Tokyo – – October 07, 2026 -- LEIFRAS Co., Ltd. (Nasdaq: LFS) reported first-half fiscal 2026 revenue of JPY5,978.8 million ($36.8 million), up 8.9% year over year and a record high for the six-month period since fiscal 2023. Income from operations rose 35.9% to JPY92.3 million ($0.6 million), while net income climbed 43.5% to JPY77.1 million ($0.5 million) for the six months ended June 30, 2026.
Adjusted operating income more than doubles to JPY139.7 million
Adjusted income from operations increased 105.6% to JPY139.7 million ($0.9 million) from JPY67.9 million a year earlier. Basic and diluted earnings per share rose to JPY2.95 ($0.02) from JPY2.16 in the prior-year period.
Social business revenue grows 18.0% as contracted schools expand 37%
The company's social business, which supports school club activities and sports therapy programs, generated revenue of JPY1,830.3 million ($11.3 million), up 18.0%. The number of contracted schools reached 478, up 37.0% from 349 a year earlier, while club activities supported rose 6.2% to 2,224.
Sports school membership slips 0.9% even as segment revenue climbs 5.4%
Leifras' core sports school business, which the company says is Japan's largest operator of children's sports schools by membership and school count, reported 68,873 members as of June 30, 2026, down 0.9% from 69,500 a year earlier. Segment revenue nonetheless rose 5.4% to JPY4,148.5 million ($25.5 million).
CEO Kiyotaka Ito said higher gross profit margin drove the profitability gains across both business lines, and the company plans to continue expanding its club activity support network.
Cash position rises to JPY2,591.8 million as financing activities turn positive
Cash and cash equivalents stood at JPY2,591.8 million ($15.9 million) as of June 30, 2026, versus JPY2,524.1 million at year-end 2025. Operating cash flow was JPY252.7 million ($1.6 million), down from JPY312.8 million a year earlier, while investing activities used JPY213.0 million ($1.3 million), up sharply from JPY47.2 million. Financing activities provided JPY28.0 million ($0.2 million), reversing a JPY306.1 million outflow in the same period last year.
Full-year guidance targets up to $95.7 million in revenue
Leifras guided fiscal 2026 revenue to between $82.9 million and $95.7 million, an increase of approximately 10.8% to 27.9% from $74.8 million in fiscal 2025. Income from operations is projected at $4.5 million to $5.4 million, up 13.2% to 33.9% from $4.0 million. The guidance incorporates results from three recent acquisitions: Well Resources from May 1, 2026, Tokai Sports from June 1, 2026, and SWIFT JAPAN from July 1, 2026, but excludes any further acquisitions, restructuring or legal settlements.