LEIFRAS Co., Ltd. Awarded Contract to Manage Community-Based Club Activities at Monbetsu Municipal Junior High Schools in Hokkaido

Rhea-AI Summary

LEIFRAS (Nasdaq: LFS) was awarded a contract by Monbetsu City, Hokkaido, to operate community-based club activities for municipal junior high schools from April 2026 through March 2029. The plan implements the "Monbetsu Model" to consolidate students from three junior high schools and expand extracurricular options amid declining school participation.

The company cites 9-month metrics to Sept 30, 2025: social business sales JPY 2,358.6M (+36.4% YoY) and 360 schools contracted (+53.2% YoY), reflecting rising demand for club-support services.

Positive

• Three-year contract (Apr 2026–Mar 2029) to manage Monbetsu community clubs
• Program consolidates students from three junior high schools to expand activity options
• Social business sales JPY 2,358.6M (+36.4% YoY for nine months ended Sep 30, 2025)
• Number of contracted schools 360 (+53.2% YoY), showing scalable demand

Negative

• Rural demographics risk: declining birthrate may limit long-term participant pool
• Contract concentrated in one municipality; limited immediate revenue scale disclosed

News Market Reaction

-8.54%

2 alerts

-8.54% News Effect

+16.0% Peak Tracked

-2.3% Trough Tracked

-$6M Valuation Impact

$68M Market Cap

0.5x Rel. Volume

On the day this news was published, LFS declined 8.54%, reflecting a notable negative market reaction. Argus tracked a peak move of +16.0% during that session. Argus tracked a trough of -2.3% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $6M from the company's valuation, bringing the market cap to $68M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Social business sales: JPY 2,358.6 million Social sales growth: 36.4% year-on-year Schools contracted: 360 schools +3 more

6 metrics

Social business sales JPY 2,358.6 million Nine months ended September 30, 2025; +36.4% year-on-year

Social sales growth 36.4% year-on-year Nine months ended September 30, 2025 social business sales growth rate

Schools contracted 360 schools Number of schools contracted for club activities, nine months ended September 30, 2025

School contracts growth 53.2% year-on-year Increase in number of schools contracted for club activities

Contract start April 2026 Start of Monbetsu City community-based club contract period

Contract end March 2029 End of Monbetsu City community-based club contract period

Market Reality Check

Price: $2.30 Vol: Volume 43,819 is below th...

low vol

$2.30 Last Close

Volume Volume 43,819 is below the 20-day average 100,053 (relative volume 0.44x), suggesting limited pre-news activity. low

Technical Price 2.81 is trading below the 200-day MA 3.76, indicating a weak longer-term trend.

Historical Context

5 past events · Latest: Dec 26 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 26	Social-impact project	Positive	-8.7%	MOU for collaborative project addressing school refusal with partners in Japan.
Dec 18	Earnings results	Positive	-0.8%	Nine-month 2025 results showing revenue, profit, and margin growth with guidance.
Dec 09	Research findings	Positive	+7.5%	Study showing non-cognitive skill advantages for participants in sports camps.
Nov 13	Earnings call setup	Neutral	-18.1%	Scheduling of earnings conference calls for first half of fiscal 2025.
Nov 05	Contract award	Positive	-5.2%	Award of Nagoya regional club facility management and operation contract.

Pattern Detected

Recent history shows a tendency for LFS to trade lower on or after generally positive operational and earnings-related news, with only one of the last five events seeing a positive alignment.

Recent Company History

Over the past few months, LFS reported improving fundamentals, including higher revenue, gross profit, and social business expansion, while also announcing multiple contracts and social-impact initiatives. Despite this, shares often moved lower after news, such as the Nov 5 Nagoya contract and the Dec 18 nine-month results. Today’s Hokkaido contract continues the theme of operational growth in community-based club management against a backdrop of a stock trading well below its 52-week high.

Market Pulse Summary

The stock moved -8.5% in the session following this news. A negative reaction despite a new multi-ye...

Analysis

The stock moved -8.5% in the session following this news. A negative reaction despite a new multi-year contract fits a pattern where LFS has often moved lower after constructive news, with several prior positive updates followed by declines. The stock traded about 77.5% below its 52-week high 12.49 and below its 200-day MA 3.76 before this release, suggesting sentiment was already weak. Investors may focus on overall valuation and execution history rather than individual contract wins.

AI-generated analysis. Not financial advice.

