Exhibit 99.1
LEIFRAS Co., Ltd. Reports Fiscal Year 2025 Financial Results
Record-High Revenue and Operating Income, Up 13.5% and 20.7% Year Over Year Respectively[1]
TOKYO, April 8, 2026 /PRNewswire/ – LEIFRAS Co., Ltd. (Nasdaq: LFS) (the “Company” or “Leifras”), a sports and social business company dedicated to youth sports and community engagement, today announced its financial results for the fiscal year ended December 31, 2025.
Fiscal Year 2025 Financial Highlights
| ● | Revenue was JPY11.7 billion ($74.8 million), an increase of 13.5% from JPY10.3 billion for fiscal year 2024. |
| ● | Income from operations was JPY627.4 million ($4.0 million), an increase of 20.7% from JPY519.8 million for fiscal year 2024. |
| ● | Net income was JPY438.5 million ($2.8 million), an increase of 4.7% from JPY418.6 million for fiscal year 2024. |
| ● | Adjusted income from operations was JPY692.3 million ($4.4 million), an increase of 41.8% from JPY488.2 million for fiscal year 2024. |
| ● | Basic and diluted earnings per share was JPY17.41 ($0.11), compared to basic earnings per share of JPY16.81 ($0.11) and diluted earnings per share of JPY15.78 ($0.10) for fiscal year 2024. |
Fiscal Year 2025 Operational Highlights
Sports School Business
| ● | Number of members was 70,688, an increase of 0.04% from 70,663 for fiscal year 2024. |
| ● | Revenue of sports school business was JPY8,560 million ($54.6 million), an increase of 7.8% from JPY7,944 million for fiscal year 2024. |
Social Business
| ● | Number of schools was 381, an increase of 9.8% from 347 for fiscal year 2024. |
| ● | Revenue of social business was JPY3,168 million ($20.2 million), an increase of 32.8% from JPY2,385 million for fiscal year 2024. |
Management Commentary
Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, “For the full fiscal year ended December 2025, we achieved record highs in revenue, income from operations, and adjusted income from operations. Revenue in the sports school business increased by 7.8% compared to the same period last year, and revenue in the social business increased by 32.8% compared to the same period last year. These results reflect the steady growth of the sports school business, which boasts the largest market share in Japan, as well as an increase in the number of contracts for the club activities business, which is a growth driver. In particular, in our social business, in addition to being the No. 1 company in Japan in terms of club activity contracting, in 2025 we have signed new contracts with many schools, including Suita City, Osaka Prefecture; Shibuya Ward, Tokyo; and Monbetsu City, Hokkaido. The Japanese government’s club activity reforms will transfer the management of school-based club activities to local communities and the private sector, with the ‘reform implementation period’ from 2026 to 2031 marking the full-scale transition from school-based to local communities and the private sector. This national policy is a powerful tailwind for our company and paves the way for medium- to long-term growth. We will continue to take on the challenge of supporting the smiles and growth of children across borders by sharing our sports-based non-cognitive skills development services, which we have cultivated in Japan, with the world. We appreciate your continued support.”
Financial Condition
| ● | As of December 31, 2025, the Company had cash and cash equivalents of JPY2.52 billion ($16.1 million), compared to JPY2.54 billion as of December 31, 2024. |
| ● | Net cash provided by operating activities was JPY468.3 million ($3.0 million) for fiscal year 2025, compared to JPY207.1 million for fiscal year 2024. |
| ● | Net cash used in investing activities was JPY53.5 million ($0.3 million) for fiscal year 2025, compared to JPY51.4 million for fiscal year 2024. |
| ● | Net cash used in financing activities was JPY437.0 million ($2.8 million) for fiscal year 2025, compared to JPY346.4 million for fiscal year 2024. |
Financial Guidance
| ● | Revenue is expected to be between $82.9 million and $95.7 million for the fiscal year ending December 31, 2026, an increase of approximately 10.8% to 27.9% from $74.8 million for the fiscal year ended December 31, 2025. |
| ● | Income from operations is expected to be between $4.5 million and $5.4 million for the fiscal year ending December 31, 2026, an increase of approximately 13.2% to 33.9% from $4.0 million for the fiscal year ended December 31, 2025. |
The Guidance is based on the assumption that no business acquisitions, restructuring activities, or legal settlements will take place during the period.
