Leifras Marks First Anniversary of Nasdaq Listing
Social Business operating income increased 156.7% year over year in the first half, alongside acquisitions expanding sports and childcare operations.
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Rhea-AI Summary
Leifras (LFS) marked its first Nasdaq listing anniversary with higher first-half earnings and an agreement to acquire a Canadian soccer-school operator. Unaudited revenue for the six months ended June 30, 2026 rose 8.9% to JPY5.98 billion; net income increased 43.5% to JPY77.08 million. Social Business revenue rose 18.0% to JPY1.83 billion, while segment operating income increased 156.7% to JPY272.16 million.
Acquisitions expanded its sports and childcare businesses. The agreement to acquire all shares of A TO SPORTS remains uncompleted, with closing scheduled for January 1, 2027. Contracted schools reached 478 and contracted clubs reached 2,224 at June-end, up 37.0% and 6.2% year over year, respectively. For the year ending December 31, 2026, Leifras forecasts revenue of JPY13.0–15.0 billion and operating income of JPY710.0–840.0 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointFirst-half 2026 revenue increased 8.9% year over year to JPY5.98 billion.
- Moderate pointFirst-half 2026 net income increased 43.5% year over year to JPY77.08 million.
- Moderate pointFirst-half 2026 operating income increased 35.9% year over year to JPY92,309,685.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 revenue forecast is JPY13.0 billion to JPY15.0 billion for the year ending December 31.
- Moderate pointA TO SPORTS acquisition agreement covers all shares of the Canadian children's soccer-school operator.
- Moderate pointContracted schools reached 478 at June-end 2026, up 37.0% year over year.
11 minor points
- Minor pointFirst-half 2026 gross profit increased 22.6% year over year to JPY1.77 billion.
- Minor pointFirst-half 2026 adjusted operating income, a non-GAAP measure, increased 105.6% year over year to JPY139,675,304.
- Minor pointSocial Business first-half 2026 revenue increased 18.0% year over year to JPY1.83 billion.
- Minor pointSocial Business first-half 2026 operating income increased 156.7% year over year to JPY272.16 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 operating income forecast is JPY710.0 million to JPY840.0 million for the year ending December 31.
- Minor pointTokai Sports acquisition, effective June 1, 2026, added approximately 1,185 participants and a partner-school sales channel.
- Minor pointSWIFT JAPAN became a subsidiary effective July 1, 2026, expanding Leifras into childcare.
- Minor pointWell Resources acquisition took effect May 1, 2026.
- Minor pointContracted school clubs reached 2,224 at June-end 2026, up 6.2% year over year.
- Minor point. Forward-looking: it has not happened yet and may not happen.Regional expansion plans include underserved areas and additional sports within existing markets.
- Minor point. Forward-looking: it has not happened yet and may not happen.Business development plans include further acquisitions, expanded school club support, welfare and childcare development, and overseas expansion.
Negative
- Moderate pointA TO SPORTS acquisition remains uncompleted; closing is scheduled for January 1, 2027.
- Minor pointAcquisition-related costs totaled JPY47,365,619 in first-half 2026 and were excluded from adjusted operating income.
Key Figures
- Revenue
- JPY5.98 billion; +8.9% year over year
- First half of fiscal year 2026
- Operating income
- JPY92.31 million; +35.9% year over year
- First half of fiscal year 2026
- Net income
- JPY77.08 million; +43.5% year over year
- First half of fiscal year 2026
- Adjusted operating income
- JPY139.68 million; +105.6% year over year
- First half of fiscal year 2026
- Social Business revenue
- JPY1.83 billion; +18.0% year over year
- First half of fiscal year 2026
- Social Business operating income
- JPY272.16 million; +156.7% year over year
- First half of fiscal year 2026
- Revenue forecast
- JPY13.0 billion to JPY15.0 billion
- Fiscal year ending December 31, 2026
- Operating income forecast
- JPY710.0 million to JPY840.0 million
- Fiscal year ending December 31, 2026
Historical Context
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Earlier release reported the first-half revenue and profit figures reiterated in this anniversary update.
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 measures financial
u.s. gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
First Half of Fiscal Year 2026 Revenue and Profit Reach Record Highs[1] for Corresponding Periods Since Fiscal Year 2025
— One Year of Post-Listing Growth Presented in "Leifras by the Numbers" —
Since its founding in 2001, the Company has operated its "Sports and Social Business" under the corporate philosophy of "to change and design sports." Beginning with sports schools for children, Leifras has expanded into school club activity support and after-school daycare services, among other areas, with the aim of addressing social issues through sports.
During the year since its listing, Leifras achieved operations across all 47 prefectures of
To commemorate the first anniversary as a Nasdaq-listed company, Leifras is highlighting key developments of the past year in "Leifras by the Numbers," showcasing selected milestones in its financial performance, business expansion and growth platform.
