LEIFRAS Co., Ltd. Commences School Club Activity Support Operations in Niiza City, Saitama Prefecture

Leifras (Nasdaq:LFS) began managing and operating school club activities in Niiza City, Saitama, under a new outsourcing agreement starting April 2026.

Rhea-AI Summary

Leifras (Nasdaq:LFS) began managing and operating school club activities in Niiza City, Saitama, under a new outsourcing agreement starting April 2026.

The Company now centrally manages 29 regional club activities across six public junior high schools, aligning with Japan’s nationwide school club “Reform Execution Period” and tapping into an estimated JPY500 billion market.

Positive

• New outsourcing agreement with Niiza City covering 29 club activities at six junior high schools
• Access to company-estimated JPY500 billion nationwide school club activities market
• Industry track record with 381 contracted schools and 2,120 supported clubs as of December 31, 2025
• Direct partnerships with 33 prefectures and 13 Tokyo special wards across Japan
• Large coaching platform with 1,055 full-time and 3,544 part-time employees in 46 prefectures
• Record of zero major accidents or severe injuries in school club support since 2013

Negative

• None.

Argus Jun 8 session

-2.96% close to close Open Argus

Details

News Market Reaction – LFS

On Jun 8, the day this news came out, LFS closed 2.96% below the previous close.

Data tracked by StockTitan Argus for the Jun 8 session.

Key Figures

Niiza club activities: 29 clubs across 6 schools Estimated market size: JPY500 billion Junior high schools nationwide: 9,800 schools +5 more

Niiza club activities

29 clubs across 6 schools

New outsourcing agreement in Niiza City starting April 2026

Estimated market size

JPY500 billion

Company-estimated potential market for school club activity reform

Junior high schools nationwide

9,800 schools

Number of junior high schools in Japan (2025)

Club activities nationwide

128,000 clubs

Total club activities across Japanese junior high schools

2026 transition target

30.4% (38,954 clubs)

Weekend club activities to be shifted to regional/private sectors in FY2026

Contracted schools

381 schools

Industry-leading contracted schools as of December 31, 2025

Supported clubs

2,120 clubs

Number of supported school club activities as of December 31, 2025

Staffing scale

1,055 full-time, 3,544 part-time

Coaching platform workforce across 46 prefectures

Historical Context

5 past events · Latest: Jun 03

5 events

1. Jun 03

   Content partnership

   24h Move

   -9.1%

   Collaboration with BLUELOCK for new elite youth soccer tournament launch.

2. May 29

   Network expansion

   24h Move

   -10.1%

   After-school day care network expanded 45% to 29 facilities nationwide.

3. May 28

   Outsourcing wins

   24h Move

   -4.5%

   New 2026 outsourcing contracts with 24 municipalities and 8 private schools.

4. May 26

   Program launch

   24h Move

   +2.0%

   Launch of D-UNLOCK dribbling program across six Tokyo-area schools.

5. May 21

   Acquisition deal

   24h Move

   +1.4%

   Agreement to acquire Tokai Sports, adding members and new locations.

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

Key Terms

outsourcing agreement, reform execution period, guidelines

3 terms

outsourcing agreement financial

"awarded a new service outsourcing agreement (the "Agreement") by Niiza City"

An outsourcing agreement is a contract where a company pays an outside provider to perform specific tasks or services it would otherwise do itself, like hiring a specialist to handle payroll or manufacturing. For investors, it matters because such deals can lower costs, shift risks, and affect quality or control—similar to hiring a contractor to maintain a house; good partners can improve efficiency, while problems can disrupt operations and profitability.

reform execution period regulatory

"Japan enters the nationwide "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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Spanning 29 Regional Club Activities Across Six Junior High Schools

TOKYO, June 8, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social-business company dedicated to youth sports and community engagement, today announced that it was awarded a new service outsourcing agreement (the "Agreement") by Niiza City, Saitama Prefecture, and commenced the management and operation of school club activities in the city in April 2026. Under the Agreement, Leifras has initiated comprehensive and centralized management of a total of 29 regional club activities across all six public junior high schools in the city. This marks the Company's first outsourcing agreement with Niiza City and represents an important milestone in the continued execution of Leifras' growth strategy as Japan enters the nationwide "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

View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-commences-school-club-activity-support-operations-in-niiza-city-saitama-prefecture-302793565.html

SOURCE LEIFRAS Co., Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Leifras (Nasdaq:LFS) announce about its Niiza City school club operations on June 8, 2026?

Leifras announced it began managing school club activities in Niiza City from April 2026. According to Leifras, the outsourcing agreement covers centralized management of 29 regional club activities across all six public junior high schools in the city.

How many school club activities does Leifras manage under the Niiza City agreement for LFS shareholders?

Leifras manages 29 regional club activities under the Niiza City outsourcing agreement. According to Leifras, these clubs span all six public junior high schools, establishing its first contract with Niiza City and supporting its broader national school club reform strategy.

What is the estimated market size Leifras (LFS) sees for Japan’s school club activity reforms?

Leifras estimates Japan’s school club activities market at about JPY500 billion. According to Leifras, this is based on roughly 128,000 club activities nationwide and its past contract performance, with 30.4% of weekend clubs planned for transition in fiscal 2026.

Why does Leifras believe it is well positioned for Japan’s school club reform market?

Leifras cites an extensive contract record and broad networks as its strengths. According to Leifras, it supports 381 schools and 2,120 clubs, partners with 33 prefectures and 13 Tokyo wards, and operates a large coaching workforce across 46 prefectures.

How many staff support Leifras (Nasdaq:LFS) school club operations across Japan?

Leifras reports 1,055 full-time and 3,544 part-time employees on its coaching platform. According to Leifras, these staff operate in 46 prefectures, supported by exclusive recruitment pipelines with educational institutions and centralized oversight of club instructors.

What safety record does Leifras highlight for its school club support business?

Leifras reports no major accidents or severe injuries since 2013 in its school club support business. According to Leifras, full-time employees supervise instructors, enforcing proprietary training programs and regular field audits to maintain this safety record.

How does the Niiza City contract fit into Leifras (LFS) future outlook?

The Niiza City contract supports Leifras’ strategy during Japan’s school club reform period. According to Leifras, the company aims to deepen partnerships with local governments, easing teacher workloads while promoting youth development through community-based club management.