Conference Call Information
The Company will host an English-language conference call at 8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time) on April 14, 2026 and a Japanese-language conference call at 3:00 am U.S. Eastern Time (4:00 pm Japan Standard Time) on April 15, 2026. To attend the earnings conference calls, please use the following access information.
| Dial-in details for the English-language conference call: | ||
| Date: | April 14, 2026 | |
| Time: | 8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time) | |
| International: | 1-412-902-4272 | |
USA/CANADA
TOLL-FREE |
1-888-346-8982 | |
| Conference ID: | Leifras Co., Ltd. | |
| Webcast: | https://event.choruscall.com/mediaframe/webcast.html?webcastid=Id5RSCFh | |
| Dial-in details for the Japanese-language conference call: | ||
| Date: | April 15, 2026 | |
| Time: | 3:00 am U.S. Eastern Time (4:00 pm Japan Standard Time) | |
| Pre-registration Link for Dial-in Access: | https://zoom.us/webinar/register/WN_Je53cHjFT4OyGlARdeUdWg | |
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Please dial in at least 15 minutes before the commencement of the call to ensure timely participation.
For those unable to participate, an audio replay of the conference call will be available from approximately one hour after the end of the live call until April 21, 2026. The dial-in for the replay is 1-855-669-9658 within the United States or 1-412-317-0088 internationally. The replay access code is 6857888.
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.leifras.co.jp.
Exchange Rate Information
This announcement contains translations of certain Japanese Yen (“JPY”) amounts into U.S. dollars (“USD,” or “$”) for the convenience of the reader. Translations of amounts from JPY into USD have been made at the exchange rate of JPY156.80 = $1.00, the exchange rate on December 31, 2025 set forth in the H.10 statistical release of the United States Federal Reserve Board.
About LEIFRAS Co., Ltd.
Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2025, Leifras was recognized as one of Japan’s largest operators of children’s sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company’s approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle “acknowledge, praise, encourage, and motivate.” The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics.
For more information, please visit the Company’s website: https://ir.leifras.co.jp/.
Non-GAAP Financial Measures
In the Company’s annual report on Form 20-F, it discusses key financial measures that are not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) to supplement its consolidated financial statements presented on a GAAP basis. This non-GAAP financial measure is reconciled from its most directly comparable financial measure determined in accordance with GAAP as follows:
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Non-GAAP Financial Measures and Reconciliation
Adjusted INCOME FROM OPERARIONS
| For the Fiscal Years Ended December 31, |
||||||||||||
| 2024 | 2025 | 2025 | ||||||||||
| JPY | JPY | US$ | ||||||||||
| INCOME FROM OPERATIONS | 519,757,261 | 627,405,815 | 4,001,313 | |||||||||
| Plus: listing-related and transformational expenses(a) | 24,392,841 | 64,901,063 | 413,910 | |||||||||
| Less: litigation-related reimbursement(b) | (55,935,710 | ) | - | - | ||||||||
| Adjusted INCOME FROM OPERATIONS | 488,214,392 | 692,306,878 | 4,415,223 | |||||||||
| (a) | Represents one-time listing-related and other transformational expenses incurred in connection with our initial public offering and corporate transformation initiatives in fiscal years 2024 and 2025. These costs were recognized as expenses in the statement of operations and were not recorded as direct deductions from equity. | |
| (b) | Litigation-related reimbursement received in fiscal year 2024 from the CEO in connection with a dispute involving a former director. As this payment represents a non-recurring and unusual item, it has been excluded for normalization purposes. |
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 terms 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 its historical operations. The Company presents the non-GAAP financial measure as supplemental performance measures because the Company believe it facilitates a comparative assessment of its operating performance relative to its performance based on its 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 its performance without the impact of the specifically identified items that the Company believes do not directly reflect its core operations, including non-recurring costs, such as listing-related and transformational expenses, other non-recurring income, such as litigation-related reimbursement. The non-GAAP financial measure also functions as 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.
