Record High Revenue, Adjusted Income from Operations, and Net Income, Up 10.0%, 1.0%, and 1.5% Year-over-Year, Respectively([1])
TOKYO, June 18, 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 Japan's leading operator of children's sports schools and school club activity support businesses, today announced its unaudited financial results for the three months ended March 31, 2026.
First Quarter of Fiscal Year 2026 Financial Highlights
-- Revenue was JPY3.0 billion ($18.6 million), an increase of 10.0% from
JPY2.7 billion for the same period last year.
-- Income from operations was JPY153.3 million ($1.0 million), compared to
JPY166.1 million for the same period last year.
-- Net income was JPY124.3 million ($0.8 million), an increase of 1.5% from
JPY122.5 million for the same period last year.
-- Adjusted income from operations was JPY167.8 million ($1.1 million), an
increase of 1.0% from JPY166.1 million for the same period last year.
-- Basic and diluted earnings per share was JPY4.75 ($0.03), compared to
JPY4.92 for the same period last year.
First Quarter of Fiscal Year 2026 Operational Highlights
Sports School Business
-- Number of members was 60,960, compared to 62,495 for the same period last
year.
-- Revenue of the sports school business was JPY2.2 billion ($13.6 million),
an increase of 5.6% from JPY2.0 billion for the same period last year.
Social Business
-- Number of club activities was 2,120, an increase of 7.6% from 1,971 for
the same period last year.
-- Revenue of the social business was JPY791.4 million ($5.0 million), an
increase of 24.1% from JPY637.7 million for the same period last year.
Management Commentary
Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "For the first quarter of fiscal year 2026, we achieved record highs in revenue, adjusted income from operations, and net income.([1])
"For the sports school business, despite a temporary slight decrease in membership due to graduations, revenue increased by 5.6% due to higher monthly fees. Moving forward, we plan to focus on expanding our sports school membership base through both organic growth and strategic M&A.
"For the social business, the school club support business expanded under the tailwind of national policy, while the after-school daycare business grew in both scale and revenue, driving an increase in social business revenue by 24.1%. Although strategic investments and M&A-related expenses led to a slight decrease in operating income, we believe these investments are essential to supporting future expansion and unlocking long-term growth through business synergies.
"Fiscal year 2026 marks the first year of the Japanese government's 'reform implementation period' for school club activities, during which these activities are being transitioned to private-sector providers. We plan to fully leverage this powerful policy tailwind and continue to execute with focus. We remain committed to supporting the smiles and growth of children across borders and appreciate the continued support from our valued customers, partners, and shareholders."
Financial Condition
-- As of March 31, 2026, the Company had cash of JPY2.48 billion ($15.6
million), compared to JPY2.52 billion as of December 31, 2025.
-- Net cash used in operating activities was JPY140.9 million ($0.9 million),
compared to JPY239.5 million for the same period last year.
-- Net cash used in investing activities was JPY22.5 million ($0.1 million),
compared to JPY4.9 million for the same period last year.
-- Net cash provided by financing activities was JPY116.9 million ($0.7
million), compared to net cash used in financing activities of JPY181.6
million for the same period last year.
Financial Guidance
Following these financial results, there are no changes to Leifras' financial guidance last provided in its press release issued on April 8, 2026.
-- 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 is based on the assumption that no business acquisitions, restructuring activities, or legal settlements will take place during the period.
The guidance is translated at the FY2025 assumed exchange rate of Yen156.80 = $1.00 to eliminate the impact of foreign exchange volatility.
Exchange Rate Information
This announcement contains translations of certain Japanese Yen ("JPY") amounts into U.S. dollars ("USD," or "$") for the convenience of the reader. Translations of amounts from JPY into USD have been made at the exchange rate of JPY159.08 = $1.00, the exchange rate on March 31, 2026 set forth in the H.10 statistical release of the United States Federal Reserve Board.
About LEIFRAS Co., Ltd.
Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2025, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics.
For more information, please visit the Company's website: https://ir.leifras.co.jp/.
