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LEIFRAS Co., Ltd. Awarded Comprehensive Weekend School Club Activity Outsourcing Contract Covering All Junior High Schools in Itoshima City

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Leifras (Nasdaq: LFS) has been awarded Itoshima City's Junior High School Club Activities Regional Expansion and Operational Services Outsourcing Contract, covering weekend club instruction, management, and transition support at all six public junior high schools. The project includes turnkey establishment and operation of certified regional cultural and sports clubs and centralized instructor recruitment and placement.

Leifras assigns a dedicated Program Director for administration and safety and requires all instructors to complete 12 hours of training under proprietary safety protocols. The company cites an estimated JPY500 billion national market and highlights its leadership with 381 contracted schools and 2,120 supported clubs as of December 31, 2025.

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AI-generated analysis. How Rhea-AI works. Not financial advice.

Positive

  • New Itoshima City outsourcing contract covering all six junior high schools’ weekend club activities
  • Estimated JPY500 billion market for school club activity outsourcing based on company estimates
  • 381 contracted schools and 2,120 supported clubs as of December 31, 2025
  • Nationwide staffing base of 1,055 full-time and 3,544 part-time employees across 47 prefectures
  • Zero major accidents reported in school club support business since 2013 under proprietary safety protocols

Negative

  • None.

Market Context

Set against recent news where positive contracts sometimes saw declines of up to -9.52%, this Itoshi...
Analysis

Set against recent news where positive contracts sometimes saw declines of up to -9.52%, this Itoshima outsourcing deal fits an ongoing expansion pattern. Reported short interest is relatively low, so future reactions may hinge more on execution metrics than trading technicals.

Key Figures

Estimated market size: JPY500 billion Junior high schools: 9,800 schools Club activities: 128,000 clubs +5 more
8 metrics
Estimated market size JPY500 billion Nationwide school club activity support market estimated by the Company
Junior high schools 9,800 schools Estimated number of junior high schools nationwide
Club activities 128,000 clubs Estimated number of junior high school club activities nationwide
Planned FY2026 transition 30.4% (38,954 clubs) Weekend club activities to be shifted to regional and private sectors
Itoshima schools covered 6 junior high schools Public junior high schools in Itoshima City under the new contract
Contracted schools 381 schools Leifras’ contracted schools as of December 31, 2025
Supported clubs 2,120 clubs School club activities supported as of December 31, 2025
Employee base 1,055 full-time, 3,544 part-time Nationwide staffing across 47 prefectures

Historical Context

5 past events · Latest: Jul 15 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jul 15 Prefecture contract award Positive +0.9% Award of FY2026 coordination contract for Kagawa club activities transition.
Jul 10 City contract launch Positive -0.9% Start of Fujisawa City school club support outsourcing agreement.
Jul 06 Partnership agreement Positive -2.2% Cooperation agreement with private tutoring provider Ando Juku.
Jul 02 Acquisition closing Positive -9.5% Completion of SWIFT JAPAN childcare and after-school operator acquisition.
Jun 26 Ward contract launch Positive +0.9% Commencement of Ota Ward Tokyo school club activity outsourcing deal.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent positive expansion and acquisition headlines have produced mixed reactions, with slightly more negative than positive next-day moves.

Key Terms

reform execution period, guidelines
2 terms
reform execution period regulatory
"Japan's ongoing national "Reform Execution Period" for school club activities."
A reform execution period is the scheduled timeframe during which an organization or regulator carries out planned policy, operational or structural changes. Investors care because it signals when costs, disruptions or benefits are likely to occur — like a construction timetable that tells you when work will start, when cash will be spent and when the finished changes should begin affecting revenue, risk or efficiency.
guidelines regulatory
"under the New Guidelines Regarding Reform of School Club Activities issued by Japan's Ministry"
Guidelines are recommended rules or best practices issued by regulators, industry groups, or companies to shape how activities are carried out and information is reported; they may not be legally binding but set clear expectations. Like a recipe that standardizes how something is made, guidelines influence risk management, regulatory approval, disclosure and operational costs, so changes or non‑compliance can affect a company’s timeline, reputation and value — key concerns for investors.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Driving Sustainable School Club Activity Transition Through Instructor Recruitment, Regional Club Establishment, and Centralized Management

TOKYO, July 17, 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 support businesses, today announced that it was awarded the Itoshima City Junior High School Club Activities Regional Expansion and Other Operational Services Outsourcing Contract (the "Contract") by Itoshima City. Pursuant to the Contract, Leifras has initiated comprehensive weekend club activity instruction, operational management, and strategic support for the transition of school club activities to local communities across all six public junior high schools within the city. This collaboration represents an initiative by the Company to establish sustainable operational frameworks for local governments during Japan's 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.

