LEIFRAS Co., Ltd. Reports Fiscal Year 2025 Financial Results

Record-High Revenue and Operating Income, Up 13.5% and 20.7% Year Over Year Respectively [1]

TOKYO, April 8, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced its financial results for the fiscal year ended December 31, 2025.

Fiscal Year 2025 Financial Highlights

Fiscal Year 2025 Operational Highlights

Sports School Business

Social Business

Management Commentary

Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "For the full fiscal year ended December 2025, we achieved record highs in revenue, income from operations, and adjusted income from operations. Revenue in the sports school business increased by 7.8% compared to the same period last year, and revenue in the social business increased by 32.8% compared to the same period last year. These results reflect the steady growth of the sports school business, which boasts the largest market share in Japan, as well as an increase in the number of contracts for the club activities business, which is a growth driver. In particular, in our social business, in addition to being the No. 1 company in Japan in terms of club activity contracting, in 2025 we have signed new contracts with many schools, including Suita City, Osaka Prefecture; Shibuya Ward, Tokyo; and Monbetsu City, Hokkaido. The Japanese government's club activity reforms will transfer the management of school-based club activities to local communities and the private sector, with the 'reform implementation period' from 2026 to 2031 marking the full-scale transition from school-based to local communities and the private sector. This national policy is a powerful tailwind for our company and paves the way for medium- to long-term growth. We will continue to take on the challenge of supporting the smiles and growth of children across borders by sharing our sports-based non-cognitive skills development services, which we have cultivated in Japan, with the world. We appreciate your continued support."

Financial Condition

Financial Guidance

The Guidance is based on the assumption that no business acquisitions, restructuring activities, or legal settlements will take place during the period.

Conference Call Information

The Company will host an English-language conference call at 8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time) on April 14, 2026 and a Japanese-language conference call at 3:00 am U.S. Eastern Time (4:00 pm Japan Standard Time) on April 15, 2026. To attend the earnings conference calls, please use the following access information.

Dial-in details for the English-language conference call:

Date:

April 14, 2026

Time:

8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time)

International:

1-412-902-4272

USA/CANADA TOLL-FREE

1-888-346-8982

Conference ID:

Leifras Co., Ltd.

Webcast:

https://event.choruscall.com/mediaframe/webcast.html?webcastid=Id5RSCFh

Dial-in details for the Japanese-language conference call:

Date:

April 15, 2026

Time:

3:00 am U.S. Eastern Time (4:00 pm Japan Standard Time)

Pre-registration Link for Dial-in Access:

https://zoom.us/webinar/register/WN_Je53cHjFT4OyGlARdeUdWg

Please dial in at least 15 minutes before the commencement of the call to ensure timely participation.

For those unable to participate, an audio replay of the conference call will be available from approximately one hour after the end of the live call until April 21, 2026. The dial-in for the replay is 1-855-669-9658 within the United States or 1-412-317-0088 internationally. The replay access code is 6857888.

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.leifras.co.jp.

Exchange Rate Information

This announcement contains translations of certain Japanese Yen ("JPY") amounts into U.S. dollars ("USD," or "$") for the convenience of the reader. Translations of amounts from JPY into USD have been made at the exchange rate of JPY156.80 = $1.00, the exchange rate on December 31, 2025 set forth in the H.10 statistical release of the United States Federal Reserve Board.

About LEIFRAS Co., Ltd.

Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2025, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics.

For more information, please visit the Company's website: https://ir.leifras.co.jp/.

Non-GAAP Financial Measures

In the Company's annual report on Form 20-F, it discusses key financial measures that are not calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") to supplement its consolidated financial statements presented on a GAAP basis. This non-GAAP financial measure is reconciled from its most directly comparable financial measure determined in accordance with GAAP as follows:

Non-GAAP Financial Measures and Reconciliation

Adjusted INCOME FROM OPERATIONS

For the Fiscal Years Ended

December 31,

2024

2025

JPY

US$

INCOME FROM OPERATIONS

519,757,261

627,405,815

4,001,313

Plus: listing-related and transformational expenses (a)

24,392,841

64,901,063

413,910

Less: litigation-related reimbursement (b)

(55,935,710)

Adjusted INCOME FROM OPERATIONS

488,214,392

692,306,878

4,415,223

(a) Represents one-time listing-related and other transformational expenses incurred in connection with our initial

public offering and corporate transformation initiatives in fiscal years 2024 and 2025. These costs were

recognized as expenses in the statement of operations and were not recorded as direct deductions from equity.

