Leifras Co Ltd's Business Segments

LEIFRAS Co., Ltd. is a Japanese joint-stock company primarily engaged in operating sports schools. The company generates a significant portion of its revenue from membership fees paid by students, which accounted for 56.54% and 53.08% of total revenue for the fiscal years ending December 31, 2024 and 2025, respectively. Revenue from events organized mainly for sports school students represented 18.49% and 17.39% of total revenue for the same periods. LEIFRAS employs a sports coaching philosophy that does not prioritize victory supremacy common in youth sports teams and school clubs in Japan. The company’s operations rely on attracting and retaining students through competitive membership fees, convenient facility locations, quality coaching, and marketing efforts. LEIFRAS faces risks related to fluctuations in student enrollment, competitive pressures, and economic conditions in Japan. Coaches are employed under long-term, full-time contracts, which may result in labor surpluses if enrollment declines. As of December 31, 2025, LEIFRAS had substantial indebtedness, including short-term loans, current portions of long-term loans, and long-term loans. In January 2026, the company issued unsecured corporate bonds to fund operations. This level of debt may affect cash flow availability, financing capacity, and operational flexibility.

The Company operates two reportable segments: sports school business and social business. All of the Company's long-lived assets and the majority of its revenue are located in Japan; therefore, no geographical segments are reported. The Chief Executive Officer serves as the chief operating decision-maker and reviews the operating results of each segment for resource allocation and performance evaluation.