0001829126-26-003281
SEC filingLEIFRAS delivered solid FY2025 results with $11.7B revenue and positive profitability, driven by working capital improvements that boosted operating cash flow to $468.3M, though margins reflect ongoing operational pressures.
LEIFRAS Co., Ltd. (LFS) reported FY2025 results ending December 31, 2025, with revenue of $11.7B and net income of $438.5M, reflecting steady execution amid a labor-intensive business model involving sports schools and franchise operations. Gross profit reached $3.5B, delivering a 29.5% margin derived directly from income statement figures, which underscores pricing discipline in membership and event services despite scale challenges.
Free cash flow of $425.7M resulted from operating cash flow less $42.6M capital expenditures, primarily on property and equipment, positioning the company to support growth while managing post-IPO balance sheet needs. Franchisees operated 11 locations as of year-end, signaling modest expansion in this channel per Item 1 disclosures.
Risks highlighted in management discussion include potential customer retention declines if government entities switch providers, given reliance on such contracts for Apicos operations. Refund variability persists due to historical disaster data and future uncertainty, impacting estimate reliability. The company expects future tax benefits from asset utilization and makes recoverability assumptions based on estimated cash flows from assets. Management may pursue additional funding to bolster liquidity or reserves, reflecting prudent capital planning in Item 7.
Overall, FY2025 demonstrates working capital efficiency driving cash generation, supporting diluted EPS of $17.40, while franchise scale and government dependencies shape the path forward. These dynamics position LEIFRAS to navigate operational pressures through disciplined cash management.