LEIFRAS Co., Ltd. Reports First Half of Fiscal Year 2026 Financial Results

Record-High First-Half Revenue and Operating Income, Up 8.9% and 35.9% Year Over Year, Respectively[1]

TOKYO, Oct. 7, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, and a leading operator of children's sports schools and school club activity support businesses in Japan, today announced its unaudited financial results for the six months ended June 30, 2026.

First Half of Fiscal Year 2026 Financial Highlights

- Revenue was JPY5,978.8 million ($36.8 million), an increase of 8.9% from JPY5,488.8 million for the same period last year.

- Income from operations was JPY92.3 million ($0.6 million), an increase of 35.9% from JPY67.9 million for the same period last year.

- Net income was JPY77.1 million ($0.5 million), an increase of 43.5% from JPY53.7 million for the same period last year.

- Adjusted income from operations was JPY139.7 million ($0.9 million), an increase of 105.6% from JPY67.9 million for the same period last year.

- Basic and diluted earnings per share were JPY2.95 ($0.02), compared to JPY2.16 for the same period last year.

First Half of Fiscal Year 2026 Operational Highlights

Sports School Business

- Number of members was 68,873, a decrease of 0.9% from 69,500 as of June 30, 2025.

- Revenue of the sports school business was JPY4,148.5 million ($25.5 million), an increase of 5.4% from JPY3,937.7 million for the same period last year

Social Business

- Number of schools was 478, an increase of 37.0% from 349 as of June 30, 2025.

- Number of club activities was 2,224, an increase of 6.2% from 2,095 as of June 30, 2025.

- Revenue of the social business was JPY1,830.3 million ($11.3 million), an increase of 18.0% from JPY1,551.1 million for the same period last year.

Management Commentary

Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "We are pleased to report continued strong financial performance in the first half of fiscal year 2026. Both our sports school business and social business achieved revenue growth, contributing to an 8.9% year-over-year increase in total revenue, a record-high[1]. Profitability also continued to improve, with higher gross profit margin contributing to a 35.9% increase in income from operations and a 43.5% increase in net income.

"In our core sports school business, we remain committed to delivering our distinctive educational services that foster children's non-cognitive skills. Meanwhile, our social business continued to grow as we expanded our efforts to support local sports environments, increasing the number of contracted schools for club activity support to 478, up 37.0% year over year. We will continue to draw on the people and expertise we have developed through sports education to support children's growth, address challenges facing local communities, and sustainably enhance corporate value."

Financial Condition

- As of June 30, 2026, the Company had cash and cash equivalents of JPY2,591.8 million ($15.9 million), compared to JPY2,524.1 million as of December 31, 2025.

- Net cash provided by operating activities was JPY252.7 million ($1.6 million) for the six months ended June 30, 2026, compared to JPY312.8 million for the same period last year.

- Net cash used in investing activities was JPY213.0 million ($1.3 million) for the six months ended June 30, 2026, compared to JPY47.2 million for the same period last year.

- Net cash provided by financing activities was JPY28.0 million ($0.2 million) for the six months ended June 30, 2026, compared to net cash used in financing activities of JPY306.1 million for the same period last year.

Financial Guidance

- Revenue is expected to be between $82.9 million and $95.7 million for the fiscal year ending December 31, 2026, an increase of approximately 10.8% to 27.9% from $74.8 million for the fiscal year ended December 31, 2025.

- Income from operations is expected to be between $4.5 million and $5.4 million for the fiscal year ending December 31, 2026, an increase of approximately 13.2% to 33.9% from $4.0 million for the fiscal year ended December 31, 2025.

The guidance includes the results of Well Resources (from May 1, 2026), Tokai Sports (from June 1, 2026) and SWIFT JAPAN (from July 1, 2026). It does not assume any further business acquisitions, restructuring activities or legal settlements during the period. The guidance is translated at the FY2025 assumed exchange rate of US$1 = JPY156.80, the same rate used in the first quarter, to eliminate the impact of foreign exchange volatility. This rate will be used for the guidance throughout fiscal 2026.

Conference Call Information

The Company will host an English-language conference call at 8:30 a.m. U.S. Eastern Time (9:30 p.m. Japan Standard Time) on October 8, 2026, and a Japanese-language conference call at 3:00 a.m. U.S. Eastern Time (4:00 p.m. Japan Standard Time) on October 9, 2026.

To attend the earnings conference calls, please use the following access information.

Dial-in details for the English-language conference call:

Dial-in details for the Japanese-language conference call:

Please dial in at least 15 minutes before the commencement of the English-language call to ensure timely participation.

A live webcast of the English-language conference call will be available through the webcast link above.

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 historical financial amounts from JPY into USD have been made at the exchange rate of JPY162.61 = $1.00, the noon buying rate as of June 30, 2026 published in the H.10 statistical release of the United States Federal Reserve Board.

Note: [1] Record high for the corresponding six-month period in US-GAAP figures since fiscal year 2023.

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. Leifras was recognized as Japan's largest operator of children's sports schools in terms of both membership and number of schools, as well as the leading provider of school club activity support in terms of the number of contracted schools, according to Tokyo Shoko Research as of December 2025. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." Its holistic approach integrates physical and mental development. Building on its experience and expertise in sports education, Leifras also operates a social business that supports school club activities, provides sports therapy for children with developmental disabilities, and offers exercise programs for the elderly. As of June 30, 2026, the Company supported 2,224 club activities at 478 schools.

For more information, please visit the Company's website: https://ir.leifras.co.jp/.

Non-GAAP Financial Measures

The Company discusses a key financial measure that is not calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") to supplement its unaudited interim condensed consolidated financial statements presented on a GAAP basis. This non-GAAP financial measure is reconciled to its most directly comparable financial measure determined in accordance with GAAP as follows:

The Company's primary non-GAAP financial measure and corresponding metrics reflect how the Company evaluates the Company's current and prior year operating results. As new events or circumstances arise, these definitions could change. When the Company's definitions change, the Company provides the updated definitions. When items no longer impact the Company's current or future presentation of non-GAAP operating results, the Company removes these items from the Company's non-GAAP definitions.

Adjusted income from operations is a financial measure that is not calculated in accordance with GAAP (collectively referred to as the "non-GAAP financial measures"), and the use of the term adjusted income from operations may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. The Company believes the non-GAAP financial measure provides investors with useful information with respect to the Company's historical operations. The Company presents the non-GAAP financial measure as a supplemental performance measure because the Company believes it facilitates a comparative assessment of the Company's operating performance relative to the Company's performance based on the Company's results under GAAP, while isolating the effects of some items that vary from period to period. Specifically, adjusted income from operations allows the Company to assess the Company's performance without the impact of the specifically identified items that the Company believes do not directly reflect the Company's core operations, including acquisition-related costs and other items that management does not consider reflective of the Company's core operating performance. The non-GAAP financial measure also functions as a key performance indicator used to evaluate the Company's operating performance internally, and it is used in connection with the determination of incentive compensation for management, including executive officers.