ENVALITH
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Nyle Inc.

5618・Growth Market・Information & Communication

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ナイル株式会社 logo
Nyle Inc.5618

Business

Nyle Inc. is an industry DX company whose mission is "Happiness, for future generations," with a vision of being "the arrow that transforms Japan." Since its founding in 2007, the company has accumulated technology and know-how in the DX and marketing domains, and currently operates two segments: the Automotive Industry DX Business and the Horizontal DX Business. In the Automotive Industry DX Business, centered on the individual-focused car subscription service "Carlease Karumo-kun," the company leads the formation of an economic ecosystem for automotive distribution DX across both online and offline channels. In the Horizontal DX Business, the company provides DX & Marketing Consulting to a wide range of industries, with a track record of supporting over 2,000 companies. The company listed on the Tokyo Stock Exchange Growth Market in December 2023.

Business Model

In the Automotive Industry DX Business, the company adopts a three-layer structure: acquiring new customers through advertising investment and recording spot revenue at the time of contract, then building up stable revenue through monthly billing during the contract period, and earning additional revenue through re-leasing or vehicle replacement after contract expiration. The asset-light model, which does not hold vehicle inventory, enhances capital efficiency. The Horizontal DX Business secures stable revenue through a recurring consulting fee model that maintains a high customer retention rate of 93.79%, functioning as a revenue pillar that supports upfront investment in the Automotive Industry DX Business.

Company Strengths

The Automotive Industry DX Business maintained an extremely low customer churn rate of 0.23% for the fiscal year ended December 2025. Contract balance grew to ¥6,527 million (from ¥6,250 million in the prior period), and cumulative applications expanded to 343 thousand cases (up 51 thousand cases year on year). Long-term contracts combined with a low cancellation rate form a solid foundation ensuring continued future revenue generation.

The Horizontal DX Business has a track record of supporting more than 2,000 companies to date, with customer retention rate improving year by year to 93.79% (from 93.16% in the prior period). The number of contracted companies also expanded from 184 to 225, with a stable revenue base and an expanding customer base progressing simultaneously. The segment recorded segment profit of ¥458 million, supporting the Group's overall earnings.

Carlease Karumo-kun adopts a scheme in which lease vehicles are held by partner financial businesses (such as ORIX Auto Corporation), enabling asset-light business operations that in principle carry no vehicle inventory. The fully online model, which also requires no physical stores, establishes a capital-efficient framework for customer acquisition and service delivery.

ENVALITH's Perspective

The full-year FY2026 (ending December 2026) consolidated earnings forecast projects revenue of ¥7,500–7,900 million and operating profit of ¥3–250 million, anticipating a return to profitability. However, the first-quarter operating loss was ¥30 million, widening from the same period last year (¥22 million). While revenue grew a robust 23.2% year on year, cost of sales increased 33.4% year on year (from ¥910 million to ¥1,214 million), outpacing revenue growth, and the decline in gross margin (from 39.7% to 34.7%) was the main driver of the wider loss. Achieving full-year profitability will require accelerated earnings improvement in the latter-half quarters, and progress should be closely monitored.

As of the end of the first quarter of FY2026 (ending December 2026), total assets stood at ¥3,004 million against total liabilities of ¥2,598 million and net assets of ¥406 million, with financial leverage remaining at a high level. The equity ratio declined from 13.6% at the end of the previous fiscal year to 12.9%, and the accumulated deficit in retained earnings (¥219 million) continues. Amid ongoing repayment burdens from borrowings (short-term borrowings of ¥249 million, current portion of long-term borrowings due within one year of ¥505 million, and long-term borrowings of ¥1,063 million), the risk of diminished financial flexibility should full-year profitability not be achieved remains a point investors should continue to monitor.

Segment profit for the Horizontal DX Business fell 34.4% year on year to ¥112 million, with profit declining significantly even as revenue increased 10.1%. This business plays a role in underpinning the company's overall earnings base, and the decline in profit margin could constrain improvement in consolidated earnings. Investment in new services such as "Nyle AI Partners" and "Nyle X Partners" may be contributing to the increase in expenses, though a detailed breakdown of costs cannot be confirmed in the earnings report. Until the revenue contribution from these new services becomes apparent, the profitability trend of this business should continue to be monitored.

Growth Strategy

Dual-axis growth through the completion of the Automotive Distribution DX Economic Zone and diversification of Horizontal DX solutions

Through the continuous accumulation of monthly recurring revenue from existing customers combined with new customer acquisition initiatives, revenue in the Automotive Industry DX Business grew 31.3% year-on-year in Q1 of FY2026 (ending December 2026). Segment loss also improved significantly from ¥(106) million in the same period of the previous year to ¥(64) million, indicating progress toward the profit recovery phase.

In Q1 of FY2026 (ending December 2026), sales of "Short-term Carlease Karumo-kun" newly commenced, addressing short-term needs in addition to conventional long-term contracts. The aim is to maximize LTV and accelerate new customer acquisition by diversifying revenue opportunities and expanding the customer base.

Nyle's proprietary DX and AI assets have been injected into consolidated subsidiary Patio Inc. (Offline Store DX) to establish an "Automotive Dealership DX Model." The company is pursuing a roll-up strategy to horizontally deploy this model to used car dealerships nationwide, accelerating the formation of an automotive distribution DX economic zone.

Sales of "Nyle AI Partners" newly commenced in Q1 of FY2026 (ending December 2026). Together with "Nyle X Partners" (launched November 2025), which addresses the challenge of workforce shortages in the generative AI era, the company is strengthening its framework for providing AI-related solutions. Comprehensive support is being expanded through combinations with consulting and advertising operation services.

Last updated: July 17, 2026