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]

Core Insights - Leifras Co., Ltd. reported strong financial results for the first half of fiscal year 2025, with revenue increasing by 15.0% year over year, gross profit rising by 16.1%, and net income growing by 25.6% [3][5][13] Financial Highlights - Total revenue for the six months ended June 30, 2025, was JPY 5.5 billion ($38.1 million), up from JPY 4.8 billion for the same period last year [5][6] - Gross profit was JPY 1.4 billion ($10.0 million), an increase from JPY 1.2 billion, with a gross margin of 26.3% [10][5] - Net income reached JPY 53.7 million ($0.4 million), compared to JPY 42.8 million in the previous year [13] - Basic and diluted earnings per share were JPY 2.2 ($0.01), up from JPY 1.7 and JPY 1.5 respectively [14][15] Operational Highlights - Membership in the sports school business increased to 69,500, a 6.4% rise from 65,337 [5] - The average membership duration in the sports school business was 1.9 years, up 2.2% from the previous year [5] - Revenue per capita in the sports school business was JPY 6.1 million ($42,433), a 4.2% increase [5] - The number of schools served under the social business segment rose to 349, a 48.5% increase from 235 [5] - Revenue per capita in the social business was JPY 5.1 million ($35,121), reflecting a 21.7% increase [5] Cost and Expenses - Cost of revenue was JPY 4.0 billion ($28.1 million), an increase of 14.6% from JPY 3.5 billion [9] - Selling, general, and administrative expenses were JPY 1.4 billion ($9.5 million), up 13.6% from JPY 1.2 billion [11] Recent Developments - Leifras successfully completed its initial public offering (IPO) on Nasdaq on October 10, 2025, raising approximately JPY 720.9 million ($5.0 million) [4][18] - The company expects total revenue for the fiscal year ending December 31, 2025, to be between $80.2 million and $82.6 million, representing an increase of approximately 11.9% to 15.3% from the previous year [19]