Leifras (LFS) Q4 2025 earnings summary

Executive summary

• Achieved record performance in FY2025, with net revenue, operating income, and net income reaching all-time highs, driven by strong growth in both sports school and social business segments.

• Maintained top market share in Japan for sports school membership and club activity contracts for consecutive years.

• Strategic focus on large-scale club activity projects and quality enhancement led to a temporary plateau in school member growth but established a dominant position in the club activity sector.

• Leveraged national policy reforms and government tailwinds to expand market share and drive future growth.

Financial highlights

• Net revenue rose 13.5% year-over-year to $74.8 million; operating income increased 20.7% to $4.0 million; adjusted operating income, excluding one-time IPO costs, surged 41.8% to $4.4 million.

• Net income reached $2.8 million, up 4.7% year-over-year, despite higher tax and M&A-related costs.

• Gross profit grew 17.6% to $22.1 million, with gross margin improving to 29.6%.

• Sports school members totaled 70,688 (+0.04% YoY); contracted club activities rose 7.6% to 2,120.

Outlook and guidance

• FY2026 guidance projects net revenue of $82.9–$95.7 million and operating income of $4.5–$5.4 million, with a focus on margin expansion and double-digit growth.

• Operating profit margin expected to improve, with a high-end forecast of 5.6%.

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