USD," or "$") for the convenience of the reader. Translations of amounts from JPY into USD have been made at the exchange rate of JPY159.08 = $1.00, the exchange rate on March 31, 2026 set forth in the H.10 statistical release of the United States Federal Reserve Board. About LEIFRAS Co., Ltd. Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2025, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics. For more information, please visit the Company's website: https://ir.leifras.co.jp/. Non-GAAP Financial Measures In the Company's report, it discusses key financial measures that are not calculated in accordance with the United States Generally Accepted Accounting Principles ("GAAP") to supplement its unaudited interim condensed consolidated financial statements presented on a GAAP basis. These non-GAAP financial measures are reconciled from their most directly comparable financial measures determined in accordance with GAAP as follows: The Company's primary non-GAAP financial measures and corresponding metrics reflect how it evaluates its current and prior year operating results. As new events or circumstances arise, these definitions could change. When the Company's definitions change, it provides the updated definitions. When items no longer impact its current or future presentation of non-GAAP operating results, it removes these items from its non-GAAP definitions. Adjusted income from operations is a financial measure that is not calculated in accordance with GAAP (collectively referred to as the "non-GAAP financial measures"), and the use of the term adjusted income from operations may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. The Company believes the non-GAAP financial measure provides investors with useful information with respect to its historical operations. The Company presents the non-GAAP financial measure as a supplemental performance measure because the Company believes it facilitates a comparative assessment of the Company's operating performance relative to its performance based on its results under GAAP, while isolating the effects of some items that vary from period to period. Specifically, adjusted income from operations allows the Company to assess its performance without the impact of the specifically identified items that it believes do not directly reflect its core operations, including acquisition-related costs and other items that management does not consider reflective of its core operating performance. The non-GAAP financial measure also functions as a key performance indicator used to evaluate the Company's operating performance internally, and it is used in connection with the determination of incentive compensation for management, including executive officers. As the Company's initial public offering was completed during the fiscal year ended December 31, 2025, and the related listing-related and transformational expenses were specific to its initial public offering and related transformation activities, the Company does not expect to incur such expenses in the fiscal year ending December 31, 2026 or future periods. Accordingly, beginning with the fiscal year ending December 31, 2026, the Company has revised its presentation of adjusted income from operations and removed listing-related and transformational expenses from the adjustments to adjusted income from operations for all historical periods presented. Adjusted income from operations is not a measurement of the Company's financial performance under GAAP and should not be considered in isolation or as an alternative to income from operations or any other financial statement data presented as indicators of financial performance or liquidity, each as presented in accordance with GAAP. Consequently, the Company's non-GAAP financial measure should be considered together with its unaudited interim condensed consolidated financial statements, which are prepared in accordance with GAAP. The Company understands that although adjusted income from operations is frequently used by securities analysts, lenders and others in their evaluation of companies, it has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are: adjusted income from operations does not fully reflect the Company's cash expenditures, future requirements for capital expenditures or contractual commitments; adjusted income from operations does not reflect changes in, or cash requirements for, the Company's working capital needs; adjusted income from operations does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on debt; and, although depreciation and amortization expenses are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted income from operations does not reflect any cash requirements for such replacements. Because of these limitations, adjusted income from operations should not be considered as discretionary cash available to the Company to reinvest in the growth of the Company's business or as measure of cash that will be available to the Company to meet its obligations. Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. For more information, please contact: LEIFRAS Co., Ltd.Investor Relations DepartmentEmail: [email protected] Ascent Investor Relations LLCTina XiaoPhone: +1-646-932-7242Email: [email protected] View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-reports-financial-results-for-the-first-quarter-of-fiscal-year-2026-302804589.html
Investor releaseQuarter not tagged2026-04-14Leifras Q4 Earnings Call Highlights
MarketBeat
Leifras Q4 Earnings Call Highlights
Leifras reported record FY2025 results with net revenue of $74.8M (+13.5% YoY), operating income $4.0M (+20.7%), and adjusted operating income up 41.8% to $4.4M, and provided FY2026 guidance of $82.9M–$95.7M revenue and $4.5M–$5.4M operating income. Both segments reached record revenue—sports schools +7.8% and social business +32.8% (now ~30% of sales)—and management says Japan’s planned 2026 reform to outsource school club activities creates a ~9,800-school TAM (~$3.19B), which it expects to capture using scale and defined barriers to entry (381 schools, 2,120 clubs, 89% local-government repeat rate). Financially strengthened with net assets of $11.8M (+77.4%), operating cash flow roughly $3.0M, and a $16 million syndicated loan earmarked for M&A, while management notes some member and commissioned‑club metrics were deliberately constrained to prioritize large strategic projects and compliance ahead of expansion. Interested in Leifras Co., Ltd. - Sponsored ADR? Here are five stocks we like better. Leifras (NASDAQ:LFS) reported record full-year results for the fiscal year ended Dec. 31, 2025, driven by growth in both its sports school business and its expanding school club activities program, according to comments from Representative Director and CEO Kiyotaka Ito and CFO Rei Yamamoto during the company’s financial results briefing. Management framed fiscal 2025 as a year of “strategic selection and focus” designed to position the company for a larger market opportunity in Japan as a national policy shift accelerates the outsourcing of school club activities to local communities and private providers beginning in fiscal 2026. → 5 Space Stocks Already Climbing Ahead of the SpaceX IPO Ito said the company recorded its “best performance” in 2025, supported by steady growth across both major segments. On a consolidated basis, Leifras reported net revenue of $74.8 million, up 13.5% year-over-year, and income from operations of $4.0 million, up 20.7%. Yamamoto added that profitability outpaced revenue growth, with gross profit rising 17.6% and operating income up 20.7%, which she said reflected “positive operating leverage” as personnel and facility efficiency improved and “economies of scale are firmly taking effect.” → GPU Prices Are Surging—3 Ways to Play the AI Chip Shortage Net income reached a record $2.8 million, Yamamoto said, though she characterized the y…Read full documentShow less
Leifras reported record FY2025 results with net revenue of $74.8M (+13.5% YoY), operating income $4.0M (+20.7%), and adjusted operating income up 41.8% to $4.4M, and provided FY2026 guidance of $82.9M–$95.7M revenue and $4.5M–$5.4M operating income. Both segments reached record revenue—sports schools +7.8% and social business +32.8% (now ~30% of sales)—and management says Japan’s planned 2026 reform to outsource school club activities creates a ~9,800-school TAM (~$3.19B), which it expects to capture using scale and defined barriers to entry (381 schools, 2,120 clubs, 89% local-government repeat rate). Financially strengthened with net assets of $11.8M (+77.4%), operating cash flow roughly $3.0M, and a $16 million syndicated loan earmarked for M&A, while management notes some member and commissioned‑club metrics were deliberately constrained to prioritize large strategic projects and compliance ahead of expansion. Interested in Leifras Co., Ltd. - Sponsored ADR? Here are five stocks we like better. Leifras (NASDAQ:LFS) reported record full-year results for the fiscal year ended Dec. 31, 2025, driven by growth in both its sports school business and its expanding school club activities program, according to comments from Representative Director and CEO Kiyotaka Ito and CFO Rei Yamamoto during the company’s financial results briefing. Management framed fiscal 2025 as a year of “strategic selection and focus” designed to position the company for a larger market opportunity in Japan as a national policy shift accelerates the outsourcing of school club activities to local communities and private providers beginning in fiscal 2026. → 5 Space Stocks Already Climbing Ahead of the SpaceX IPO Ito said the company recorded its “best performance” in 2025, supported by steady growth across both major segments. On a consolidated basis, Leifras reported net revenue of $74.8 million, up 13.5% year-over-year, and income from operations of $4.0 million, up 20.7%. Yamamoto added that profitability outpaced revenue growth, with gross profit rising 17.6% and operating income up 20.7%, which she said reflected “positive operating leverage” as personnel and facility efficiency improved and “economies of scale are firmly taking effect.” → GPU Prices Are Surging—3 Ways to Play the AI Chip Shortage Net income reached a record $2.8 million, Yamamoto said, though she characterized the year-over-year growth as “more moderate” than operating profit due to financing costs tied to future M&A and what she described as the normalization of the effective tax rate following a reduction in tax benefits associated with listing preparations. Management emphasized adjusted income from operations as a key measure. Yamamoto said adjusted operating income, excluding “non-recurring IPO-related expenses,” increased 41.8% year-over-year to $4.4 million. → This New ETF Aims to Capitalize on Surging AI Memory Chip Demand Leifras’ business is divided into a sports school segment—accounting for more than 70% of sales—and a “social business” segment—about 30% of sales—focused on providing school club activities under contract, management said. Yamamoto reported both segments reached record revenue levels in 2025, with the sports school business increasing 7.8% and the social business rising 32.8%. Ito also noted that the social business has become a larger contributor over time, saying its sales contribution has increased by three percentage points since fiscal 2023. Ito attributed the sports school business’ positioning to a program that goes beyond athletic instruction to develop non-cognitive skills such as leadership and teamwork. He said the company’s proprietary “Milabo” system, developed with sports psychology experts, helps visualize growth in these skills and has