ENVALITH
AI inside 株式会社 logo

AI inside Inc.

4488・Growth Market・Information & Communication

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AI inside 株式会社 logo
AI inside Inc.4488

Business

AI inside Inc. holds the purpose of "contributing to human evolution and people's happiness through AI," and supports the digitalization of corporate business processes centered on its deep learning-based handwritten character recognition AI, "DX Suite." In addition to the cloud version, the company also develops and provides in-house the edge computing hardware "AI inside Cube" for government offices and local public bodies. In 2025, the company officially launched "Leapnet," an LLM-native AI platform, expanding its business domain into AI agent construction and operation infrastructure. Major customers span a wide range of industries including finance, government, manufacturing, and logistics, with sales primarily conducted through partners such as NTT DATA.

Business Model

Recurring-type models account for 94.5% (¥4,487 million) of net sales, with DX Suite's monthly usage-based fees and monthly fixed fees forming the core of stable earnings. The structure allows revenue to accumulate through a combination of continuous growth in the number of licenses (3,203 licenses) and a low cancellation rate. The remainder consists of selling-type revenue (initial fees, etc., ¥260 million). The company employs a mechanism to expand the number of contracts while containing its own sales costs by leveraging partner sales channels.

Company Strengths

The number of DX Suite licenses continued to expand, reaching 3,203 (an increase of 146 from the previous period), while the churn rate remained at a consistently low level. Recurring-type revenue grew steadily to ¥4,487 million (107.1% year on year), reflecting an established, highly sticky revenue structure in which customers who once adopted the product continue to use it on an ongoing basis.

The company has continued to update its proprietary large language model "PolySphere" through PolySphere-4, and has been selected for the Ministry of Economy, Trade and Industry (METI) / NEDO's GENIAC program for two consecutive rounds, the second and third. R&D expenses of ¥444 million were invested, advancing basic and applied research in generative AI, multimodal AI, and edge AI in parallel.

In addition to the cloud-based DX Suite, the company offers its proprietary edge-computing hardware "AI inside Cube," enabling it to serve government agencies and local public bodies with stringent security requirements. In April 2025, the product lineup was renewed to five products, achieving a customer base spanning a wide range of industries and company sizes.

ENVALITH's Perspective

For FY2026 (ending March 2026), operating income decreased to ¥310 million (down 19.2% year-on-year), while ordinary income expanded to ¥487 million (up 20.1% year-on-year) due to the completion of goodwill amortization and the recognition of ¥185 million in subsidy income. The operating margin declined to 6.5% (from 8.8% in the previous period), as increases in personnel expenses, R&D expenses, new office rent, and advertising expenses pressured profitability. Balancing cost control with sales growth remains an ongoing challenge.

For FY2026 (ending March 2026), cash flow from investing activities surged to ¥-1,747 million (from ¥-201 million in the previous period). The main driver was ¥2,100 million placed into time deposits (against ¥900 million withdrawn), and the period-end balance of cash and cash equivalents declined sharply to ¥3,566 million (from ¥5,094 million in the previous period). While the time deposits appear to be managed as liquid assets, ¥1,000 million in short-term borrowings remains outstanding, and the trend in cash flow management warrants continued attention.

The company's forecast presents bullish figures, with sales of ¥5,230 million (up 10.2% year-on-year) and operating income of ¥523 million (up 68.2% year-on-year). In addition to the expansion of DX Suite licenses, the full-scale launch of the Leapnet business and an AI agent business developed through alliance partnerships are expected to become new revenue sources. However, the Leapnet business is still in its launch phase, and there is a risk that the rapid evolution of generative AI technology as an external environmental factor could alter the competitive landscape. Whether the operating margin recovers (forecast at 10.0%) will be key to investment decisions.

Growth Strategy

Revenue diversification through the evolution of DX Suite into an AI agent platform and the launch of the Leapnet business

The product is evolving from a conventional AI-OCR product into an AI agent execution platform that enables business process automation, aiming to acquire new customers and expand usage among existing customers through the high read-accuracy appeal of PolySphere and ongoing feature enhancement and expansion. As of FY2026 (ending March 2026), the number of licenses reached 3,203.

This new business promotes the development and sale of AI agents, in cooperation with alliance partners, along with feature expansion and product evolution. The company aims to fully launch the business in FY2027 (ending March 2027) and establish a new revenue source. At present, the business is still in the launch stage and its contribution to revenue is limited.

The company continues to record revenue from the multimodal AI integration platform "AnyData" and the educational program "AI Growth Program," aiming to diversify revenue away from dependence on DX Suite. In FY2026 (ending March 2026), revenue from both services was recorded, contributing to the expansion of selling-type revenue to ¥260 million (up 23.4% year on year).

The company aims to continuously increase the number of DX Suite licenses by leveraging indirect sales channels through sales partners. Under a strategy of accumulating new contracts while keeping the churn rate low, the number of licenses reached 3,203 in FY2026 (ending March 2026) (up from 3,057 in the previous fiscal year), a net increase of 146.

Last updated: July 19, 2026