Supporting the Shift of Club Activity Management from Schools to Local Communities Through the "Monbetsu Model" TOKYO, Jan. 29, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, announced today that it has been awarded a contract by Monbetsu City, Hokkaido to provide community-based club activity management and operation services (the "Contract"). Pursuant to the Contract, the Company w ...

Core Viewpoint - Leifras Co., Ltd. has entered into a memorandum of understanding with Tachibana Gakuen Educational Corporation and Matsumoto Co., Ltd. to launch a collaborative project aimed at addressing the issue of school refusal in Japan, which is becoming increasingly serious [1][2]. Group 1: Project Details - The project will leverage Leifras' expertise in sports education, Tachibana Gakuen's guidance on school management, and Matsumoto's provision of land and facilities in Kitakyushu City [2]. - The collaboration aims to create a new form of education that transcends traditional educational and corporate boundaries, contributing to both social good and a sustainable business model [4]. Group 2: Social Context - Japan's birth rate is declining, with projections indicating it will fall below 665,000 in fiscal year 2025, while the number of students not attending school is expected to reach 353,970 in fiscal year 2024, marking a significant increase in absenteeism [3]. - Approximately one in 15 junior high school students is absent from school, a figure that has nearly tripled since fiscal year 2013, highlighting the urgency of addressing school refusal [3]. Group 3: Global Perspective - School refusal is not limited to Japan; it is also a recognized issue in Europe and the United States, suggesting that the knowledge gained from this project could be applicable in global markets [5]. - In the United States, the chronic absenteeism rate is reported at 28%, with some areas exceeding 40%, indicating a serious educational challenge [6]. Group 4: Company Background - Leifras Co., Ltd. is a prominent operator of children's sports schools in Japan, focusing on the development of non-cognitive skills and promoting community well-being through sports education [10]. - Tachibana Gakuen specializes in education for students who have been absent from school, employing a unique educational approach that has garnered national attention [11]. - Matsumoto Co., Ltd. is a comprehensive printing company that has expanded into new business areas, including Web3 and blockchain technologies, since its founding in 1932 [12].

Core Insights - Leifras Co., Ltd. has entered into a commitment line agreement totaling 2.5 billion yen with Chikuho Bank and Mizuho Bank to secure flexible financing and strengthen its financial base [1][2][3] Financing Details - The commitment line consists of two projects: - Chikuho Bank Arrangement Project: 1 billion yen, signed on October 31, 2025, for working capital [4] - Mizuho Bank Arrangement Project: 1.5 billion yen, signed on November 19, 2025, for working capital [4] Business Expansion Plans - The company aims to accelerate global business expansion, focusing on developing children's non-cognitive abilities and expanding its sports school services internationally [2][5] - Leifras plans to acquire overseas children's sports schools to promote global sports services and contribute to children's development [5] Company Profile - Leifras Co., Ltd. operates sports schools for children and has approximately 70,000 members in its sports school business [6] - The company is listed on the NASDAQ Capital Market under the ticker LFS and was established on August 28, 2001 [7][8]

TOKYO, Dec. 18, 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 nine months ended September 30, 2025.  Financial Highlights for the Nine Months Ended September 30, 2025 Revenue was JPY8.6 billion ($57.8 million) for the nine months ended September 30, 2025, an increase of 15.3% from JPY7.4 billion for the same period last year. ...

Financial Data and Key Metrics Changes - Net revenue for the first half of fiscal year 2025 reached $38 million, reflecting a 15% increase compared to the same period last year [18] - Income from operations was $471,000, representing a 108.1% increase year on year, effectively more than doubling [18][20] - Operating cash flow improved significantly, turning positive at $2.60 million compared to a negative figure in the same period last year [22] Business Line Data and Key Metrics Changes - The sports school business generated revenue of $27 million, an 8.5% year-on-year increase, driven by an increase in membership and strong event performance [20] - The social business achieved sales revenue of $11 million, a 35.4% year-on-year increase, primarily due to an increase of 114 schools contracting for school club support and expansion in after-school daycare services [20] Market Data and Key Metrics Changes - The proportion of social business revenue to total revenue increased from 24% in fiscal year 2023 to 28% in the first half of fiscal year 2025, indicating growth in the social business segment [18] - The company supported 349 schools nationwide as of the end of June 2025, marking a 48.5% year-on-year increase [19] Company Strategy and Development Direction - The company aims to expand its sports school business internationally, leveraging its expertise and experience cultivated in Japan [10][28] - The school club support business is identified as a core growth strategy, with plans to target public junior high schools in designated cities [25] - The company views the transition of club activities to the private sector as a significant market opportunity, potentially creating a new market worth approximately JPY 1 trillion [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the social business, particularly in light of national policy initiatives promoting club activity reform [26] - The company anticipates net sales for the full year 2025 to be between $80.2 million and $82.6 million, representing a growth of 12%-15% compared to the full year of 2024 [21] Other Important Information - The company successfully completed its initial public offering and listed its shares on the Nasdaq market in October 2025 [9] - The business model generates revenue primarily from monthly membership fees and service contracts with local governments and schools [14] Q&A Session Summary Question: What do you think about the future of social business, especially school club support business? - The company plans to continue growing the school club support business, targeting public junior high schools in designated cities, and recognizes the significant economic impact of transitioning club activities to the private sector [25][26] Question: Please tell us about your overseas business expansion in the U.S. and other countries. - The company intends to expand its sports schools overseas, considering regions beyond the U.S., and plans to include various sports popular in those areas [28] Question: Are you considering listing in Japan? - The company is not ruling out the possibility of a future listing in Japan but is currently focused on its Nasdaq listing [30] Question: Why is the operating profit margin low? - The company acknowledges that solving social issues incurs costs but is committed to improving this margin while expanding sales [31]

