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LEIFRAS Co., Ltd: Financial Report for Nine Months Ending September 30, 2025

LEIFRAS Co., Ltd. (Nasdaq: LFS), headquartered in Tokyo, is a unique entity focusing on youth sports and community involvement. The company has recently shared its unaudited financial results for the nine months ending September 30, 2025, reporting impressive growth metrics across both revenue and net income. This article delves into the financial details and operational highlights that characterize LEIFRAS's robust performance.

Financial Highlights

For the first three quarters of fiscal year 2025, LEIFRAS recorded a revenue of JPY 8.6 billion (approximately $57.8 million), marking a solid 15.3% increase compared to JPY 7.4 billion in the same period last year. Gross profit has also improved significantly, rising to JPY 2.4 billion ($16.3 million), which reflects an 18.1% growth from the previous year's JPY 2.0 billion. The gross margin has correspondingly risen to 28.2% from 27.5% in the previous year.

Net income for the company was reported at JPY 226.7 million ($1.5 million), indicating a modest growth of 0.7% from JPY 225.1 million during the same timeframe last year. The earnings per share also saw a slight increase, with both basic and diluted EPS recorded at JPY 9.1 ($0.06).

Operational Achievements

Despite facing challenges in the current market, the company’s operational metrics showed significant improvement. The number of members in the sports school business grew to 71,529, reflecting a 2.3% increase from last year's 69,924. Furthermore, the average membership duration has slightly risen to 1.84 years, highlighting customer retention and satisfaction.

One of the standout areas for growth was in the social business segment, where revenue skyrocketed to JPY 2.4 billion ($15.9 million), representing a remarkable 36.4% increase from the previous year's JPY 1.7 billion. This growth can be attributed to expanding partnerships with schools—360 schools served, compared to 235 last year—showcasing LEIFRAS's commitment to community collaboration.

Strategic Outlook

Mr. Kiyotaka Ito, the CEO of LEIFRAS, expressed optimism regarding the company's future endeavors, stating, "We've experienced solid growth in the last nine months, particularly in our sports school business, and have a strong outlook due to Japan's ongoing Club Activity Reform initiatives. Our recent contract win with the City of Nagoya signifies both our commitment to community engagement and our readiness to expand our operations."

Looking ahead, LEIFRAS aims to seize further opportunities as municipal governments look for specialized partners to provide quality sports and community programs. The company’s approach not only focuses on fostering physical health for children but also emphasizes the cultivation of non-cognitive skills, which is vital for holistic development.

Financial Guidance

As LEIFRAS looks toward the future, it projects total revenue between JPY 11.6 billion and JPY 11.9 billion ($78.1 million to $80.5 million) for the fiscal year ending December 31, 2025, representing an estimated growth of about 11.9% to 15.3% compared to the previous fiscal year. The income from operations is anticipated to be between JPY 580.0 million and JPY 696.5 million ($3.9 million to $4.7 million), also indicating significant progress and operational efficiency.

Conclusion

LEIFRAS Co., Ltd.'s recent financial performance is a testament to its strategic investments and community-focused initiatives. By enhancing its services, expanding operational capacities, and continuing to prioritize youth sports, the company is well-positioned for sustained growth and greater contributions to society.

To learn more about LEIFRAS and their community engagement efforts, visit their official website.