Supporting the Shift of Club Activity Management from Schools to Local Communities Through the "Monbetsu Model"

TOKYO, Jan. 29, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, announced today that it has been awarded a contract by Monbetsu City, Hokkaido to provide community-based club activity management and operation services (the "Contract").

Pursuant to the Contract, the Company will operate and manage a community-based club in Monbetsu City starting April 2026.

Contract Overview

Client: Monbetsu City, Hokkaido
Contract Period: April 2026 - March 2029

Background

In Monbetsu City, the declining birthrate has led to shrinking participation in school club activities. Team sports, in particular, are facing disbandment due to a lack of members, reducing students' options of extracurricular activities.

To address this situation, junior high schools in Monbetsu City are transitioning school club activities to a community-based model. Starting in the 2026 school year, community-based clubs are expected to replace school-based club activities.

For the past two years, Leifras has been involved in designing a system for community-based club activities in Monbetsu City and has established the "Monbetsu Model," a community-based club activity model for sparsely populated areas.

Starting this year, Leifras plans to work with Monbetsu City to further develop the "Monbetsu Model" as a new club activity support project that will combine the management and implementation of community-based clubs.

By joining community-based clubs that bring together students from three municipal junior high schools in Monbetsu City, students are expected to be able to choose their favorite sports and activities from a wide range of club activities, offering opportunities for them to continue enjoying sports.

Mr. Kiyotaka Ito, the Representative Director and Chief Executive Officer of Leifras, commented, "We are honored to be awarded this contract by the Monbetsu City and to support the expansion of community-based club activities beginning in 2026. Leifras remains committed to providing a safe and secure environment for junior high school students in Monbetsu City to connect with friends from other schools and enjoy sports, and to turn community-based club activities into new educational opportunities within Monbetsu City. Looking ahead, we also aim to accept students from neighboring cities and towns, and develop the community-based club into a core club."

Growth and Achievements in the School Club Support Business

Leifras has been supporting school clubs since before the nationwide call for localization of club activities, and has earned the trust of local governments across Japan. The Company's financial results for the nine months ended September 30, 2025 also reflected the high demand for school club support, with social business sales increasing 36.4% year-on-year and the number of schools contracted for club activities increasing 53.2% year-on-year, demonstrating continued rapid growth.

Related key metrics for the nine months ended September 30, 2025 include:

• Social business sales: JPY 2,358.6 million (+36.4% year-on-year)
• Number of schools contracted for club activities: 360 schools (+53.2% year-on-year)

Selected Major Contracted Projects in Fiscal Year 2025

Leifras has seen an increase in large-scale projects, including multi-year contracts, primarily in urban areas and major municipalities. Notable examples include:

• Nagoya City, Aichi Prefecture (14 wards, including Chikusa and Showa): New athletic and cultural activity programs at Nagoya City elementary schools
• Nagoya City, Aichi Prefecture: Nagoya Club Activities Talent Bank Outsourcing Project
• Minato Ward, Tokyo: Club activity coaching services
• Suita City, Osaka Prefecture: Club activity management and operation services at Suita City junior high schools

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, 2024, 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

View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-awarded-contract-to-manage-community-based-club-activities-at-monbetsu-municipal-junior-high-schools-in-hokkaido-302673915.html

SOURCE LEIFRAS Co., Ltd.

FAQ

What does the Monbetsu contract mean for LEIFRAS (LFS) shareholders?

It provides a three-year, service revenue stream beginning April 2026 for community club operations. According to the company, the award advances its "Monbetsu Model" rollout and supports recurring social business growth while expanding regional presence and program scale.

How long is the Monbetsu City contract awarded to LEIFRAS (LFS)?

The contract runs from April 2026 through March 2029, a three-year period. According to the company, services will start in April 2026 and include management and operation of community-based clubs across municipal junior high schools.

How does the Monbetsu Model change junior high school clubs for students?

The model shifts club management from schools to community-based clubs that combine students from three schools. According to the company, this approach increases choices of sports and activities and helps sustain extracurricular participation in sparsely populated areas.

What recent financial metrics did LEIFRAS (LFS) report that relate to school-club demand?

For the nine months ended Sept 30, 2025, social business sales were JPY 2,358.6M, up 36.4% year-on-year. According to the company, contracted schools rose 53.2% to 360, reflecting increased municipal demand for club support services.

Will LEIFRAS (LFS) expand the Monbetsu program beyond Monbetsu City?

The company aims to accept students from neighboring towns and develop a core community club over time. According to the company, future expansion is planned as the Monbetsu Model is refined and scaled in surrounding municipalities.