LEIFRAS Co., Ltd. Reports Financial Results of Six Months Ended June 30, 2025

TOKYO, Oct. 30, 2025 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced its unaudited financial results for the six months ended June 30, 2025.

Financial Highlights of the Six Months Ended June 30, 2025

Operational Highlights of the Six Months Ended June 30, 2025

Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "We are pleased to share strong results for the first half of fiscal year 2025, with revenue increasing 15.0%, gross profit rising 16.1%, and net income growing 25.6% year over year. These results reflect both growth in our sports school business, where membership and event participation continued to increase, and momentum in our social business, which saw a 48.5% increase in the number of schools served from the same period last year. Notably, revenue per capita in our social business rose 21.7% year over year, highlighting the growing value and impact of our community-based services.

"In October 2025, we achieved an important milestone with Leifras' successful initial public offering on Nasdaq. This achievement would not have been possible without the unwavering support of so many: the children and families who use our services, the shareholders who share our vision, the business partners who advance our mission, and the dedicated instructors across Japan whose passion drives our work each day. I offer my heartfelt gratitude to everyone who has been part of this journey."

Mr. Ito continued, "At Leifras, we believe in the power of sports to transcend language and borders and to enrich lives and communities. Looking ahead, we are dedicated to continuing to build on the momentum by advancing youth sports education, broadening our social initiatives, and driving operational efficiency to create sustainable, long-term value for our shareholders and the communities we serve."

Financial Results of the Six Months Ended June 30, 2025

Revenue

Total revenue was JPY5.5 billion ($38.1 million) for the six months ended June 30, 2025, an increase of 15.0% from JPY4.8 billion for the same period last year.

Sports school business revenue was JPY3.9 billion ($27.3 million) for the six months ended June 30, 2025, an increase of 8.5% from JPY3.6 billion for the same period last year. The increase in revenue was mostly driven by: (i) an increase in the number of members by 4,163, from 65,337 as of June 30, 2024 to 69,500 as of June 30, 2025, resulting in an increase in revenue of JPY229.1 million ($1.6 million) and (ii) an increase in the number of customers who joined events hosted by the Company from 84,651 for the six months ended June 30, 2024 to 90,501 for the six months ended June 30, 2025, leading to an increase in the sports school business revenue by JPY74.8 million ($0.5 million).

Social business revenue was JPY1.6 billion ($10.8 million) for the six months ended June 30, 2025, an increase of 35.4% from JPY1.1 billion for the same period last year. The increase in revenue was mostly driven by: (i) an increase in the number of schools by 114, from 235 as of June 30, 2024 to 349 as of June 30, 2025, resulting in an increase in revenue of JPY356.2 million ($2.5 million), and (ii) an increase in after-school daycare service revenue by JPY37.4 million ($0.3 million).

Cost of Revenue

Cost of revenue was JPY4.0 billion ($28.1 million) for the six months ended June 30, 2025, an increase of 14.6% from JPY3.5 billion for the same period last year.

Gross Profit

Gross profit was JPY1.4 billion ($10.0 million) for the six months ended June 30, 2025, an increase of 16.1% from JPY1.2 billion for the same period last year.

Gross margin was 26.3% for the six months ended June 30, 2025, increased from 26.0% for the same period last year.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses were JPY1.4 billion ($9.5 million) for the six months ended June 30, 2025, an increase of 13.6% from JPY1.2 billion for the same period last year. The increase was attributed to (i) the increase in salaries and welfare expenses of JPY69.8 million ($0.5 million) due to business expansion as well as an increase in headquarters personnel in preparation for our initial public offering ("IPO"), (ii) the increase in promotion fees of JPY10.7 million ($0.07 million) due to business expansion, (iii) the increase in office rental fees of JPY12.6 million ($0.09 million) due to business expansion, (iv) the increase in system maintenance fee expenses of JPY13.9 million ($0.10 million) incurred due to the increase in the number of employees, and (v) the increase in recruitment fees of JPY33.4 million ($0.2 million) due to business expansion as well as an increase in headquarters personnel in preparation for our IPO.

