LEIFRAS Co., Ltd. Reports First Half of Fiscal Year 2026 Financial Results

Full-year guidance targets revenue growth of approximately 10.8% to 27.9% and operating income growth of approximately 13.2% to 33.9%.

Rhea-AI Summary

LEIFRAS (Nasdaq: LFS) reported first-half fiscal 2026 revenue of JPY5,978.8 million, up 8.9% year over year, alongside higher operating income.

For the six months ended June 30, operating income rose 35.9% to JPY92.3 million, and net income increased 43.5% to JPY77.1 million. Basic and diluted earnings per share rose to JPY2.95 from JPY2.16. Sports school revenue grew 5.4%, despite membership falling 0.9%; social business revenue increased 18.0%. Operating cash flow fell to JPY252.7 million from JPY312.8 million a year earlier.

LEIFRAS expects full-year revenue of $82.9 million–$95.7 million and operating income of $4.5 million–$5.4 million, including results from three acquired businesses from specified dates. Cash reached JPY2,591.8 million at June 30, versus JPY2,524.1 million at December 31, 2025. First-half results are unaudited.

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0 major · 4 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointFirst-half revenue increased 8.9% year over year to JPY5,978.8 million.
• Moderate pointFirst-half operating income rose 35.9% year over year to JPY92.3 million.
• Moderate pointFirst-half net income increased 43.5% year over year to JPY77.1 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance expects $82.9 million–$95.7 million, approximately 10.8%–27.9% above 2025.
• Moderate pointContracted schools increased 37.0% to 478 at June 30, 2026, versus June 30, 2025.

7 minor points

• Minor pointBasic and diluted first-half EPS increased to JPY2.95 from JPY2.16 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 operating income guidance expects $4.5 million–$5.4 million, approximately 13.2%–33.9% above 2025.
• Minor pointSports school first-half revenue increased 5.4% year over year to JPY4,148.5 million.
• Minor pointSocial business first-half revenue increased 18.0% year over year to JPY1,830.3 million.
• Minor pointSupported club activities increased 6.2% to 2,224 at June 30, 2026, versus June 30, 2025.
• Minor pointAdjusted first-half operating income, a non-GAAP measure, increased 105.6% year over year to JPY139.7 million.
• Minor pointCash and cash equivalents rose to JPY2,591.8 million at June 30, 2026, from JPY2,524.1 million at year-end 2025.

Negative

• Moderate pointFirst-half operating cash flow decreased to JPY252.7 million from JPY312.8 million a year earlier.
• Moderate pointFirst-half investing cash outflow increased to JPY213.0 million from JPY47.2 million a year earlier.
• Minor pointSports school membership fell 0.9% to 68,873 at June 30, 2026, versus June 30, 2025.
• Minor pointAcquisition-related costs totaled JPY47,365,619 in first-half 2026, versus none a year earlier.

News Explained

In its unaudited first-half results, Leifras reported JPY 92.3 million in operating income and separately presented JPY 139.7 million of adjusted operating income, a non-GAAP measure that adds back JPY 47,365,619 in acquisition-related costs; the adjusted figure does not replace the reported result.

Key Figures

Revenue: JPY5,978.8 million; +8.9% year over year Income from operations: JPY92.3 million; +35.9% year over year Net income: JPY77.1 million; +43.5% year over year +4 more

Revenue

JPY5,978.8 million; +8.9% year over year

Six months ended June 30, 2026

Income from operations

JPY92.3 million; +35.9% year over year

Six months ended June 30, 2026

Net income

JPY77.1 million; +43.5% year over year

Six months ended June 30, 2026

Adjusted income from operations

JPY139.7 million; +105.6% year over year

Six months ended June 30, 2026; non-GAAP measure

Earnings per share

JPY2.95

Basic and diluted; first half of FY2026, compared with JPY2.16 year over year

FY2026 revenue guidance

$82.9 million–$95.7 million

Fiscal year ending December 31, 2026

FY2026 income from operations guidance

$4.5 million–$5.4 million

Fiscal year ending December 31, 2026

Previous Earnings Reports

2 past events · Latest: Oct 30

Same Type 2 events

1. Oct 30

   First-half results

   24h Move

   +1.4%

   Revenue rose 15.0% year over year, providing a direct prior-period comparison.

2. Apr 08

   Fiscal-year results

   24h Move

   -9.3%

   Record fiscal-year revenue and operating income established the base for FY2026 guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap financial measure

1 terms

non-gaap financial measure financial

"This non-GAAP financial measure is reconciled to its most directly comparable financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

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Record-High First-Half Revenue and Operating Income, Up 8.9% and 35.9% Year Over Year, Respectively^[1]

TOKYO, Oct. 7, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, and a leading operator of children's sports schools and school club activity support businesses in Japan, today announced its unaudited financial results for the six months ended June 30, 2026.

