Earnings call transcript: Leifras posts H1 2026 profit gains as stock stays muted

Leifras Co., Ltd. reported solid first-half results for fiscal 2026, with revenue and profit both surpassing revenue growth. Net revenue climbed 8.9% to $36.8 million, while net income increased 43.5% to $0.5 million. Gross profit rose 22.6% to $10.9 million, and operating income jumped 35.9% to $0.6 million. The sports school segment remained the larger business by revenue, but membership declined by 0.9% to 68,873.

The social services unit delivered the strongest growth, with revenue up 18.0% to $11.3 million and profits rising 156.7% to $1.7 million. Leifras achieved a milestone by expanding its services to all 47 Japanese prefectures. Management attributed the strong first-half results to higher average spending per customer, revised membership fees, and improved social business performance.

Despite the positive outlook, the stock remained muted, trading near the bottom of its 52-week range. The company maintained its full-year guidance and emphasized its focus on deeper regional penetration and service density rather than further geographic expansion.