ENVALITH
Solvvy株式会社 logo

Japan Living Warranty Inc.

7320・Growth Market・Other Financing Business

Official website
Solvvy株式会社 logo
Japan Living Warranty Inc.7320

Business

Solvvy Inc. (formerly Nihon Living Warranty) supports customers—primarily housing companies, renewable energy operators, and educational ICT-related companies—in creating and monetizing stock businesses through its proprietary SAaaS (Smart Assurance as a Service) method, which combines five functions: warranty, digital marketing, system consulting, operations management, and embedded finance. In November 2024, the company made Mediaseek Inc. a wholly owned subsidiary and transitioned to a four-segment structure comprising HomeworthTech, ExtendTech, LifeTech, and FinTech. Consolidated net sales for FY2025 (ending June 2025) reached ¥6,705 million (up 25.1% year on year).

Business Model

The company adopts a stock-type revenue structure in which warranty fees are collected up front from client companies at the time of contract and recognized as revenue evenly over the warranty period. The balance of unearned revenue and long-term unearned revenue (¥14,203 million at the end of FY2025 (ending June 2025)) enhances the visibility of future revenue. In addition, ancillary services such as embedded finance through the electronic money "Ouchi Point," the Inspection & Repair Service, and digital marketing add multiple layers to revenue.

Company Strengths

The balance of deferred revenue and long-term deferred revenue in the HomeworthTech Business reached ¥14,203 million at the end of FY2025 (ended June 2025) (up 20.9% year on year), expanding further to ¥15,304 million at the end of the first half of FY2026 (ending June 2026) (up 20.0% year on year). New contract acquisition value also continued to accumulate, reaching ¥5,421 million in FY2025 (ended June 2025) (up 20.3% year on year), providing high visibility into future revenue.

The number of companies adopting the electronic money service "Ouchi Point" expanded to 158 (up 31.7% year on year) at the end of FY2025 (ended June 2025) and to 166 (up 23.0% year on year) at the end of the first half of FY2026 (ending June 2026). Tailwinds from delayed DX adoption in the housing and real estate industry are also driving demand for digital products such as apps and chatbots, leading to a multi-layered expansion of embedded finance revenue.

The company is deploying the warranty scheme design and operation know-how cultivated in the HomeworthTech Business into multiple new areas, including renewable energy (20-year warranty for storage battery systems / ESS Warranty System), educational ICT (PC warranties for the GIGA School Program), and EV charging equipment warranties. Sales of the ExtendTech Business reached ¥2,441 million in FY2025 (ended June 2025), accounting for 36.4% of consolidated sales.

ENVALITH's Perspective

The ¥937 million in warranty losses recorded in FY2025 (ended June 2025) fell to zero in the cumulative nine months of the current fiscal year, and net income attributable to owners of the parent recovered sharply to ¥1,079 million (up 291.0% year on year). This numerically confirms that the prior period's extraordinary loss was a one-time event, raising the likelihood of achieving the full-year net income forecast of ¥1,625 million. That said, continued attention is warranted regarding management of the warranty loss provision balance and the risk of future warranty losses.

Cumulative nine-month revenue grew a solid 12.5% year on year to ¥5,241 million, while operating income increased only 2.0% to ¥1,068 million, as selling, general and administrative expenses rose approximately ¥449 million, from ¥2,240 million to ¥2,690 million. Aggressive investment in human resources and digital areas is cited as the main driver of the expense increase, but the timing of the resulting investment returns and the sustainability of the expense growth warrant careful monitoring. Ordinary income improved 19.3%, aided by non-operating income (gains on sales of investment real estate and securities, etc.), but improving the profitability of the core business remains a challenge.

The full-year forecast remains unchanged, with revenue of ¥8,200 million (up 22.3% year on year), operating income of ¥2,100 million (up 29.6%), and net income of ¥1,625 million. Progress rates for the cumulative nine months stand at 63.9% for revenue and 50.9% for operating income, meaning approximately ¥2,959 million in revenue and approximately ¥1,031 million in operating income must be recorded in the fourth quarter (April to June 2026). New contract value in the HomeworthTech Business surged 152.8% year on year in the single third quarter, and its revenue contribution in the fourth quarter is expected. External risks that could affect performance, such as trends in housing starts and changes in renewable energy policy, should also be recognized as part of the market environment.

Growth Strategy

Diversified growth strategy through strengthening the SAaaS method, expansion into new business areas, and M&A

Promoting expansion into new warranty categories such as earthquake warranty and ground compensation. New contract acquisition value for the third quarter alone surged 152.8% year on year, accelerating the accumulation of unearned revenue balances.

Continuing to expand the number of companies adopting the electronic money issuance service for housing businesses, securing stable revenue through the accumulation of unused balances. The number of adopting companies has grown steadily to 167, with an unused balance of ¥2,866 million.

Promoting the business primarily through warranty services for solar power generation and energy storage systems. Despite headwinds from a significant contraction in GIGA tablet warranty, sales in the renewable energy area are on a recovery trend, reaching 128.9% year on year for the third quarter alone.

Following the completion of the share exchange to make it a wholly owned subsidiary in November 2024, system development resources are being utilized across the group. Cumulative third-quarter sales in the LifeTech Business increased 66.4% year on year, and segment profit increased 93.9% year on year, achieving rapid growth.

Promoting internal business DX in parallel with active investment in human resources and digital areas, aiming to improve profit margins through operational efficiency gains. Segment profit in the HomeworthTech Business grew 30.1% year on year, outpacing the sales growth rate (up 15.8%).

Last updated: July 17, 2026