First Half of Fiscal Year 2026 Financial Highlights

• Revenue was JPY5,978.8 million ($36.8 million), an increase of 8.9% from JPY5,488.8 million for the same period last year.
  
  
• Income from operations was JPY92.3 million ($0.6 million), an increase of 35.9% from JPY67.9 million for the same period last year.
  
  
• Net income was JPY77.1 million ($0.5 million), an increase of 43.5% from JPY53.7 million for the same period last year.
  
  
• Adjusted income from operations was JPY139.7 million ($0.9 million), an increase of 105.6% from JPY67.9 million for the same period last year.
  
  
• Basic and diluted earnings per share were JPY2.95 ($0.02), compared to JPY2.16 for the same period last year.

First Half of Fiscal Year 2026 Operational Highlights

Sports School Business

• Number of members was 68,873, a decrease of 0.9% from 69,500 as of June 30, 2025.
  
  
• Revenue of the sports school business was JPY4,148.5 million ($25.5 million), an increase of 5.4% from JPY3,937.7 million for the same period last year

Social Business

• Number of schools was 478, an increase of 37.0% from 349 as of June 30, 2025.
  
  
• Number of club activities was 2,224, an increase of 6.2% from 2,095 as of June 30, 2025.
  
  
• Revenue of the social business was JPY1,830.3 million ($11.3 million), an increase of 18.0% from JPY1,551.1 million for the same period last year.

Management Commentary

Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "We are pleased to report continued strong financial performance in the first half of fiscal year 2026. Both our sports school business and social business achieved revenue growth, contributing to an 8.9% year-over-year increase in total revenue, a record-high^[1]. Profitability also continued to improve, with higher gross profit margin contributing to a 35.9% increase in income from operations and a 43.5% increase in net income.

"In our core sports school business, we remain committed to delivering our distinctive educational services that foster children's non-cognitive skills. Meanwhile, our social business continued to grow as we expanded our efforts to support local sports environments, increasing the number of contracted schools for club activity support to 478, up 37.0% year over year. We will continue to draw on the people and expertise we have developed through sports education to support children's growth, address challenges facing local communities, and sustainably enhance corporate value."

Financial Condition

• As of June 30, 2026, the Company had cash and cash equivalents of JPY2,591.8 million ($15.9 million), compared to JPY2,524.1 million as of December 31, 2025.
  
  
• Net cash provided by operating activities was JPY252.7 million ($1.6 million) for the six months ended June 30, 2026, compared to JPY312.8 million for the same period last year.
  
  
• Net cash used in investing activities was JPY213.0 million ($1.3 million) for the six months ended June 30, 2026, compared to JPY47.2 million for the same period last year.
  
  
• Net cash provided by financing activities was JPY28.0 million ($0.2 million) for the six months ended June 30, 2026, compared to net cash used in financing activities of JPY306.1 million for the same period last year.

Financial Guidance

• Revenue is expected to be between $82.9 million and $95.7 million for the fiscal year ending December 31, 2026, an increase of approximately 10.8% to 27.9% from $74.8 million for the fiscal year ended December 31, 2025.
  
  
• Income from operations is expected to be between $4.5 million and $5.4 million for the fiscal year ending December 31, 2026, an increase of approximately 13.2% to 33.9% from $4.0 million for the fiscal year ended December 31, 2025.

The guidance includes the results of Well Resources (from May 1, 2026), Tokai Sports (from June 1, 2026) and SWIFT JAPAN (from July 1, 2026). It does not assume any further business acquisitions, restructuring activities or legal settlements during the period. The guidance is translated at the FY2025 assumed exchange rate of US$1 = JPY156.80, the same rate used in the first quarter, to eliminate the impact of foreign exchange volatility. This rate will be used for the guidance throughout fiscal 2026.

Conference Call Information

The Company will host an English-language conference call at 8:30 a.m. U.S. Eastern Time (9:30 p.m. Japan Standard Time) on October 8, 2026, and a Japanese-language conference call at 3:00 a.m. U.S. Eastern Time (4:00 p.m. Japan Standard Time) on October 9, 2026.

To attend the earnings conference calls, please use the following access information.

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

	Date:		October 8, 2026
	Time:		8:30 a.m. U.S. Eastern Time (9:30 p.m. 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=bdQ8V0Li

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

	Date:		October 9, 2026
	Time:		3:00 a.m. U.S. Eastern Time (4:00 p.m. Japan Standard Time)
	Registration:		https://zoom.us/webinar/register/WN_JUTCspQ2QqGvyKLp5vCfqA

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

A live webcast of the English-language conference call will be available through the webcast link above.

