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