(b) Litigation-related reimbursement received in fiscal year 2024 from the CEO in connection with a dispute

involving a former director. As this payment represents a non-recurring and unusual item, it has been excluded

for normalization purposes.

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 terms 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 supplemental performance measures because the Company believe it facilitates a comparative assessment of its 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 the Company believes do not directly reflect its core operations, including non-recurring costs, such as listing-related and transformational expenses, other non-recurring income, such as litigation-related reimbursement. The non-GAAP financial measure also functions as 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.

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 consolidated financial statements, which are prepared in accordance with GAAP and included in Item 8 of its Annual Report on Form 20-F. 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 analytical tools, and you should not consider it in isolation, or as a substitute for analysis of its results as reported under GAAP. Some of these limitations are: adjusted income from operations does not fully reflect its cash expenditures, future requirements for capital expenditures or contractual commitments; adjusted income from operations does not reflect changes in, or cash requirements for, its 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 its 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 "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

For more information, please contact:

LEIFRAS Co., Ltd.

Investor Relations Department

Email: [email protected]

Ascent Investor Relations LLC

Tina Xiao

Phone: +1-646-932-7242

Email: [email protected]

Note: [1] Record high in US-GAAP figures since 2023.

LEIFRAS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

As of December 31,

2024

2025

JPY

US$

ASSETS

CURRENT ASSETS

Cash

2,538,554,638

2,524,082,266

16,097,463

Accounts receivable, net

518,398,551

731,083,491

4,662,522

Short-term investments

4,935,000

Inventories, net

24,468,188

21,578,477

137,618

Prepaid expenses

182,278,232

158,040,280

1,007,910

Other current assets

34,381,843

38,219,685

243,748

TOTAL CURRENT ASSETS

3,303,016,452

3,473,004,199

22,149,261

NON-CURRENT ASSETS

Property and equipment, net

53,805,279

96,456,471

615,158

Finance lease right-of-use assets

208,611,550

236,908,226

1,510,894

Operating lease right-of-use assets

337,330,750

482,694,859

3,078,411

Intangible assets, net

39,250,078

29,631,015

188,973

Long-term investments

5,736,500

36,585

Goodwill

27,999,994

178,571

Deferred tax assets, net

214,671,578

164,082,227

1,046,443

Deferred initial public offering ("IPO") costs

157,482,065

Long-term deposits

150,407,276

150,216,792

958,015

Other non-current assets

3,090,205

8,470,398

54,020

TOTAL NON-CURRENT ASSETS

1,192,648,775

1,202,196,482

7,667,070

TOTAL ASSETS

4,495,665,227

4,675,200,681

29,816,331

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Short-term loans

700,000,000

100,000,000

637,755

Current portion of long-term loans

230,785,000

151,030,000

963,202

Bond payable, current

40,000,000

255,102

Accounts payable

168,281,568

196,849,154

1,255,416

Accrued liabilities

1,109,740,581

1,160,996,435

7,404,314

Income tax payable

75,374,800

43,499,500

277,420

Contract liabilities, current

147,628,310

154,074,620

982,619

Amount due to a director

1,000,000

Finance lease liabilities, current

71,681,545

88,017,810

561,338

Operating lease liabilities, current

110,889,134

138,880,117

885,715

Other current liabilities

195,952,191

176,592,537

1,126,228

TOTAL CURRENT LIABILITIES

2,851,333,129

2,249,940,173

14,349,109

NON-CURRENT LIABILITIES

Long-term loans, net of current portion

175,452,000

24,422,000

155,752

Bond payable, non-current