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 historical financial amounts from JPY into USD have been made at the exchange rate of JPY162.61 = $1.00, the noon buying rate as of June 30, 2026 published in the H.10 statistical release of the United States Federal Reserve Board.

Note: [1] Record high for the corresponding six-month period in US-GAAP figures since fiscal year 2023.

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. Leifras was recognized as Japan's largest operator of children's sports schools in terms of both membership and number of schools, as well as the leading provider of school club activity support in terms of the number of contracted schools, according to Tokyo Shoko Research as of December 2025. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." Its holistic approach integrates physical and mental development. Building on its experience and expertise in sports education, Leifras also operates a social business that supports school club activities, provides sports therapy for children with developmental disabilities, and offers exercise programs for the elderly. As of June 30, 2026, the Company supported 2,224 club activities at 478 schools.

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

Non-GAAP Financial Measures

The Company discusses a key financial measure that is not calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") to supplement its unaudited interim condensed consolidated financial statements presented on a GAAP basis. This non-GAAP financial measure is reconciled to 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 Six Months Ended June 30,
		2025				2026				2026
		JPY				JPY				US$
INCOME FROM OPERATIONS			67,929,244				92,309,685				567,676
Plus: acquisition-related costs(a)			-				47,365,619				291,284
Adjusted INCOME FROM OPERATIONS			67,929,244				139,675,304				858,960

(a)

Represents acquisition-related costs incurred in connection with the Company's acquisition activities, including  transaction-related costs, legal, financial and tax due diligence expenses, integration costs and other acquisition- related costs. These costs have been added back for normalization purposes as they are not considered reflective of the Company's core operating performance.

The Company's primary non-GAAP financial measure and corresponding metrics reflect how the Company evaluates the Company's current and prior year operating results. As new events or circumstances arise, these definitions could change. When the Company's definitions change, the Company provides the updated definitions. When items no longer impact the Company's current or future presentation of non-GAAP operating results, the Company removes these items from the Company's 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 the Company's 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 the Company's performance based on the Company's 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 the Company's performance without the impact of the specifically identified items that the Company believes do not directly reflect the Company's core operations, including acquisition-related costs and other items that management does not consider reflective of the Company's 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 December 31, 2025, and the related listing-related and transformational expenses were specific to the Company's initial public offering and related transformation activities, the Company does not expect to incur such expenses in the fiscal year ending December 31, 2026 or future periods. Accordingly, beginning with the fiscal year ending December 31, 2026, the Company has revised the Company's presentation of adjusted income from operations and removed listing-related and transformational expenses from the adjustments to adjusted income from operations for all historical periods presented.

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 the Company's 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 a measure of cash that will be available to the Company to meet the Company's 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 subsequently 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 annual report on Form 20-F 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 annual report 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: IR@leifras.co.jp

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

 

