LEIFRAS Co., Ltd. Reports Financial Results
LEIFRAS Co., Ltd. (Nasdaq: LFS), a dedicated company for youth sports and social engagement, shared its impressive financial results for the nine months ending September 30, 2025. The company has showcased notable growth in both revenue and profit, affirming its solid standing in the sports and social business sector.
Financial Highlights
Revenue Growth: LEIFRAS achieved a revenue of JPY 8.6 billion ($57.8 million), marking a significant increase of 15.3% compared to JPY 7.4 billion during the same period in the previous year.
Gross Profit: The gross profit reached JPY 2.4 billion ($16.3 million), reflecting an 18.1% rise from JPY 2.0 billion in the previous year.
Gross Margin: The gross margin improved to 28.2%, up from 27.5%, demonstrating efficient management of resources.
Net Income: Net income stood at JPY 226.7 million ($1.5 million), slightly increasing by 0.7% from JPY 225.1 million the previous year.
Earnings Per Share: The basic and diluted earnings per share were JPY 9.1 ($0.06), slightly improving from basic earnings of JPY 9.0 and diluted earnings of JPY 8.3 from last year.
Operational Performance
In the sports school business segment, the number of members has surged to 71,529, a 2.3% increase from 69,924. The average membership duration also increased to 1.84 years. These metrics reflect a healthy participation in youth sports.
The company saw a rise in revenue per capita in its sports school business, amounting to JPY 9.6 million ($0.06 million), which represented a 6.2% increase year-over-year.
The number of schools served in the social business segment has dramatically increased to 360, a 53.2% year-on-year growth. Additionally, revenue per capita in this segment climbed to JPY 7.6 million ($0.05 million), showcasing LEIFRAS's expanding influence and the demand for its services.
CEO Comments
Mr. Kiyotaka Ito, the Representative Director and CEO, expressed pride in the results, stating, "We have experienced solid growth across key metrics, underlining our commitment to excellence in youth sports and community programs. Our revenue growth in the sports school sector and the robust performance of our social business highlight our strategic focus and execution. The recent contract with the City of Nagoya is a significant milestone in our expansion plans, reinforcing our role as a vital partner for municipalities seeking quality sports programs for children. We foresee considerable growth opportunities as Japan's education landscape evolves."
Future Projections
LEIFRAS faces promising prospects for the upcoming fiscal year. The company anticipates total revenue in the range of JPY 11.6 billion to JPY 11.9 billion ($78.1 million to $80.5 million), indicating a projected growth rate of approximately 11.9% to 15.3% compared to the previous year’s revenue. The company expects to maintain its momentum as it forges ahead into the new venture.
Financial Condition Overview
As of the end of September 2025, LEIFRAS had cash holding of JPY 2.4 billion ($16.5 million), with a steady cash flow from operating activities of JPY 326.7 million ($2.2 million), significantly improving from the net cash used in operating activities previously reported.
About LEIFRAS Co., Ltd.
LEIFRAS Co., Ltd. is headquartered in Tokyo and is committed to enriching youth sports and community engagement. Through a wide array of sports education services, the company aims to cultivate essential skills in children while promoting social inclusion and health.
Frequently Asked Questions
What are the key highlights of LEIFRAS's financial performance?
LEIFRAS reported a 15.3% increase in revenue to JPY 8.6 billion for nine months ending September 30, 2025, with net income rising slightly to JPY 226.7 million.
How many members are enrolled in LEIFRAS's sports school?
As of September 30, 2025, LEIFRAS has 71,529 members in its sports school business, marking a growth of 2.3% from the previous year.
What projects is LEIFRAS pursuing in the future?
LEIFRAS has recently secured a contract with the City of Nagoya to manage municipal junior high school facilities, reflecting its expansion strategy into social business.
How does LEIFRAS define revenue per capita in its segments?
LEIFRAS computes revenue per capita by dividing sales revenue by the number of employees involved in its respective business segments.
What is the strategic vision of LEIFRAS Co., Ltd.?
The company aims to foster non-cognitive skills in children while enhancing community well-being and promoting physical health through engaging sports programs.
