$LFS

LEIFRAS Co., Ltd.

CIK:0002030277|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME

12 Months Ended

Dec. 31, 2025

USD ($)

$ / shares

Dec. 31, 2025

JPY (¥)

¥ / shares

Dec. 31, 2024

JPY (¥)

¥ / shares

Dec. 31, 2023

JPY (¥)

¥ / shares

Income Statement [Abstract]

NET REVENUE

$ 74,798,483

¥ 11,728,402,114

¥ 10,329,658,133

¥ 9,304,011,693

Cost of revenue

(52,696,323)

(8,262,783,362)

(7,381,911,441)

(6,966,376,610)

GROSS PROFIT

22,102,160

3,465,618,752

2,947,746,692

2,337,635,083

Selling, general, and administrative expenses

(18,100,847)

(2,838,212,937)

(2,427,989,431)

(1,941,979,790)

INCOME FROM OPERATIONS

4,001,313

627,405,815

519,757,261

395,655,293

OTHER INCOME (EXPENSE)

Interest income

24,314

3,812,636

333,704

319,563

Interest expense

(105,107)

(16,480,844)

(16,499,609)

(13,828,146)

Grant income

107,279

16,821,366

17,038,263

14,461,568

Unrealized gain (loss) on short-term investment

(87,500)

175,000

Unrealized gain on long-term investment

5,112

801,500

Loss on disposal of long-lived assets

(4,206)

(659,442)

(190,430)

(712,149)

Loss on disposal of a subsidiary

^[1]

(753,900)

Other income (expenses), net

(158,702)

(24,884,546)

18,385,674

14,126,116

Total other income (expenses), net

(131,310)

(20,589,330)

18,226,202

14,541,952

INCOME BEFORE INCOME TAX POVISION

3,870,003

606,816,485

537,983,463

410,197,245

PROVISION FOR INCOME TAXES

Current

(751,068)

(117,767,517)

(156,791,073)

(159,658,082)

Deferred

(322,636)

(50,589,351)

37,441,597

(5,198,043)

Total provision for income taxes

(1,073,704)

(168,356,868)

(119,349,476)

(164,856,125)

NET INCOME

$ 2,796,299

¥ 438,459,617

¥ 418,633,987

¥ 245,341,120

WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES

Basic

^[2]

25,191,441

24,910,656

25,298,605

Diluted

^[2]

25,194,441

26,521,008

28,561,813

EARNINGS PER SHARE

Basic | (per share)

$ 0.11

¥ 17.41

^[2]

¥ 16.81

^[2]

¥ 9.70

^[2]

Diluted | (per share)

$ 0.11

¥ 17.40

^[2]

¥ 15.78

^[2]

¥ 8.59

^[2]

[1]

On April 8, 2024, the Company transferred 100% of the shares of its wholly owned subsidiary, Sky Earth Sports Co., to the subsidiary’s representative director, Mr. Soichiro Kanazawa, for an aggregated consideration of JPY12,500,000 ($79,719), resulting in a recognized loss of JPY753,900 ($4,808). In connection with the disposal of Sky Earth Sports Co., the Company evaluated whether the disposal constitutes a strategic shift that has, or is expected to have, a major effect on the Company’s operations and financial results, and concluded that the impact of this disposal is limited and does not represent a strategic shift.

[2]

Retrospectively restated for a 1-to-20 share split which became effective on November 1, 2024.

CONSOLIDATED STATEMENTS OF CASH FLOWS

12 Months Ended

Dec. 31, 2025

USD ($)

Dec. 31, 2025

JPY (¥)

Dec. 31, 2024

JPY (¥)

Dec. 31, 2023

JPY (¥)

Cash flows from operating activities

Net income

$ 2,796,299

¥ 438,459,617

¥ 418,633,987

¥ 245,341,120

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization expense

804,267

126,109,125

122,007,991

92,376,436

Loss on disposal of a subsidiary

^[1]

753,900

Provision for expected credit loss

55,149

8,647,329

2,004,676

1,540,558

Loss on disposal of property and equipment

1,580

247,775

190,430

651,482

Loss on disposal of intangible assets

2,626

411,667

60,667

Provision for inventory impairment

3,833

601,009

3,159,439

2,050,199

Unrealized (gain) loss on short-term investment

87,500

(175,000)

Unrealized gain on long-term investment

(5,112)

(801,500)

Unrealized foreign currency exchange gain

(49,387)

(7,743,963)

Share-based compensation

(0)

6,787,500

Other non-cash income

(1,054)

(165,310)

(2,572,426)

(53,186,243)

Deferred tax expense

322,636

50,589,351

(37,441,597)

5,198,043

Changes in operating assets and liabilities

Accounts receivable, net

(1,411,558)

(221,332,269)

(100,804,801)

(140,305,194)

Inventories

14,596

2,288,702

(7,121,445)

4,738,514

Prepaid expenses

152,810

23,960,671

(74,376,336)

(15,384,821)

Long-term deposits

1,215

190,484

(13,114,365)

(12,472,270)

Amount due from a director

33,577,065

Other current assets

(24,476)

(3,837,842)

(5,887,422)

(5,694,167)

Other non-current assets

(34,312)

(5,380,193)

(11,766,167)

5,943,850

Accounts payable

182,191

28,567,586

(3,215,853)

40,249,686

Accrued liabilities

326,887

51,255,854

(86,514,627)

324,832,914

Contract liabilities

55,154

8,648,123

19,842,770

(2,561,454)

Operating lease liabilities

144,378

22,638,540

(1,070,016)

28,733

Income tax payable

(203,286)

(31,875,300)

