Leifras (LFS) Q3 2025 earnings summary

Executive summary

• Revenue grew 15.3% year-over-year to $57.8M (JPY8.6 billion) for Q3 FY2025, driven by both Sports School and Social Business segments.

• Net income increased 0.7% year-over-year to $1.53M (JPY226.7 million), with EPS rising to JPY9.10.

• Membership in Sports School Business rose 2.3% to 71,529, and contracted schools in Social Business surged 53.2% to 360.

• The company secured a new contract with the City of Nagoya, supporting its expansion strategy.

• Income from operations increased 49.1% to $2.4M.

Financial highlights

• Net revenue: $57.8M (JPY8.6 billion), up 15.3% year-over-year.

• Gross profit: $16.3M (JPY2.4 billion), up 18.1% year-over-year, with gross margin improving to 28.2%.

• Income from operations: $2.4M, up 49.1% year-over-year.

• Net income: $1.53M (JPY226.7 million), up 0.7% year-over-year.

• Net cash provided by operating activities was JPY326.7 million.

Outlook and guidance

• FY2025 net sales forecast: $78.1M–$80.5M (JPY11.6–11.9 billion), representing 11.9%–15.3% growth over FY2024.

• Operating profit projected at $3.9M–$4.7M (JPY580.0–696.5 million), up from $3.5M in FY2024.

• Guidance assumes no major acquisitions, restructuring, or legal settlements.

• Growth opportunities anticipated from Japan’s Club Activity Reform, shifting club management to private organizations.