56,807,020

18,175,440

115,915

Contract liabilities, non-current

10,615,635

12,817,448

81,744

Finance lease liabilities, non-current

140,333,247

144,989,192

924,676

Operating lease liabilities, non-current

207,353,977

347,365,643

2,215,342

Assets retirement obligations

12,914,758

30,775,915

196,275

TOTAL NON-CURRENT LIABILITIES

603,476,637

578,545,638

3,689,704

TOTAL LIABILITIES

3,454,809,766

2,828,485,811

18,038,813

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY

Ordinary shares, 80,000,000 shares authorized; 25,310,660 shares

issued and 24,910,619 shares outstanding as of December 31,

2024 and 26,560,660 shares issued and 26,160,619 shares

outstanding as of December 31, 2025*

80,500,000

409,833,241

2,613,732

Additional paid-in capital

748,840,080

786,906,631

5,018,537

Treasury shares, 400,041 shares as of December 31, 2024 and 2025,

respectively*

(100,012,265)

(637,833)

Retained Earnings

311,527,646

749,987,263

4,783,082

TOTAL SHAREHOLDERS' EQUITY

1,040,855,461

1,846,714,870

11,777,518

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

4,495,665,227

4,675,200,681

29,816,331

* Retrospectively restated for a 1-to-20 share split which became effective on November 1, 2024.

LEIFRAS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

For the Fiscal Years ended December 31,

2023

2024

2025

JPY

US$

NET REVENUE

9,304,011,693

10,329,658,133

11,728,402,114

74,798,483

Cost of revenue

(6,966,376,610)

(7,381,911,441)

(8,262,783,362)

(52,696,323)

GROSS PROFIT

2,337,635,083

2,947,746,692

3,465,618,752

22,102,160

Selling, general, and administrative expenses

(1,941,979,790)

(2,427,989,431)

(2,838,212,937)

(18,100,847)

INCOME FROM OPERATIONS

395,655,293

519,757,261

627,405,815

4,001,313

OTHER INCOME (EXPENSE)

Interest income

319,563

333,704

3,812,636

24,314

Interest expense

(13,828,146)

(16,499,609)

(16,480,844)

(105,107)

Grant income

14,461,568

17,038,263

16,821,366

107,279

Unrealized gain (loss) on short-term investment

175,000

(87,500)

Unrealized gain on long-term investment

801,500

5,112

Loss on disposal of long-lived assets

(712,149)

(190,430)

(659,442)

(4,206)

Loss on disposal of a subsidiary

(753,900)

Other income (expenses), net

14,126,116

18,385,674

(24,884,546)

(158,702)

Total other income (expenses), net

14,541,952

18,226,202

(20,589,330)

(131,310)

INCOME BEFORE INCOME TAX

PROVISION

410,197,245

537,983,463

606,816,485

3,870,003

PROVISION FOR INCOME TAXES

Current

(159,658,082)

(156,791,073)

(117,767,517)

(751,068)

Deferred

(5,198,043)

37,441,597

(50,589,351)

(322,636)

Total provision for income taxes

(164,856,125)

(119,349,476)

(168,356,868)

(1,073,704)

NET INCOME

245,341,120

418,633,987

438,459,617

2,796,299

WEIGHTED AVERAGE NUMBER OF

ORDINARY SHARES

Basic*

25,298,605

24,910,656

25,191,441

Diluted*

28,561,813

26,521,008

25,194,441

EARNINGS PER SHARE

Basic*

9.70

16.81

17.41

0.11

Diluted*

8.59

15.78

17.40

0.11

* Retrospectively restated for a 1-to-20 share split which became effective on November 1, 2024.

LEIFRAS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Fiscal Years ended December 31,

2023

2024

2025

JPY

US$

Cash flows from operating activities

Net income

245,341,120

418,633,987

438,459,617

2,796,299

Adjustments to reconcile net income to net cash

provided by operating activities

Depreciation and amortization expense

92,376,436

122,007,991

126,109,125

804,267

Loss on disposal of a subsidiary

753,900

Provision for expected credit loss

1,540,558

2,004,676

8,647,329

55,149

Loss on disposal of property and equipment

651,482

190,430

247,775

1,580

Loss on disposal of intangible assets

60,667

411,667

2,626

Provision for inventory impairment

2,050,199

3,159,439

601,009

3,833

Unrealized (gain) loss on short-term investment

(175,000)

87,500

Unrealized gain on long-term investment

(801,500)

(5,112)

Unrealized foreign currency exchange gain

(7,743,963)

