Cash generation is heavily impacted by working capital volatility, as demonstrated by a $355.3 million outflow in 2025Q4, while minimal CapEx/Revenue ratios below 1% suggest potential under-investment in physical assets.
| Cash from Operations | 331.29M | 487.21M | 207.11M | 677.94M | 401.5M |
| Operating CF Margin % | - | 3.99% | 2% | 7.29% | 5.22% |
| Operating CF Growth % | 171.15% | 135.24% | -69.45% | 68.85% | - |
| Net Income | 563.5M | 456.17M | 418.63M | 245.34M | 178.03M |
| Depreciation & Amortization | 185.27M | 131.2M | 122.01M | 92.38M | 90.1M |
| Stock-Based Compensation | 0 | 0 | 0 | 6.79M | 27.15M |
| Deferred Taxes | 102.39M | 52.63M | -37.44M | 5.2M | 69.37M |
| Other Non-Cash Items | 31.1M | 1.25M | 3.62M | -49.06M | -88.99M |
| Working Capital Changes | -734.2M | -154.04M | -299.71M | 377.3M | 125.84M |
| Change in Receivables | -359.85M | -230.27M | -67.23M | -140.31M | -35M |
| Change in Inventory | 12.47M | 2.38M | -7.12M | 4.74M | 5.31M |
| Change in Payables | 16.28M | 29.72M | -3.22M | 40.25M | -7.57M |
| Cash from Investing | -75.64M | -55.66M | -51.39M | -4.78M | 66.04M |
| Capital Expenditures | -58.08M | -55.66M | -15.08M | -3.75M | -11.52M |
| CapEx % of Revenue | 0.4% | 0.46% | 0.15% | 0.04% | 0.15% |
| Acquisitions | 0 | 0 | -17.26M | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -967.8K | 0 | -19.05M | -1.03M | -12.44M |
| Cash from Financing | -383.49M | -454.66M | -346.45M | -20.98M | 404.37M |
| Debt Issued (Net) | -921.6M | -1B | -194.69M | -15.25M | 283.37M |
| Equity Issued (Net) | 549.16M | 546.08M | -12.27K | -41.11K | 121M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -12.27K | 0 | 0 |
| Other Financing | -11.05M | 157 | -151.75M | -5.69M | 0 |
| Net Change in Cash | -174.74M | -55.73M | -190.73M | 652.18M | 871.92M |
| Free Cash Flow | 283.45M | 442.89M | 172.98M | 673.16M | 377.55M |
| FCF Margin % | 1.95% | 3.63% | 1.67% | 7.24% | 4.91% |
| FCF Growth % | - | 156.04% | -74.3% | 78.3% | - |
| FCF per Share | 10.83 | 17.58 | 6.52 | 25.39 | 14.24 |
| FCF Conversion (FCF/Net Income) | 0.50x | 1.07x | 0.49x | 2.76x | 2.26x |
| Interest Paid | 5.62M | 0 | 15.52M | 12.36M | 12.21M |
| Taxes Paid | 83.38M | 0 | 236.74M | 10.18M | 3.36M |
Working capital volatility
As reported in recent quarterly filings, LFS exhibits extreme volatility in cash conversion, with OCF/NI ratios swinging from a negative 4.96 in 2024Q2 to a positive 5.82 in 2025Q2, indicating that reported net income is a poor proxy for the company's actual cash-generating capability.
The wide divergence between net income and operating cash flow suggests that non-cash accruals or significant timing differences in revenue recognition are heavily distorting the bottom line. Investors should monitor whether these fluctuations are driven by the lumpy nature of municipal contract payments or underlying issues in the core sports school business model.
Based on the provided financial data, LFS's free cash flow trajectory remains highly erratic, oscillating between a peak of $431.6 million in 2024Q4 and a trough of -$235.4 million in 2024Q2, which highlights the difficulty in maintaining consistent cash generation across the company's diverse service segments.
The inability to sustain positive free cash flow margins suggests that the company's high fixed-cost structure is highly sensitive to operational disruptions. This inconsistency warrants further investigation into whether the negative cash flow periods are temporary timing mismatches or indicative of structural challenges in scaling the social business segment.
According to the quarterly cash flow statements, working capital changes are the primary driver of cash flow variance, with a massive $355.3 million outflow in 2025Q4 contrasting sharply with the $232.5 million inflow observed in 2023Q4, reflecting significant instability in the company's cash conversion cycle.
These dramatic swings in working capital suggest that LFS may be experiencing significant delays in collecting payments from municipal partners or managing inventory levels for its sports programs. Such volatility makes it difficult to rely on operating cash flow as a stable indicator of the company's underlying operational health.
Based on reported figures, LFS maintains a remarkably low capital intensity, with CapEx/Revenue ratios consistently below 1% across the observed periods, suggesting that the company may be under-investing in its physical facility network despite the high-fixed-cost nature of its sports and social business operations.
While low capital expenditure supports short-term cash flow, it may indicate a risk of deferred maintenance that could impact service quality and long-term competitiveness. Analysts should monitor whether this low spending level is sustainable or if it will eventually necessitate a large, lumpy capital outlay to modernize aging facilities.
Quick answers to the most common questions about buying LFS stock.
LEIFRAS Co., Ltd. American Depositary Shares (LFS) generated $487.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LEIFRAS Co., Ltd. American Depositary Shares (LFS) generated $442.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
LEIFRAS Co., Ltd. American Depositary Shares (LFS) spent $55.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.