LEIFRAS Co., Ltd. Reports Impressive Financial Results for First Half of 2025

LEIFRAS Co., Ltd. Delivers Strong Financial Results for the First Half of 2025

Overview
LEIFRAS Co., Ltd. (Nasdaq: LFS), a dynamic player in the sports and social business sector dedicated to youth sports and community service, has reported its financial results for the six months ending June 30, 2025, showcasing remarkable growth across various metrics.

Financial Highlights

During this six-month period, LEIFRAS achieved a revenue of JPY 5.5 billion (approximately $38.1 million), marking a substantial increase of 15% compared to JPY 4.8 billion earned in the same period of the previous year.

The company achieved a gross profit of JPY 1.4 billion ($10 million), which is a 16.1% increase from last year’s figure of JPY 1.2 billion. The gross margin rose slightly from 26.0% in 2024 to 26.3% in 2025, indicating improved operational efficiency.

Net income also saw impressive growth, reaching JPY 53.7 million ($0.4 million), an increase of 25.6% year over year from JPY 42.8 million. Basic and diluted earnings per share reached JPY 2.2 ($0.01), compared to JPY 1.7 and JPY 1.5 for the same period last year, respectively.

Operational Highlights

In terms of operational performance, the company recorded a membership growth in its sports school business, reaching 69,500 members, a 6.4% increase from 65,337 members last year. The average membership duration also increased to 1.9 years from 1.8 years in the previous year.

Revenue per capita in the sports school segment rose to JPY 6.1 million ($42,433), a 4.2% increase from last year, demonstrating the efficiency and profitability of the business model.

Additionally, the social business segment served 349 schools, reflecting a significant growth of 48.5% from 235 schools last year. Revenue per capita for this segment saw an even more impressive gain of 21.7%, rising to JPY 5.1 million ($35,121).

Management's Commentary

Mr. Kiyotaka Ito, the Representative Director and CEO of Leifras, expressed satisfaction with the financial performance, stating, "We are pleased to report strong results for the first half of fiscal year 2025, demonstrating growth across both our sports school and social business segments. The increase in schools served and revenue per capita showcases the growing value and impact of our community-based services."

Ito also highlighted the recent IPO milestone in October 2025, attributing success to the support of families using their services, shareholders, business partners, and dedicated instructors across Japan. He passionately stated the company's mission, “At Leifras, we believe in the power of sports to transcend language and borders and enrich lives.”

Financial Guidance

Looking forward, LEIFRAS anticipates total revenue for the fiscal year ending December 31, 2025, to be between $80.2 million and $82.6 million, representing an increase of approximately 11.9% to 15.3% from 2024. Income from operations is projected to be between $4.0 million and $4.8 million, aiming for an increase of 11.6% to 34%).

Conclusion

In conclusion, LEIFRAS Co., Ltd. continues to demonstrate strong financial health and growth potential within the youth sports sector and community upliftment initiatives. With solid revenue increases, expanding membership, and effective community engagement strategies, the company is well-positioned for continued success in the forthcoming periods.