LEIFRAS CO., LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
		December 31,				June 30,				June 30,
		2025 JPY				2026 JPY				2026 US$
						(Unaudited)				(Unaudited)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents			2,524,082,266				2,591,813,994				15,938,835
Accounts receivable, net			731,083,491				655,589,901				4,031,670
Inventories, net			21,578,477				23,882,759				146,871
Prepaid expenses			158,040,280				159,110,735				978,481
Other current assets			38,219,685				26,623,593				163,727
TOTAL CURRENT ASSETS			3,473,004,199				3,457,020,982				21,259,584
NON-CURRENT ASSETS
Property and equipment, net			96,456,471				97,668,996				600,633
Intangible assets, net			29,631,015				113,647,566				698,897
Operating lease right-of-use assets			482,694,859				480,682,783				2,956,047
Finance lease right-of-use assets			236,908,226				266,307,429				1,637,706
Long-term deposits			150,216,792				168,875,717				1,038,532
Long-term investment			5,736,500				26,986,500				165,958
Deferred tax assets, net			164,082,227				144,808,910				890,529
Goodwill			27,999,994				160,524,039				987,172
Other non-current assets			8,470,398				21,447,986				131,899
TOTAL NON-CURRENT ASSETS			1,202,196,482				1,480,949,926				9,107,373
TOTAL ASSETS			4,675,200,681				4,937,970,908				30,366,957
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term loans			100,000,000				100,000,000				614,968
Current portion of long-term loans			151,030,000				75,013,000				461,306
Bond payable, current			40,000,000				80,000,000				491,975
Accounts payable			196,849,154				86,843,874				534,062
Accrued liabilities			1,160,996,435				1,190,944,650				7,323,932
Income tax payable			43,499,500				15,797,100				97,147
Contract liabilities, current			154,074,620				362,735,094				2,230,706
Operating lease liabilities, current			138,880,117				158,454,943				974,448
Finance lease liabilities, current			88,017,810				98,236,175				604,121
Other current liabilities			176,592,537				128,245,967				788,673
TOTAL CURRENT LIABILITIES			2,249,940,173				2,296,270,803				14,121,338
NON-CURRENT LIABILITIES
Long-term loans, net of current portion			24,422,000				5,871,000				36,105
Bond payable, non-current			18,175,440				152,289,808				936,534
Contract liabilities, non-current			12,817,448				16,117,926				99,120
Operating lease liabilities, non-current			347,365,643				319,835,831				1,966,889
Finance lease liabilities, non-current			144,989,192				164,032,009				1,008,745
Assets retirement obligations			30,775,915				30,984,183				190,543
Deferred tax liabilities, net			-				28,777,638				176,973
TOTAL NON-CURRENT LIABILITIES			578,545,638				717,908,395				4,414,909
TOTAL LIABILITIES			2,828,485,811				3,014,179,198				18,536,247
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Ordinary shares, 80,000,000 shares authorized; 26,560,660 shares      issued and 26,160,619 shares outstanding as of December 31,      2025 and June 30, 2026, respectively.			409,833,241				409,833,241				2,520,345
Additional paid-in capital			786,906,631				786,906,631				4,839,227
Treasury shares, 400,041 shares as of December 31, 2025 and      June 30, 2026, respectively.			(100,012,265)				(100,012,265)				(615,044)
Retained earnings			749,987,263				827,064,103				5,086,182
TOTAL SHAREHOLDERS' EQUITY			1,846,714,870				1,923,791,710				11,830,710
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			4,675,200,681				4,937,970,908				30,366,957

 

LEIFRAS CO., LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		For the Six Months Ended June 30,
		2025				2026				2026
		JPY				JPY				US$
NET REVENUE			5,488,810,821				5,978,787,041				36,767,647
Cost of revenue			(4,047,686,339)				(4,212,676,644)				(25,906,627)
GROSS PROFIT			1,441,124,482				1,766,110,397				10,861,020
Selling, general, and administrative expenses			(1,373,195,238)				(1,673,800,712)				(10,293,345)
INCOME FROM OPERATIONS			67,929,244				92,309,685				567,675
OTHER INCOME (EXPENSE)
Interest income			1,211,580				2,581,856				15,878
Interest expense			(9,378,973)				(5,440,318)				(33,456)
Dividend income			87,500				87,900				541
Grant income			9,399,558				17,310,392				106,453
Unrealized loss on short-term investment			(224,000)				-				-
Unrealized gain on long-term investment			-				4,665,574				28,692
Loss (Gain) on disposal of long-lived assets			(168,973)				292,080				1,796
Other income (expense), net			(20,302,598)				914,381				5,623
Total other income (expense), net			(19,375,906)				20,411,865				125,527
INCOME BEFORE INCOME TAXES			48,553,338				112,721,550				693,202
PROVISION FOR INCOME TAXES
Current			(2,788,235)				(15,999,345)				(98,391)
Deferred			7,941,095				(19,645,365)				(120,813)
Total benefit from (provision for) income taxes			5,152,860				(35,644,710)				(219,204)
NET INCOME			53,706,198				77,076,840				473,998
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			2.16				2.95				0.02
Diluted			2.16				2.95				0.02

 

