ENVALITH
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LaKeel, Inc.

4074・Growth Market・Information & Communication

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株式会社ラキール logo
LaKeel, Inc.4074

Business

Lakeel, Inc. is an information services company that supports corporate DX (digital transformation) initiatives centered on its proprietary cloud-based digital business platform, LaKeel DX. The business consists of two pillars: Product Service (licensing/subscription sales of LaKeel products and related consulting) and Professional Service (system development and maintenance for major construction, real estate, and financial institution clients). LaKeel DX realizes componentization and reuse through microservices technology using a patented proprietary method, and supports multi-cloud environments. The company's key customer base, centered on major corporations, has expanded to 370 companies (as of the end of FY2025, December 2025 fiscal year-end). The group operates through 4 consolidated subsidiaries, including operations in China and 2 domestic subsidiaries.

Business Model

Revenue is broadly divided into Product Service (62.2% of net sales, ¥4,810 million) and Professional Service (37.8%, ¥2,919 million). Within Product Service, subscription revenue from LaKeel products (¥1,438 million) is building up as a stable, accumulation-type revenue stream. In Professional Service, recurring revenue accounts for 84.0% of the total, with continued revenue from existing customers underpinning the revenue base. While continuing software development investment (¥498 million in acquisition of intangible fixed assets), the company has been building up its order backlog to ¥2,779 million (up 134.3% year on year).

Company Strengths

LaKeel DX adopts microservice technology that develops and combines software on a component basis, and has obtained patent numbers 6850859 and 7017660. Through multi-cloud compatibility, the company can avoid dependence on specific cloud vendors, possessing differentiated technology that reduces customers' risk of system obsolescence.

LaKeel product subscription revenue grew 21.5% year-on-year to ¥1,438 million (FY2025, ending December 2025). The number of users increased net from 345 companies to 370 companies, and the quarterly customer churn rate (net) has continued to remain negative. This demonstrates the health of the customer base, with new customer acquisition consistently exceeding cancellations.

In FY2025 (ending December 2025), Product Service order backlog expanded sharply to ¥1,986 million, up 133.0% year-on-year. Professional Service also grew 137.5% to ¥793 million, bringing total order backlog to ¥2,779 million (up 134.3% year-on-year). The accumulation of future revenue is accelerating, and revenue contribution is expected in the coming periods.

ENVALITH's Perspective

Operating profit for 1Q FY2026 fell sharply to ¥10 million (from ¥411 million in the same period of the prior year), leaving progress against the full-year forecast of ¥600 million at a mere 1.7%. Generating ¥590 million in operating profit over the remaining three quarters is required, meaning the plan presupposes an extreme weighting toward the latter half of the fiscal year. A recovery in new license sales for Product Service holds the key to achieving the full-year target, but the timing and scale of any such recovery are difficult to gauge at this stage.

Cost of sales for 1Q FY2026 rose sharply to ¥1,429 million (cost of sales ratio of 71.5%), up from ¥1,310 million (60.1%) in the same period of the prior year. Selling, general and administrative expenses also increased 21.8% to ¥559 million from ¥459 million in the same period of the prior year. This reflects a structure in which costs rose even as revenue declined 8.3%, causing the gross profit margin to deteriorate by 11.4 percentage points, from 39.9% in the same period of the prior year to 28.5%. Restoring profitability will require both a revenue recovery and effective cost management.

Operating profit peaked at ¥772 million in FY2022 and has declined for four consecutive fiscal years to ¥445 million in FY2025. Revenue also peaked at ¥7,969 million in FY2024 before turning to decline, falling to ¥7,728 million in FY2025, and the decline continued into 1Q FY2026 with revenue down 8.3% year on year to ¥1,999 million. While the expanding DX market provides a favorable external tailwind, a decline in new license sales for Product Service (down 20.1% year on year) is weighing on performance, and confirming a structural recovery in profitability may take time.

Growth Strategy

Expansion of subscription-based revenue and concentration of management resources on Product Service, centered on LaKeel DX

The company aims to strengthen a recurring revenue base that is less susceptible to economic fluctuations by continuously accumulating subscription usage fee income from LaKeel products. The company has explicitly stated that subscription revenue continued to trend steadily in 1Q FY2026 (ending March 2026), indicating steady progress.

In 1Q FY2026 (ending March 2026), new license sales declined, and Product Service net sales came to only ¥1,179 million, down 20.1% year on year. Achieving the full-year forecast requires a substantial recovery in new license sales in the second half, and no such recovery has been confirmed as of the current period.

The company is leveraging recurring revenue from maintenance and operation of existing systems previously delivered as a revenue base. Professional Service net sales in 1Q FY2026 (ending March 2026) rose to ¥821 million (up 16.1% year on year), maintaining a growth trend, with a steady accumulation of stable revenue underway.

Last updated: July 17, 2026