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 its consolidated financial statements, which are prepared in accordance with GAAP and included in Item 8 of its Annual Report on Form 20-F. 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 analytical tools, and you should not consider it in isolation, or as a substitute for analysis of its results as reported under GAAP. Some of these limitations are: adjusted income from operations does not fully reflect its cash expenditures, future requirements for capital expenditures or contractual commitments; adjusted income from operations does not reflect changes in, or cash requirements for, its 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 its business or as measure of cash that will be available to the Company to meet its obligations.
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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 subsequent 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 registration statement 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 registration statement 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
Note: [1] Record high in US-GAAP figures since 2023.
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LEIFRAS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| As of December 31, | ||||||||||||
| 2024 | 2025 | 2025 | ||||||||||
| JPY | JPY | US$ | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash | 2,538,554,638 | 2,524,082,266 | 16,097,463 | |||||||||
| Accounts receivable, net | 518,398,551 | 731,083,491 | 4,662,522 | |||||||||
| Short-term investments | 4,935,000 | - | - | |||||||||
| Inventories, net | 24,468,188 | 21,578,477 | 137,618 | |||||||||
| Prepaid expenses | 182,278,232 | 158,040,280 | 1,007,910 | |||||||||
| Other current assets | 34,381,843 | 38,219,685 | 243,748 | |||||||||
| TOTAL CURRENT ASSETS | 3,303,016,452 | 3,473,004,199 | 22,149,261 | |||||||||
| NON-CURRENT ASSETS | ||||||||||||
| Property and equipment, net | 53,805,279 | 96,456,471 | 615,158 | |||||||||
| Finance lease right-of-use assets | 208,611,550 | 236,908,226 | 1,510,894 | |||||||||
| Operating lease right-of-use assets | 337,330,750 | 482,694,859 | 3,078,411 | |||||||||
| Intangible assets, net | 39,250,078 | 29,631,015 | 188,973 | |||||||||
| Long-term investments | - | 5,736,500 | 36,585 | |||||||||
| Goodwill | 27,999,994 | 27,999,994 | 178,571 | |||||||||
| Deferred tax assets, net | 214,671,578 | 164,082,227 | 1,046,443 | |||||||||
| Deferred initial public offering (“IPO”) costs | 157,482,065 | - | - | |||||||||
| Long-term deposits | 150,407,276 | 150,216,792 | 958,015 | |||||||||
| Other non-current assets | 3,090,205 | 8,470,398 | 54,020 | |||||||||
| TOTAL NON-CURRENT ASSETS | 1,192,648,775 | 1,202,196,482 | 7,667,070 | |||||||||
| TOTAL ASSETS | 4,495,665,227 | 4,675,200,681 | 29,816,331 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| CURRENT LIABILITIES | ||||||||||||
| Short-term loans | 700,000,000 | 100,000,000 | 637,755 | |||||||||
| Current portion of long-term loans | 230,785,000 | 151,030,000 | 963,202 | |||||||||
| Bond payable, current | 40,000,000 | 40,000,000 | 255,102 | |||||||||
| Accounts payable | 168,281,568 | 196,849,154 | 1,255,416 | |||||||||
| Accrued liabilities | 1,109,740,581 | 1,160,996,435 | 7,404,314 | |||||||||
| Income tax payable | 75,374,800 | 43,499,500 | 277,420 | |||||||||
| Contract liabilities, current | 147,628,310 | 154,074,620 | 982,619 | |||||||||
| Amount due to a director | 1,000,000 | - | - | |||||||||
| Finance lease liabilities, current | 71,681,545 | 88,017,810 | 561,338 | |||||||||
