ENVALITH
株式会社AVILEN logo

AVILEN Inc.

5591Growth MarketInformation & Communication

株式会社AVILEN logo
AVILEN Inc.5591

Business

AVILEN, Inc. was founded in 2018 as an AI solutions specialist under the purpose of "Enriching humanity through data and algorithms." The company operates two services: the "AI Software Unit," which develops and implements AI software using its proprietary technology core modules "AVILEN AI" (9 types), and the "Build-up Unit," which supports organizational development and talent development for AI/DX promotion. Centered on listed companies across a wide range of industries—including manufacturing, finance, real estate, information and communications, electrical equipment, and food products—the company has accumulated transaction records with over 1,000 companies in its eighth fiscal period since founding. In October 2024, the company made LangCore, Inc., a group of engineers specializing in generative AI, a consolidated subsidiary, and now operates its business as a group.

Business Model

Main revenue is built on two pillars: the AI Software Unit (net sales of ¥1,088 million in FY2025 (ending December 2025), up 37.5% year on year) and the Build-up Unit (¥585 million, up 29.8% year on year). Both units are primarily flow-type revenue, but part of the AI Software Unit also secures stock-type revenue through SaaS offerings such as ChatMee. By using the Build-up Unit to cultivate potential customers and cross-sell into AI software, the company achieves LTV expansion and a high retention rate (69.1% in FY2025 (ending December 2025)).

Company Strengths

The company has developed 9 proprietary technology core modules under the "AVILEN AI" brand, covering a broad range of technical domains including image generation, natural language processing, document recognition, anomaly detection, and time-series forecasting. By combining multiple modules, the company is capable of multimodal AI software development, enabling it to provide cross-industry solutions that are not limited to any specific sector.

In the E-Certification (E資格) administered by the Japan Deep Learning Association, the number of passers among students who took the company's courses has ranked No.1 for 9 consecutive terms from 2021#1 to 2025#1. Combined with its proprietary media platform "AI Trend," this has enabled efficient acquisition of new corporate clients, and the company has built up a track record of transactions with over 1,000 companies cumulatively in its 8th fiscal year since founding.

The company has organized "AVILEN DS-Hub," comprising over 350 data scientists and engineers (as of the end of December 2025) who have passed the company's proprietary technical screening. Through a system in which contractors gain practical experience before being hired as full-time employees, the company has hired a cumulative total of 28 people via this route. This mechanism simultaneously secures immediately deployable talent, reduces hiring costs, and achieves high employee engagement.

ENVALITH's Perspective

In Q1 of FY2026 (ending December 2026), revenue reached ¥442 million (up 8.2% year on year), securing revenue growth. However, cost of sales surged 39% from ¥111 million to ¥155 million, and SG&A expenses rose 25% from ¥177 million to ¥221 million, causing costs to expand rapidly. As a result, operating profit fell sharply by 44.5%, from ¥119 million to ¥66 million. Progress against the full-year forecast (revenue of ¥2,141 million, operating profit of ¥356 million) remained limited at just 20.7% for revenue and 18.7% for operating profit in Q1, indicating a pronounced weighting toward the latter half of the year. Cost control and revenue acceleration from Q2 onward will be the focal points in assessing whether the full-year forecast can be achieved.

The establishment of the BA Intelligence joint venture (acquisition of shares in affiliated companies for ¥73 million) and aggressive hiring appear to be the main causes of the cost-front-loading. As an external factor, the rapid expansion of the generative AI market (the global AI market is projected to reach $826.7 billion by 2030) is a tailwind, but given the current investment phase, a short-term decline in profit margin is unavoidable. The timing of when the joint venture begins contributing to revenue and the improvement in utilization rates of newly hired personnel will be key to profit recovery, and the timeline for investment payback needs to be carefully monitored.

The goodwill balance related to the LangCore acquisition stands at ¥279 million (amortized by ¥12 million each quarter), still a significant amount. While the company carries interest-bearing debt totaling ¥315 million, comprising long-term borrowings of ¥230 million and the current portion of long-term borrowings due within one year of ¥85 million, net assets increased to ¥768 million, and the equity ratio improved from 52.6% to 57.8%. Cash and deposits stood at ¥492 million, securing on-hand liquidity, but this represents a decrease of ¥150 million from the end of the previous fiscal year due to investing activities such as the joint venture establishment, warranting continued attention to future cash flow trends.

Growth Strategy

Maximizing LTV, expanding AI agent product lineup, leveraging joint ventures, and achieving discontinuous growth through M&A

Strengthening deep-dive sales activities toward Top Tier clients and building a stable revenue base by accumulating highly recurring projects. Disclosed that the number of clients and projects continued to trend steadily in the first quarter of FY2026 (ending December 2026).

Continuing to develop and roll out cutting-edge generative AI products such as the AI Document Processing Agent "Choraku," a high-speed voice bot, and the ChatGPT-integrated SaaS "ChatMee." Also expanding the service scope of the Build-up Unit through the release of generative AI-related content.

Established a joint venture company, BA Intelligence Co., Ltd., with Bell System24 Holdings in March 2026. Built a framework that integrates the company's development capabilities with Bell System24's operational capabilities, enabling flexible and cost-efficient support for AI utilization tailored to each company's operational needs.

Following the consolidation of LangCore Inc. (a group of engineers specializing in generative AI) as a subsidiary, the company continues to focus on M&A and alliance initiatives. Measures aimed at achieving discontinuous growth are being continuously advanced. Goodwill balance of ¥279 million reflects the scale of existing M&A investments.

Continuing to reduce recruitment costs and secure a stable supply of top talent by leveraging AVILEN DS-Hub, a talent pool of over 350 data scientists. Disclosed that recruitment continued to progress smoothly in the first quarter of FY2026 (ending December 2026). Human capital investment is currently a leading expense weighing on profits.

Last updated: July 17, 2026