Strategic Expansion Positions Leifras to Capture Growth Opportunities in Japan’s Changing Club Activity Market

TOKYO, May 28, 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 has executed outsourcing contracts for the management and operations of school club activities for fiscal year 2026 with 24 local governments and 8 private junior high schools across Japan. The achievement marks a strategic milestone for the Company and further strengthens its competitive market position. The Company believes that the synchronized contract execution demonstrates its competitive advantage and is expected to drive long-term sustainable growth.

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.

Scaling into Major Metropolitan Areas

For fiscal year 2026, Leifras successfully secured outsourcing contracts with a total of 24 local governments, including 5 new contracts and 19 renewed contracts, as well as 8 private junior high schools. The contracts span a broad geographical area from rural cities to major metropolitan hubs, reflecting continued progress of the Company’s growth strategy, which focuses on scaling operations into government-designated cities and the 23 special wards of Tokyo. Notably, among the five new contracts with local governments, one is with a special ward in Tokyo (Ota Ward), which has a high population density, and two others are with government-designated major cities (Chiba City and Kawasaki City). The Company believes that these contract awards strengthen its presence in high-density urban markets and establish meaningful new revenue opportunities in some of Japan’s largest population centers.

 

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. Leifras believes that the successful acquisition and renewal of these contracts will serve as a powerful driver toward achieving the its consolidated earnings forecast for the fiscal year ending December 31, 2026.

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

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SOURCE LEIFRAS Co., Ltd.