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