Overview and Key Strategic Features of the Itoshima City Project

Under this project, Leifras provides comprehensive weekend school club activity management services and step-by-step regional transition support to six public junior high schools in Itoshima City (Maebaru, Maebaru-Higashi, Maebaru-Nishi, Nijo, Fukuyoshi, and Shima Junior High Schools) through the following core initiatives:

  • Centralized Management from Regional Club Establishment to Operations: Moving beyond instructor dispatch, Leifras serves as a turnkey partner supporting the establishment and operation of the new "Certified Regional Cultural and Sports Clubs," including funding administration. The Company also manages the entire instructor lifecycle from sourcing and registration to matching and strategic placement, building a sustainable framework for the transition of school club activities to local communities in Itoshima City.
  • Dedicated Administrative Support via a Program Director: To relieve teachers from weekend club responsibilities, Leifras assigns a dedicated Program Director to coordinate directly with the municipality and schools. The Program Director oversees on-site safety, responds to emergencies, and handles parent communications, including attendance tracking and inquiries, via a specialized system.
  • Comprehensive 12-Hour Training Program with a Safety-First Approach: Leifras requires all instructors to complete 12 hours of training, consisting of a six-hour Foundational Training Course and a six-hour Specialized Training Course to develop essential coaching skills. Utilizing proprietary safety protocols, including specialized emergency measures for heatstroke, lightning strikes, and severe storms, the Company has maintained a track record of zero major accidents and is committed to providing a safe and high-quality environment for participating students.

Why Leifras is Chosen: Five Advantages

  • Industry-leading Contract Track Record: The Company 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 47 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 deepening 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 annual report on Form 20-F 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 annual report 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-awarded-comprehensive-weekend-school-club-activity-outsourcing-contract-covering-all-junior-high-schools-in-itoshima-city-302828176.html

SOURCE LEIFRAS Co., Ltd.

FAQ

What contract did Leifras (LFS) win in Itoshima City on July 17, 2026?

Leifras was awarded an outsourcing contract to manage weekend junior high school club activities across all six public schools in Itoshima City. According to Leifras, the deal covers instruction, operational management, and step-by-step transition of club activities to regional cultural and sports clubs.

How large is the potential school club activity market Leifras (LFS) is targeting?

Leifras estimates the potential Japanese junior high school club activity market at approximately JPY500 billion. According to Leifras, this is based on around 9,800 schools, 128,000 clubs nationwide, and the national reform shifting weekend club activities to local communities and private operators.

How many schools and clubs does Leifras (LFS) support as of the Itoshima contract?

As of December 31, 2025, Leifras supports 381 schools and 2,120 clubs. According to Leifras, this gives the company an industry-leading track record in children’s sports schools and supported school club activities, which underpins its selection for the Itoshima City project.

What safety and training requirements does Leifras (LFS) use for Itoshima weekend club instructors?

Leifras requires all instructors to complete a 12-hour training program combining foundational and specialized courses. According to Leifras, proprietary safety protocols, including emergency measures for heatstroke and severe weather, have helped maintain a record of zero major accidents in its school club support business.

How does Leifras (LFS) reduce teacher workload through the Itoshima City club activity project?

Leifras appoints a dedicated Program Director to handle weekend club coordination with schools and the municipality. According to Leifras, this role manages on-site safety, emergencies, and parent communications, aiming to relieve teachers from weekend club activity responsibilities during Japan’s reform execution period.

What nationwide networks support Leifras (LFS) in expanding school club outsourcing services?

Leifras works with 33 prefectures and 13 Tokyo special wards and partners with major sports policy bodies. According to Leifras, this government and local network, plus operations in all 47 prefectures, supports scaling regional club models like the Itoshima City project.