1. Revenue increased 15.3% to JPY8.6 billion for nine months ended September 2025. 2. Gross profit rose 18.1% to JPY2.4 billion, improving gross margin to 28.2%. 3. Social business revenue surged 36.4%, driven by increased school partnerships. 4. New contract with City of Nagoya supports strategic expansion plans. 5. Earnings per share grew slightly, reflecting stable net income growth.
FAQ
Why Bullish?
Steady revenue and profit growth, particularly in social business, indicate strong performance.
How important is it?
Positive financial results and growth potential suggest strong investor interest and confidence.
Why Long Term?
Strategic growth through government partnerships could drive sustainable income growth over time.
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LEIFRAS Co., Ltd. (Nasdaq: LFS) Reports Financial Results for Nine Months Ended September 30, 2025
LEIFRAS Co., Ltd. (Nasdaq: LFS), a company dedicated to youth sports and community engagement, has reported its unaudited financial results for the nine months ended September 30, 2025. The company disclosed a notable increase in both revenue and net income, reflecting its ongoing growth trajectory in the sports and social business sectors.
Financial Highlights for the Nine Months Ended September 30, 2025
- Revenue: JPY 8.6 billion ($57.8 million), a 15.3% increase from JPY 7.4 billion during the same period last year.
- Gross Profit: JPY 2.4 billion ($16.3 million), an increase of 18.1% from JPY 2.0 billion year-over-year.
- Gross Margin: 28.2%, up from 27.5% in the prior year.
- Net Income: JPY 226.7 million ($1.5 million), a 0.7% increase from JPY 225.1 million year-over-year.
- Earnings Per Share: Basic and diluted EPS were JPY 9.1 ($0.06), compared to JPY 9.0 and JPY 8.3 from the previous year.
Operational Highlights for the Nine Months Ended September 30, 2025
- Sports School Membership: 71,529 members, reflecting a 2.3% increase from 69,924 last year.
- Average Membership Duration: 1.84 years, up 1.1% from 1.82 years year-over-year.
- Revenue Per Capita (Sports School): JPY 9.6 million ($0.06 million), a 6.2% increase from JPY 9.0 million last year.
- Schools Served (Social Business): 360 schools, a staggering 53.2% increase from 235 last year.
- Revenue Per Capita (Social Business): JPY 7.6 million ($0.05 million), an 18.6% increase from JPY 6.4 million last year.
CEO Comments on Performance
Mr. Kiyotaka Ito, Representative Director and CEO of Leifras, stated, "We delivered solid financial results in the first nine months of fiscal year 2025, with meaningful growth across our key financial and operational metrics. Revenue increased by 15.3%, and net income grew by 0.7% from the same period last year."
He emphasized the performance of the sports school segment, which achieved an 8.9% growth rate, while the social business experienced a remarkable 36.4% revenue growth year-over-year. Ito remarked on the 18.6% increase in revenue per capita in the social sector, demonstrating the growing value and impact of the company's community-based services.
Future Outlook and Strategic Initiatives
Looking ahead, Leifras aims to capitalize on Japan's evolving policy environment. The government's Club Activity Reform, which delegates school-based club management to local and private organizations, presents significant long-term growth potential for LFS.
The recent contract secured with the City of Nagoya to manage municipal junior high school facilities underscores Leifras' commitment to expanding its operational footprint. The company plans to pursue additional partnerships with municipalities seeking specialized providers for quality sports and community programs.
Mr. Ito concluded by reaffirming the company's dedication to nurturing children's non-cognitive skills, enhancing community well-being, and delivering sustainable value to shareholders and society.