LEIFRAS CO., LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		For the Six Months Ended June 30,
		2025				2026				2026
		JPY				JPY				US$
Cash flows from operating activities
Net income			53,706,198				77,076,840				473,998
Adjustments to reconcile net income to net cash provided by  operating activities
Depreciation and amortization expense			66,679,088				64,001,684				393,590
Provision for expected credit loss			5,788,690				2,676,936				16,462
Loss (Gain) on disposal of property and equipment			168,973				(292,080)				(1,796)
Loss on disposal of ROU asset			-				2,401				15
Provision for inventory impairment			719,481				571,851				3,517
Unrealized loss on short-term investment			224,000				-				-
Unrealized gain on long-term investment			-				(4,665,574)				(28,692)
Other non-cash expenses			215,875				5,249,247				32,281
Deferred tax expense			(7,941,095)				19,645,365				120,813
Changes in operating assets and liabilities
Accounts receivable, net			24,970,807				73,377,882				451,251
Inventories			450,516				(2,876,133)				(17,687)
Prepaid expenses			65,923,967				(1,037,620)				(6,381)
Long-term deposits			(119,850)				(18,134,685)				(111,523)
Other current assets			(8,421,744)				12,062,482				74,180
Other non-current assets			(7,728,297)				(12,977,588)				(79,808)
Accounts payable			(20,679,625)				(114,318,251)				(703,021)
Accrued liabilities			47,765,059				24,712,089				151,972
Contract liabilities			217,944,834				211,960,952				1,303,493
Operating lease liabilities			3,212,036				(5,942,925)				(36,547)
Income tax payable			(72,782,600)				(27,702,400)				(170,361)
Amount due to a director			(1,000,000)				-				-
Other current liabilities			(56,292,856)				(50,683,167)				(311,685)
Net cash provided by operating activities			312,803,457				252,707,306				1,554,070
Cash flows from investing activities
Purchase of investment securities			-				(16,584,426)				(101,989)
Purchase of property and equipment			(42,125,175)				(5,821,892)				(35,803)
Purchase of intangible assets			(5,045,000)				(8,548,150)				(52,568)
Acquisition, net of cash acquired			-				(182,039,420)				(1,119,485)
Net cash used in investing activities			(47,170,175)				(212,993,888)				(1,309,845)
Cash flows from financing activities
Payment of finance lease liabilities			(43,752,315)				(50,246,590)				(309,001)
Repayment of bank loans			(156,105,000)				(94,568,000)				(581,563)
Proceeds from bond payable			-				192,832,900				1,185,861
Repayment of bond payable			(20,000,000)				(20,000,000)				(122,994)
Payment of deferred IPO costs			(86,232,087)				-				-
Net cash (used in) provided by financing activities			(306,089,402)				28,018,310				172,304
Net (decrease) increase in cash			(40,456,120)				67,731,728				416,528
Cash at the beginning of period			2,538,554,638				2,524,082,266				15,522,307
Cash at the end of the period			2,498,098,518				2,591,813,994				15,938,835
Supplementary cash flow information
Cash paid for income taxes, net of refunds			75,570,835				38,402,329				236,162
Cash paid for interest expenses			8,637,073				3,800,582				23,372
Non-cash financing and investing activities
Operating lease right-of-use assets obtained in exchange for operating      lease liabilities			270,231,476				90,595,070				557,131
Finance lease right-of-use assets obtained in exchange for finance      lease liabilities			68,425,346				79,603,279				489,535

 

Non-GAAP Financial Measures and Reconciliation
Adjusted INCOME FROM OPERATIONS
		For the Six Months Ended June 30,
		2025				2026				2026
		JPY				JPY				US$
INCOME FROM OPERATIONS			67,929,244				92,309,685				567,676
Plus: acquisition-related costs(a)			-				47,365,619				291,284
Adjusted INCOME FROM OPERATIONS			67,929,244				139,675,304				858,960

(a)

Represents acquisition-related costs incurred in connection with the Company's acquisition activities, including transaction-related costs, legal, financial and tax due diligence expenses, integration costs and other acquisition- related costs. These costs have been added back for normalization purposes as they are not considered reflective of the Company's core operating performance.

 

View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-reports-first-half-of-fiscal-year-2026-financial-results-302901757.html

SOURCE LEIFRAS Co., Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were LEIFRAS's first-half 2026 earnings results?

LEIFRAS reported JPY5,978.8 million in revenue and JPY77.1 million in net income for the six months ended June 30, 2026, up 8.9% and 43.5% year over year, respectively. Operating income increased 35.9% to JPY92.3 million. The results are unaudited.

What is LEIFRAS's full-year 2026 financial guidance?

LEIFRAS expects revenue of $82.9 million to $95.7 million and operating income of $4.5 million to $5.4 million for the year ending December 31, 2026. These ranges represent approximately 10.8% to 27.9% revenue growth and approximately 13.2% to 33.9% operating income growth from 2025.

Which acquisitions and assumptions are included in LEIFRAS's 2026 guidance?

The guidance includes results from Well Resources from May 1, 2026, Tokai Sports from June 1, 2026, and SWIFT JAPAN from July 1, 2026. It assumes no further business acquisitions, restructuring activities or legal settlements during the period. Guidance uses US$1 = JPY156.80, a rate the company plans to use throughout fiscal 2026.

How does LEIFRAS calculate adjusted operating income for first-half 2026?

LEIFRAS adds back JPY47,365,619 in acquisition-related costs to GAAP operating income of JPY92,309,685, producing adjusted operating income of JPY139,675,304. The excluded costs include transaction expenses, legal, financial and tax due diligence, integration and other acquisition-related costs. This non-GAAP measure supplements rather than replaces GAAP results.