been highly praised by parents. Ito said Leifras has ranked No. 1 in Japan for both number of members and number of schools for four consecutive years. While highlighting record financial results, Ito said several operating indicators—including net income growth, sports school member growth, and the number of commissioned club activities—showed only slight changes. He described these as the result of a deliberate trade-off to support future expansion. Net income: Ito said one-time expenses for growth investments and higher tax expenses weighed on net income growth. He cited syndicated loan fees recorded as non-operating expenses in preparation for M&A, and said the prior year’s tax benefits from leasing expenses decreased, returning the effective tax rate to “normal levels.” Sports school members: Ito said membership increased only slightly because resources were concentrated on large-scale club activity projects. He cited taking over a stalled project in Nagoya City and securing new large-scale projects in Suita City and Shibuya Ward, which temporarily suppressed the opening of new sports schools. Commissioned club activities: Ito said the number of commissioned club activities declined slightly from fiscal 2023–2024 due to compliance considerations tied to the company’s role in national policy, including forgoing certain local government contracts to avoid conflicts of interest while accepting projects from the Japan Sports Agency. He also said the company took back six of eight Nagoya City wards after prior operators went bankrupt, leaving a net reduction of two wards. Overall, Ito said these plateaus were “not a sign of slowing growth,” but rather a step to capture a larger market as national reforms accelerate. Both Ito and Yamamoto pointed to Japan’s national roadmap to move school club activities—particularly weekend activities—out of schools and into community and private operators. Yamamoto said the company estimates a total addressable market of about 9,800 schools nationwide, or approximately $3.19 billion. Ito said the reform enters an “implementation period” starting in fiscal 2026, calling it a “historic turning point” that could drive rapid market growth. Yamamoto cited a government plan to transfer 30% of weekend club activities—more than 38,000 clubs—to communities and private organizations by fiscal 2026, which she said marks an acceleration compared with the prior year. Management also highlighted contract momentum in fiscal 2025, with Ito citing new requests from major metro areas including Shibuya Ward, Shinagawa Ward, Nagoya City, and Kyoto City, as well as a contract with Waseda University Senior High School. Ito said this demonstrated the scalability of Leifras’ operating model. To support its claim as an “undisputed top runner,” Ito outlined five “barriers to entry,” including its contract record and retention, government ties, local government network, instructor platform, and safety record. He said the company manages 381 schools and 2,120 school clubs and has an 89% repeat customer rate from local governments. Ito also said the company operates in 45 prefectures with 1,055 full-time employees and 3,544 part-time employees, and that it has had “zero serious accidents or injuries” since taking over the contract in 2013. On financial position, Yamamoto said total net assets expanded to $11.8 million, up 77.4% year-over-year, and total liabilities decreased to $18.0 million. She added that operating cash flow more than doubled to approximately $3.0 million. Yamamoto also said the company secured a new $16 million syndicated loan to provide funding capacity for “inorganic growth opportunities such as M&A.” She said capital allocation will prioritize M&A, targeting entities that enhance customer lifetime value or strengthen the platform through advanced technology, and emphasized that Leifras has “successfully integrated every past acquisition exactly according to plan.” For fiscal 2026, Yamamoto provided consolidated guidance calling for “strong double-digit growth” driven by policy tailwinds and a transition into a margin expansion phase. The company forecast net revenue of $82.9 million to $95.7 million and income from operations of $4.5 million to $5.4 million. In the Q&A, Ito said the Nasdaq listing was intended to strengthen creditworthiness and financial resources for overseas expansion, after a prior attempt in Asia roughly 10 years ago ended due to limited credibility, insufficient resources, and cultural differences. He said the company’s overseas approach will focus on M&A—targeting sports schools, fitness clubs, and education-related companies in developed markets—and integrating Leifras’ non-cognitive skills development and visualization strengths. Ito also addressed plans for a potential Tokyo Stock Exchange listing, saying Nasdaq is important for global fundraising but that a domestic listing would help demonstrate “absolute credibility and governance” as Leifras pursues local government and educational projects tied to national policy. He said the company aims to realize it “as soon as possible” and will provide updates via disclosures and press releases when available. Looking further ahead, Ito said Leifras’ goal is to reach market share in “at least 30% of all junior high schools in Japan by 2031” in the club activity reform market and build a business capable of generating “substantial profits.” Headquartered in Shibuya-ku, Tokyo, we are a sports and social business company dedicated to youth sports and community engagement. We primarily provide services related to the organization and operations of sports schools and sports events for children. Building upon our experience and know-how in sports education, we also operate a robust social business sector, dispatching sports coaches to meet various community needs. At the core of our operations is the children's sports school business. When we refer to a sports school, it refers to a series of courses and programs that we offer to teach a sport, instead of a physical location. The article "Leifras Q4 Earnings Call Highlights" was originally published by MarketBeat.
TranscriptFY2025 Q42026-04-14FY2025 Q4 earnings call transcript
Earnings source - 50 paragraphs
FY2025 Q4 earnings call transcript
Ladies and gentlemen, thank you very much for taking the time out of your busy schedules to attend Leifras's Full Year Financial Results Briefing for the fiscal year ending December 31st, 2025. During today's call, all participants will be in a listen-only mode. This conference is being recorded today, Tuesday, April 14th, 2026. Before we begin, please review the disclaimer. I would like to remind you that some information discussed on this call will contain forward-looking statements, which involve risks and uncertainties that may cause actual results to differ materially. Further information regarding these and other risks, uncertainties or factors is included in the company's filings with the U.S. Securities and Exchange Commission. Today, the company's Representative Director and CEO, Mr. Kiyotaka Ito, and Director and CFO, Ms. Rei Yamamoto, will present Leifras' financial results for the fiscal year ending December 31st, 2025, and the company's future growth strategy.
After the presentation, we will address questions submitted in advance, so we would appreciate it if you could stay with us until the end. Now, Mr. Ito, I'll hand the call over to you.
Hello, everyone. I am Kiyotaka Ito, the CEO. Thank you very much for taking the time out of your busy schedules to join us today. I would like to express my sincere gratitude for your continued warm support and consideration for our business activities and growth. Now, I will explain things in order, following the index in the materials you have in front of you. Our corporate philosophy is to change and design sports, and we practice sports and social business to address various social issues through sports. Since our founding in 2001, we have strived to transform Japan's traditional physical education into true sports and have continued to grow over the past 25 years. As a result, we have established a solid position as number one in Japan in terms of number of sports school members and number of school club activity contracts.
Thanks to the steady growth of both businesses, in 2025, we recorded our best performance. Next, regarding our business model, our business is broadly divided into two segments. Our sports school business accounts for over 70% of our sales. Rather than simply teaching sports techniques, we offer a unique program that cultivates non-cognitive skills such as leadership and teamwork, which are highly valued in modern education. Furthermore, through our proprietary system, Milabo, developed in collaboration with sports psychology experts, we have established a mechanism to visualize the growth of these non-cognitive skills, which were previously only intuitive. This has received extremely high praise from parents. Thanks to this, we have been ranked number one in Japan for both the number of members and the number of schools for four consecutive years.
Next, on the right side of the slide is our social business, which accounts for approximately 30% of our sales. This business has expanded strongly as a new growth driver for our company, with its sales contribution increasing by 3 percentage points since fiscal year 2023, two years ago. In this area as well, we have achieved the number one position in Japan for the number of schools contracted to provide club activities for two consecutive years. Next, here is the executive summary. In terms of earnings highlights, strong growth in both segments resulted in record highs across all key metrics. Net revenue increased by 13.5% year-on-year to $74.8 million, and income from operations increased by 20.7% to $4 million.
Adjusted income from operations, which indicates the fundamental earning power of the core business, excluding one-time IPO-related costs, increased significantly by 41.8% year-on-year to $4.4 million. Here is a supplementary explanation of the financial highlights on page seven. The three indicators, net income, number of school members, and number of commissioned club activities, only showed slight increases or decreases. In short, these are the results of a strategic selection and focus aimed at future growth. First, regarding the slight increase in net income, this is mainly due to one-time expenses for growth investments and an increase in tax expenses. Specifically, this includes recording fees for syndicated loans in preparation for M&A, et cetera, as non-operating expenses. Additionally, the tax benefits from leasing expenses that were present in the previous year have decreased, and the effective tax rate has returned to normal levels, resulting in an increase in corporate taxes.
However, above all, the profitability of our core business is growing steadily. Secondly, regarding the slight increase in the number of school members, the primary reason is the concentration of resources on large-scale club activity projects. We quickly took over a stalled project in Nagoya City and also secured new large-scale projects in Suita City and Shibuya Ward. Because we concentrated our personnel on these as top priorities, the opening of new sports schools was temporarily suppressed. However, as a result of the success of these projects, we have established an advantage in the club activity sector. Finally, the third point concerns the slight decrease in the number of commissioned club activities from fiscal year 2023-fiscal year 2024. This is primarily due to our commitment to compliance in order to play a central role in national policy.
