Record High Revenue, Adjusted Income from Operations, and Net Income, Up 10.0%, 1.0%, and 1.5% Year-over-Year, Respectively[1]
First Quarter of Fiscal Year 2026 Financial Highlights
- Revenue was
JPY3.0 billion ($18.6 million ), an increase of 10.0% fromJPY2.7 billion for the same period last year. - Income from operations was
JPY153.3 million ($1.0 million ), compared toJPY166.1 million for the same period last year. - Net income was
JPY124.3 million ($0.8 million ), an increase of 1.5% fromJPY122.5 million for the same period last year. - Adjusted income from operations was
JPY167.8 million ($1.1 million ), an increase of 1.0% fromJPY166.1 million for the same period last year. - Basic and diluted earnings per share was
JPY4.75 ($0.03 ), compared toJPY4.92 for the same period last year.
First Quarter of Fiscal Year 2026 Operational Highlights
Sports School Business
- Number of members was 60,960, compared to 62,495 for the same period last year.
- Revenue of the sports school business was
JPY2.2 billion ($13.6 million ), an increase of 5.6% fromJPY2.0 billion for the same period last year.
Social Business
- Number of club activities was 2,120, an increase of 7.6% from 1,971 for the same period last year.
- Revenue of the social business was
JPY791.4 million ($5.0 million ), an increase of 24.1% fromJPY637.7 million for the same period last year.
Management Commentary
Mr.
"For the sports school business, despite a temporary slight decrease in membership due to graduations, revenue increased by 5.6% due to higher monthly fees. Moving forward, we plan to focus on expanding our sports school membership base through both organic growth and strategic M&A.
"For the social business, the school club support business expanded under the tailwind of national policy, while the after-school daycare business grew in both scale and revenue, driving an increase in social business revenue by 24.1%. Although strategic investments and M&A-related expenses led to a slight decrease in operating income, we believe these investments are essential to supporting future expansion and unlocking long-term growth through business synergies.
"Fiscal year 2026 marks the first year of the Japanese government's 'reform implementation period' for school club activities, during which these activities are being transitioned to private-sector providers. We plan to fully leverage this powerful policy tailwind and continue to execute with focus. We remain committed to supporting the smiles and growth of children across borders and appreciate the continued support from our valued customers, partners, and shareholders."
Financial Condition
- As of
March 31, 2026 , the Company had cash ofJPY2.48 billion ($15.6 million ), compared toJPY2.52 billion as ofDecember 31, 2025 . - Net cash used in operating activities was
JPY140.9 million ($0.9 million ), compared toJPY239.5 million for the same period last year. - Net cash used in investing activities was
JPY22.5 million ($0.1 million ), compared toJPY4.9 million for the same period last year. - Net cash provided by financing activities was
JPY116.9 million ($0.7 million ), compared to net cash used in financing activities ofJPY181.6 million for the same period last year.
Financial Guidance
Following these financial results, there are no changes to Leifras' financial guidance last provided in its press release issued on
- Revenue is expected to be between
$82.9 million and$95.7 million for the fiscal year endingDecember 31, 2026 , an increase of approximately 10.8% to 27.9% from$74.8 million for the fiscal year endedDecember 31, 2025 . - Income from operations is expected to be between
$4.5 million and$5.4 million for the fiscal year endingDecember 31, 2026 , an increase of approximately 13.2% to 33.9% from$4.0 million for the fiscal year endedDecember 31, 2025 .
The guidance is based on the assumption that no business acquisitions, restructuring activities, or legal settlements will take place during the period.
The guidance is translated at the FY2025 assumed exchange rate of ¥156.80 =
Exchange Rate Information
This announcement contains translations of certain Japanese Yen ("JPY") amounts into
About
Headquartered in
For more information, please visit the Company's website: https://ir.leifras.co.jp/.
Non-GAAP Financial Measures
In the Company's report, it discusses key financial measures that are not calculated in accordance with the United States Generally Accepted Accounting Principles ("GAAP") to supplement its unaudited interim condensed consolidated financial statements presented on a GAAP basis. These non-GAAP financial measures are reconciled from their most directly comparable financial measures determined in accordance with GAAP as follows:
For the | ||||||||||||
2025 | 2026 | 2026 | ||||||||||
JPY | JPY | US$ | ||||||||||
INCOME FROM OPERATIONS | 166,146,066 | 153,308,100 | 963,717 | |||||||||
Plus: acquisition-related costs(a) | - | 14,505,152 | 91,181 | |||||||||
Adjusted INCOME FROM OPERATIONS | 166,146,066 | 167,813,252 | 1,054,898 | |||||||||
(a) | Represents acquisition-related costs incurred in connection with the Company's acquisition activities, including transaction-related |
The Company's primary non-GAAP financial measures and corresponding metrics reflect how it evaluates its current and prior year operating results. As new events or circumstances arise, these definitions could change. When the Company's definitions change, it provides the updated definitions. When items no longer impact its current or future presentation of non-GAAP operating results, it removes these items from its non-GAAP definitions.