Non-GAAP Financial Measures
In the Company's report, it discusses key financial measures that are not calculated in accordance with the United States Generally Accepted Accounting Principles ("GAAP") to supplement its unaudited interim condensed consolidated financial statements presented on a GAAP basis. These non-GAAP financial measures are reconciled from their most directly comparable financial measures determined in accordance with GAAP as follows:
For the
Three Months Ended
March 31,
------------------------------------
2025 2026 2026
------------ ----------- ---------
JPY JPY US$
INCOME FROM OPERATIONS 166,146,066 153,308,100 963,717
Plus:
acquisition-related
costs(a) - 14,505,152 91,181
----------- ----------- ---------
Adjusted INCOME FROM
OPERATIONS 166,146,066 167,813,252 1,054,898
(a) Represents acquisition-related costs incurred in connection with the
Company's acquisition activities, including transaction-related costs,
legal, financial and tax due diligence expenses, integration costs and
other acquisition-related costs. These costs have been added back for
normalization purposes as they are not considered reflective of the
Company's core operating performance.
The Company's primary non-GAAP financial measures and corresponding metrics reflect how it evaluates its current and prior year operating results. As new events or circumstances arise, these definitions could change. When the Company's definitions change, it provides the updated definitions. When items no longer impact its current or future presentation of non-GAAP operating results, it removes these items from its 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 its 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 its performance based on its 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 its performance without the impact of the specifically identified items that it believes do not directly reflect its core operations, including acquisition-related costs and other items that management does not consider reflective of its 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.
As the Company's initial public offering was completed during the fiscal year ended December 31, 2025, and the related listing-related and transformational expenses were specific to its initial public offering and related transformation activities, the Company does not expect to incur such expenses in the fiscal year ending December 31, 2026 or future periods. Accordingly, beginning with the fiscal year ending December 31, 2026, the Company has revised its presentation of adjusted income from operations and removed listing-related and transformational expenses from the adjustments to adjusted income from operations for all historical periods presented.
Adjusted income from operations is not a measurement of the Company's financial performance under GAAP and should not be considered in isolation or as an alternative to income from operations or any other financial statement data presented as indicators of financial performance or liquidity, each as presented in accordance with GAAP. Consequently, the Company's non-GAAP financial measure should be considered together with its unaudited interim condensed consolidated financial statements, which are prepared in accordance with GAAP. The Company understands that although adjusted income from operations is frequently used by securities analysts, lenders and others in their evaluation of companies, it has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are: adjusted income from operations does not fully reflect the Company's cash expenditures, future requirements for capital expenditures or contractual commitments; adjusted income from operations does not reflect changes in, or cash requirements for, the Company's working capital needs; adjusted income from operations does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on debt; and, although depreciation and amortization expenses are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted income from operations does not reflect any cash requirements for such replacements.
Because of these limitations, adjusted income from operations should not be considered as discretionary cash available to the Company to reinvest in the growth of the Company's business or as measure of cash that will be available to the Company to meet its obligations.
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 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
Note: [1] Record high in US-GAAP figures since 2025.
LEIFRAS CO., LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, March 31, March 31,
2025 2026 2026
-------------- ------------- -----------
JPY JPY US$
(Unaudited) (Unaudited)
ASSETS