(79,952,400)

149,480,600

Amount due to a director

(6,378)

(1,000,000)

1,000,000

Other current liabilities

(141,476)

(22,183,453)

29,691,091

28,440,743

Net cash (used in) provided by operating activities

2,986,582

468,296,003

207,111,394

677,941,896

Cash flows from investing activities

Cash outflow due to reduction in consolidated entities

(17,257,489)

Purchase of property and equipment

(271,672)

(42,598,215)

(15,081,600)

(3,752,431)

Purchase of intangible assets

(69,516)

(10,900,000)

(19,051,500)

(1,030,000)

Net cash used in investing activities

(341,188)

(53,498,215)

(51,390,589)

(4,782,431)

Cash flows from financing activities

Payment of finance lease liabilities

(581,065)

(91,110,980)

(65,901,913)

(39,799,863)

Proceeds from bank loans

250,000,000

378,000,000

Repayment of bank loans

(5,298,374)

(830,785,000)

(338,785,000)

(313,451,000)

Repayment of bond payable

(255,102)

(40,000,000)

Proceeds from issuance of ordinary shares upon IPO

4,200,679

658,666,480

Payment of deferred IPO costs

(853,218)

(133,784,623)

(151,749,335)

(5,732,730)

Repurchase of treasury stock

(12,265)

Net cash used in financing activities

(2,787,080)

(437,014,123)

(346,448,513)

(20,983,593)

Effect of exchange rate

49,387

7,743,963

Net increase (decrease) in cash

(92,299)

(14,472,372)

(190,727,708)

652,175,872

Cash at the beginning of the year

16,189,762

2,538,554,638

2,729,282,346

2,077,106,474

Cash at the end of the year

16,097,463

2,524,082,266

2,538,554,638

2,729,282,346

Supplementary cash flow information

Cash paid for income taxes

922,425

144,636,317

236,743,473

10,177,482

Cash paid for interest expenses

$ 94,682

¥ 14,846,154

¥ 15,522,155

¥ 12,358,975

[1]

CONSOLIDATED BALANCE SHEETS

Dec. 31, 2025

USD ($)

Dec. 31, 2025

JPY (¥)

Dec. 31, 2024

JPY (¥)

CURRENT ASSETS

Cash

$ 16,097,463

¥ 2,524,082,266

¥ 2,538,554,638

Accounts receivable, net

4,662,522

731,083,491

518,398,551

Short-term investments

4,935,000

Inventories, net

137,618

21,578,477

24,468,188

Prepaid expenses

1,007,910

158,040,280

182,278,232

Other current assets

243,748

38,219,685

34,381,843

TOTAL CURRENT ASSETS

22,149,261

3,473,004,199

3,303,016,452

NON-CURRENT ASSETS

Property and equipment, net

615,158

96,456,471

53,805,279

Finance lease right-of-use assets

1,510,894

236,908,226

208,611,550

Operating lease right-of-use assets

3,078,411

482,694,859

337,330,750

Intangible assets, net

188,973

29,631,015

39,250,078

Long-term investments

36,585

5,736,500

Goodwill

178,571

27,999,994

Deferred tax assets, net

1,046,443

164,082,227

214,671,578

Deferred initial public offering ("IPO") costs

(0)

157,482,065

Long-term deposits

958,015

150,216,792

150,407,276

Other non-current assets

54,020

8,470,398

3,090,205

TOTAL NON-CURRENT ASSETS

7,667,070

1,202,196,482

1,192,648,775

TOTAL ASSETS

29,816,331

4,675,200,681

4,495,665,227

CURRENT LIABILITIES

Short-term loans

637,755

100,000,000

700,000,000

Current portion of long-term loans

963,202

151,030,000

230,785,000

Bond payable, current

255,102

40,000,000

Accounts payable

1,255,416

196,849,154

168,281,568

Accrued liabilities

7,404,314

1,160,996,435

1,109,740,581

Income tax payable

277,420

43,499,500

75,374,800

Contract liabilities, current

982,619

154,074,620

147,628,310

Amount due to a director

1,000,000

Finance lease liabilities, current

561,338

88,017,810

71,681,545

Operating lease liabilities, current

885,715

138,880,117

110,889,134

Other current liabilities

1,126,228

176,592,537

195,952,191

TOTAL CURRENT LIABILITIES

14,349,109

2,249,940,173

2,851,333,129

NON-CURRENT LIABILITIES

Long-term loans, net of current portion

155,752

24,422,000

175,452,000

Bond payable, non-current

115,915

18,175,440

56,807,020

Contract liabilities, non-current

81,744

12,817,448

10,615,635

Finance lease liabilities, non-current

924,676

144,989,192

140,333,247

Operating lease liabilities, non-current

2,215,342

347,365,643

207,353,977

Assets retirement obligations

196,275

30,775,915

12,914,758

TOTAL NON-CURRENT LIABILITIES

3,689,704

578,545,638

603,476,637

TOTAL LIABILITIES

18,038,813

2,828,485,811

3,454,809,766

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*

^[1]

2,613,732

409,833,241

80,500,000

Common stock, value

5,018,537

786,906,631

748,840,080

Treasury shares, 400,041 shares as of December 31, 2024 and 2025, respectively*

(637,833)

(100,012,265)

^[1]

Retained Earnings

4,783,082

749,987,263

311,527,646

TOTAL SHAREHOLDERS' EQUITY

11,777,518

1,846,714,870

1,040,855,461

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 29,816,331

¥ 4,675,200,681

¥ 4,495,665,227

[1]	Retrospectively restated for a 1-to-20 share split which became effective on November 1, 2024.