Core Insights - LEIFRAS Co., Ltd. reported solid financial results for the nine months ended September 30, 2025, with revenue increasing by 15.3% year-over-year and net income growing by 0.7% [4][5][13] Financial Highlights - Total revenue reached JPY 8.6 billion ($57.8 million), up from JPY 7.4 billion in the same period last year [5][6] - Gross profit was JPY 2.4 billion ($16.3 million), an increase of 18.1% from JPY 2.0 billion [6][10] - Gross margin improved to 28.2%, up from 27.5% [6][10] - Net income was JPY 226.7 million ($1.5 million), slightly up from JPY 225.1 million [6][13] - Basic and diluted earnings per share were JPY 9.1 ($0.06), compared to JPY 9.0 and JPY 8.3 respectively for the same period last year [6][14][15] Operational Highlights - The sports school business generated revenue of JPY 6.2 billion ($41.9 million), an increase of 8.9% year-over-year [7] - The social business segment saw revenue rise to JPY 2.4 billion ($15.9 million), a significant increase of 36.4% [8] - The number of members in the sports school business grew by 2.3% to 71,529 [6][7] - The number of schools served under the social business segment increased by 53.2% to 360 [6][8] Future Outlook - The company anticipates total revenue for the fiscal year ending December 31, 2025, to be between JPY 11.6 billion and JPY 11.9 billion ($78.1 million and $80.5 million), reflecting an increase of approximately 11.9% to 15.3% from JPY 10.3 billion [18] - Projected income from operations is expected to be between JPY 580.0 million and JPY 696.5 million ($3.9 million and $4.7 million), marking an increase of 11.6% to 34.0% from JPY 519.8 million [19] Strategic Developments - The company secured a new contract with the City of Nagoya to manage facilities at municipal junior high schools, indicating a strategic expansion in response to Japan's Club Activity Reform [4]