ENVALITH
株式会社ELEMENTS logo

ELEMENTS, Inc.

5246・Growth Market・Information & Communication

Official website
株式会社ELEMENTS logo
ELEMENTS, Inc.5246

Business

ELEMENTS, Inc. is an AI cloud platform company that has set "BEYOND SCIENCE FICTION" as its mission and aims to realize "IoP (Internet of Persons)." Its core personal authentication solutions, "LIQUID eKYC" and "PolaRify eKYC," had been adopted by more than 650 companies as of the end of November 2025, with a cumulative total of over 150 million identity verifications, making it the top-share eKYC service in the domestic market. Its customers include industry-leading companies such as KDDI, NTT DOCOMO, SoftBank, Japan Post Bank, and Sumitomo Mitsui Banking Corporation. The company offers three solutions—personal authentication, personal optimization, and personal information management—and provides services to end users through business operators under a BtoBtoC model. It listed on the Tokyo Stock Exchange Growth Market in December 2022.

Business Model

The company deploys its AI cloud platform (IoP Cloud) to operators providing digital services (finance, telecommunications, CtoC, etc.), earning revenue through usage-based fees tied to end-user transaction volume. As a general-purpose SaaS model that does not require significant custom development costs for each operator, it aims for a high-profit structure. By storing and applying machine learning to the biometric data of users obtained through the service provision process in-house, the company achieves continuous quality improvement, differentiating itself from competitors and securing customer lock-in.

Company Strengths

As of the end of November 2025, "LIQUID eKYC" and "PolaRify eKYC" had been adopted by over 650 companies, with cumulative identity verification volume exceeding 150 million cases, and the company achieved the top domestic share by vendor sales revenue in the eKYC market according to an ITR survey. Major industry players such as KDDI, NTT DOCOMO, SoftBank, Japan Post Bank, and Sumitomo Mitsui Banking Corporation form the customer base.

The company's group stores and continuously machine-learns from biometric data acquired from users during service provision, which has earned high praise for low churn rates among client services. Subsidiary Liquid has obtained ISO/IEC 27001 certification, clearing the high-level security requirements demanded by financial institutions and other entities.

Revenue expanded approximately 2.4-fold over three years, from ¥1,652 million in FY2022 to ¥3,895 million in FY2025 (up 53.0% year-on-year in FY2025). Gross profit also continued to expand, from ¥816 million in the 8th fiscal period to ¥3,019 million in the 12th fiscal period, driven by strong performance in Personal Optimization Solutions.

ENVALITH's Perspective

In the same period of the previous fiscal year, net loss attributable to owners of parent for the interim period was ¥451 million (mainly due to extraordinary losses including impairment loss of ¥659 million), but in the current interim period, the company posted interim net income of ¥297 million, a turnaround to profit. Extraordinary losses narrowed to only ¥3 million in losses on liquidation of affiliated companies, and operating income from core business of ¥327 million contributed steadily to profit. There was also no note regarding going concern assumptions, indicating that financial soundness is improving.

Compared to the previous forecast made as of January 14, 2026 (operating income of ¥0-200 million), the current forecast (operating income of ¥300-400 million) represents a significant upward revision. Ordinary income and net income also turned from an expected loss in the previous forecast to an expected profit. Interim results have progressed to approximately 50% of the lower end of the full-year forecast (net sales of ¥5,600 million), and while the certainty of achieving the target in the second half warrants continued monitoring, momentum is favorable.

As of the end of May 2026, retained earnings remained negative at ¥-1,483 million, and it is expected to take a considerable period to eliminate the accumulated losses. The balance of long-term borrowings stood at a high level of ¥1,589 million (total borrowings including short-term borrowings of approximately ¥2,141 million). On the other hand, the equity ratio improved to 52.0% (44.2% at the end of the previous fiscal year), and cash and deposits were secured at ¥2,332 million. Software investment (¥516 million acquired in the interim period) has continued, and free cash flow has remained negative.

Growth Strategy

Aiming for sustainable growth through deepening eKYC penetration, commercializing new solutions, and capturing DX demand

Promoting cross-industry adoption across finance, telecommunications, sharing economy, and other sectors under the two brands "LIQUID eKYC" and "PolaRify eKYC". Leveraging the tailwind from the expanded scope of mandatory requirements under the revised Act on Prevention of Transfer of Criminal Proceeds to acquire new customers and expand usage among existing customers. Achieved a 65.6% increase in revenue in the interim period of FY2026 (ending November 2026), with the expansion phase continuing.

Adapting IoP Cloud's "Personal Optimization Solutions" to meet DX demand in the clothing, food, and housing sectors, cultivating a revenue pillar beyond authentication. Against the backdrop of accelerating digitalization across society, the aim is to expand business in the personal optimization of goods and services.

Concentrated management resources on core businesses through the completion of the liquidation of Ad Medica Co., Ltd. (May 2026) and the deconsolidation of ELEMENTS CLOUD Shikoku Co., Ltd. Aiming to improve overall group profitability through the streamlining of unprofitable and non-core businesses.

Capturing ongoing identity verification demand following eKYC through "LIQUID Auth", a passkey (FIDO2)-compatible identity authentication service. Aiming to improve customer LTV and establish new revenue sources through downstream expansion in the authentication domain.

Last updated: July 17, 2026