Other Income (Expenses)

Other expenses were JPY11.3 million ($0.08 million) for the six months ended June 30, 2025, a decrease of 139.5% from other income of JPY28.6 million for the same period last year. The decrease was attributed to: (i) net franchise income collected (returned) of JPY27.4 million ($0.2 million), which was the payments refunded to the franchisees in connection with the transfer of certain business rights, (ii) an eviction compensation of JPY5.5 million ($0.04 million) received in connection with the vacating of a leased building.

Net Income

Net income was JPY53.7 million ($0.4 million) for the six months ended June 30, 2025, an increase of 25.6% from JPY42.8 million for the same period last year.

Basic and Diluted Earnings per Share

Basic earnings per share was JPY2.2 ($0.01) for the six months ended June 30, 2025, compared to JPY1.7 for the same period last year.

Diluted earnings per share was JPY2.2 ($0.01) for the six months ended June 30, 2025, compared to JPY1.5 for the same period last year.

Financial Condition

As of June 30, 2025, the Company had cash of JPY2.5 billion ($17.3 million), compared to JPY2.5 billion as of December 31, 2024.

Net cash provided by operating activities was JPY312.8 million ($2.2 million) for the six months ended June 30, 2025, compared to net cash used in operating activities of JPY212.3 million for the same period last year.

Net cash used in investing activities was JPY47.2 million ($0.3 million) for the six months ended June 30, 2025, compared to JPY44.2 million for the same period last year.

Net cash used in financing activities was JPY306.1 million ($2.1 million) for the six months ended June 30, 2025, compared to JPY35.7 million for the same period last year.

Recent Development

The Company consummated its IPO on October 10, 2025, in which it issued and sold 1,250,000 American Depositary Shares ("ADSs") at a price of $4.00 per ADS, resulting in gross proceeds of approximately JPY720.9 million ($5.0 million) and net proceeds of approximately JPY673.5 million ($4.7 million) after deducting the underwriting discount of approximately JPY47.4 million ($0.3 million).

Financial Guidance

The Company expects total revenue to be between $80.2 million and $82.6 million for the fiscal year ending December 31, 2025, an increase of approximately 11.9% to 15.3% from $71.6 million for the fiscal year ended December 31, 2024.

Income from operations is projected to be between $4.0 million and $4.8 million for the fiscal year ending December 31, 2025, an increase of 11.6% to 34.0% from $3.6 million for the fiscal year ended December 31, 2024.

These projections are based on the assumption that no business acquisitions, restructuring activities, or legal settlements will take place during the period.

Exchange Rate Information

This announcement contains translations of certain Japanese Yen ("JPY") amounts into U.S. dollars ("USD," or "$") for the convenience of the reader. Translations of amounts from JPY into USD have been made at the exchange rate of JPY144.17 = $1.00, the exchange rate on June 30, 2025 set forth in the H.10 statistical release of the United States Federal Reserve Board on July 7, 2025.

About LEIFRAS Co., Ltd.

Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2024, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics. For more information, please visit the Company's website: https://ir.leifras.co.jp/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the the U.S. Securities and Exchange Commission (the "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the registration statement and other filings with the SEC. Additional factors are discussed in the Company''s filings with the SEC, which are available for review at www.sec.gov.

For more information, please contact:

LEIFRAS Co., Ltd.

