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" —

TOKYO, Oct. 9, 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 marks the first anniversary of its listing on the Nasdaq Capital Market, which took place on October 9, 2025.

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 Japan, an objective the Company has pursued since its founding. In addition to expanding its school club activity support business, the Company broadened its business platform from sports education into childcare and after-school care through mergers and acquisitions ("M&A"). In September 2026, Leifras also entered into a share transfer agreement to acquire all shares of A TO SPORTS INC.^[4], which operates soccer schools for children in Canada, marking its first step toward entering the North American market.

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 Japan, growth in school club activity support, expansion of its Social Business, and the broadening of its business domains through M&A. The following figures highlight the Company's principal post-listing growth and the expansion of its business platform.

Five Areas of Growth at the First Anniversary of Leifras' Nasdaq Listing

Theme	Latest Figure	Key Point
Earnings Growth	Revenue: JPY5.98 billion^[2] Operating income: +35.9%^[2]	Record highs in revenue, gross profit, operating income, operating margin, adjusted operating income, and net income^[1]
Social Business	Revenue: +18.0%^[2] Operating income: +156.7%^[2]	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: +37.0% year-over-year; contracted clubs: +6.2% year-over-year
Global Expansion	From Japan to North America	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 JPY5.98 billion, an increase of 8.9% year over year. Gross profit was JPY1.77 billion, up 22.6%; operating income was JPY92.31 million, up 35.9%; and net income was JPY77.08 million, up 43.5%.

Adjusted operating income, which the Company introduced as an indicator of the profitability of its core business, was JPY139.68 million, an increase of 105.6% year over year. Revenue, gross profit, operating income, operating margin, adjusted operating income, and net income each reached record highs in same-period comparisons since fiscal year 2025^[1].

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 18.0% and Segment Profit Up 156.7%

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 JPY1.83 billion, an increase of 18.0% year over year, and operating income of JPY272.16 million, an increase of 156.7%.

School club activity support, in particular, continued to grow. As of the end of June 2026, the number of contracted schools reached 478, up 37.0% year over year, while the number of contracted school clubs reached 2,224, up 6.2%, marking a record high for contracted school clubs. As the "Reform Implementation Period" for school club activity reform moves into full implementation beginning in fiscal year 2026, Leifras aims to further expand the business by leveraging its nationwide instructor network and track record of collaboration with municipalities.

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 Japan, an important objective since the Company's founding.

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 JAPAN Co., Ltd. became a subsidiary of Leifras effective July 1, 2026, which added five small-scale licensed nursery schools, one company-led nursery school, and one after-school childcare facility, marking Leifras' full-scale entry into the childcare business. The Company is building a business platform designed to support children's long-term growth across sports schools, school club activities, welfare, childcare, and after-school care.

5. From Japan to North America: Global Expansion with the Next 25 Years in View

Following its expansion across all 47 prefectures of Japan, Leifras is advancing initiatives aimed at overseas business development.

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 Victoria, British Columbia, Canada. The acquisition is scheduled to close on January 1, 2027.

By combining the expertise Leifras has developed in Japan, including sports education, instructor development, school operations, and safety and quality management, with the business platform established locally, the Company expects to apply its business model overseas.

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 Japan, growing our school club activity support business, entering new business domains through M&A, and taking our first step toward entering the North American market.

"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 Japan and strive to become a company that delivers that value to more people and communities."

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 JPY13.0 billion to JPY15.0 billion and operating income of JPY710.0 million to JPY840.0 million^[5]. Under its corporate philosophy of "to change and design sports," Leifras will continue to pursue both the resolution of social issues through sports and sustainable business growth.

[1] "Record high" is based on comparisons of results for corresponding periods since fiscal year 2025 under U.S. GAAP.

[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 JAPAN Co., Ltd. (effective July 1, 2026), and does not assume any further business acquisitions, restructuring activities or legal settlements during the period.

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

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SOURCE LEIFRAS Co., Ltd.