Leifras (LFS) Q1 2026 earnings summary

Executive summary

• Achieved record-high net revenue and net income in Q1 FY2026, with revenue up 10.0%, adjusted income from operations up 1.0%, and net income up 1.5% YoY, driven by growth in club activities and sports school businesses.

• Social business and sports school segments both delivered strong YoY growth, supported by new contracts, M&A, and strategic investments.

• Strategic M&A and expansion into new markets and services underpin continued growth, with national policy reforms accelerating privatization of school club activities.

Financial highlights

• Net revenue rose 10.0% YoY to $18.6 million, a record high for the quarter.

• Gross profit increased 20.5% YoY to $5.99 million; gross profit margin for Q1 FY2026 was approximately 32.2%.

• Net income reached $0.8 million, up 1.5% YoY and also a record.

• Adjusted income from operations grew 1.0% YoY to $1.1 million, reflecting core business profitability.

• Sports school segment revenue up 5.6% YoY to $13.6 million; social business revenue up 24.1% YoY to $5.0 million.

Outlook and guidance

• Full-year FY2026 guidance maintained, projecting continued revenue and profit growth, with revenue expected between $82.9 million and $95.7 million and income from operations forecasted at $4.5 million to $5.4 million.

• Guidance assumes no major acquisitions, restructuring, or legal settlements, and uses a fixed exchange rate to eliminate FX volatility.