Investor Relations Department

Email: IR@leifras.co.jp

Ascent Investor Relations LLC

Tina Xiao

Phone: +1-646-932-7242

Email: investors@ascent-ir.com

LEIFRAS CO., LTD. AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

December 31,

June 30,

2024

2025

JPY

US$

(Unaudited)

ASSETS

CURRENT ASSETS

Cash

2,538,554,638

2,498,098,518

17,327,450

Accounts receivable, net

518,398,551

487,639,054

3,382,389

Short-term investments

4,935,000

4,711,000

32,677

Inventories, net

24,468,188

23,298,191

161,602

Prepaid expenses

182,278,232

116,165,484

805,754

Other current assets

34,381,843

42,803,587

296,897

TOTAL CURRENT ASSETS

3,303,016,452

3,172,715,834

22,006,769

NON-CURRENT ASSETS

Property and equipment, net

53,805,279

101,588,668

704,645

Finance lease right-of-use assets

208,611,550

239,787,178

1,663,225

Operating lease right-of-use assets

337,330,750

529,227,650

3,670,858

Intangible assets, net

39,250,078

31,471,323

218,293

Goodwill

27,999,994

194,215

Deferred tax assets, net

214,671,578

222,612,673

1,544,098

Deferred initial public offering ("IPO") costs

157,482,065

243,714,152

1,690,464

Long-term deposits

150,407,276

150,527,126

1,044,095

Other non-current assets

3,090,205

10,818,502

75,040

TOTAL NON-CURRENT ASSETS

1,192,648,775

1,557,747,266

10,804,933

TOTAL ASSETS

4,495,665,227

4,730,463,100

32,811,702

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Short-term loans

700,000,000

4,855,379

Current portion of long-term loans

230,785,000

169,248,000

1,173,947

Bond payable, current

40,000,000

277,450

Accounts payable

168,281,568

147,601,943

1,023,805

Accrued liabilities

1,109,740,581

1,157,505,640

8,028,757

Income tax payable

75,374,800

2,592,200

17,980

Contract liabilities, current

147,628,310

362,794,883

2,516,438

Amount due to a director

1,000,000

Finance lease liabilities, current

71,681,545

83,509,650

579,244

Operating lease liabilities, current

110,889,134

127,649,484

885,409

Other current liabilities

195,952,191

142,558,262

988,821

TOTAL CURRENT LIABILITIES

2,851,333,129

2,933,460,062

20,347,230

NON-CURRENT LIABILITIES

Long-term loans, net of current portion

175,452,000

80,884,000

561,032

Bond payable, non-current

56,807,020

37,491,230

260,049

Contract liabilities, non-current

10,615,635

13,393,896

92,903

Finance lease liabilities, non-current

140,333,247

154,402,355

1,070,974

Operating lease liabilities, non-current

207,353,977

385,702,563

2,675,332

Assets retirement obligations

12,914,758

30,567,335

212,023

TOTAL NON-CURRENT LIABILITIES

603,476,637

702,441,379

4,872,313

TOTAL LIABILITIES

3,454,809,766

3,635,901,441

25,219,543

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY

Ordinary shares

80,500,000

558,369

Additional paid-in capital

748,840,080

5,194,146

Treasury shares

(100,012,265)

(693,711)

Retained earnings

311,527,646

365,233,844

2,533,355

TOTAL SHAREHOLDERS' EQUITY

1,040,855,461

1,094,561,659

7,592,159

TOTAL LIABILITIES AND SHAREHOLDERS'

EQUITY

4,495,665,227

4,730,463,100

32,811,702

LEIFRAS CO., LTD. AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the six months ended

June 30

2024

2025

JPY

US$

NET REVENUE

4,773,202,759

5,488,810,821

38,071,796

Cost of revenue

(3,532,146,670)

(4,047,686,339)

(28,075,788)

GROSS PROFIT

1,241,056,089

1,441,124,482

9,996,008

Selling, general, and administrative expenses

(1,208,412,234)

(1,373,195,238)

(9,524,833)

INCOME FROM OPERATIONS

32,643,855

67,929,244

471,175

OTHER INCOME (EXPENSE)

Interest income

26,102

1,299,080

9,011

Interest expense

(9,169,968)

(9,378,973)

(65,055)

Grant income

12,913,919

9,399,558

65,198

Unrealized (loss) gain on short-term investment

245,000

(224,000)

(1,554)