CURRENT ASSETS
Cash 2,524,082,266 2,477,567,162 15,574,347
Accounts
receivable, net 731,083,491 786,776,869 4,945,794
Inventories, net 21,578,477 13,735,828 86,345
Prepaid expenses 158,040,280 253,474,342 1,593,377
Other current
assets 38,219,685 45,019,332 282,998
------------- ------------- -----------
TOTAL CURRENT
ASSETS 3,473,004,199 3,576,573,533 22,482,861
------------- ------------- -----------
NON-CURRENT
ASSETS
Property and
equipment, net 96,456,471 99,659,727 626,475
Intangible
assets, net 29,631,015 26,881,643 168,982
Operating lease
right-of-use
assets 482,694,859 477,316,039 3,000,478
Finance lease
right-of-use
assets 236,908,226 227,724,404 1,431,509
Long-term
deposits 150,216,792 155,815,142 979,477
Long-term
investment 5,736,500 25,056,000 157,506
Deferred tax
assets, net 164,082,227 147,566,531 927,625
Goodwill 27,999,994 27,999,994 176,012
Other non-current
assets 8,470,398 9,030,715 56,768
------------- ------------- -----------
TOTAL NON-CURRENT
ASSETS 1,202,196,482 1,197,050,195 7,524,832
------------- ------------- -----------
TOTAL ASSETS 4,675,200,681 4,773,623,728 30,007,693
============= ============= ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
CURRENT
LIABILITIES
Short-term loans 100,000,000 100,000,000 628,615
Current portion
of long-term
loans 151,030,000 114,826,000 721,813
Bond payable,
current 40,000,000 80,000,000 502,892
Accounts payable 196,849,154 215,326,762 1,353,575
Accrued
liabilities 1,160,996,435 1,068,999,496 6,719,886
Income tax
payable 43,499,500 28,193,977 177,232
Contract
liabilities,
current 154,074,620 79,376,490 498,972
Operating lease
liabilities,
current 138,880,117 145,575,433 915,108
Finance lease
liabilities,
current 88,017,810 88,531,359 556,521
Other current
liabilities 176,592,537 193,682,649 1,217,517
------------- ------------- -----------
TOTAL CURRENT
LIABILITIES 2,249,940,173 2,114,512,166 13,292,131
------------- ------------- -----------
NON-CURRENT
LIABILITIES
Long-term loans,
net of current
portion 24,422,000 8,370,000 52,615
Bond payable,
non-current 18,175,440 171,589,348 1,078,635
Contract
liabilities,
non-current 12,817,448 8,660,455 54,441
Operating lease
liabilities,
non-current 347,365,643 332,648,745 2,091,078
Finance lease
liabilities,
non-current 144,989,192 135,920,091 854,414
Assets retirement
obligations 30,775,915 30,880,049 194,117
------------- ------------- -----------
TOTAL NON-CURRENT
LIABILITIES 578,545,638 688,068,688 4,325,300
------------- ------------- -----------
TOTAL LIABILITIES 2,828,485,811 2,802,580,854 17,617,431
============= ============= ===========
COMMITMENTS AND
CONTINGENCIES
SHAREHOLDERS'
EQUITY
Ordinary shares,
80,000,000
shares
authorized;
26,560,660
shares issued
and 26,160,619
shares
outstanding as
of December 31,
2025 and
March 31, 2026 409,833,241 409,833,241 2,576,271
Additional
paid-in capital 786,906,631 786,906,631 4,946,610
Treasury shares,
400,041 shares
as of
December 31,
2025 and
March 31, 2026 (100,012,265) (100,012,265) (628,692)
Retained earnings 749,987,263 874,315,267 5,496,073
------------- ------------- -----------
TOTAL
SHAREHOLDERS'
EQUITY 1,846,714,870 1,971,042,874 12,390,262
------------- ------------- -----------
TOTAL LIABILITIES
AND
SHAREHOLDERS'
EQUITY 4,675,200,681 4,773,623,728 30,007,693
============= ============= ===========
LEIFRAS CO., LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the three months ended
March 31,
-----------------------------------------------
2025 2026 2026
---------------- --------------- ------------
JPY JPY US$
NET REVENUE 2,686,214,407 2,954,324,120 18,571,311
Cost of revenue (1,895,769,261) (2,002,020,892) (12,584,995)
--------------- --------------- ------------
GROSS PROFIT 790,445,146 952,303,228 5,986,316
Selling, general,
and
administrative
expenses (624,299,080) (798,995,128) (5,022,599)
--------------- --------------- ------------
INCOME FROM
OPERATIONS 166,146,066 153,308,100 963,717
--------------- --------------- ------------
OTHER INCOME
(EXPENSE)
Interest income 1,202,167 2,569,001 16,149
Interest expense (4,701,295) (2,615,163) (16,439)
Dividend income 87,500 87,500 550
Grant income 8,524,957 12,400,890 77,954
Unrealized loss
on short-term
investment (161,000) - -
Unrealized gain
on long-term
investment - 2,735,074 17,193
Loss on disposal
of long-lived
assets (168,969) (4) -
Other income
(expense), net (15,705,413) 852,524 5,359
--------------- --------------- ------------
Total other
income
(expense), net (10,922,053) 16,029,822 100,766
--------------- --------------- ------------
INCOME BEFORE
INCOME TAX
PROVISION 155,224,013 169,337,922 1,064,483
PROVISION FOR
INCOME TAXES
Current (3,626,835) (28,494,222) (179,119)
Deferred (29,056,916) (16,515,696) (103,820)