Leifras by the Numbers
One year after its Nasdaq listing, Leifras has continued to advance toward its next stage of growth through the expansion of its existing businesses, the achievement of operations across all 47 prefectures of
Five Areas of Growth at the First Anniversary of Leifras' Nasdaq Listing
|
Theme |
Latest Figure |
Key Point |
|
Earnings Growth |
Revenue: |
Record highs in revenue, gross profit, operating income, operating margin, adjusted operating income, and net income[1] |
|
Social Business |
Revenue: + |
Growth driven primarily by school club activity support and after-school daycare services |
|
Nationwide Expansion |
47 prefectures |
Nationwide expansion achieved; shifting focus to deeper penetration within existing regions |
|
School Club Activity Support |
478 schools / 2,224 clubs[3] |
Contracted schools: + |
|
Global Expansion |
From |
Share transfer agreement signed to acquire a Canadian company; acquisition scheduled to close on January 1, 2027 |
1. Growth in Profitability, Not Just Revenue: Record Highs Across Key Profit Metrics
As previously announced, for the first half of fiscal year 2026 ended June 30, 2026, revenue was
Adjusted operating income, which the Company introduced as an indicator of the profitability of its core business, was
The Company's business is seasonal, with a larger portion of profit generally recorded in the second half of the year due to factors including event-related revenue and government contracts. Despite these business characteristics, Leifras achieved steady growth in both revenue and profit in the first half of fiscal year 2026.
2. Social Business Supporting Growth: Revenue Up
Leifras operates through two business segments: the Sports School Business and the Social Business.
In the first half of fiscal year 2026, the Social Business recorded revenue of
School club activity support, in particular, continued to grow. As of the end of June 2026, the number of contracted schools reached 478, up
3. Nationwide Expansion Across All 47 Prefectures After 25 Years: From Nationwide Coverage to Deeper Regional Penetration
In 2026, Leifras achieved operations across all 47 prefectures of
With nationwide expansion achieved, the Company is moving into its next phase of growth by leveraging its nationwide network of instructors and operating locations. Going forward, Leifras plans to deepen its presence in underserved areas within each prefecture, expand into multiple sports in existing markets, pursue additional M&A, scale its school club activity support business, and advance overseas expansion, thereby increasing both business density and the value delivered in each region.
4. Expanding Through M&A from Sports into Childcare and After-School Daycare: Building a Long-Term Platform to Support Children's Growth
Since its listing, Leifras has expanded its business platform through M&A in addition to growing its existing businesses.
By acquiring Tokai Sports Co., Ltd., Leifras achieved a membership base of approximately 1,185 participants, primarily in soccer and gymnastics, together with a business-to-business-to-consumer sales channel spanning approximately 20 partner kindergartens and nursery schools. The Company is expanding its development environment to reach more competition-oriented participants and is working to build a seamless development pathway from early childhood through junior high school.
In addition, SWIFT
5. From
Following its expansion across all 47 prefectures of
On September 16, 2026, Leifras entered into a share transfer agreement to acquire all shares of A TO SPORTS INC., which operates soccer schools for children in
By combining the expertise Leifras has developed in
Management Commentary
Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "We are deeply grateful to our shareholders and investors, our customers, our partners, including municipalities and schools, and our employees and instructors who work with children every day, as we reach the milestone of one year since our Nasdaq listing.
"For us, listing on Nasdaq was not the finish line, but the starting point for our next stage of growth. Over the past year, we have built a foundation for further growth by expanding across all 47 prefectures of
"Our commitment, since our founding, to creating a better future for children through sports will remain unchanged. We will continue to enhance the value of the sports education expertise we have cultivated in
Entering the Second Year as a Nasdaq-Listed Company
Leveraging the network of sports schools, instructors, customers, schools, and municipalities that it has built over 25 years since its founding, the Company plans to continue to deepen its presence in regional sports school markets, expand school club activity support, develop its welfare and childcare businesses, pursue M&A, and advance overseas expansion.
For the fiscal year ending December 31, 2026, the Company forecasts consolidated revenue of
[1] "Record high" is based on comparisons of results for corresponding periods since fiscal year 2025 under
[2] Financial figures are based on the unaudited interim consolidated financial statements for the six months ended June 30, 2026.
[3] The figures of 478 contracted schools and 2,224 contracted school clubs are as of the end of June 2026.
[4] The acquisition of A TO SPORTS INC. is scheduled to close on January 1, 2027 and had not been completed as of the date this release was prepared.
[5] The guidance reflects the results of the acquisitions of Well Resources Co., Ltd. (effective May 1, 2026), Tokai Sports Co., Ltd. (effective June 1, 2026) and SWIFT
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
View original content:https://www.prnewswire.com/news-releases/leifras-marks-first-anniversary-of-nasdaq-listing-302902800.html
SOURCE LEIFRAS Co., Ltd.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When will Leifras close its A TO SPORTS acquisition?
Leifras' acquisition of all shares of A TO SPORTS is scheduled to close on January 1, 2027. The share transfer agreement was signed on September 16, 2026. The target operates children's soccer schools in Victoria, British Columbia, Canada, and the acquisition has not been completed.
What acquisitions are included in Leifras' 2026 guidance?
Leifras' 2026 guidance includes Well Resources, effective May 1, Tokai Sports, effective June 1, and SWIFT JAPAN, effective July 1, 2026. The forecast does not assume further business acquisitions, restructuring activities or legal settlements during the period.
How does seasonality affect Leifras' profits?
Leifras generally records a larger portion of profit in the second half of the year. Its seasonal pattern reflects factors including event-related revenue and government contracts.
What does Leifras exclude from adjusted operating income?
Leifras adds back acquisition-related costs when calculating adjusted operating income, a measure outside U.S. generally accepted accounting principles. These include transaction costs, legal, financial and tax due diligence expenses, and integration costs. Beginning with fiscal 2026, listing-related and transformational expenses were removed from adjustments for all historical periods presented.