Loss on disposal of long-lived assets

(168,973)

(1,172)

Loss on disposal of a subsidiary

(753,900)

Other income (expense), net

16,198,568

(20,302,598)

(140,824)

Total other income, net

19,459,721

(19,375,906)

(134,396)

INCOME BEFORE INCOME TAX PROVISION

52,103,576

48,553,338

336,779

PROVISION FOR INCOME TAXES

Current

(3,922,389)

(2,788,235)

(19,340)

Deferred

(5,405,355)

7,941,095

55,081

Total provision for income taxes

(9,327,744)

5,152,860

35,741

NET INCOME

42,775,832

53,706,198

372,520

WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES

Basic

24,910,660

24,910,619

Diluted

28,115,922

24,913,619

EARNINGS PER SHARE

Basic

1.72

2.16

0.01

Diluted

1.52

2.16

0.01

LEIFRAS CO., LTD. AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six months ended

June 30,

2024

2025

JPY

US$

Cash flows from operating activities

Net income

42,775,832

53,706,198

372,520

Adjustments to reconcile net income to net cash provided by operating

activities

Depreciation and amortization expense

60,244,494

66,679,088

462,503

Loss on disposal of a subsidiary

753,900

Reversal of (provision for) expected credit loss

(1,089,375)

5,788,690

40,152

Loss on disposal of property and equipment

168,973

1,172

Provision for inventory impairment

719,481

4,991

Unrealized loss (gain) on short-term investment

(245,000)

224,000

1,554

Other non-cash expenses

1,846,026

215,875

1,497

Deferred tax expense

5,405,355

(7,941,095)

(55,081)

Changes in operating assets and liabilities

Accounts receivable, net

36,039,016

24,970,807

173,204

Inventories

1,140,810

450,516

3,125

Prepaid expenses

(30,483,735)

65,923,967

457,265

Long-term deposits

(8,058,565)

(119,850)

(831)

Amount due from a director

33,577,065

Other current assets

(848,651)

(8,421,744)

(58,416)

Other non-current assets

(11,654,487)

(7,728,297)

(53,606)

Accounts payable

(93,111,459)

(20,679,625)

(143,439)

Accrued liabilities

(271,113,027)

47,765,059

331,311

Contract liabilities

214,872,458

217,944,834

1,511,721

Operating lease liabilities

(21,505)

3,212,036

22,280

Income tax payable

(153,014,746)

(72,782,600)

(504,839)

Amount due to a director

(1,000,000)

(6,936)

Other current liabilities

(39,335,511)

(56,292,856)

(390,462)

Net cash (used in) provided by operating activities

(212,321,105)

312,803,457

2,169,685

Cash flows from investing activities

Cash outflow due to reduction in consolidated entities

(17,257,489)

Purchase of property and equipment

(11,322,540)

(42,125,175)

(292,191)

Purchase of intangible assets

(15,621,500)

(5,045,000)

(34,994)

Net cash used in investing activities

(44,201,529)

(47,170,175)

(327,185)

Cash flows from financing activities

Payment of finance lease liabilities

(27,097,591)

(43,752,315)

(303,477)

Proceeds from bank loans

250,000,000

Repayment of bank loans

(177,355,000)

(156,105,000)

(1,082,784)

Repayment of bond payable

(20,000,000)

(138,725)

Payment of deferred IPO costs

(61,211,064)

(86,232,087)

(598,128)

Net cash used in financing activities

(35,663,655)

(306,089,402)

(2,123,114)

Net decrease in cash

(292,186,289)

(40,456,120)

(280,614)

Cash at the beginning of period

2,729,282,346

2,538,554,638

17,608,064

Cash at the end of the period end

2,437,096,057

2,498,098,518

17,327,450

Supplementary cash flow information

Cash paid for income taxes

156,721,835

75,570,835

524,179

Cash paid for interest expenses

7,323,942

8,637,073

59,909

SOURCE LEIFRAS Co., Ltd.