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LEIFRAS Co., Ltd. Announces Entry into Kawasaki City Through New School Club Support Contract

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Leifras (Nasdaq:LFS) has entered Kawasaki City through a new school club support contract, starting operations in April 2026. The contract covers 10 club activities across two public junior high schools and is Leifras' first outsourcing engagement with one of Japan's largest government-designated cities.

According to Leifras, this supports its strategy during Japan's school club activity “Reform Execution Period”. The company estimates the nationwide market for outsourced school club activities at JPY500 billion and reports 381 contracted schools and 2,120 supported clubs as of December 31, 2025.

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Positive

  • First outsourcing contract with Kawasaki City, launched April 2026
  • Management of 10 club activities across two public junior high schools
  • Estimated JPY500 billion national market for school club outsourcing
  • 381 contracted schools and 2,120 supported clubs as of Dec 31, 2025
  • Partnerships with 33 prefectures and 13 Tokyo special wards
  • Zero major accidents or severe injuries in school club support since 2013

Negative

  • None.

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$60.94M Market Cap
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Expanding Leifras' Presence into a Major Government-Designated City

TOKYO, June 10, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement and Japan's leading operator of children's sports schools and school club activity outsourcing support, today announced that it was awarded a new commission contract (the "Contract") by Kawasaki City, Kanagawa Prefecture, and commenced school club activity management and operations in the city in April 2026. The Contract marks Leifras' first outsourcing engagement with Kawasaki City, one of Japan's largest government-designated cities, representing an important strategic milestone in the Company's expansion and further strengthening its position in Japan's school club activity outsourcing market.

Under the Contract, Leifras provides comprehensive, centralized management for a total of ten club activities across two public junior high schools within the city. The award of the Contract demonstrates steady execution of the Company's growth strategy aimed at expanding its market share during the ongoing national "Reform Execution Period" for school club activities.

A JPY500 Billion Market and the Formal Commencement of the "Reform Execution Period"

Reducing excessive teacher workloads and improving the quality of specialized instruction have become urgent social challenges in schools throughout Japan. In response, the nation has officially entered the "Reform Execution Period" starting in fiscal year 2026 under the New Guidelines Regarding Reform of School Club Activities issued by Japan's Ministry of Education, Culture, Sports, Science and Technology (the "Guidelines"), according to which weekend club activities are expected to, in principle, be fully transitioned to local communities and private operators. With approximately 9,800 junior high schools* and 128,000 club activities nationwide, the Company estimates the potential market size to be approximately JPY500 billion**. The Guidelines plan to transition 30.4% (38,954 clubs) of weekend club activities to regional and private sectors within fiscal year 2026 alone.

*e-Stat Government Statistic Portal Site/Number of Schools in 2025.
**Market size is estimated by the Company based on past contract performances.

Why Leifras is Chosen: Five Advantages

  • Industry-leading Contract Track Record: Holds the leading industry position with 381 contracted schools and 2,120 supported clubs, ranking first in Japan by the number of children's sports schools and the number of supported school club activities as of December 31, 2025 according to Tokyo Shoko Research.
  • Robust National Government Network: As a member of the Nippon Sport Policy Commission and an official partner of the Japan Sports Association, Leifras collaborates closely with key organizations representing Japan's sports industry and private education sector to co-promote national policies.
  • Extensive Local Government Network: The Company has partnered directly with 33 prefectures and 13 Tokyo special wards, accumulating substantial operational know-how tailored to region-specific educational needs.
  • Japan's Only Large-Scale Coaching Platform: Operating across 46 prefectures, Leifras currently employs 1,055 full-time staff and 3,544 part-time employees. The Company has also established stable, exclusive recruitment pipelines through comprehensive alliances with educational institutions.
  • Safety-First Operational System: Full-time employees manage and oversee club activity instructors, ensuring thorough adherence to proprietary training programs and regular field audits. Since launching the school club support business in 2013, the Company has maintained a record of zero major accidents or severe injuries.

Future Outlook

Leifras plans to continue to deepen its partnerships with local governments across Japan, contributing to the resolution of critical social issues, such as work-style reforms for teachers, while supporting youth development.

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/.

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

 

Cision View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-announces-entry-into-kawasaki-city-through-new-school-club-support-contract-302796454.html

SOURCE LEIFRAS Co., Ltd.

FAQ

What did Leifras (LFS) announce about its new Kawasaki City contract in June 2026?

Leifras announced a new school club support contract with Kawasaki City, starting operations in April 2026. According to Leifras, the contract covers management of 10 club activities across two public junior high schools, marking its first outsourcing engagement with this major government-designated city.

How many schools and club activities does Leifras (LFS) manage under the Kawasaki City agreement?

Under the Kawasaki City contract, Leifras manages 10 club activities across two public junior high schools. According to Leifras, this centralized management supports the shift of weekend club activities to local communities and private operators during Japan’s school club activity Reform Execution Period.

What is the estimated market size Leifras (LFS) targets for school club activity outsourcing?

Leifras estimates the nationwide school club activity outsourcing market at about JPY500 billion. According to Leifras, this estimate is based on roughly 9,800 junior high schools and 128,000 club activities, using its past contract performance as the basis for market calculations.

How strong is Leifras’ (LFS) current contract base in Japanese school club activities?

Leifras reports 381 contracted schools and 2,120 supported clubs as of December 31, 2025. According to Leifras, this places the company first in Japan by number of children’s sports schools and supported school club activities, based on data from Tokyo Shoko Research.

What national policy changes support Leifras’ (LFS) growth in school club outsourcing?

Japan entered the school club activity Reform Execution Period in fiscal 2026, shifting weekend clubs to local and private operators. According to Leifras, government Guidelines plan to transition 30.4% of weekend club activities, or 38,954 clubs, within fiscal year 2026 alone.

What operational and safety strengths does Leifras (LFS) highlight in its school club business?

Leifras emphasizes full-time employee oversight, proprietary training, and regular field audits for instructors. According to Leifras, its school club support business, launched in 2013, has maintained a record of zero major accidents or severe injuries over its operating history.