ENVALITH
株式会社Laboro.AI logo

Laboro.AI Inc.

5586・Growth Market・Information & Communication

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株式会社Laboro.AI logo
Laboro.AI Inc.5586

Business

Laboro.AI, Inc. was founded in 2016 as a company specializing in AI solutions, guided by its mission to "create a new shape for every industry." In its core Custom AI Solutions Business, the company focuses on "value-up type AI themes" aimed at creating new products and services and transforming business models, offering services through two formats: fully custom AI development (AI Solution Design) and semi-custom generative AI utilization (Agent Transformation). Its main clients are leading companies in research-and-development-driven industries such as semiconductors, industrial machinery, chemicals, and life sciences, as well as companies in social infrastructure and consumer-facing industries such as consumer goods, distribution, finance, and media. In April 2025, the company made CAGLA Inc. a subsidiary, adding a System Development / UI/UX Design business for the manufacturing industry, and the group transitioned to a two-business structure. Laboro.AI has a track record of over 400 cumulative projects and has built a strong customer base through capital alliances with companies such as SCREEN Holdings, NGK Insulators, THK, and Hakuhodo.

Business Model

The revenue model is based on quasi-delegation contracts, with AI solution design/development and corporate transformation consulting sold as units, and consulting fees received as compensation based on the assignment of project members. Due to the nature of AI development, it is difficult to agree on deliverable performance in advance, so the company does not adopt contract-for-work agreements; instead, outcome-completion-type quasi-delegation contracts form the core of its business. The main components of cost of sales are labor costs and outsourcing fees, and the gross profit margin remained at a high level of 66.9% in FY2025 (ended September 2025). By horizontally deploying know-how and technology accumulated from past projects to new projects, the company pursues "economies of scope," achieving both customization and business scale simultaneously.

Company Strengths

Implemented over 400 AI implementation projects in total with leading companies across a wide range of industries. Accumulated the know-how gained from each project as solution development know-how, an integrated hardware-based platform, and an AI development framework, applying it horizontally to new projects to achieve "customization and scale at the same time." The optimization and generative AI domains each account for approximately 40% or more of all projects.

Concluded capital and business alliances with SCREEN Holdings, SCREEN Advanced System Solutions, NGK Insulators, THK, and Hakuhodo. In research-and-development-oriented industries where information confidentiality is high and outsourcing is rare, the company has built partnerships with global top-tier companies, forming a high barrier to entry for competitors.

Maintained a high gross profit margin of 66.9% in FY2025 (ending September 2025). Against net sales of ¥1,900 million, gross profit was ¥1,272 million. While controlling cost of sales of ¥628 million, mainly personnel and outsourcing expenses, the company secures profitability by specializing in high-value-added, value-up type AI themes.

ENVALITH's Perspective

Cumulative revenue of ¥1,326 million for the first half of FY2026 (ending March 2026) corresponds to approximately 53.3% of the full-year forecast of ¥2,486 million, and absent a first-half skew, progress is running ahead of the initial forecast pace. The company itself has explicitly stated that "revenue is progressing at a pace exceeding the initial forecast," and the probability of achieving the full-year forecast (revenue +30.8% YoY, operating profit +53.6%) is judged to be reasonably high. However, since the policy is to allocate the incremental profit toward medium- to long-term growth investment, a profit outcome significantly exceeding the forecast is difficult to envision.

Operating cash flow for the first half was an outflow of ¥163 million. Despite recording profit before income taxes of ¥214 million, this was mainly due to a ¥444 million increase in trade receivables and contract assets. This reflects an increase in working capital accompanying the rapid expansion of revenue, and is tolerable to a certain degree as growing pains, but if the lengthening of the collection cycle becomes a permanent trend, it will require attention from the perspective of earnings quality. The cash and deposits balance stood at a substantial ¥1,884 million, indicating low short-term liquidity risk.

In terms of the market environment, growing corporate interest in large language models and AI agents, along with active DX investment across a wide range of industries, is a clear tailwind for the company. On the other hand, intensifying competition due to an increase in the number of entrants into this market, and rising costs associated with intensifying competition for hiring specialized personnel such as solution designers and engineers, are factors keeping selling, general and administrative expenses elevated, remaining a structural challenge that constrains a significant improvement in the operating profit margin.

Growth Strategy

Capturing the expansion of the AI agent market, the company aims for sustainable growth through organizational development and technology asset development

The company is actively hiring solution designers, agent transformation producers, and engineers responsible for sales and execution of projects, expanding order-taking and execution capacity. Organizational development has progressed smoothly in the interim period of FY2026 (ending September 2026), contributing to revenue expansion.

Capturing growing social interest in AI agents that autonomously execute tasks, the company is advancing the development of technology assets and strengthening its proposal capabilities in this domain. It has clearly stated a policy of allocating profit increases from sales progress toward strategic growth investments such as organizational development and technology asset development, aimed at enhancing mid- to long-term corporate value.

The company is advancing collaboration whereby CAGLA undertakes part of the development for AI development projects contracted by Laboro.AI, while also referring inquiries with a strong system development character received via Laboro.AI's website to CAGLA, accelerating the creation of synergies across the group as a whole. In the interim period of FY2026 (ending September 2026), the System Development Business recorded net sales of ¥47 million (including internal sales) and segment profit of ¥2 million.

Last updated: July 17, 2026