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]
LEIFRAS(LFS) - 2025 Q2 - Earnings Call Transcript