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: IR@leifras.co.jp
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
LEIFRAS CO., LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, September 30, September 30,
2024 2025 2025
-------------- ------------- -------------
JPY JPY US$
(Unaudited) (Unaudited)
ASSETS
CURRENT ASSETS
Cash 2,538,554,638 2,436,675,605 16,467,362
Accounts
receivable,
net 518,398,551 555,775,583 3,756,002
Short-term
investments 4,935,000 5,075,000 34,297
Inventories, net 24,468,188 20,757,063 140,279
Prepaid expenses 182,278,232 201,888,793 1,364,390
Other current
assets 34,381,843 57,886,907 391,207
------------- ------------- -------------
TOTAL CURRENT
ASSETS 3,303,016,452 3,278,058,951 22,153,537
------------- ------------- -------------
NON-CURRENT
ASSETS
Property and
equipment, net 53,805,279 99,293,143 671,035
Finance lease
right-of-use
assets 208,611,550 228,794,098 1,546,219
Operating lease
right-of-use
assets 337,330,750 513,349,897 3,469,284
Intangible
assets, net 39,250,078 27,980,475 189,096
Goodwill 27,999,994 27,999,994 189,228
Deferred tax
assets, net 214,671,578 189,283,332 1,279,201
Deferred initial
public offering
("IPO") costs 157,482,065 254,764,117 1,721,728
Long-term
deposits 150,407,276 150,210,192 1,015,140
Other
non-current
assets 3,090,205 9,784,796 66,127
------------- ------------- -------------
TOTAL
NON-CURRENT
ASSETS 1,192,648,775 1,501,460,044 10,147,058
------------- ------------- -------------
TOTAL ASSETS 4,495,665,227 4,779,518,995 32,300,595
============= ============= =============
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
CURRENT
LIABILITIES
Short-term loans 700,000,000 700,000,000 4,730,689
Current portion
of long-term
loans 230,785,000 169,252,000 1,143,826
Bond payable,
current 40,000,000 40,000,000 270,325
Accounts payable 168,281,568 114,243,578 772,073
Accrued
liabilities 1,109,740,581 1,184,636,104 8,005,921
Income tax
payable 75,374,800 3,301,800 22,314
Contract
liabilities,
current 147,628,310 267,364,483 1,806,883
Amount due to a
director 1,000,000 - -
Finance lease
liabilities,
current 71,681,545 83,549,523 564,638
Operating lease
liabilities,
current 110,889,134 132,923,377 898,313
Other current
liabilities 195,952,191 156,907,705 1,060,403
------------- ------------- -------------
TOTAL CURRENT
LIABILITIES 2,851,333,129 2,852,178,570 19,275,385
------------- ------------- -------------
NON-CURRENT
LIABILITIES
Long-term loans,
net of current
portion 175,452,000 38,568,000 260,648
Bond payable,
non-current 56,807,020 37,833,335 255,682
Contract
liabilities,
non-current 10,615,635 14,507,411 98,043
Finance lease
liabilities,
non-current 140,333,247 143,881,183 972,367
Operating lease
liabilities,
non-current 207,353,977 364,551,378 2,463,684
Assets
retirement
obligations 12,914,758 30,671,626 207,283
------------- ------------- -------------
TOTAL
NON-CURRENT
LIABILITIES 603,476,637 630,012,933 4,257,707
------------- ------------- -------------
TOTAL
LIABILITIES 3,454,809,766 3,482,191,503 23,533,092
============= ============= =============
COMMITMENTS
AND
CONTINGENCIES
SHAREHOLDERS'
EQUITY
Ordinary shares 80,500,000 80,500,000 544,029
Additional
paid-in
capital 748,840,080 778,624,844 5,262,045
Treasury shares (100,012,265) (100,012,265) (675,896)
Retained
earnings 311,527,646 538,214,913 3,637,325
------------- ------------- -------------
TOTAL
SHAREHOLDERS'
EQUITY 1,040,855,461 1,297,327,492 8,767,503
------------- ------------- -------------
TOTAL
LIABILITIES AND
SHAREHOLDERS'
EQUITY 4,495,665,227 4,779,518,995 32,300,595
============= ============= =============
LEIFRAS CO., LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the nine months ended
September 30
-----------------------------------------------
2024 2025 2025
---------------- --------------- ------------
JPY JPY US$
NET REVENUE 7,419,460,643 8,556,096,390 57,823,183
Cost of revenue (5,378,876,612) (6,145,159,916) (41,529,769)
--------------- --------------- ------------
GROSS PROFIT 2,040,584,031 2,410,936,474 16,293,414
Selling, general,
and
administrative
expenses (1,802,047,253) (2,055,180,818) (13,889,172)
--------------- --------------- ------------
INCOME FROM
OPERATIONS 238,536,778 355,755,656 2,404,242
--------------- --------------- ------------
OTHER INCOME
(EXPENSE)
Interest income 325,182 3,801,610 25,691
Interest expense (12,751,685) (13,514,164) (91,330)
Grant income 14,205,788 14,902,919 100,716
Unrealized (loss)
gain on
short-term