Financial Data and Key Metrics Changes - Net revenue for the first half of fiscal year 2025 reached $38 million, reflecting a 15% year-on-year growth [18] - Income from operations was $471,000, marking a 108.1% increase compared to the same period last year [18][20] - Operating cash flow turned positive at $2.60 million, a significant improvement from a negative figure in the same period last year [22] Business Line Data and Key Metrics Changes - The sports school business generated revenue of $27 million, an 8.5% year-on-year increase, driven by a rise in membership and event participation [20] - The social business achieved sales revenue of $11 million, a 35.4% year-on-year increase, primarily due to an increase of 114 schools contracting for school club support [20] Market Data and Key Metrics Changes - The proportion of social business revenue to total revenue increased from 24% in fiscal year 2023 to 28% in the first half of fiscal year 2025, indicating growth in this segment [18] - The company supported 349 schools nationwide as of the end of June 2025, a 48.5% year-on-year increase [12][19] Company Strategy and Development Direction - The company aims to expand its sports school business internationally, leveraging its recent IPO on NASDAQ to facilitate this growth [10][26] - The focus is on developing a sports and social business that addresses social issues through sports, with a strong emphasis on non-cognitive skill development for children [11][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the school club support business, driven by national policy reforms aimed at transitioning club activities to private sector management [24][25] - The company anticipates net sales for the full year 2025 to be between $80.2 million and $82.6 million, representing a growth of 12%-15% compared to the full year of 2024 [21] Other Important Information - The company has been recognized as the number one provider in Japan for both the number of sports school members and the number of schools supported [10][12] - The company operates 18 facilities nationwide for after-school daycare services, focusing on children with developmental disabilities [13] Q&A Session Summary Question: What do you think about the future of social business, especially school club support business? - The company plans to continue growing the school club support business, targeting public junior high schools in designated cities and leveraging its market leader position [24] Question: Please tell us about your overseas business expansion in the U.S. and other countries. - The company intends to expand its sports schools overseas, considering various sports popular in each region, not limited to soccer [26] Question: Are you considering listing in Japan? - The company is not ruling out the possibility of a future listing in Japan but is currently focused on its recent NASDAQ listing [27] Question: Why is the operating profit margin low? - The company incurs costs related to solving social issues but plans to improve this margin through business expansion and operational efficiency [27]

Financial Data and Key Metrics Changes - Net revenue for the first half of fiscal year 2025 reached $38 million, reflecting a 15% year-on-year growth [18] - Income from operations was $471,000, marking a 108.1% increase compared to the same period last year [18][20] - Operating cash flow improved significantly, turning positive at $2.60 million compared to a negative figure in the same period last year [22] Business Line Data and Key Metrics Changes - The sports school business generated revenue of $27 million, an 8.5% year-on-year increase, driven by a rise in membership and event participation [20] - The social business, particularly the school club support segment, achieved sales revenue of $11 million, a 35.4% increase year-on-year, due to the addition of 114 schools contracting for support [20] Market Data and Key Metrics Changes - The proportion of social business revenue to total revenue increased from 24% in fiscal year 2023 to 28% in the first half of fiscal year 2025, indicating growth in this segment [18] - The company supported 349 schools nationwide as of the end of June 2025, a 48.5% increase year-on-year [19] Company Strategy and Development Direction - The company aims to expand its sports school business internationally, leveraging its expertise and experience cultivated in Japan [11][27] - The school club support business is identified as a core growth strategy, with plans to target public junior high schools in designated cities [24] - The company is focused on addressing social issues through sports, viewing its initiatives as both a business opportunity and a social mission [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of the school club support business, especially with the ongoing national policy reforms [24][26] - The company anticipates net sales for the full year 2025 to be between $80.2 million and $82.6 million, representing a growth of 12%-15% compared to the previous year [21] Other Important Information - The company successfully completed its initial public offering and listed its shares on NASDAQ in October 2025 [9] - The business model is characterized by seasonality, with profits typically concentrated in the second half of the year [15] Q&A Session Summary Question: What do you think about the future of social business, especially school club support business? - The company plans to continue growing the school club support business and recognizes the significant economic impact of transitioning club activities to the private sector, estimating a potential new market worth approximately JPY 1 trillion [24][25] Question: Please tell us about your overseas business expansion in the U.S. and other countries. - The company intends to expand its sports schools overseas, considering various sports popular in each region, not limited to soccer [27] Question: Are you considering listing in Japan? - The company is not ruling out the possibility of a future listing in Japan but is currently focused on its recent NASDAQ listing [28] Question: Why is the operating profit margin low? - The company acknowledges that addressing social issues incurs costs but is committed to improving its profit margin through business expansion and operational efficiency [28]