| Operating lease liabilities, current | 110,889,134 | 138,880,117 | 885,715 | |||||||||
| Other current liabilities | 195,952,191 | 176,592,537 | 1,126,228 | |||||||||
| TOTAL CURRENT LIABILITIES | 2,851,333,129 | 2,249,940,173 | 14,349,109 | |||||||||
| NON-CURRENT LIABILITIES | ||||||||||||
| Long-term loans, net of current portion | 175,452,000 | 24,422,000 | 155,752 | |||||||||
| Bond payable, non-current | 56,807,020 | 18,175,440 | 115,915 | |||||||||
| Contract liabilities, non-current | 10,615,635 | 12,817,448 | 81,744 | |||||||||
| Finance lease liabilities, non-current | 140,333,247 | 144,989,192 | 924,676 | |||||||||
| Operating lease liabilities, non-current | 207,353,977 | 347,365,643 | 2,215,342 | |||||||||
| Assets retirement obligations | 12,914,758 | 30,775,915 | 196,275 | |||||||||
| TOTAL NON-CURRENT LIABILITIES | 603,476,637 | 578,545,638 | 3,689,704 | |||||||||
| TOTAL LIABILITIES | 3,454,809,766 | 2,828,485,811 | 18,038,813 | |||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Ordinary shares, 80,000,000 shares authorized; 25,310,660 shares issued and 24,910,619 shares outstanding as of December 31, 2024 and 26,560,660 shares issued and 26,160,619 shares outstanding as of December 31, 2025* | 80,500,000 | 409,833,241 | 2,613,732 | |||||||||
| Additional paid-in capital | 748,840,080 | 786,906,631 | 5,018,537 | |||||||||
| Treasury shares, 400,041 shares as of December 31, 2024 and 2025, respectively* | (100,012,265 | ) | (100,012,265 | ) | (637,833 | ) | ||||||
| Retained Earnings | 311,527,646 | 749,987,263 | 4,783,082 | |||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 1,040,855,461 | 1,846,714,870 | 11,777,518 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 4,495,665,227 | 4,675,200,681 | 29,816,331 | |||||||||
| * | Retrospectively restated for a 1-to-20 share split which became effective on November 1, 2024. |
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LEIFRAS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
| For the Fiscal Years ended December 31, | ||||||||||||||||
| 2023 | 2024 | 2025 | 2025 | |||||||||||||
| JPY | JPY | JPY | US$ | |||||||||||||
| NET REVENUE | 9,304,011,693 | 10,329,658,133 | 11,728,402,114 | 74,798,483 | ||||||||||||
| Cost of revenue | (6,966,376,610 | ) | (7,381,911,441 | ) | (8,262,783,362 | ) | (52,696,323 | ) | ||||||||
| GROSS PROFIT | 2,337,635,083 | 2,947,746,692 | 3,465,618,752 | 22,102,160 | ||||||||||||
| Selling, general, and administrative expenses | (1,941,979,790 | ) | (2,427,989,431 | ) | (2,838,212,937 | ) | (18,100,847 | ) | ||||||||
| INCOME FROM OPERATIONS | 395,655,293 | 519,757,261 | 627,405,815 | 4,001,313 | ||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest income | 319,563 | 333,704 | 3,812,636 | 24,314 | ||||||||||||
| Interest expense | (13,828,146 | ) | (16,499,609 | ) | (16,480,844 | ) | (105,107 | ) | ||||||||
| Grant income | 14,461,568 | 17,038,263 | 16,821,366 | 107,279 | ||||||||||||
| Unrealized gain (loss) on short-term investment | 175,000 | (87,500 | ) | - | - | |||||||||||
| Unrealized gain on long-term investment | - | - | 801,500 | 5,112 | ||||||||||||
| Loss on disposal of long-lived assets | (712,149 | ) | (190,430 | ) | (659,442 | ) | (4,206 | ) | ||||||||
| Loss on disposal of a subsidiary | - | (753,900 | ) | - | - | |||||||||||
| Other income (expenses), net | 14,126,116 | 18,385,674 | (24,884,546 | ) | (158,702 | ) | ||||||||||
| Total other income (expenses), net | 14,541,952 | 18,226,202 | (20,589,330 | ) | (131,310 | ) | ||||||||||