With the aim of establishing a solid track record and building relationships with local governments nationwide for future business expansion, we have accepted important projects from the Japan Sports Agency. However, to prevent conflicts of interest, we have decided to forgo contracts with some local governments. Furthermore, regarding the eight wards in Nagoya City that were previously handed over to other companies, we immediately took over six of them following the bankruptcy of the previous operators. As a result, the actual decrease in wards is limited to only two, and we maintain a strong foundation. Overall, these temporary plateaus in top-line metrics are not a sign of slowing growth, but rather a positive step towards capturing a larger market. Here are some highlights from our social business school club activities program that demonstrate how the strategic selection and focus I mentioned earlier is leading to tangible results.
Please look at the left side of the slide. This national policy, which is the biggest tailwind for our company, will finally enter the reform implementation period starting this year in fiscal year 2026, marking a historic turning point that will lead to rapid market growth. The new contract received in fiscal year 2025, on the right side, is proof that our company is surely riding this massive wave. As you can see, we have seen a steady increase in new contracts from local governments and other organizations in fiscal year 2025. We have secured contracts all over Japan, from Hokkaido to Fukuoka Prefecture. Notably, we have received requests not only from major metropolitan areas such as Shibuya Ward, Shinagawa Ward, Nagoya City, and Kyoto City, but also from prestigious private schools such as Waseda University Senior High School.
This is nothing less than proof of the scalability of our operational scheme. From fiscal year 2026 onward, we will fully leverage the tailwinds of this powerful national policy to accelerate further business growth as the undisputed top runner. Next, I'll hand it over to our CFO, Ms. Yamamoto, who will provide a detailed explanation of the specific financial figures.
Thank you, Mr. Ito. I am Rei Yamamoto, CFO. I will now report on our results, focusing on our record-breaking performance and the underlying quality of our evolving earnings structure. I will go over our P&L highlights. As Mr. Ito mentioned earlier, we achieved record highs across all metrics this term from net revenue to every level of profit. I would like to add some further context regarding our enhanced profitability. While revenue achieved double-digit growth of 13.5% to $74.8 million, please note that gross profit rose by 17.6% and income from operations increased by 20.7% to $4.0 million. The fact that our profit growth exceeded our revenue growth is clear evidence of positive operating leverage as the operational efficiency of our personnel and facilities has improved and economies of scale are firmly taking effect. Regarding net income, we secured a record high of $2.8 million.
This result was achieved even after accounting for financing costs for future M&A and the normalization of our effective tax rate, which followed a decrease in the tax benefits from our listing preparations. The reason net income growth appears more moderate compared to operating profit is purely due to these strategic investments and technical tax factors. Nonetheless, the fundamental earning power of our core business remains exceptionally strong. I would like to direct your primary attention to adjusted income from operations, which our management team considers the most critical indicator of our core profitability. For the current period, we have excluded non-recurring IPO-related expenses that were expensed on the income statement, as distinguished from those capitalized directly against equity under U.S. GAAP. On this basis, profits reached $4.4 million, marking a significant 41.8% increase year-on-year.
As shown in this waterfall chart, we have clearly entered a phase where revenue growth is reliably and efficiently converted into profits at a high multiplier. Moving into fiscal year 2026 and beyond, we remain committed to maintaining this high conversion efficiency while driving further expansion of our profit margins. Turning to slide 12 for our segment-based summary. Both our foundational school business and our growth-driving social business achieved record-high revenues, increasing by 7.8% and 32.8% respectively, demonstrating ideal hybrid growth across our portfolio. While this slide primarily highlights our top-line results, more comprehensive financial data, including profit trends for each segment, is detailed in the segment information notes of our annual report. I highly encourage you to review the report to see how our social business is evolving into a robust revenue base and to gain a deeper understanding of the specific improvement processes driving our long-term profitability.
I will now explain again our growth strategy that will shape our company's future. The first strategy is to expand our foundational sports school business. The reasons for the slight increase in membership in 2024-2025 are as explained earlier. Our medium-term strategy involves strengthening the quality of our services to ensure continued customer loyalty, efficiently acquiring customers through inside sales and digital marketing, and developing untapped areas through collaborations with universities and vocational schools, as well as M&A to build an even stronger revenue base. Next, the second growth strategy is to expand our market share in club activities, which is our growth driver. First, I would like to share about the potential of the school club activity business. The TAM of the market we are targeting is estimated to be around 9,800 schools nationwide, amounting to approximately $3.19 billion.
On the other hand, our company, which is already the industry leader, currently has sales of only about $20,000. In other words, we recognize that there is still an opportunity for growth. This year, starting in fiscal year 2026, the national reform implementation period will begin, and a policy has been put forward to transfer all holiday club activities to local communities and private companies. At this historic time, when such a huge market is being opened up all at once by national policy, our greatest strength lies in our ability to leverage our first-mover advantage and lead the development of this market. This document outlines the national policy roadmap, showing just how quickly this massive market will open up. The Japanese government has announced a plan to transfer 30% of weekend club activities, or over 38,000 clubs, to local communities and private organizations by fiscal year 2026.
As you can see, this represents a sharp upward trend compared to last year's results, marking a turning point where the privatization of school club activities will accelerate rapidly. We see this significant market change brought about by national policy as a definite growth opportunity and will capitalize on the resulting demand. Now, let me explain the five strong barriers to entry that will allow our company to gain a dominant market share in this rapidly expanding market. The first advantage is our number one contract record in Japan. We currently manage 381 schools and 2,120 school clubs, and our repeat customer rate from local governments is 89%. This high retention rate will generate stable revenue for the future. The second key strength is our network with the government.
We have strong ties to the heart of national sports policy, including contracts with the Japan Sports Agency and being an official partner of the Japan Sport Association. Our position, which allows us to be involved from the rule-making stage, is something that new entrants can never replicate. The third is our network with local governments nationwide. We have directly collaborated with 33 prefectures and 13 wards of Tokyo. Because we already possess the know-how to solve the unique challenges of each region, we are selected by local governments with a very high success rate. The fourth is a large-scale instructor platform. We currently operate in 45 prefectures and have 1,055 full-time employees and 3,544 part-time employees. The ability to secure such a large pool of talent nationwide and manage it with high quality is our greatest competitive advantage.
The fifth point is our safety management system, which has resulted in zero accidents and injuries. Through our unique training and thorough patrols, we have had zero serious accidents or injuries since taking over the contract in 2013. For local governments entrusted with the lives of children, this accident-free record is an invaluable source of absolute trust. These five strengths combined create a robust business foundation barrier to entry that is difficult for other companies to imitate. Among these barriers to entry, the most noteworthy is the network with the government. Our company maintains strong ties with key institutions representing Japan's sports industry and private education, including membership in the Japan Sports Policy Promotion Organization and serving as an official partner of the Japan Sport Association.
From a business perspective, this means that we are not merely a private company passively waiting for projects, but rather a partner in jointly promoting national policy, enabling us to be involved in the market from the very initial stages. It is this high level of trust and position that allows local governments across Japan to confidently choose us, ultimately leading to our dominant market share. From here on, we'll discuss our human resource strategy, which underpins the quality of our services. AI is evolving at an astonishing pace, and in routine tasks, it can now perform work many times faster than humans. However, I have absolute confidence that our work is something that AI can never replace. It is about nurturing non-cognitive skills in children through sports. This is not something that can be taught through studying like knowledge.
It is a skill that can only be acquired in a group of people with real-life instructors. This includes not only coaching in club activities, but also offering warm words of encouragement to children with developmental differences, looking each child in the eye, and truly supporting them. These are tasks that AI cannot do, and that only professional humans can do. That is why in the age of AI, the value we create will not decrease, but rather become premium. Our company has clearly defined that we will focus on work that only humans can do. To that end, we thoroughly entrust behind the scenes recruitment screening and massive administrative tasks to AI and systems, and we invest all the resources freed up there into on-site instructors who can do what only humans can do. Our instructors are 100% focused on the time, energy, and emotional care they dedicate to each child.
This perfect division of labor between technology and human expertise is our hybrid strategy that generates high customer satisfaction. I will now walk through the five human capital strategies that I mentioned earlier, which are designed to maximize the value of people and support the rapid expansion of the business. The first is a scalable labor infrastructure. Our management system, which handles approximately 1,000 hiring and termination cases per month without delay, allows us to respond to sudden increases in cases without slowing down. The second is our operational system that absolutely never leaves a gap. We utilize our nationwide network of experienced instructors to immediately dispatch a replacement in the event of a sudden absence. This robust implementation system is the source of the high retention rate among local governments. The third key feature is our highly efficient and high-utilization organizational structure.
Our dominant strategy of sharing personnel within a given area allows us to simultaneously reduce travel costs and maximize utilization rates. The fourth is the evolution into a talent supply infrastructure. By developing its own talent bank system and securing professional personnel such as active teachers through a side job, part-time work system, it has become an infrastructure that supports local club activities. The fifth point is a strong recruitment pipeline. On April 1st, we signed a comprehensive partnership agreement with Sanko Gakuen, which operates more than 60 vocational schools, universities, and junior colleges in 12 cities nationwide, with the aim of building a scheme to continuously produce sports business personnel. Moving forward, we will continue to promote comprehensive partnerships with universities and vocational schools to establish a robust recruitment pipeline that can secure motivated and highly qualified personnel on a stable and large scale.
