Leifras (LFS) Q2 2026 earnings summary

Executive summary

• H1 FY2026 net revenue, gross profit, operating income, adjusted operating income and net income reached period records; both core segments grew.

• Expansion advanced across sports schools, school club support, after-school services and M&A; sports school coverage reached all 47 prefectures.

Financial highlights

• Net revenue was $36.768M, up 8.9% YoY; gross profit was $10.861M, up 22.6%.

• Operating income rose 35.9% to $568K and net income rose 43.5% to $474K.

• Adjusted operating income was $859K, up 105.6%, adding back $291K of acquisition-related costs to reported operating income.

• Operating margin improved to 1.5% from 1.2%; gross margin was 29.5%.

Outlook and guidance

• FY2026 guidance unchanged: net revenue $82.908M–$95.663M and operating income $4.528M–$5.357M; forecast operating margin is 5.5%–5.6%.

• Guidance includes Well Resource from May 1, Tokai Sports from June 1 and SWIFT JAPAN from July 1; excludes further acquisitions, restructuring and legal settlements.

• Earnings are seasonally weighted to H2; membership recovery initiatives are planned for Q3–Q4.