ENVALITH
株式会社L is B logo

L is B Corp.

145A・Growth Market・Information & Communication

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株式会社L is B logo
L is B Corp.145A

Business

L is B Co., Ltd. operates under the mission of "bringing smiles to people through ideas and technology," providing digital services that use DX to solve operational challenges faced by "companies with worksites," such as those in construction, distribution/retail, infrastructure, and transportation industries. Centered on the worksite-oriented business chat tool "direct," launched in 2014, the company has expanded a suite of integrated solutions including the photo management tools "Tag Shot" and "Tag Album," the video-sharing service "Knowledge Video," and an AI-FAQ bot. In FY2025 (ending December 2025), the group comprises five companies including four subsidiaries (System M's, directX Ventures, directX Ventures No.1 Limited Liability Partnership, and IU BIM STUDIO), and operates under two segments: the DX Solutions business and the Investment business. Its main customers are large enterprises, primarily in the construction industry, with the number of contracted companies reaching 696 (excluding OEM).

Business Model

The company employs an ARR-focused SaaS model in which stock-type revenue (accumulated monthly usage fees) accounts for 92.5% of net sales. ARR is expanded through growth in the number of "direct" IDs, as well as upselling and cross-selling. In addition to the two distribution channels of direct sales and sales via partners, the company also offers OEM provision (revenue share plus development fees) such as "LoGo Chat" for Trust Bank and "Shinkin Direct" for shinkin banks (credit unions). DX consulting and contract development are recorded as professional services revenue.

Company Strengths

FY2025 (ending December 2025) recurring revenue ratio reached 92.5%, with ARR (on a standalone basis) reaching ¥1,880 million. Owing to a cumulative revenue structure based on monthly usage fees, the majority of the ¥2,133 million in net sales is recurring, resulting in high revenue predictability.

"direct Guest Mode," which allows partner companies to be safely invited, is patented (Patent No. 6243382). The combination of a security framework certified under ISO/IEC 27001 and 27017 with a UI intuitive enough for on-site workers to operate differentiates the service from general-purpose chat tools.

Against a backdrop of policy tailwinds such as compliance with overtime work limit regulations and the principled application of BIM/CIM, net sales for FY2025 (ending December 2025) increased 33.8% year on year to ¥2,133 million, and operating profit increased 257.9% year on year to ¥169 million. The full-year consolidated contribution from System M's also supported the business expansion.

ENVALITH's Perspective

Q1 FY2026 (ending December 2026) results showed revenue of ¥665 million (up 29.4% YoY), operating profit of ¥75 million (up 26.0% YoY), and net income attributable to owners of the parent of ¥65 million (up 52.5% YoY), achieving both revenue and profit growth. Against the full-year forecast (revenue of ¥2,823 million, operating profit of ¥266 million), Q1 progress rates stood at 23.6% for revenue and 28.4% for operating profit, which can be assessed as a generally solid start. It should be noted that the benefit from income tax adjustments (recognition of deferred tax assets) caused net income growth to exceed operating profit growth.

In Q1 FY2026 (ending December 2026), cost of sales rose to ¥254 million (up 42.4% YoY), outpacing the 29.4% growth in revenue, causing the gross profit margin to decline from 65.2% in the same period last year to 61.7%. This appears to be attributable to increased costs associated with the consolidation of IU BIM STUDIO and higher costs from business expansion. SG&A expenses also increased to ¥335 million (up 21.7% YoY), but this growth rate remained below revenue growth, indicating that operating leverage is functioning to a certain degree. Trends in the cost ratio will be key to future profitability improvement.

As of the end of Q1 FY2026 (ending December 2026), long-term borrowings (including the current portion due within one year) totaled ¥1,136 million (down ¥73 million from the end of the previous fiscal year). Short-term borrowings of ¥30 million were fully repaid. The equity ratio improved from 53.9% to 57.4%, and net assets increased to ¥1,913 million. Borrowings related to the M&A (subsidiarization of IU BIM STUDIO) remain outstanding, but steady repayment progress is being made on a quarterly basis. Goodwill balance stands at ¥473 million, and continued management of impairment risk remains necessary.

Growth Strategy

Evolving into a comprehensive on-site DX platform through four pillars: ARR expansion, cross-selling, expansion into the BIM domain, and the investment business

The company is driving new customer acquisition for "direct" and expanding the ID count among existing customers, primarily in the construction industry. As of the end of Q1 FY2026 (ending December 2026), ARR reached ¥1,929 million and the number of contracted companies reached 707, confirming continued expansion of the customer base.

The company aims to increase average revenue per user (ARPU) by cross-selling peripheral services such as "Tag Shot / Tag Album" and "Knowledge Video" to existing "direct" customers. The target is to maintain and improve the recurring revenue ratio of 94.1%.

The financial results of IU BIM STUDIO Co., Ltd., which became a subsidiary in FY2025 (ending December 2025), began contributing to consolidated results from Q1 FY2026 (ending December 2026). The company aims to evolve into a comprehensive on-site DX platform covering everything from the design and planning phase through to construction sites.

Through subsidiaries and limited liability partnerships, the company invests in startups expected to generate synergies with its DX solutions business. In Q1 FY2026 (ending December 2026), a new investment was made, but external sales were zero, resulting in a segment loss of ¥113 thousand due to fund operating expenses. Realizing medium- to long-term financial returns and business synergies remains a challenge.

Last updated: July 17, 2026