This unique instructor platform in Japan will be our strongest asset in achieving this continuous growth. Next, we will discuss phase-by-phase strategies for expanding our market share in the club activities business. Having completed phase I of the pilot project, we are now focusing on scaling to government-designated cities in phase II, where the balance between population density and market size is optimal. In particular, we are targeting approximately 2,000 schools in Tokyo's 23 wards and government-designated cities nationwide, using a dominant strategy to maximize recruitment and operational efficiency. In the future, in phase III, we aim to introduce a remote and mobile management model that can be implemented even in areas with low population density and expanded to approximately 9,800 schools nationwide, thereby making sports an infrastructure in Japan. The third growth strategy is improving operating profit margins.
To put it simply, we have completed the strategic growth investment phase aimed at gaining future market share and will now move into the full-fledged margin expansion phase. In our school business, we will increase unit prices such as membership fees and reduce costs by utilizing school facilities. In our club activities business, we will improve profit margins by converting pilot projects into full contracts and further reduce project-level costs through economies of scale. At the same time, we will suppress fixed costs in the administrative department through digital transformation and establish a more efficient revenue structure in which sales growth is directly linked to the steady expansion of income from operations.
Moving forward, I will provide a detailed overview of our robust financial resilience and our strategic framework for capital allocation. Let's begin with the highlights of our consolidated balance sheet, where our financial position has significantly strengthened over the past year. Driven by the steady accumulation of net income, our total net assets expanded to $11.8 million, representing a robust 77.4% increase year-on-year. At the same time, we have successfully optimized our debt profile, reducing total liabilities to $18.0 million. This sound and robust capital base provides us with the necessary financial resilience to support our aggressive growth investments as we move forward into the next phase of expansion. Turning to slide 25, I'd like to highlight our enhanced cash-generating capabilities.
Our cash flow from operating activities more than doubled in this period, rising to approximately $3.0 million, which validates that we have established a high-quality business structure capable of generating abundant and sustainable liquidity. Furthermore, to fuel our nonlinear business expansion, we have recently secured a new $16 million syndicated loan from multiple financial institutions. This provides us with significant strategic dry powder, ensuring that we can execute inorganic growth opportunities such as M&A with the speed and flexibility required to capture market opportunities without delay. Next, I will outline our capital allocation policy, detailing exactly how we intend to deploy our robust capital to maximize long-term shareholder value. We are prioritizing the allocation of our abundant liquidity and funding towards strategic M&A activities.
Our primary targets are entities that directly contribute to enhancing our customer lifetime value or domestic and international companies that can strengthen our platform through the integration of advanced technology. I would particularly like to emphasize our proven track record of execution. We have successfully integrated every past acquisition exactly according to plan. We do not pursue scale for its own sake. Rather, we practice disciplined M&A, leveraging our deep integration expertise to reliably deliver synergies and maximize overall corporate value. Finally, I will present our consolidated earnings guidance for the fiscal year ending December 2026. As CEO Ito has explained, the powerful synergy between national policy tailwinds and our transition into the margin expansion phase is clear. For fiscal year 2026, we forecast strong double-digit growth across both the top and bottom lines. Specifically, we project net revenue to reach between $82.9 million-$95.7 million.
Income from operations is expected to range between $4.5 million-$5.4 million. Beyond simply expanding revenue, we are laser-focused on steadily improving our operating margins to reflect our true earning power. Our mission remains to meet the high expectations of our investment community and to deliver sustainable growth in shareholder value. Thank you very much. We are not just chasing growth. We are engineering a more profitable and resilient future. We are fully prepared to capitalize on the massive tailwinds ahead. That concludes my presentation.
Thank you very much. Now we'll move on to the session on where we will answer the questions you submitted in advance. Due to time constraints, we will focus on answering the most frequently asked questions.
First question. With your Nasdaq listing, you plan to expand your overseas operations. What are your chances of success with your business model in the U.S. or globally? Mr. Ito, please answer.
10 years ago, our company attempted to expand overseas in Asia, but we faced challenges that forced us to withdraw, such as a lack of creditworthiness, insufficient financial resources, and cultural differences in the local area. This Nasdaq listing is a pivotal opportunity for us, and our main aim was to lay the groundwork in terms of creditworthiness and financial resources necessary to venture into overseas markets. Our specific strategy going forward will be to focus on M&A rather than starting from scratch. Our targets are sports schools, fitness clubs, and education-related companies that are already operating in developed countries such as Asia, Europe, and the Americas. While many countries have mature sports markets, there are a few examples of businesses that have seriously incorporated developing non-cognitive skills, making this a vast blue ocean.
By incorporating our absolute strength, such as our non-cognitive skills visualization system into the acquired local companies, we are confident in our ability to gain market share in the global market.
Here's the next question. When acquiring a foreign company with a different country or culture, what kind of plan do you have in place to ensure a successful PMI? Mr. Ito, please answer.
Yes. Thank you for your question. Up until now, our company has successfully PMI in acquired companies as planned, leading them to growth. Even in our overseas expansion, our discipline policy remains unchanged, not simply expanding in scale, but welcoming partners who share the same philosophy. Regarding national and cultural barriers, we will proceed with a system that ensures synergy is created by respecting local cultures while incorporating our strengths in developing non-cognitive skills and utilizing technology to create added value.
Third question is the number of members in the school program has only slightly increased. You mentioned that you focused resources on the club activities program. Are you concerned that this might slow down the growth of the school program, which is the foundation of your business? Mr. Ito, please answer.
Thank you. While we strategically reallocated resources temporarily to secure high-trust government projects, our core school business remains a priority. Last year, we strategically and temporarily concentrated our resources to ensure the successful completion of large-scale projects in Nagoya City and other areas, thereby earning overwhelming trust. Going forward, we aim to further expand our market share by introducing inside sales, strengthening customer acquisition through social media advertising, and promoting M&A and alliances with companies that share our philosophy. In addition, recruitment of instructors nationwide is progressing smoothly through comprehensive partnerships, and we already have a system in place to grow both our club activities business and our school business in a hybrid manner. We will also put our school business back on a strong growth trajectory.
Fourth question is, how do you plan to retain existing sports school members in the future given the economic factors such as rising prices in Japan? I'd like to know your future plans. Mr. Ito, please answer.
Thank you. The value we offer is not merely technical sports instruction, but the development of non-cognitive skills nurtured through the close support of real-life instructors. This is not something that can be taught through studying, and it is a professional job that only humans can do that cannot be replaced by AI. Parents have also appreciated this educational value, and it is recognized as education that should be prioritized even amid rising prices. In the age of AI, we believe that premiumization of the value we offer is the best way to retain our customers.
Next question is, now that we've entered the first year of the reform period for club activities, what is the current progress? Mr. Kiyotaka Ito, please answer.
Thank you for your question. Now that we've entered the first year of the reform implementation period, we're just about to accelerate our efforts. Up until now, we've focused on building a safe and high-quality operational model, phase I, through pilot projects with various local governments. With this foundation complete, our strategy is now shifting to scaling to designated cities, phase II, which offer the best balance of population density and market size. We already have a track record in major metropolitan areas such as Nagoya and Kyoto, and going forward, we will rapidly accelerate our expansion, targeting approximately 2,000 schools in Tokyo's 23 wards and designated cities nationwide. Furthermore, we have five strong barriers to entry.
Specifically, these include our number one contract record and high repeat rate in Japan, our central national network with organizations such as the Japan Sport Association, our track record of collaboration with local governments nationwide, our only large-scale instructor platform in Japan, and our absolute safety management system with zero serious accidents. We recognize that these factors working together have earned us the trust of local governments and established a solid foundation.
Next question. You recently issued a press release regarding preparations for listing on the Tokyo Stock Exchange. You are already listed on Nasdaq, so why are you aiming to list on the domestic market at this time? Also, could you tell us about the timeline for the listing? Mr. Ito, please answer.
Yes, I will answer that question. Listing on Nasdaq is of great significance in terms of global expansion and fundraising overseas. Our main business at present is the reform of school club activities in Japan, which is a crucial national policy. In order to receive projects from local governments and educational institutions throughout the country and take on the responsibility for Japan's sports infrastructure, we have determined that it is essential to also list on the Tokyo Stock Exchange, which is a domestic market, and to prove absolute credibility and governance as a more public entity in Japan. Regarding the schedule, we are currently working diligently on preparations and aim to realize it as soon as possible. We will promptly inform everyone of the specific application date and other details through disclosure or press releases as soon as there is progress.
Final question. Regarding the financial results for the fiscal year ending December 2025, how did they compare to the financial forecast that was initially announced? Ms. Yamamoto, please answer.
In summary, our performance for fiscal year 2025 in terms of both revenue and income from operations fell firmly within the range of our initial forecasts. While we shifted human resources to take over large-scale projects in Nagoya, which temporarily suppressed the growth of the school business, the company as a whole firmly secured our planned levels for both the top and bottom lines.
