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LEIFRAS Co., Ltd. Commences School Club Activity Support Operations in Fujisawa City, Kanagawa Prefecture

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LEIFRAS (Nasdaq: LFS) has begun managing and operating school club activities in Fujisawa City, Kanagawa Prefecture, under a new outsourcing agreement starting April 2026. The contract covers centralized management of two club activities across two public junior high schools and represents Leifras' first agreement with Fujisawa City, supporting its strategy to expand during Japan's ongoing school club activity “Reform Execution Period.”

The company estimates the nationwide school club support market at about JPY500 billion, based on roughly 9,800 junior high schools and 128,000 clubs, with 30.4% of weekend clubs planned for transition to regional and private operators in fiscal 2026. Leifras highlights its leading track record of 381 contracted schools and 2,120 supported clubs as of December 31, 2025, extensive government networks, operations across all 47 prefectures with 1,055 full-time and 3,544 part-time staff, and a safety record of zero major accidents since 2013.

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What This Means

Winning a Fujisawa school club contract underscores Leifras’ push into a reform-driven, potentially ...
Analysis

Winning a Fujisawa school club contract underscores Leifras’ push into a reform-driven, potentially JPY500 billion market. The company already supports 2,120 clubs; key risks include execution across new municipalities and policy-driven changes to reform pacing.

Key Figures

New clubs covered: 2 club activities Estimated market size: JPY500 billion Junior high schools: 9,800 schools +5 more
8 metrics
New clubs covered 2 club activities Fujisawa City outsourcing agreement starting April 2026
Estimated market size JPY500 billion Nationwide school club activity support opportunity estimated by the Company
Junior high schools 9,800 schools Nationwide junior high schools referenced in market sizing
Club activities nationwide 128,000 clubs Nationwide school club activities referenced in market sizing
Planned 2026 transition 30.4% (38,954 clubs) Weekend club activities to be moved to regional/private sectors in FY2026
Contracted schools 381 schools Industry-leading track record as of December 31, 2025
Supported clubs 2,120 clubs School club activities supported as of December 31, 2025
Employees 1,055 full-time, 3,544 part-time National coaching platform operating across 47 prefectures

Historical Context

5 past events · Latest: Jul 06 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jul 06 education partnership Positive -2.2% Cooperation agreement with private tutoring provider Ando Juku in Mie Prefecture.
Jul 02 acquisition closing Positive -9.5% Completion and closing ceremony for Swift Japan childcare acquisition in Aichi.
Jun 26 school contract win Positive +0.9% New outsourcing contract to manage 33 club activities across 9 Tokyo schools.
Jun 25 edtech study results Positive -4.6% Milabo platform study linking sports engagement, non-cognitive skills, and academics.
Jun 23 acquisition agreement Positive +6.7% Agreement to acquire 100% of Swift Japan, expanding into childcare sector.

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 more often seen the share price move against otherwise positive corporate announcements than in line with them.

Regulatory & Risk Context

Short Interest: 1.43%
Short Interest
1.43% of float
0% 15% 30%+
low as of 2026-06-15 Days to cover: 1

Reported short positioning has been relatively low, suggesting limited short-squeeze potential and a lower likelihood of extreme volatility driven by short covering alone.

Key Terms

outsourcing agreement, reform execution period, guidelines
3 terms
outsourcing agreement financial
"announced that it was awarded a new outsourcing agreement"
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
"during Japan's ongoing "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"
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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Secures New Contract Covering Two Club Activities Across Two Junior High Schools, Driving Growth in the "Reform Execution Period"

TOKYO, July 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 support businesses, today announced that it was awarded a new outsourcing agreement (the "Agreement") by Fujisawa City, Kanagawa 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 two club activities across two public junior high schools in the city. This achievement marks the Company's first outsourcing agreement with Fujisawa City and is aligned with the Company's the continued execution of its growth strategy aimed at further expanding its market share during Japan's ongoing "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 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.

Cision View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-commences-school-club-activity-support-operations-in-fujisawa-city-kanagawa-prefecture-302822781.html

SOURCE LEIFRAS Co., Ltd.

FAQ

What new school club activity contract did LEIFRAS (LFS) secure in Fujisawa City in 2026?

LEIFRAS secured an outsourcing agreement from Fujisawa City to manage two club activities across two public junior high schools, starting April 2026. According to LEIFRAS, this is its first contract with Fujisawa City and supports its broader school club support business strategy.

How large is the potential school club activity support market targeted by LEIFRAS (LFS)?

LEIFRAS estimates the potential school club activity support market at about JPY500 billion in Japan. According to LEIFRAS, this estimate is based on roughly 9,800 junior high schools and 128,000 club activities nationwide and its own past contract performance data.

What is the "Reform Execution Period" and how does it affect LEIFRAS (LFS)?

Japan’s “Reform Execution Period” for school club activities began in fiscal 2026 under new national guidelines. According to LEIFRAS, these guidelines plan transitioning 30.4% of weekend club activities to regional and private operators, creating expanded outsourcing opportunities for its school club support services.

What operational scale does LEIFRAS (LFS) report in its school club and sports businesses?

LEIFRAS reports 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 staff and 3,544 part-time employees, supported by alliances with educational institutions for recruitment.

Why does LEIFRAS (LFS) say it is chosen by local governments for school club outsourcing?

LEIFRAS cites five advantages: an industry-leading contract track record, strong national and local government networks, a large-scale nationwide coaching platform, and a safety-first operational system. According to LEIFRAS, it has maintained zero major accidents or severe injuries in its school club support business since 2013.