Adjusted income from operations is a financial measure that is not calculated in accordance with GAAP (collectively referred to as the "non-GAAP financial measures"), and the use of the term adjusted income from operations may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. The Company believes the non-GAAP financial measure provides investors with useful information with respect to its historical operations. The Company presents the non-GAAP financial measure as a supplemental performance measure because the Company believes it facilitates a comparative assessment of the Company's operating performance relative to its performance based on its results under GAAP, while isolating the effects of some items that vary from period to period. Specifically, adjusted income from operations allows the Company to assess its performance without the impact of the specifically identified items that it believes do not directly reflect its core operations, including acquisition-related costs and other items that management does not consider reflective of its core operating performance. The non-GAAP financial measure also functions as a key performance indicator used to evaluate the Company's operating performance internally, and it is used in connection with the determination of incentive compensation for management, including executive officers.
As the Company's initial public offering was completed during the fiscal year ended
Adjusted income from operations is not a measurement of the Company's financial performance under GAAP and should not be considered in isolation or as an alternative to income from operations or any other financial statement data presented as indicators of financial performance or liquidity, each as presented in accordance with GAAP. Consequently, the Company's non-GAAP financial measure should be considered together with its unaudited interim condensed consolidated financial statements, which are prepared in accordance with GAAP. The Company understands that although adjusted income from operations is frequently used by securities analysts, lenders and others in their evaluation of companies, it has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are: adjusted income from operations does not fully reflect the Company's cash expenditures, future requirements for capital expenditures or contractual commitments; adjusted income from operations does not reflect changes in, or cash requirements for, the Company's working capital needs; adjusted income from operations does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on debt; and, although depreciation and amortization expenses are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted income from operations does not reflect any cash requirements for such replacements.
Because of these limitations, adjusted income from operations should not be considered as discretionary cash available to the Company to reinvest in the growth of the Company's business or as measure of cash that will be available to the Company to meet its obligations.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the U.S. Securities and Exchange Commission (the "
For more information, please contact:
Investor Relations Department
Email: IR@leifras.co.jp
Ascent Investor Relations LLC
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
Note: [1] Record high in US-GAAP figures since 2025. |
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
December 31, | March 31, | March 31, | ||||||||||
2025 | 2026 | 2026 | ||||||||||
JPY | JPY | US$ | ||||||||||
(Unaudited) | (Unaudited) | |||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS | ||||||||||||
Cash | 2,524,082,266 | 2,477,567,162 | 15,574,347 | |||||||||
Accounts receivable, net | 731,083,491 | 786,776,869 | 4,945,794 | |||||||||
Inventories, net | 21,578,477 | 13,735,828 | 86,345 | |||||||||
Prepaid expenses | 158,040,280 | 253,474,342 | 1,593,377 | |||||||||
Other current assets | 38,219,685 | 45,019,332 | 282,998 | |||||||||
TOTAL CURRENT ASSETS | 3,473,004,199 | 3,576,573,533 | 22,482,861 | |||||||||
NON-CURRENT ASSETS | ||||||||||||
Property and equipment, net | 96,456,471 | 99,659,727 | 626,475 | |||||||||
Intangible assets, net | 29,631,015 | 26,881,643 | 168,982 | |||||||||
Operating lease right-of-use assets | 482,694,859 | 477,316,039 | 3,000,478 | |||||||||
