#Japan #Tokyo #Q3 2025 #LEIFRAS #LFS

Overview of Leifras Inc.'s Q3 2025 Financial Results

On December 18, 2025, Leifras Inc., a prominent company in the children's sports school and extracurricular support sectors, announced its unaudited financial results for the third quarter of fiscal year 2025. The Tokyo-based company, listed on NASDAQ under the ticker LFS, reported significant growth in revenue and profit compared to the previous year.

Financial Highlights

For the third quarter of 2025, Leifras achieved a total revenue of 8.6 billion JPY (approximately 57.8 million USD), marking a remarkable 15.3% increase from 7.4 billion JPY in Q3 2024. Notably, the gross profit also saw a healthy rise, reaching 2.4 billion JPY (about 16.3 million USD), which is an 18.1% increase from 2.0 billion JPY the previous year. The gross profit margin improved to 28.2%, up from 27.5% year-over-year.

The company reported a net profit of 226.7 million JPY (1.5 million USD), a slight increase of 0.7% from the 225.1 million JPY in the same period last year. The basic and diluted earnings per share were both 9.1 JPY (0.06 USD), reflecting growth from last year's figures of 9.0 JPY and 8.3 JPY respectively.

Breakdown of Business Segments

1. Sports School Business: The sports school's member count hit 71,529 in Q3 2025, up from 69,924 in the previous year, translating to a 2.3% increase. The average tenure of members also rose slightly to 1.84 years.
- Revenue in the sports school business climbed to 6.2 billion JPY (41.9 million USD), a growth of 8.9% from the previous year's 5.7 billion JPY. This growth was primarily driven by an increase in membership and event participation.

2. Social Business: The number of schools under contract for extracurricular support surged to 360, up 53.2% from 235 in the prior year, demonstrating the rising demand in social services. Revenue from the social business reached 2.4 billion JPY (15.9 million USD), marking a significant 36.4% increase.
- Per-employee revenue in the social sector grew by 18.6% year-over-year, highlighting the effectiveness of their community-focused approach.

CEO's Statement

Kiyotaka Ito, CEO of Leifras, expressed satisfaction with the company's performance, stating, "The results for Q3 2025 show a consistent growth, with revenue up by 15.3% and net profit by 0.7%. The sports school and social business segments reflect our strategic strengths and the increasing demand for community-oriented services."

He further emphasized the company’s focus on capitalizing on opportunities presented by Japan's educational reform policies, specifically in sports extracurricular activities. This includes a recent contract with the city of Nagoya for facility management in public middle schools, which Ito views as a vital step in their expansion strategy.

Financial Outlook

Leifras anticipates total revenue for the fiscal year ending December 31, 2025, will fall between 11.6 billion JPY and 11.9 billion JPY (approximately 78.1 million to 80.5 million USD), which represents an estimated growth of 11.9% to 15.3% compared to the previous fiscal year.

Operating profit is forecasted to fall between 5.8 billion JPY and 6.965 billion JPY (around 3.9 million to 4.7 million USD), marking an expected increase of 11.6% to 34.0% compared to 5.198 billion JPY in the previous year.

As the company continues to prioritize the development of children's non-cognitive skills and aims to enhance community well-being, it seeks ongoing support from stakeholders and investors as it navigates this growth trajectory.

About Leifras Inc.

Leifras Inc. is a leading sports and social business company headquartered in Tokyo. It specializes in children’s sports schools and extracurricular activities, employing a holistic educational approach that emphasizes personal development through sports. With a substantial base of members and schools, Leifras is dedicated to promoting physical health and social inclusion within various communities.

For more details, visit Leifras IR website.