--------------- --------------- ------------
Total provision
for income
taxes (32,683,751) (45,009,918) (282,939)
--------------- --------------- ------------
NET INCOME 122,540,262 124,328,004 781,544
=============== =============== ============
WEIGHTED
AVERAGE NUMBER
OF ORDINARY
SHARES
Basic 24,910,619 26,160,619 26,160,619
Diluted 24,913,619 26,163,619 26,163,619
=============== =============== ============
EARNINGS PER
SHARE
Basic 4.92 4.75 0.03
Diluted 4.92 4.75 0.03
=============== =============== ============
LEIFRAS CO., LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
For the three months ended
March 31,
-----------------------------------------
2025 2026 2026
-------------- ------------- ----------
JPY JPY US$
Cash flows from
operating
activities
Net income 122,540,262 124,328,004 781,544
Adjustments to
reconcile net
income to net
cash provided by
operating
activities
Depreciation and
amortization
expense 33,078,421 29,860,560 187,708
Provision for
expected credit
loss 2,231,985 2,098,333 13,190
Loss on disposal
of property and
equipment 168,969 4 -
Provision for
inventory
impairment 58,982 538,926 3,388
Unrealized loss on
short-term
investment 161,000 - -
Unrealized gain on
long-term
investment - (2,735,074) (17,193)
Unrealized foreign
currency exchange
loss 1,325,417 - -
Other non-cash
expenses
(income) (830,871) 685,062 4,307
Deferred tax
expense 29,056,916 16,515,696 103,820
Changes in
operating assets
and liabilities
Accounts
receivable, net (34,680,981) (57,791,711) (363,287)
Inventories 792,788 7,303,723 45,912
Prepaid expenses (114,612,715) (95,467,062) (600,120)
Long-term deposits (2,019,600) (5,598,350) (35,192)
Other current
assets (17,654,864) (6,799,647) (42,744)
Other non-current
assets 271,028 (560,317) (3,522)
Accounts payable 218,656 18,477,608 116,153
Accrued
liabilities (99,770,693) (91,996,939) (578,306)
Contract
liabilities (85,961,299) (78,855,123) (495,695)
Operating lease
liabilities (416,121) (2,642,777) (16,613)
Income tax payable (72,177,900) (15,305,523) (96,213)
Amount due to a
director (1,000,000) - -
Other current
liabilities (264,810) 17,090,112 107,431
------------- ------------- ----------
Net cash used in
operating
activities (239,485,430) (140,854,495) (885,432)
------------- ------------- ----------
Cash flows from
investing
activities
Purchase of
investment
securities - (16,584,426) (104,252)
Purchase of
property and
equipment (1,795,476) (5,821,892) (36,597)
Purchase of
intangible
assets (3,085,000) (132,800) (835)
------------- ------------- ----------
Net cash used in
investing
activities (4,880,476) (22,539,118) (141,684)
------------- ------------- ----------
Cash flows from
financing
activities
Payment of finance
lease
liabilities (20,256,439) (23,698,391) (148,972)
Repayment of bank
loans (103,388,000) (52,256,000) (328,489)
Proceeds from bond
payable - 192,832,900 1,212,176
Payment of
deferred IPO
costs (58,000,138) - -
------------- ------------- ----------
Net cash (used in)
provided by
financing
activities (181,644,577) 116,878,509 734,715
------------- ------------- ----------
Effect of exchange
rate (1,325,417) - -
Net decrease in
cash (427,335,900) (46,515,104) (292,401)
Cash at the
beginning of
period 2,538,554,638 2,524,082,266 15,866,748
------------- ------------- ----------
Cash at the end of
period 2,111,218,738 2,477,567,162 15,574,347
============= ============= ==========
Supplementary
cash flow
information
Cash paid for
income taxes 75,804,735 43,799,745 275,332
============= ============= ==========
Cash paid for
interest
expenses 4,345,433 1,930,021 12,132
============= ============= ==========
Non-GAAP Financial Measures and Reconciliation
Adjusted INCOME FROM OPERATIONS
For the
Three Months Ended
March 31,
------------------------------------
2025 2026 2026
------------ ----------- ---------
JPY JPY US$
INCOME FROM OPERATIONS 166,146,066 153,308,100 963,717
Plus:
acquisition-related
costs(a) - 14,505,152 91,181
----------- ----------- ---------
Adjusted INCOME FROM
OPERATIONS 166,146,066 167,813,252 1,054,898
(a) Represents acquisition-related costs incurred in connection with the
Company's acquisition activities, including transaction-related costs,
legal, financial and tax due diligence expenses, integration costs and
other acquisition-related costs. These costs have been added back for
normalization purposes as they are not considered reflective of the
Company's core operating performance.
View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-reports-financial-results-for-the-first-quarter-of-fiscal-year-2026-302804589.html
SOURCE LEIFRAS Co., Ltd.
(END) Dow Jones Newswires
June 18, 2026 16:00 ET (20:00 GMT)
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