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LEIFRAS Co., Ltd. Commences School Club Activity Support Operations in Ota Ward, Tokyo

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Leifras (Nasdaq:LFS) began managing school club activities in Ota Ward, Tokyo in April 2026 under a new outsourcing contract. The deal covers 33 club activities across 9 public junior high schools and is Leifras' first contract with this major Tokyo special ward.

Leifras links this expansion to Japan's 2026 school club activity reform, estimating a potential JPY500 billion nationwide market, with plans to deepen partnerships with local governments while supporting youth development and teacher work-style reforms.

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Positive

  • New Ota Ward contract covering 33 clubs at 9 junior high schools
  • First outsourcing agreement with a major Tokyo special ward
  • Estimated JPY500 billion nationwide school club activities market
  • Leading track record: 381 contracted schools and 2,120 supported clubs
  • Nationwide platform with 1,055 full-time and 3,544 part-time staff
  • Zero major accidents or severe injuries reported since 2013 in this business

Negative

  • None.

News Market Reaction – LFS

+0.88%
1 alert
+0.88% News Effect
+$493K Valuation Impact
$56.51M Market Cap
0.1x Rel. Volume

On the day this news was published, LFS gained 0.88%, reflecting a mild positive market reaction. This price movement added approximately $493K to the company's valuation, bringing the market cap to $56.51M at that time.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights expansion into a Tokyo ward, adding 33 club activities across 9 schools...
Analysis

This announcement highlights expansion into a Tokyo ward, adding 33 club activities across 9 schools in a policy-supported market near JPY500 billion. Key risks include contract execution quality and dependence on continued government reform momentum.

Key Figures

Potential market size: JPY500 billion New supported clubs: 33 club activities Schools in new contract: 9 junior high schools +5 more
8 metrics
Potential market size JPY500 billion Estimated nationwide school club activity support market
New supported clubs 33 club activities Covered under new Ota Ward outsourcing contract
Schools in new contract 9 junior high schools Public schools in Ota Ward, Tokyo
Nationwide junior high schools 9,800 schools Japan-wide junior high school count cited in article
Nationwide club activities 128,000 clubs Total club activities across Japan
Planned FY2026 transition 30.4% (38,954 clubs) Club activities to shift to regional/private sectors in FY2026
Contracted schools 381 schools Industry-leading track record as of Dec 31, 2025
Supported clubs 2,120 clubs School club activities under support as of Dec 31, 2025

Historical Context

5 past events · Latest: Jun 25 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jun 25 EdTech study results Positive -4.6% Reported positive links between sports engagement, non-cognitive skills, and academics.
Jun 23 Childcare acquisition Positive +6.7% Announced Swift Japan acquisition to expand into the childcare sector.
Jun 18 Q1 2026 earnings Positive +6.1% Reported record Q1 revenue and net income with unchanged growth guidance.
Jun 17 SDGs bond issuance Positive +3.8% Issued SDGs private placement bonds to strengthen finances and fund youth support.
Jun 11 Nationwide footprint Positive +17.4% Reached multi-sport school presence in all 47 prefectures with broad member base.

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

Pattern Detected

Recent news has generally led to positive price reactions, with only one notable divergence where upbeat research results coincided with a decline.

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

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Secures New Contract Covering 33 Club Activities Across 9 Junior High Schools, Expanding into a Tokyo Special Ward

TOKYO, June 26, 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 a new outsourcing contract (the "Contract") by Ota Ward, Tokyo, and commenced the management and operation of school club activities in the ward in April 2026. Under the contract, Leifras has initiated preparation for comprehensive and centralized management of a total of 33 club activities across 9 public junior high schools within the ward. This achievement marks the Company's first outsourcing contract with Ota Ward, a major special ward in Tokyo with high population density. The Contract demonstrates Leifras' continued execution of its growth strategy to expand 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 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 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-commences-school-club-activity-support-operations-in-ota-ward-tokyo-302810960.html

SOURCE LEIFRAS Co., Ltd.

FAQ

What did Leifras (NASDAQ:LFS) announce on June 26, 2026 about Ota Ward school clubs?

Leifras announced a new outsourcing contract to manage 33 club activities across 9 junior high schools in Ota Ward, Tokyo. According to Leifras, operations began in April 2026, marking its first school club support contract with this major Tokyo special ward.

How large is the school club activities market Leifras (LFS) is targeting in Japan?

Leifras estimates the potential school club activities market at about JPY500 billion nationwide. According to Leifras, this estimate is based on roughly 9,800 junior high schools and 128,000 clubs, using its past contract performance to calculate the overall outsourcing opportunity.

Why is Leifras (LFS) expanding during Japan's 2026 'Reform Execution Period' for school club activities?

Leifras links its expansion to Japan’s official 2026 'Reform Execution Period', which promotes outsourcing weekend club activities. According to Leifras, government guidelines plan to shift 30.4% of weekend clubs to regional and private operators within fiscal year 2026, supporting private-sector growth.

What operating scale and track record does Leifras (LFS) report in school club support?

Leifras reports an industry-leading track record with 381 contracted schools and 2,120 supported clubs as of December 31, 2025. According to Leifras, it operates across all 47 prefectures with 1,055 full-time and 3,544 part-time staff on its large-scale coaching platform.

How does Leifras (LFS) describe its safety and supervision system for school club activities?

Leifras states that full-time employees manage and oversee club instructors under proprietary training and regular field audits. According to Leifras, since launching its school club support business in 2013, it has recorded zero major accidents or severe injuries in these operations.

What relationships with governments and sports bodies support Leifras (LFS) growth strategy?

Leifras highlights partnerships with 33 prefectures and 13 Tokyo special wards, plus roles with the Nippon Sport Policy Commission and Japan Sports Association. According to Leifras, these national and local networks help co-promote policy and tailor services to regional educational needs.

What future outlook does Leifras (NASDAQ:LFS) share for its school club support business?

Leifras plans to keep strengthening partnerships with local governments across Japan to address teacher workload and youth development. According to Leifras, its growth strategy aligns with ongoing reforms transitioning weekend club activities from schools to community and private-sector management.