investment (168,000) 140,000 946
Loss on disposal
of long-lived
assets - (168,973) (1,142)
Loss on disposal
of a subsidiary (753,900) - -
Other income
(expense), net 15,438,598 (16,773,644) (113,358)
--------------- --------------- ------------
Total other
income
(expense), net 16,295,983 (11,612,252) (78,477)
--------------- --------------- ------------
INCOME BEFORE
INCOME TAX
PROVISION 254,832,761 344,143,404 2,325,765
PROVISION FOR
INCOME TAXES
Current (69,425,173) (92,067,891) (622,206)
Deferred 39,664,246 (25,388,246) (171,577)
--------------- --------------- ------------
Total provision
for income
taxes (29,760,927) (117,456,137) (793,783)
--------------- --------------- ------------
NET INCOME 225,071,834 226,687,267 1,531,982
=============== =============== ============
WEIGHTED
AVERAGE NUMBER
OF ORDINARY
SHARES
Basic 24,910,660 24,910,619 24,910,619
Diluted 27,066,715 24,913,619 24,913,619
=============== =============== ============
EARNINGS PER
SHARE
Basic 9.04 9.10 0.06
Diluted 8.32 9.10 0.06
=============== =============== ============
LEIFRAS CO., LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
For the nine months ended
September 30,
------------------------------------------
2024 2025 2025
-------------- ------------- -----------
JPY JPY US$
Cash flows from
operating
activities
Net income 225,071,834 226,687,267 1,531,982
Adjustments to
reconcile net
income to net
cash provided
by operating
activities
Depreciation and
amortization
expense 90,057,762 96,233,315 650,357
Loss on disposal
of a subsidiary 753,900 - -
Provision for
expected credit
loss 2,771,782 9,208,096 62,229
Loss on disposal
of property and
equipment - 168,973 1,142
Accounts
receivable
written off as
uncollectible - 28,558 193
Provision for
inventory
impairment 3,403,261 424,180 2,867
Unrealized loss
(gain) on
short-term
investment 168,000 (140,000) (946)
Other non-cash
expenses
(income) 1,100,148 29,173,060 197,155
Deferred tax
expense
(benefit) (39,664,246) 25,388,246 171,577
Changes in
operating
assets and
liabilities
Accounts
receivable, net (1,051,687) (46,613,686) (315,021)
Inventories (13,808,125) 3,286,945 22,214
Prepaid expenses (105,900,505) (19,854,842) (134,182)
Long-term
deposits (6,998,055) 197,084 1,332
Amount due from a
director 33,577,065 - -
Other current
assets (25,969,080) (23,505,064) (158,850)
Other non-current
assets (10,722,988) (6,694,591) (45,243)
Accounts payable (61,359,477) (54,037,990) (365,196)
Accrued
liabilities (204,167,728) 74,895,523 506,153
Contract
liabilities 121,711,898 123,627,949 835,493
Operating lease
liabilities (400,151) 3,212,497 21,710
Income tax
payable (149,952,500) (72,073,000) (487,078)
Amount due to a
director - (1,000,000) (6,758)
Other current
liabilities 36,020,082 (41,875,805) (283,002)
------------- ------------- -----------
Net cash (used
in) provided by
operating
activities (105,358,810) 326,736,715 2,208,128
------------- ------------- -----------
Cash flows from
investing
activities
Cash outflow due
to reduction in
consolidated
entities (17,257,489) - -
Purchase of
property and
equipment (11,926,248) (42,598,215) (287,884)
Purchase of
intangible
assets (16,521,500) (5,880,000) (39,738)
------------- ------------- -----------
Net cash used in
investing
activities (45,705,237) (48,478,215) (327,622)
------------- ------------- -----------
Cash flows from
financing
activities
Payment of
finance lease
liabilities (43,259,590) (64,438,481) (435,483)
Proceeds from
bank loans 250,000,000 - -
Repayment of bank
loans (280,815,000) (198,417,000) (1,340,927)
Repayment of bond
payable (20,000,000) (20,000,000) (135,163)
Payment of
deferred IPO
costs (129,983,403) (97,282,052) (657,445)
------------- ------------- -----------
Net cash used in
financing
activities (224,057,993) (380,137,533) (2,569,018)
------------- ------------- -----------
Net decrease in
cash (375,122,040) (101,879,033) (688,512)
Cash at the
beginning of
period 2,729,282,346 2,538,554,638 17,155,874
------------- ------------- -----------
Cash at the end
of the period
end 2,354,160,306 2,436,675,605 16,467,362
============= ============= ===========
Supplementary
cash flow
information
Cash paid for
income taxes 202,070,573 115,154,307 778,227
============= ============= ===========
Cash paid for
interest
expenses 11,651,537 12,325,868 83,300
============= ============= ===========
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SOURCE LEIFRAS Co., Ltd.
(END) Dow Jones Newswires
December 18, 2025 16:00 ET (21:00 GMT)