| INCOME BEFORE INCOME TAX POVISION | 410,197,245 | 537,983,463 | 606,816,485 | 3,870,003 | ||||||||||||
| PROVISION FOR INCOME TAXES | ||||||||||||||||
| Current | (159,658,082 | ) | (156,791,073 | ) | (117,767,517 | ) | (751,068 | ) | ||||||||
| Deferred | (5,198,043 | ) | 37,441,597 | (50,589,351 | ) | (322,636 | ) | |||||||||
| Total provision for income taxes | (164,856,125 | ) | (119,349,476 | ) | (168,356,868 | ) | (1,073,704 | ) | ||||||||
| NET INCOME | 245,341,120 | 418,633,987 | 438,459,617 | 2,796,299 | ||||||||||||
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||||||||||||
| Basic* | 25,298,605 | 24,910,656 | 25,191,441 | 25,191,441 | ||||||||||||
| Diluted* | 28,561,813 | 26,521,008 | 25,194,441 | 25,194,441 | ||||||||||||
| EARNINGS PER SHARE | ||||||||||||||||
| Basic* | 9.70 | 16.81 | 17.41 | 0.11 | ||||||||||||
| Diluted* | 8.59 | 15.78 | 17.40 | 0.11 | ||||||||||||
| * | Retrospectively restated for a 1-to-20 share split which became effective on November 1, 2024. |
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LEIFRAS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Fiscal Years ended December 31, | ||||||||||||||||
| 2023 | 2024 | 2025 | 2025 | |||||||||||||
| JPY | JPY | JPY | US$ | |||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Net income | 245,341,120 | 418,633,987 | 438,459,617 | 2,796,299 | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||
| Depreciation and amortization expense | 92,376,436 | 122,007,991 | 126,109,125 | 804,267 | ||||||||||||
| Loss on disposal of a subsidiary | - | 753,900 | - | - | ||||||||||||
| Provision for expected credit loss | 1,540,558 | 2,004,676 | 8,647,329 | 55,149 | ||||||||||||
| Loss on disposal of property and equipment | 651,482 | 190,430 | 247,775 | 1,580 | ||||||||||||
| Loss on disposal of intangible assets | 60,667 | - | 411,667 | 2,626 | ||||||||||||
| Provision for inventory impairment | 2,050,199 | 3,159,439 | 601,009 | 3,833 | ||||||||||||
| Unrealized (gain) loss on short-term investment | (175,000 | ) | 87,500 | - | - | |||||||||||
| Unrealized gain on long-term investment | - | - | (801,500 | ) | (5,112 | ) | ||||||||||
| Unrealized foreign currency exchange gain | - | - | (7,743,963 | ) | (49,387 | ) | ||||||||||
| Share-based compensation | 6,787,500 | - | - | - | ||||||||||||
| Other non-cash income | (53,186,243 | ) | (2,572,426 | ) | (165,310 | ) | (1,054 | ) | ||||||||
| Deferred tax expense | 5,198,043 | (37,441,597 | ) | 50,589,351 | 322,636 | |||||||||||
| Changes in operating assets and liabilities | ||||||||||||||||
| Accounts receivable, net | (140,305,194 | ) | (100,804,801 | ) | (221,332,269 | ) | (1,411,558 | ) | ||||||||
| Inventories | 4,738,514 | (7,121,445 | ) | 2,288,702 | 14,596 | |||||||||||
| Prepaid expenses | (15,384,821 | ) | (74,376,336 | ) | 23,960,671 | 152,810 | ||||||||||
| Long-term deposits | (12,472,270 | ) | (13,114,365 | ) | 190,484 | 1,215 | ||||||||||
| Amount due from a director | - | 33,577,065 | - | - | ||||||||||||
| Other current assets | (5,694,167 | ) | (5,887,422 | ) | (3,837,842 | ) | (24,476 | ) | ||||||||
| Other non-current assets | 5,943,850 | (11,766,167 | ) | (5,380,193 | ) | (34,312 | ) | |||||||||
| Accounts payable | 40,249,686 | (3,215,853 | ) | 28,567,586 | 182,191 | |||||||||||
| Accrued liabilities | 324,832,914 | (86,514,627 | ) | 51,255,854 | 326,887 | |||||||||||
| Contract liabilities | (2,561,454 | ) | 19,842,770 | 8,648,123 | 55,154 | |||||||||||
| Operating lease liabilities | 28,733 | (1,070,016 | ) | 22,638,540 | 144,378 | |||||||||||
| Income tax payable | 149,480,600 | (79,952,400 | ) | (31,875,300 | ) | (203,286 | ) | |||||||||