Finance lease right-of-use assets | 236,908,226 | 227,724,404 | 1,431,509 | |||||||||
Long-term deposits | 150,216,792 | 155,815,142 | 979,477 | |||||||||
Long-term investment | 5,736,500 | 25,056,000 | 157,506 | |||||||||
Deferred tax assets, net | 164,082,227 | 147,566,531 | 927,625 | |||||||||
27,999,994 | 27,999,994 | 176,012 | ||||||||||
Other non-current assets | 8,470,398 | 9,030,715 | 56,768 | |||||||||
TOTAL NON-CURRENT ASSETS | 1,202,196,482 | 1,197,050,195 | 7,524,832 | |||||||||
TOTAL ASSETS | 4,675,200,681 | 4,773,623,728 | 30,007,693 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
CURRENT LIABILITIES | ||||||||||||
Short-term loans | 100,000,000 | 100,000,000 | 628,615 | |||||||||
Current portion of long-term loans | 151,030,000 | 114,826,000 | 721,813 | |||||||||
Bond payable, current | 40,000,000 | 80,000,000 | 502,892 | |||||||||
Accounts payable | 196,849,154 | 215,326,762 | 1,353,575 | |||||||||
Accrued liabilities | 1,160,996,435 | 1,068,999,496 | 6,719,886 | |||||||||
Income tax payable | 43,499,500 | 28,193,977 | 177,232 | |||||||||
Contract liabilities, current | 154,074,620 | 79,376,490 | 498,972 | |||||||||
Operating lease liabilities, current | 138,880,117 | 145,575,433 | 915,108 | |||||||||
Finance lease liabilities, current | 88,017,810 | 88,531,359 | 556,521 | |||||||||
Other current liabilities | 176,592,537 | 193,682,649 | 1,217,517 | |||||||||
TOTAL CURRENT LIABILITIES | 2,249,940,173 | 2,114,512,166 | 13,292,131 | |||||||||
NON-CURRENT LIABILITIES | ||||||||||||
Long-term loans, net of current portion | 24,422,000 | 8,370,000 | 52,615 | |||||||||
Bond payable, non-current | 18,175,440 | 171,589,348 | 1,078,635 | |||||||||
Contract liabilities, non-current | 12,817,448 | 8,660,455 | 54,441 | |||||||||
Operating lease liabilities, non-current | 347,365,643 | 332,648,745 | 2,091,078 | |||||||||
Finance lease liabilities, non-current | 144,989,192 | 135,920,091 | 854,414 | |||||||||
Assets retirement obligations | 30,775,915 | 30,880,049 | 194,117 | |||||||||
TOTAL NON-CURRENT LIABILITIES | 578,545,638 | 688,068,688 | 4,325,300 | |||||||||
TOTAL LIABILITIES | 2,828,485,811 | 2,802,580,854 | 17,617,431 | |||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Ordinary shares, 80,000,000 shares authorized; 26,560,660 shares issued | 409,833,241 | 409,833,241 | 2,576,271 | |||||||||
Additional paid-in capital | 786,906,631 | 786,906,631 | 4,946,610 | |||||||||
| (100,012,265) | (100,012,265) | (628,692) | |||||||||
Retained earnings | 749,987,263 | 874,315,267 | 5,496,073 | |||||||||
TOTAL SHAREHOLDERS' EQUITY | 1,846,714,870 | 1,971,042,874 | 12,390,262 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,675,200,681 | 4,773,623,728 | 30,007,693 | |||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
For the three months ended | ||||||||||||
2025 | 2026 | 2026 | ||||||||||
JPY | JPY | US$ | ||||||||||
NET REVENUE | 2,686,214,407 | 2,954,324,120 | 18,571,311 | |||||||||
Cost of revenue | (1,895,769,261) | (2,002,020,892) | (12,584,995) | |||||||||
GROSS PROFIT | 790,445,146 | 952,303,228 | 5,986,316 | |||||||||
Selling, general, and administrative expenses | (624,299,080) | (798,995,128) | (5,022,599) | |||||||||
INCOME FROM OPERATIONS | 166,146,066 | 153,308,100 | 963,717 | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||
Interest income | 1,202,167 | 2,569,001 | 16,149 | |||||||||
Interest expense | (4,701,295) | (2,615,163) | (16,439) | |||||||||
Dividend income | 87,500 | 87,500 | 550 | |||||||||
Grant income | 8,524,957 | 12,400,890 | 77,954 | |||||||||
Unrealized loss on short-term investment | (161,000) | - | - | |||||||||
Unrealized gain on long-term investment | - | 2,735,074 | 17,193 | |||||||||
Loss on disposal of long-lived assets | (168,969) | (4) | - | |||||||||
Other income (expense), net | (15,705,413) | 852,524 | 5,359 | |||||||||
Total other income (expense), net | (10,922,053) | 16,029,822 | 100,766 | |||||||||
INCOME BEFORE INCOME TAX PROVISION | 155,224,013 | 169,337,922 | 1,064,483 | |||||||||
PROVISION FOR INCOME TAXES | ||||||||||||
Current | (3,626,835) | (28,494,222) | (179,119) | |||||||||
Deferred | (29,056,916) | (16,515,696) | (103,820) | |||||||||
Total provision for income taxes | (32,683,751) | (45,009,918) | (282,939) | |||||||||