Thank you, Mr. Ito. That concludes our answers to the questions we received in advance. We will now conclude the Q&A session. Answers to any remaining questions will be posted on our IR website at a later date, so please check there. If you have any further questions, please contact us via the email address listed in the materials or through our IR website, and our management team will answer your questions as quickly as possible. Finally, we'd like to hear a few words from Mr. Ito. Mr. Ito, thank you for your time.
Thank you all for attending our earnings presentation today. For 25 years since our founding, we have strived to transform Japan's traditional physical education into sports by rejecting physical punishment and the emphasis on sheer willpower, and by consistently adhering to a teaching approach that recognizes, praises, encourages, and inspires. We have found that our approach perfectly aligns with the values of today's era, and we feel a strong sense of accomplishment in the significant shift in society. While AI is evolving at a tremendous pace and is advancing in areas such as cram schools, our company's philosophy is people are the main actors, and we are committed to focusing on work that only humans can do. The warm guidance that nurtures children's non-cognitive abilities can never be replaced by AI.
In the massive national market of club activity reform, we have set a clear goal to gain a market share in at least 30% of all junior high schools in Japan by 2031 and establish a business that can generate substantial profits. No other company in the world has specialized in children's instruction on this scale and built a nationwide infrastructure. This Nasdaq listing is the biggest step in spreading this strength to the world. Drawing on the setback of withdrawing from overseas expansion approximately 10 years ago, we will now focus on M&A to seriously develop markets in Asia, Europe, and other developed countries. At the same time, in order to become a more public entity as a company that plays a role in national policy in Japan, we will aim to achieve a dual listing on the Tokyo Stock Exchange as soon as possible.
For me, making a company bigger is synonymous with making society better. Listing is not the goal, but merely a process. Based on this belief, we are confident that we will meet your expectations with strong business growth, both domestically and internationally. We would appreciate your continued enthusiastic support. Thank you very much for today.
This concludes the Leifras Corporation 2025 full-year financial results briefing. Thank you very much for taking the time out of your busy schedules to participate today. We would greatly appreciate your continued support. Have a great day. Thank you.
Investor releaseQuarter not tagged2026-04-09LEIFRAS Co., Ltd. Reports Fiscal Year 2025 Financial Results
PR Newswire
LEIFRAS Co., Ltd. Reports Fiscal Year 2025 Financial Results
Record-High Revenue and Operating Income, Up 13.5% and 20.7% Year Over Year Respectively[1] TOKYO, April 8, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced its financial results for the fiscal year ended December 31, 2025. Fiscal Year 2025 Financial Highlights Revenue was JPY11.7 billion ($74.8 million), an increase of 13.5% from JPY10.3 billion for fiscal year 2024. Income from operations was JPY627.4 million ($4.0 million), an increase of 20.7% from JPY519.8 million for fiscal year 2024. Net income was JPY438.5 million ($2.8 million), an increase of 4.7% from JPY418.6 million for fiscal year 2024. Adjusted income from operations was JPY692.3 million ($4.4 million), an increase of 41.8% from JPY488.2 million for fiscal year 2024. Basic and diluted earnings per share was JPY17.41 ($0.11), compared to basic earnings per share of JPY16.81 ($0.11) and diluted earnings per share of JPY15.78 ($0.10) for fiscal year 2024. Fiscal Year 2025 Operational Highlights Sports School Business Number of members was 70,688, an increase of 0.04% from 70,663 for fiscal year 2024. Revenue of sports school business was JPY8,560 million ($54.6 million), an increase of 7.8% from JPY7,944 million for fiscal year 2024. Social Business Number of schools was 381, an increase of 9.8% from 347 for fiscal year 2024. Revenue of social business was JPY3,168 million ($20.2 million), an increase of 32.8% from JPY2,385 million for fiscal year 2024. Management Commentary Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "For the full fiscal year ended December 2025, we achieved record highs in revenue, income from operations, and adjusted income from operations. Revenue in the sports school business increased by 7.8% compared to the same period last year, and revenue in the social business increased by 32.8% compared to the same period last year. These results reflect the steady growth of the sports school business, which boasts the largest market share in Japan, as well as an increase in the number of contracts for the club activities business, which is a growth driver. In particular, in our social business, in addition to being the No. 1 company in Japan in terms of club activity contracting, in 2025 we have…Read full documentShow less
Record-High Revenue and Operating Income, Up 13.5% and 20.7% Year Over Year Respectively[1] TOKYO, April 8, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced its financial results for the fiscal year ended December 31, 2025. Fiscal Year 2025 Financial Highlights Revenue was JPY11.7 billion ($74.8 million), an increase of 13.5% from JPY10.3 billion for fiscal year 2024. Income from operations was JPY627.4 million ($4.0 million), an increase of 20.7% from JPY519.8 million for fiscal year 2024. Net income was JPY438.5 million ($2.8 million), an increase of 4.7% from JPY418.6 million for fiscal year 2024. Adjusted income from operations was JPY692.3 million ($4.4 million), an increase of 41.8% from JPY488.2 million for fiscal year 2024. Basic and diluted earnings per share was JPY17.41 ($0.11), compared to basic earnings per share of JPY16.81 ($0.11) and diluted earnings per share of JPY15.78 ($0.10) for fiscal year 2024. Fiscal Year 2025 Operational Highlights Sports School Business Number of members was 70,688, an increase of 0.04% from 70,663 for fiscal year 2024. Revenue of sports school business was JPY8,560 million ($54.6 million), an increase of 7.8% from JPY7,944 million for fiscal year 2024. Social Business Number of schools was 381, an increase of 9.8% from 347 for fiscal year 2024. Revenue of social business was JPY3,168 million ($20.2 million), an increase of 32.8% from JPY2,385 million for fiscal year 2024. Management Commentary Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "For the full fiscal year ended December 2025, we achieved record highs in revenue, income from operations, and adjusted income from operations. Revenue in the sports school business increased by 7.8% compared to the same period last year, and revenue in the social business increased by 32.8% compared to the same period last year. These results reflect the steady growth of the sports school business, which boasts the largest market share in Japan, as well as an increase in the number of contracts for the club activities business, which is a growth driver. In particular, in our social business, in addition to being the No. 1 company in Japan in terms of club activity contracting, in 2025 we have signed new contracts with many schools, including Suita City, Osaka Prefecture; Shibuya Ward, Tokyo; and Monbetsu City, Hokkaido. The Japanese government's club activity reforms will transfer the management of school-based club activities to local communities and the private sector, with the 'reform implementation period' from 2026 to 2031 marking the full-scale transition from school-based to local communities and the private sector. This national policy is a powerful tailwind for our company and paves the way for medium- to long-term growth. We will continue to take on the challenge of supporting the smiles and growth of children across borders by sharing our sports-based non-cognitive skills development services, which we have cultivated in Japan, with the world. We appreciate your continued support." Financial Condition As of December 31, 2025, the Company had cash and cash equivalents of JPY2.52 billion ($16.1 million), compared to JPY2.54 billion as of December 31, 2024. Net cash provided by operating activities was JPY468.3 million ($3.0 million) for fiscal year 2025, compared to JPY207.1 million for fiscal year 2024. Net cash used in investing activities was JPY53.5 million ($0.3 million) for fiscal year 2025, compared to JPY51.4 million for fiscal year 2024. Net cash used in financing activities was JPY437.0 million ($2.8 million) for fiscal year 2025, compared to JPY346.4 million for fiscal year 2024. Financial Guidance Revenue is expected to be between $82.9 million and $95.7 million for the fiscal year ending December 31, 2026, an increase of approximately 10.8% to 27.9% from $74.8 million for the fiscal year ended December 31, 2025. Income from operations is expected to be between $4.5 million and $5.4 million for the fiscal year ending December 31, 2026, an increase of approximately 13.2% to 33.9% from $4.0 million for the fiscal year ended December 31, 2025. The Guidance is based on the assumption that no business acquisitions, restructuring activities, or legal settlements will take place during the period. Conference Call Information The Company will host an English-language conference call at 8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time) on April 14, 2026 and a Japanese-language conference call at 3:00 am U.S. Eastern Time (4:00 pm Japan Standard Time) on April 15, 2026. To attend the earnings conference calls, please use the following access information. Please dial in at least 15 minutes before the commencement of the call to ensure timely participation. For those unable to participate, an audio replay of the conference call will be available from approximately one hour after the end of the live call until April 21, 2026. The dial-in for the replay is 1-855-669-9658 within the United States or 1-412-317-0088 internationally. The replay access code is 6857888. A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.leifras.co.jp. Exchange Rate Information This announcement contains translations of certain Japanese Yen ("JPY") amounts into U.S. dollars ("USD," or "$") for the convenience of the reader. Translations of amounts from JPY into USD have been made at the exchange rate of JPY156.80 = $1.00, the exchange rate on December 31, 2025 set forth in the H.10 statistical release of the United States Federal Reserve Board. About LEIFRAS Co., Ltd. Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2025, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics. For more information, please visit the Company's website: https://ir.leifras.co.jp/. Non-GAAP Financial Measures In the Company's annual report on Form 20-F, it discusses key financial measures that are not calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") to supplement its consolidated financial statements presented on a GAAP basis. This non-GAAP financial measure is reconciled from its most directly comparable financial measure determined in accordance with GAAP as follows: Adjusted income from operations is a financial measure that is not calculated in accordance with GAAP (collectively referred to as the "non-GAAP financial measures"), and the use of the terms adjusted income from operations may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. The Company believes the non-GAAP financial measure provides investors with useful information with respect to its historical operations. The Company presents the non-GAAP financial measure as supplemental performance measures because the Company believe it facilitates a comparative assessment of its operating performance relative to its performance based on its results under GAAP, while isolating the effects of some items that vary from period to period. Specifically, adjusted income from operations allows the Company to assess its performance without the impact of the specifically identified items that the Company believes do not directly reflect its core operations, including non-recurring costs, such as listing-related and transformational expenses, other non-recurring income, such as litigation-related reimbursement. The non-GAAP financial measure also functions as key performance indicator used to evaluate the Company's operating performance internally, and it is used in connection with the determination of incentive compensation for management, including executive officers. Adjusted income from operations is not a measurement of the Company's financial performance under GAAP and should not be considered in isolation or as an alternative to income from operations or any other financial statement data presented as indicators of financial performance or liquidity, each as presented in accordance with GAAP. Consequently, the Company's non-GAAP financial measure should be considered together with its consolidated financial statements, which are prepared in accordance with GAAP and included in Item 8 of its Annual Report on Form 20-F. The Company understands that although adjusted income from operations is frequently used by securities analysts, lenders and others in their evaluation of companies, it has limitations as analytical tools, and you should not consider it in isolation, or as a substitute for analysis of its results as reported under GAAP. Some of these limitations are: adjusted income from operations does not fully reflect its cash expenditures, future requirements for capital expenditures or contractual commitments; adjusted income from operations does not reflect changes in, or cash requirements for, its working capital needs; adjusted income from operations does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on debt; and, although depreciation and amortization expenses are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted income from operations does not reflect any cash requirements for such replacements. Because of these limitations, adjusted income from operations should not be considered as discretionary cash available to the Company to reinvest in the growth of its business or as measure of cash that will be available to the Company to meet its obligations. Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. For more information, please contact: LEIFRAS Co., Ltd. Investor Relations Department Email: [email protected] Ascent Investor Relations LLC Tina Xiao Phone: +1-646-932-7242 Email: [email protected] Note: [1] Record high in US-GAAP figures since 2023. View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-reports-fiscal-year-2025-financial-results-302737368.html
Investor releaseQuarter not tagged2025-12-19LEIFRAS Co., Ltd. Reports Financial Results for the Nine Months Ended September 30, 2025
PR Newswire
LEIFRAS Co., Ltd. Reports Financial Results for the Nine Months Ended September 30, 2025
TOKYO, Dec. 18, 2025 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced its unaudited financial results for the nine months ended September 30, 2025. Financial Highlights for the Nine Months Ended September 30, 2025 Revenue was JPY8.6 billion ($57.8 million) for the nine months ended September 30, 2025, an increase of 15.3% from JPY7.4 billion for the same period last year. Gross profit was JPY2.4 billion ($16.3 million) for the nine months ended September 30, 2025, an increase of 18.1% from JPY2.0 billion for the same period last year. Gross margin was 28.2% for the nine months ended September 30, 2025, which increased from 27.5% for the same period last year. Net income was JPY226.7 million ($1.5 million) for the nine months ended September 30, 2025, an increase of 0.7% from JPY225.1 million for the same period last year. Basic and diluted earnings per share was JPY9.1 ($0.06) for the nine months ended September 30, 2025, compared to basic earnings per share of JPY9.0 and diluted earnings per share of JPY8.3 for the same period last year. Operational Highlights for the Nine Months Ended September 30, 2025 Number of members in the sports school business was 71,529 for the nine months ended September 30, 2025, an increase of 2.3% from 69,924 for the same period last year. Average membership duration in the sports school business was 1.84 years for the nine months ended September 30, 2025, an increase of 1.1% from 1.82 years for the same period last year. Revenue per capita in the sport school business, which we define as the sales revenue of the sports school business divided by the number of employees involved in that business, was JPY9.6 million ($0.06 million) for the nine months ended September 30, 2025, an increase of 6.2% from JPY9.0 million for the same period last year. Number of schools served under the social business segment was 360 for the nine months ended September 30, 2025, an increase of 53.2% from 235 for the same period last year. Revenue per capita in the social business, which we define as the sales revenue of the social business divided by the number of employees involved in that business, was JPY7.6 million ($0.05 million) for the nine months ended September 30, 2025, an increase of 18.6% from JPY6.4 millio…Read full documentShow less
TOKYO, Dec. 18, 2025 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced its unaudited financial results for the nine months ended September 30, 2025. Financial Highlights for the Nine Months Ended September 30, 2025 Revenue was JPY8.6 billion ($57.8 million) for the nine months ended September 30, 2025, an increase of 15.3% from JPY7.4 billion for the same period last year. Gross profit was JPY2.4 billion ($16.3 million) for the nine months ended September 30, 2025, an increase of 18.1% from JPY2.0 billion for the same period last year. Gross margin was 28.2% for the nine months ended September 30, 2025, which increased from 27.5% for the same period last year. Net income was JPY226.7 million ($1.5 million) for the nine months ended September 30, 2025, an increase of 0.7% from JPY225.1 million for the same period last year. Basic and diluted earnings per share was JPY9.1 ($0.06) for the nine months ended September 30, 2025, compared to basic earnings per share of JPY9.0 and diluted earnings per share of JPY8.3 for the same period last year. Operational Highlights for the Nine Months Ended September 30, 2025 Number of members in the sports school business was 71,529 for the nine months ended September 30, 2025, an increase of 2.3% from 69,924 for the same period last year. Average membership duration in the sports school business was 1.84 years for the nine months ended September 30, 2025, an increase of 1.1% from 1.82 years for the same period last year. Revenue per capita in the sport school business, which we define as the sales revenue of the sports school business divided by the number of employees involved in that business, was JPY9.6 million ($0.06 million) for the nine months ended September 30, 2025, an increase of 6.2% from JPY9.0 million for the same period last year. Number of schools served under the social business segment was 360 for the nine months ended September 30, 2025, an increase of 53.2% from 235 for the same period last year. Revenue per capita in the social business, which we define as the sales revenue of the social business divided by the number of employees involved in that business, was JPY7.6 million ($0.05 million) for the nine months ended September 30, 2025, an increase of 18.6% from JPY6.4 million for the same period last year. Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "We delivered solid financial results in the first nine months of fiscal year 2025, with meaningful growth across our key financial and operational metrics. Revenue increased 15.3% and net income grew 0.7% from the same period last year. By segment, sports school business achieved revenue growth of 8.9% and social business revenue increased by 36.4% year over year. Our performance shows continued strength of our sports school business and expanding demand for our social business. Notably, revenue per capita in our social business rose by 18.6% year over year, highlighting the increasing value and impact of our community-based services. Looking ahead, we see meaningful opportunities in Japan's shifting policy landscape. The government's ongoing Club Activity Reform, which focuses on shifting school-based club activity management to regional and private organizations, is expected to create an important long-term growth pathway for Leifras. We recently secured a new contract with the City of Nagoya, Aichi Prefecture, to manage facilities at municipal junior high schools in Nagoya, marking an important step in our expansion strategy. We intend to actively pursue additional opportunities as municipalities seek specialized partners to deliver high-quality sports and community programs. In the future, we remain committed to cultivating the non-cognitive skills of children, strengthening community well-being, enhancing our service offerings, and delivering sustainable value to our shareholders and society." Financial Results for the Nine Months Ended September 30, 2025 Revenue Total revenue was JPY8.6 billion ($57.8 million) for the nine months ended September 30, 2025, an increase of 15.3% from JPY7.4 billion for the same period last year. Sports school business revenue was JPY6.2 billion ($41.9 million) for the nine months ended September 30, 2025, an increase of 8.9% from JPY5.7 billion for the same period last year. The increase in revenue was mostly driven by: (i) an increase in the number of members by 1,605, from 69,924 as of September 30, 2024 to 71,529 as of September 30, 2025, resulting in an increase in revenue of JPY315.7 million ($2.1 million) and (ii) an increase in the number of customers who joined events hosted by the Company from 136,695 for the nine months ended September 30, 2024 to 142,843 for the nine months ended September 30, 2025, leading to an increase in the sports school business revenue by JPY112.6 million ($0.8 million). Social business revenue was JPY2.4 billion ($15.9 million) for the nine months ended September 30, 2025, an increase of 36.4% from JPY1.7 billion for the same period last year. The increase in revenue was mostly driven by: (i) an increase in the number of schools by 125, from 235 as of September 30, 2024 to 360 as of September 30, 2025, resulting in an increase in revenue of JPY505.1 million ($3.4 million), and (ii) an increase in after-school daycare service revenue by JPY86.1 million ($0.6 million). Cost of Revenue Cost of revenue was JPY6.1 billion ($41.5 million) for the nine months ended September 30, 2025, an increase of 14.2% from JPY5.4 billion for the same period last year. Gross Profit Gross profit was JPY2.4 billion ($16.3 million) for the nine months ended September 30, 2025, an increase of 18.1% from JPY2.0 billion for the same period last year. Gross margin was 28.2% for the nine months ended September 30, 2025, which increased from 27.5% for the same period last year. Selling, General, and Administrative Expenses Selling, general, and administrative expenses were JPY2.1 billion ($13.9 million) for the nine months ended September 30, 2025, an increase of 14.0% from JPY1.8 billion for the same period last year. The increase was attributed to (i) the increase in salaries and welfare expenses of JPY137.5 million ($0.9 million) due to business expansion as well as an increase in headquarters personnel in preparation for the Company's initial public offering ("IPO"), (ii) the increase in promotion fees of JPY8.2 million ($0.06 million) due to business expansion, (iii) the increase in office rental fees of JPY14.1 million ($0.1 million) due to business expansion, (iv) the increase in system maintenance fee expenses of JPY17.3 million ($0.1 million) incurred due to the increase in the number of employees, and (v) the increase in recruitment fees of JPY53.8 million ($0.4 million) due to business expansion as well as an increase in headquarters personnel in preparation for the Company's IPO. Other Income (Expenses), Net Other expenses, net were JPY1.9 million ($0.01 million) for the nine months ended September 30, 2025, compared to other income, net of JPY28.7 million for the same period last year. The decrease was attributed to: (i) net franchise income collected (returned) of JPY27.4 million ($0.02 million), which was the payments refunded to the franchisees in connection with the transfer of certain business rights, (ii) an eviction compensation of JPY5.5 million ($0.04 million) received in connection with the vacating of a leased building. Interest expenses, net were JPY9.7 million ($0.07 million) for the nine months ended September 30, 2025, a decrease of 21.8% from JPY12.4 million for the same period last year. Net Income Net income was JPY226.7 million ($1.5 million) for the nine months ended September 30, 2025, an increase of 0.7% from JPY225.1 million for the same period last year. Basic and Diluted Earnings per Share Basic earnings per share was JPY9.10 ($0.06) for the nine months ended September 30, 2025, compared to JPY9.04 for the same period last year. Diluted earnings per share was JPY9.10 ($0.06) for the nine months ended September 30, 2025, compared to JPY8.32 for the same period last year. Financial Condition As of September 30, 2025, the Company had cash of JPY2.4 billion ($16.5 million), compared to JPY2.5 billion as of December 31, 2024. Net cash provided by operating activities was JPY326.7 million ($2.2 million) for the nine months ended September 30, 2025, compared to net cash used in operating activities of JPY105.4 million for the same period last year. Net cash used in investing activities was JPY48.5 million ($0.3 million) for the nine months ended September 30, 2025, compared to JPY45.7 million for the same period last year. Net cash used in financing activities was JPY380.1 million ($2.6 million) for the nine months ended September 30, 2025, compared to JPY224.1 million for the same period last year. Financial Guidance The Company is projecting total revenue to be between JPY11.6 billion and JPY11.9 billion ($78.1 million and $80.5 million) for the fiscal year ending December 31, 2025, an increase of approximately 11.9% to 15.3% from JPY10.3 billion ($69.8 million) for the fiscal year ended December 31, 2024. Income from operations is projected to be between JPY580.0 million and JPY696.5 million ($3.9 million and $4.7 million) for the fiscal year ending December 31, 2025, an increase of 11.6% to 34.0% from JPY519.8 million ($3.5 million) for the fiscal year ended December 31, 2024. These projections are based on the assumption that no business acquisitions, restructuring activities, or legal settlements will take place during the period. Exchange Rate Information This announcement contains translations of certain Japanese Yen ("JPY") amounts into U.S. dollars ("USD," or "$") for the convenience of the reader. Translations of amounts from JPY into USD have been made at the exchange rate of JPY147.97 = $1.00, the exchange rate on September 30, 2025 set forth in the H.10 statistical release of the United States Federal Reserve Board. About LEIFRAS Co., Ltd. Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2024, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics. For more information, please visit the Company's website: https://ir.leifras.co.jp/. Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. For more information, please contact: LEIFRAS Co., Ltd. Investor Relations Department Email: [email protected] Ascent Investor Relations LLC Tina Xiao Phone: +1-646-932-7242 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-reports-financial-results-for-the-nine-months-ended-september-30-2025-302646272.html
Investor releaseQuarter not tagged2025-11-13LEIFRAS Co., Ltd. to Host First Half of Fiscal Year 2025 Earnings Calls on Thursday, November 20, 2025
PR Newswire
LEIFRAS Co., Ltd. to Host First Half of Fiscal Year 2025 Earnings Calls on Thursday, November 20, 2025
TOKYO, Nov. 13, 2025 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced that it will host conference calls to discuss its financial results for the six months ended June 30, 2025. The Company will host a Japanese-language conference call at 7:00 am U.S. Eastern Time (9:00 pm Japan Standard Time) and an English-language conference call at 8:30 am U.S. Eastern Time (10:30 pm Japan Standard Time) on November 20, 2025. To attend the earnings conference calls, please use the following access information. Please dial in at least 15 minutes before the commencement of the calls to ensure timely participation. For those unable to participate, an audio replay of the English-language conference call at 8:30 am U.S. Eastern Time will be available from approximately one hour after the end of the live call until November 27, 2025. The dial-in for the replay is +1-855-669-9658 within the United States and Canada or +1-412-317-0088 internationally. The replay access code is 9722466. A live and archived webcast of both conference calls will also be available at the Company's investor relations website at https://ir.leifras.co.jp/. About LEIFRAS Co., Ltd. Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2024, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics. For more information, please visit the Company's website: https://ir.leifras.co.jp/. Forward-Lookin…Read full documentShow less
TOKYO, Nov. 13, 2025 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced that it will host conference calls to discuss its financial results for the six months ended June 30, 2025. The Company will host a Japanese-language conference call at 7:00 am U.S. Eastern Time (9:00 pm Japan Standard Time) and an English-language conference call at 8:30 am U.S. Eastern Time (10:30 pm Japan Standard Time) on November 20, 2025. To attend the earnings conference calls, please use the following access information. Please dial in at least 15 minutes before the commencement of the calls to ensure timely participation. For those unable to participate, an audio replay of the English-language conference call at 8:30 am U.S. Eastern Time will be available from approximately one hour after the end of the live call until November 27, 2025. The dial-in for the replay is +1-855-669-9658 within the United States and Canada or +1-412-317-0088 internationally. The replay access code is 9722466. A live and archived webcast of both conference calls will also be available at the Company's investor relations website at https://ir.leifras.co.jp/. About LEIFRAS Co., Ltd. Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2024, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics. For more information, please visit the Company's website: https://ir.leifras.co.jp/. Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. For more information, please contact: LEIFRAS Co., Ltd. Investor Relations Department Email: [email protected] Ascent Investor Relations LLC Tina Xiao Phone: +1-646-932-7242 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-to-host-first-half-of-fiscal-year-2025-earnings-calls-on-thursday-november-20-2025-302613789.html
Investor releaseQuarter not tagged2025-10-31LEIFRAS Co., Ltd. Reports Financial Results of Six Months Ended June 30, 2025
PR Newswire
LEIFRAS Co., Ltd. Reports Financial Results of Six Months Ended June 30, 2025
TOKYO, Oct. 30, 2025 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced its unaudited financial results for the six months ended June 30, 2025. Financial Highlights of the Six Months Ended June 30, 2025 Revenue was JPY5.5 billion ($38.1 million) for the six months ended June 30, 2025, an increase of 15.0% from JPY4.8 billion for the same period last year. Gross profit was JPY1.4 billion ($10.0 million) for the six months ended June 30, 2025, an increase of 16.1% from JPY1.2 billion for the same period last year. Gross margin was 26.3% for the six months ended June 30, 2025, increased from 26.0% for the same period last year. Net income was JPY53.7 million ($0.4 million) for the six months ended June 30, 2025, an increase of 25.6% from JPY42.8 million for the same period last year. Basic and diluted earnings per share was JPY2.2 ($0.01) for the six months ended June 30, 2025, compared to basic earnings per share of JPY1.7 and diluted earnings per share of JPY1.5 for the same period last year. Operational Highlights of the Six Months Ended June 30, 2025 Number of members in the sports school business was 69,500 for the six months ended June 30, 2025, an increase of 6.4% from 65,337 for the same period last year. Average membership duration in the sports school business was 1.9 years for the six months ended June 30, 2025, an increase of 2.2% from 1.8 years for the same period last year. Revenue per capita in the sport school business, which we define as the sales revenue of the sports school business divided by the number of employees involved in that business, was JPY6.1 million ($42,433) for the six months ended June 30, 2025, an increase of 4.2% from JPY5.9 million for the same period last year. Number of schools served under the social business segment was 349 for the six months ended June 30, 2025, an increase of 48.5% from 235 for the same period last year. Revenue per capita in the social business, which we define as the sales revenue of the social business divided by the number of employees involved in that business, was JPY5.1 million ($35,121) for the six months ended June 30, 2025, an increase of 21.7% from JPY4.2 million for the same period last year. Mr. Kiyotaka Ito, the Representative Director and Chief Executive Of…Read full documentShow less