(49,387)

Share-based compensation

6,787,500

Other non-cash income

(53,186,243)

(2,572,426)

(165,310)

(1,054)

Deferred tax expense

5,198,043

(37,441,597)

50,589,351

322,636

Changes in operating assets and liabilities

Accounts receivable, net

(140,305,194)

(100,804,801)

(221,332,269)

(1,411,558)

Inventories

4,738,514

(7,121,445)

2,288,702

14,596

Prepaid expenses

(15,384,821)

(74,376,336)

23,960,671

152,810

Long-term deposits

(12,472,270)

(13,114,365)

190,484

1,215

Amount due from a director

33,577,065

Other current assets

(5,694,167)

(5,887,422)

(3,837,842)

(24,476)

Other non-current assets

5,943,850

(11,766,167)

(5,380,193)

(34,312)

Accounts payable

40,249,686

(3,215,853)

28,567,586

182,191

Accrued liabilities

324,832,914

(86,514,627)

51,255,854

326,887

Contract liabilities

(2,561,454)

19,842,770

8,648,123

55,154

Operating lease liabilities

28,733

(1,070,016)

22,638,540

144,378

Income tax payable

149,480,600

(79,952,400)

(31,875,300)

(203,286)

Amount due to a director

1,000,000

(1,000,000)

(6,378)

Other current liabilities

28,440,743

29,691,091

(22,183,453)

(141,476)

Net cash provided by operating activities

677,941,896

207,111,394

468,296,003

2,986,582

Cash flows from investing activities

Cash outflow due to reduction in consolidated

entities

(17,257,489)

Purchase of property and equipment

(3,752,431)

(15,081,600)

(42,598,215)

(271,672)

Purchase of intangible assets

(1,030,000)

(19,051,500)

(10,900,000)

(69,516)

Net cash used in investing activities

(4,782,431)

(51,390,589)

(53,498,215)

(341,188)

Cash flows from financing activities

Payment of finance lease liabilities

(39,799,863)

(65,901,913)

(91,110,980)

(581,065)

Proceeds from bank loans

378,000,000

250,000,000

Repayment of bank loans

(313,451,000)

(338,785,000)

(830,785,000)

(5,298,374)

Repayment of bond payable

(40,000,000)

(255,102)

Proceeds from issuance of ordinary shares upon

IPO

658,666,480

4,200,679

Payment of deferred IPO costs

(5,732,730)

(151,749,335)

(133,784,623)

(853,218)

Repurchase of treasury stock

(12,265)

Net cash used in financing activities

(20,983,593)

(346,448,513)

(437,014,123)

(2,787,080)

Effect of exchange rate

7,743,963

49,387

Net increase (decrease) in cash

652,175,872

(190,727,708)

(14,472,372)

(92,299)

Cash at the beginning of the year

2,077,106,474

2,729,282,346

2,538,554,638

16,189,762

Cash at the end of the year

2,729,282,346

2,538,554,638

2,524,082,266

16,097,463

Supplementary cash flow information

Cash paid for income taxes

10,177,482

236,743,473

144,636,317

922,425

Cash paid for interest expenses

12,358,975

15,522,155

14,846,154

94,682

Non-GAAP Financial Measures and Reconciliation

Adjusted INCOME FROM OPERATIONS

For the Fiscal Years Ended

December 31,

2024

2025

JPY

US$

INCOME FROM OPERATIONS

519,757,261

627,405,815

4,001,313

Plus: listing-related and transformational expenses (a)

24,392,841

64,901,063

413,910

Less: litigation-related reimbursement (b)

(55,935,710)

Adjusted INCOME FROM OPERATIONS

488,214,392

692,306,878

4,415,223

(a) Represents one-time listing-related and other transformational expenses incurred in connection with our initial

public offering and corporate transformation initiatives in fiscal years 2024 and 2025. These costs were

recognized as expenses in the statement of operations and were not recorded as direct deductions from equity.

(b) Litigation-related reimbursement received in fiscal year 2024 from the CEO in connection with a dispute

involving a former director. As this payment represents a non-recurring and unusual item, it has been excluded

for normalization purposes.

SOURCE LEIFRAS Co., Ltd.