NET INCOME | 122,540,262 | 124,328,004 | 781,544 | |||||||||
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||||||||
Basic | 24,910,619 | 26,160,619 | 26,160,619 | |||||||||
Diluted | 24,913,619 | 26,163,619 | 26,163,619 | |||||||||
EARNINGS PER SHARE | ||||||||||||
Basic | 4.92 | 4.75 | 0.03 | |||||||||
Diluted | 4.92 | 4.75 | 0.03 | |||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the three months ended | ||||||||||||
2025 | 2026 | 2026 | ||||||||||
JPY | JPY | US$ | ||||||||||
Cash flows from operating activities | ||||||||||||
Net income | 122,540,262 | 124,328,004 | 781,544 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
Depreciation and amortization expense | 33,078,421 | 29,860,560 | 187,708 | |||||||||
Provision for expected credit loss | 2,231,985 | 2,098,333 | 13,190 | |||||||||
Loss on disposal of property and equipment | 168,969 | 4 | - | |||||||||
Provision for inventory impairment | 58,982 | 538,926 | 3,388 | |||||||||
Unrealized loss on short-term investment | 161,000 | - | - | |||||||||
Unrealized gain on long-term investment | - | (2,735,074) | (17,193) | |||||||||
Unrealized foreign currency exchange loss | 1,325,417 | - | - | |||||||||
Other non-cash expenses (income) | (830,871) | 685,062 | 4,307 | |||||||||
Deferred tax expense | 29,056,916 | 16,515,696 | 103,820 | |||||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable, net | (34,680,981) | (57,791,711) | (363,287) | |||||||||
Inventories | 792,788 | 7,303,723 | 45,912 | |||||||||
Prepaid expenses | (114,612,715) | (95,467,062) | (600,120) | |||||||||
Long-term deposits | (2,019,600) | (5,598,350) | (35,192) | |||||||||
Other current assets | (17,654,864) | (6,799,647) | (42,744) | |||||||||
Other non-current assets | 271,028 | (560,317) | (3,522) | |||||||||
Accounts payable | 218,656 | 18,477,608 | 116,153 | |||||||||
Accrued liabilities | (99,770,693) | (91,996,939) | (578,306) | |||||||||
Contract liabilities | (85,961,299) | (78,855,123) | (495,695) | |||||||||
Operating lease liabilities | (416,121) | (2,642,777) | (16,613) | |||||||||
Income tax payable | (72,177,900) | (15,305,523) | (96,213) | |||||||||
Amount due to a director | (1,000,000) | - | - | |||||||||
Other current liabilities | (264,810) | 17,090,112 | 107,431 | |||||||||
Net cash used in operating activities | (239,485,430) | (140,854,495) | (885,432) | |||||||||
Cash flows from investing activities | ||||||||||||
Purchase of investment securities | - | (16,584,426) | (104,252) | |||||||||
Purchase of property and equipment | (1,795,476) | (5,821,892) | (36,597) | |||||||||
Purchase of intangible assets | (3,085,000) | (132,800) | (835) | |||||||||
Net cash used in investing activities | (4,880,476) | (22,539,118) | (141,684) | |||||||||
Cash flows from financing activities | ||||||||||||
Payment of finance lease liabilities | (20,256,439) | (23,698,391) | (148,972) | |||||||||
Repayment of bank loans | (103,388,000) | (52,256,000) | (328,489) | |||||||||
Proceeds from bond payable | - | 192,832,900 | 1,212,176 | |||||||||
Payment of deferred IPO costs | (58,000,138) | - | - | |||||||||
Net cash (used in) provided by financing activities | (181,644,577) | 116,878,509 | 734,715 | |||||||||
Effect of exchange rate | (1,325,417) | - | - | |||||||||
Net decrease in cash | (427,335,900) | (46,515,104) | (292,401) | |||||||||
Cash at the beginning of period | 2,538,554,638 | 2,524,082,266 | 15,866,748 | |||||||||
Cash at the end of period | 2,111,218,738 | 2,477,567,162 | 15,574,347 | |||||||||
Supplementary cash flow information | ||||||||||||
Cash paid for income taxes | 75,804,735 | 43,799,745 | 275,332 | |||||||||
Cash paid for interest expenses | 4,345,433 | 1,930,021 | 12,132 | |||||||||
Non-GAAP Financial Measures and Reconciliation | ||||||||||||
Adjusted INCOME FROM OPERATIONS | ||||||||||||
For the | ||||||||||||
2025 | 2026 | 2026 | ||||||||||
JPY | JPY | US$ | ||||||||||
INCOME FROM OPERATIONS | 166,146,066 | 153,308,100 | 963,717 | |||||||||
Plus: acquisition-related costs(a) | - | 14,505,152 | 91,181 | |||||||||
Adjusted INCOME FROM OPERATIONS | 166,146,066 | 167,813,252 | 1,054,898 | |||||||||
(a) | Represents acquisition-related costs incurred in connection with the Company's acquisition activities, including |
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