Financial Performance Highlights - Leifras Co, Ltd achieved net revenue of USD 38072K in H1 FY2025, a 150% year-over-year increase compared to USD 33108K in H1 FY2024[66, 72] - Income from operations significantly increased by 1081% year-over-year, reaching USD 471K in H1 FY2025 from USD 226K in H1 FY2024[66, 72] - Net income grew by 256% year-over-year, amounting to USD 373K in H1 FY2025, up from USD 297K in H1 FY2024[66, 72] - The company forecasts full-year 2025 net revenue to be between USD 80197 million and USD 82621 million, representing an 119% to 153% increase year-over-year[81, 83] - Full-year 2025 operating profit is projected to range from USD 40 million to USD 48 million, compared to USD 36 million in FY2024[81, 83] Business Segment Growth - The Sports School Business generated USD 27 million in revenue, with an 85% year-over-year increase, driven by membership and event participation[74] - The Social Business, including school club support, achieved USD 11 million in revenue, a 354% year-over-year increase, attributed to the rise in contracted schools[74] - The number of contracted schools in the Social Business increased by 485% year-over-year to 349 schools[66] - Sports School Business membership increased by 64% year-over-year to 69500 members[66] Strategic Initiatives - The company is focusing on expanding its Social Business, particularly school club support, to capitalize on the market reform implementation period from fiscal year 2026 onwards[18, 47] - Leifras Co, Ltd aims to secure a stable market share with long-term business partners in the school club support sector, aligning with market growth[60]

Core Viewpoint - LEIFRAS Co., Ltd. will host conference calls to discuss its financial results for the six months ended June 30, 2025, with sessions in both Japanese and English on November 20, 2025 [1][2]. Group 1: Conference Call Details - The Japanese-language conference call is scheduled for 7:00 am U.S. Eastern Time (9:00 pm Japan Standard Time) [2]. - The English-language conference call will take place at 8:30 am U.S. Eastern Time (10:30 pm Japan Standard Time) [2]. - Dial-in information includes a toll-free number for the USA/Canada and a separate number for international participants [2]. Group 2: Replay and Webcast Information - An audio replay of the English-language conference call will be available from approximately one hour after the live call until November 27, 2025 [3]. - A live and archived webcast of both conference calls will be accessible on the Company's investor relations website [4]. Group 3: Company Overview - LEIFRAS Co., Ltd. is headquartered in Tokyo and focuses on youth sports and community engagement [5]. - The Company is recognized as one of Japan's largest operators of children's sports schools, emphasizing the development of non-cognitive skills [5]. - LEIFRAS integrates physical and mental development in its sports education approach and operates a social business sector to promote community well-being [5].

Core Insights - Leifras Co Ltd (NASDAQ:LFS) shares experienced a significant surge, closing at $11.37 with a 576.79% increase in regular trading and further climbing 4.22% in after-hours trading to $11.85 [1][2]. Group 1: Contract Announcement - On November 5, Leifras announced a contract win for Regional Club Activity Facility Management and Operation Services from the City of Nagoya, managing facilities at 111 municipal junior high schools for community club activities starting in October [2]. Group 2: IPO Context - The company began trading on October 9, closing its initial public offering on October 10, selling 1.25 million American Depositary Shares (ADS) at $4 per ADS, generating $5.0 million in gross proceeds before expenses [3][4]. Group 3: Fund Allocation - Proceeds from the IPO will be allocated to hiring full-time staff, acquiring additional sports facilities, and supporting working capital needs for the company's sports school and social business operations [4]. Group 4: Stock Performance - Over the past month, LFS stock has surged 208.13% and increased by 322.68% in the last five days, with a market capitalization of $297.45 million and a 52-week range of $1.58 to $12.49 [5].