TOKYO, Oct. 30, 2025 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced its unaudited financial results for the six months ended June 30, 2025. Financial Highlights of the Six Months Ended June 30, 2025 Revenue was JPY5.5 billion ($38.1 million) for the six months ended June 30, 2025, an increase of 15.0% from JPY4.8 billion for the same period last year. Gross profit was JPY1.4 billion ($10.0 million) for the six months ended June 30, 2025, an increase of 16.1% from JPY1.2 billion for the same period last year. Gross margin was 26.3% for the six months ended June 30, 2025, increased from 26.0% for the same period last year. Net income was JPY53.7 million ($0.4 million) for the six months ended June 30, 2025, an increase of 25.6% from JPY42.8 million for the same period last year. Basic and diluted earnings per share was JPY2.2 ($0.01) for the six months ended June 30, 2025, compared to basic earnings per share of JPY1.7 and diluted earnings per share of JPY1.5 for the same period last year. Operational Highlights of the Six Months Ended June 30, 2025 Number of members in the sports school business was 69,500 for the six months ended June 30, 2025, an increase of 6.4% from 65,337 for the same period last year. Average membership duration in the sports school business was 1.9 years for the six months ended June 30, 2025, an increase of 2.2% from 1.8 years for the same period last year. Revenue per capita in the sport school business, which we define as the sales revenue of the sports school business divided by the number of employees involved in that business, was JPY6.1 million ($42,433) for the six months ended June 30, 2025, an increase of 4.2% from JPY5.9 million for the same period last year. Number of schools served under the social business segment was 349 for the six months ended June 30, 2025, an increase of 48.5% from 235 for the same period last year. Revenue per capita in the social business, which we define as the sales revenue of the social business divided by the number of employees involved in that business, was JPY5.1 million ($35,121) for the six months ended June 30, 2025, an increase of 21.7% from JPY4.2 million for the same period last year. Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "We are pleased to share strong results for the first half of fiscal year 2025, with revenue increasing 15.0%, gross profit rising 16.1%, and net income growing 25.6% year over year. These results reflect both growth in our sports school business, where membership and event participation continued to increase, and momentum in our social business, which saw a 48.5% increase in the number of schools served from the same period last year. Notably, revenue per capita in our social business rose 21.7% year over year, highlighting the growing value and impact of our community-based services. "In October 2025, we achieved an important milestone with Leifras' successful initial public offering on Nasdaq. This achievement would not have been possible without the unwavering support of so many: the children and families who use our services, the shareholders who share our vision, the business partners who advance our mission, and the dedicated instructors across Japan whose passion drives our work each day. I offer my heartfelt gratitude to everyone who has been part of this journey." Mr. Ito continued, "At Leifras, we believe in the power of sports to transcend language and borders and to enrich lives and communities. Looking ahead, we are dedicated to continuing to build on the momentum by advancing youth sports education, broadening our social initiatives, and driving operational efficiency to create sustainable, long-term value for our shareholders and the communities we serve." Financial Results of the Six Months Ended June 30, 2025 Revenue Total revenue was JPY5.5 billion ($38.1 million) for the six months ended June 30, 2025, an increase of 15.0% from JPY4.8 billion for the same period last year. Sports school business revenue was JPY3.9 billion ($27.3 million) for the six months ended June 30, 2025, an increase of 8.5% from JPY3.6 billion for the same period last year. The increase in revenue was mostly driven by: (i) an increase in the number of members by 4,163, from 65,337 as of June 30, 2024 to 69,500 as of June 30, 2025, resulting in an increase in revenue of JPY229.1 million ($1.6 million) and (ii) an increase in the number of customers who joined events hosted by the Company from 84,651 for the six months ended June 30, 2024 to 90,501 for the six months ended June 30, 2025, leading to an increase in the sports school business revenue by JPY74.8 million ($0.5 million). Social business revenue was JPY1.6 billion ($10.8 million) for the six months ended June 30, 2025, an increase of 35.4% from JPY1.1 billion for the same period last year. The increase in revenue was mostly driven by: (i) an increase in the number of schools by 114, from 235 as of June 30, 2024 to 349 as of June 30, 2025, resulting in an increase in revenue of JPY356.2 million ($2.5 million), and (ii) an increase in after-school daycare service revenue by JPY37.4 million ($0.3 million). Cost of Revenue Cost of revenue was JPY4.0 billion ($28.1 million) for the six months ended June 30, 2025, an increase of 14.6% from JPY3.5 billion for the same period last year. Gross Profit Gross profit was JPY1.4 billion ($10.0 million) for the six months ended June 30, 2025, an increase of 16.1% from JPY1.2 billion for the same period last year. Gross margin was 26.3% for the six months ended June 30, 2025, increased from 26.0% for the same period last year. Selling, General, and Administrative Expenses Selling, general, and administrative expenses were JPY1.4 billion ($9.5 million) for the six months ended June 30, 2025, an increase of 13.6% from JPY1.2 billion for the same period last year. The increase was attributed to (i) the increase in salaries and welfare expenses of JPY69.8 million ($0.5 million) due to business expansion as well as an increase in headquarters personnel in preparation for our initial public offering ("IPO"), (ii) the increase in promotion fees of JPY10.7 million ($0.07 million) due to business expansion, (iii) the increase in office rental fees of JPY12.6 million ($0.09 million) due to business expansion, (iv) the increase in system maintenance fee expenses of JPY13.9 million ($0.10 million) incurred due to the increase in the number of employees, and (v) the increase in recruitment fees of JPY33.4 million ($0.2 million) due to business expansion as well as an increase in headquarters personnel in preparation for our IPO. Other Income (Expenses) Other expenses were JPY11.3 million ($0.08 million) for the six months ended June 30, 2025, a decrease of 139.5% from other income of JPY28.6 million for the same period last year. The decrease was attributed to: (i) net franchise income collected (returned) of JPY27.4 million ($0.2 million), which was the payments refunded to the franchisees in connection with the transfer of certain business rights, (ii) an eviction compensation of JPY5.5 million ($0.04 million) received in connection with the vacating of a leased building. Net Income Net income was JPY53.7 million ($0.4 million) for the six months ended June 30, 2025, an increase of 25.6% from JPY42.8 million for the same period last year. Basic and Diluted Earnings per Share Basic earnings per share was JPY2.2 ($0.01) for the six months ended June 30, 2025, compared to JPY1.7 for the same period last year. Diluted earnings per share was JPY2.2 ($0.01) for the six months ended June 30, 2025, compared to JPY1.5 for the same period last year. Financial Condition As of June 30, 2025, the Company had cash of JPY2.5 billion ($17.3 million), compared to JPY2.5 billion as of December 31, 2024. Net cash provided by operating activities was JPY312.8 million ($2.2 million) for the six months ended June 30, 2025, compared to net cash used in operating activities of JPY212.3 million for the same period last year. Net cash used in investing activities was JPY47.2 million ($0.3 million) for the six months ended June 30, 2025, compared to JPY44.2 million for the same period last year. Net cash used in financing activities was JPY306.1 million ($2.1 million) for the six months ended June 30, 2025, compared to JPY35.7 million for the same period last year. Recent Development The Company consummated its IPO on October 10, 2025, in which it issued and sold 1,250,000 American Depositary Shares ("ADSs") at a price of $4.00 per ADS, resulting in gross proceeds of approximately JPY720.9 million ($5.0 million) and net proceeds of approximately JPY673.5 million ($4.7 million) after deducting the underwriting discount of approximately JPY47.4 million ($0.3 million). Financial Guidance The Company expects total revenue to be between $80.2 million and $82.6 million for the fiscal year ending December 31, 2025, an increase of approximately 11.9% to 15.3% from $71.6 million for the fiscal year ended December 31, 2024. Income from operations is projected to be between $4.0 million and $4.8 million for the fiscal year ending December 31, 2025, an increase of 11.6% to 34.0% from $3.6 million for the fiscal year ended December 31, 2024. These projections are based on the assumption that no business acquisitions, restructuring activities, or legal settlements will take place during the period. Exchange Rate Information This announcement contains translations of certain Japanese Yen ("JPY") amounts into U.S. dollars ("USD," or "$") for the convenience of the reader. Translations of amounts from JPY into USD have been made at the exchange rate of JPY144.17 = $1.00, the exchange rate on June 30, 2025 set forth in the H.10 statistical release of the United States Federal Reserve Board on July 7, 2025. About LEIFRAS Co., Ltd. Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2024, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics. For more information, please visit the Company's website: https://ir.leifras.co.jp/. Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the the U.S. Securities and Exchange Commission (the "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the registration statement and other filings with the SEC. Additional factors are discussed in the Company''s filings with the SEC, which are available for review at www.sec.gov. For more information, please contact: LEIFRAS Co., Ltd. Investor Relations Department Email: [email protected] Ascent Investor Relations LLC Tina Xiao Phone: +1-646-932-7242 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-reports-financial-results-of-six-months-ended-june-30-2025-302600077.html