| Amount due to a director | - | 1,000,000 | (1,000,000 | ) | (6,378 | ) | ||||||||||
| Other current liabilities | 28,440,743 | 29,691,091 | (22,183,453 | ) | (141,476 | ) | ||||||||||
| Net cash provided by operating activities | 677,941,896 | 207,111,394 | 468,296,003 | 2,986,582 | ||||||||||||
| Cash flows from investing activities | ||||||||||||||||
| Cash outflow due to reduction in consolidated entities | - | (17,257,489 | ) | - | - | |||||||||||
| Purchase of property and equipment | (3,752,431 | ) | (15,081,600 | ) | (42,598,215 | ) | (271,672 | ) | ||||||||
| Purchase of intangible assets | (1,030,000 | ) | (19,051,500 | ) | (10,900,000 | ) | (69,516 | ) | ||||||||
| Net cash used in investing activities | (4,782,431 | ) | (51,390,589 | ) | (53,498,215 | ) | (341,188 | ) | ||||||||
| Cash flows from financing activities | ||||||||||||||||
| Payment of finance lease liabilities | (39,799,863 | ) | (65,901,913 | ) | (91,110,980 | ) | (581,065 | ) | ||||||||
| Proceeds from bank loans | 378,000,000 | 250,000,000 | - | - | ||||||||||||
| Repayment of bank loans | (313,451,000 | ) | (338,785,000 | ) | (830,785,000 | ) | (5,298,374 | ) | ||||||||
| Repayment of bond payable | (40,000,000 | ) | (40,000,000 | ) | (40,000,000 | ) | (255,102 | ) | ||||||||
| Proceeds from issuance of ordinary shares upon IPO | - | - | 658,666,480 | 4,200,679 | ||||||||||||
| Payment of deferred IPO costs | (5,732,730 | ) | (151,749,335 | ) | (133,784,623 | ) | (853,218 | ) | ||||||||
| Repurchase of treasury stock | - | (12,265 | ) | - | - | |||||||||||
| Net cash used in financing activities | (20,983,593 | ) | (346,448,513 | ) | (437,014,123 | ) | (2,787,080 | ) | ||||||||
| Effect of exchange rate | - | - | 7,743,963 | 49,387 | ||||||||||||
| Net increase (decrease) in cash | 652,175,872 | (190,727,708 | ) | (14,472,372 | ) | (92,299 | ) | |||||||||
| Cash at the beginning of the year | 2,077,106,474 | 2,729,282,346 | 2,538,554,638 | 16,189,762 | ||||||||||||
| Cash at the end of the year | 2,729,282,346 | 2,538,554,638 | 2,524,082,266 | 16,097,463 | ||||||||||||
| Supplementary cash flow information | ||||||||||||||||
| Cash paid for income taxes | 10,177,482 | 236,743,473 | 144,636,317 | 922,425 | ||||||||||||
| Cash paid for interest expenses | 12,358,975 | 15,522,155 | 14,846,154 | 94,682 | ||||||||||||
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Non-GAAP Financial Measures and Reconciliation
Adjusted INCOME FROM OPERARIONS
| For the Fiscal Years Ended December 31, | ||||||||||||
| 2024 | 2025 | 2025 | ||||||||||
| JPY | JPY | US$ | ||||||||||
| INCOME FROM OPERATIONS | 519,757,261 | 627,405,815 | 4,001,313 | |||||||||
| Plus: listing-related and transformational expenses(a) | 24,392,841 | 64,901,063 | 413,910 | |||||||||
| Less: litigation-related reimbursement(b) | (55,935,710 | ) | - | - | ||||||||
| Adjusted INCOME FROM OPERATIONS | 488,214,392 | 692,306,878 | 4,415,223 | |||||||||
| (a) | Represents one-time listing-related and other transformational expenses incurred in connection with our initial public offering and corporate transformation initiatives in fiscal years 2024 and 2025. These costs were recognized as expenses in the statement of operations and were not recorded as direct deductions from equity. |
| (b) | Litigation-related reimbursement received in fiscal year 2024 from the CEO in connection with a dispute involving a former director. As this payment represents a non-recurring and unusual item, it has been excluded for normalization purposes. |
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