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LEIFRAS Co., Ltd. Reports Significant Financial Growth in FY 2025

On April 8, 2026, LEIFRAS Co., Ltd. (Nasdaq: LFS), a prominent player in the youth sports and social business sector, announced its fiscal results for the year ending December 31, 2025. With an unwavering commitment to enhancing community engagements and youth sports, the company enjoyed remarkable financial achievements. The total revenue for FY 2025 reached JPY 11.7 billion (approximately $74.8 million), marking a 13.5% increase from JPY 10.3 billion recorded in FY 2024. Furthermore, the income from operations surged to JPY 627.4 million (around $4 million), reflecting a 20.7% growth from the previous year.

Operational Highlights

The report delineated several operational highlights illustrating a consistent upward trajectory across diverse business segments. The company's net income also rose to JPY 438.5 million ($2.8 million), which is a 4.7% increase compared to JPY 418.6 million in FY 2024. Notably, the adjusted income from operations leaped substantially by 41.8%, culminating at JPY 692.3 million ($4.4 million).

In the sports school business segment, LEIFRAS recorded 70,688 members, a slight uptick of 0.04% from the previous fiscal year. This segment generated revenues of JPY 8.56 billion ($54.6 million), reflecting a 7.8% increase year-over-year. The social business segment exhibited a robust revenue growth of 32.8%, reaching JPY 3.17 billion ($20.2 million) with an increase in the number of schools served now totaling 381, compared to 347 in FY 2024.

Management Insights

Mr. Kiyotaka Ito, the Representative Director and CEO of LEIFRAS, expressed his pride in achieving these remarkable financial results, attributing the success to the company's strategic focus on youth sports and the growing acceptance of their services within local communities. He highlighted that the firm's leadership in the sports school sector, as well as their growing contracts in the club activities business, were key contributors to the impressive revenue growth.

“With the Japanese government's embrace of reforms aimed at transferring school-based club activity management to local communities and private sectors, LEIFRAS stands to gain significantly,” he remarked. Ito noted that the 'reform implementation period' from 2026 to 2031 sets a favorable landscape for long-term growth, aligning perfectly with LEIFRAS's objectives to foster children's development through sports.

Financial Condition Overview

As of December 31, 2025, LEIFRAS held cash and cash equivalents amounting to JPY 2.52 billion ($16.1 million), slightly down from JPY 2.54 billion in 2024. The company also reported a net cash inflow resulting from operations at JPY 468.3 million ($3 million), a significant improvement over JPY 207.1 million in FY 2024. However, cash used in investing activities totaled JPY 53.5 million ($0.3 million), showing consistent management of capital resources.

Looking ahead, LEIFRAS anticipates revenue growth for FY 2026 to range between $82.9 million and $95.7 million, indicating a potential rise of 10.8% to 27.9%. The projected income from operations is estimated to be between $4.5 million and $5.4 million, signaling a bright future for the company amidst evolving industry trends.

Conference Call Details

For investors and analysts looking to delve deeper into these results, LEIFRAS will convene a conference call in English on April 14, 2026, at 8:30 AM U.S. Eastern Time. A Japanese-language call will follow on April 15, ensuring all stakeholders are kept informed about the company's future directives and strategies.

Conclusion

The fiscal year 2025 marks a noteworthy chapter for LEIFRAS Co., Ltd., characterized by exceptional revenue growth and a steadfast commitment to the youth sports community. As reforms progress and awareness increases, LEIFRAS is poised to expand its influence and assist in developing a healthier, engaged youth through the power of sports education.