A U.S.-focused business structure centered on e-discovery
First written in FY2016. 11 of 29 entries say "Worsened", first in FY2020-Q2. Latest entry: 2026-07-22.
No other company in this theme has enough history to compare yet.
- 2026-07-22ReframedM&A and Subsidiary Changes
「Following the transfer, the e-discovery support business in South Korea is expected to continue to be provided by the transferee, and there will be no change in the services provided to customers.」
The South Korean e-discovery business will continue under the transferee, while FRONTEO’s domestic legal-tech AI business was described as unaffected, changing the entity responsible for the business. - FY2026Full-year results reported under a 3-segment structureAnnual report
「Life Sciences AI business revenue as a whole was ¥1,033.237 million, up 191.4% year on year. Risk Management business revenue as a whole was ¥4,019.943 million, down 25.2%, while DX business revenue as a whole was ¥2,590.175 million, up 598.9%.」
The three-business structure of Life Sciences AI, Risk Management and DX was reflected in full-year results. The effects of the DX acquisition and higher Life Sciences AI revenue were quantified, while Risk Management revenue declined. - FY2026-H1WorsenedAnnual report
「Revenue in the Legal Tech AI field was ¥1,091.760 million, down 45.7% year on year, due to the impact of the U.S. subsidiary’s withdrawal from the business.」
Following the withdrawal from the U.S. e-discovery business, revenue in the Legal Tech AI field within the Risk Management business declined 45.7% year on year, quantifying the contraction of the previously U.S.-centered business structure. - FY2025ReframedAnnual report
「Going forward, as Japan’s leading legal tech company, we will continue to operate the business steadily, focusing on domestic digital forensics investigations and e-discovery support services for the Japanese and South Korean markets. Our strengths will be our substantial track record in domestic digital forensics investigations using our proprietary specialized AI, KIBIT, and our reliability, demonstrated by its adoption by third-party special committees in times of crisis and other situations.」
The company explicitly stated its policy of shifting the focus from a business structure centered on the U.S. and e-discovery to a Legal Tech business centered on domestic forensics and e-discovery in Japan and South Korea. - FY2024WorsenedAnnual report
「FRONTEO USA, Inc. (1) Revenue: ¥2,070.740 million (2) Ordinary loss: ¥207.695 million (3) Net loss: ¥3,834.754 million」
For the business foundation centered on the U.S. and e-discovery, FRONTEO USA reported revenue of ¥2,070.740 million, an ordinary loss of ¥207.695 million and a net loss of ¥3,834.754 million. The U.S. subsidiary also revised its business plan and recognized a substantial impairment loss. - FY2024-Q3WorsenedAnnual report
「In the Legal Tech AI business, inquiries increased and the recovery trend continued due to the effects of various initiatives to build the customer base, but revenue was ¥3,322.665 million, down 23.0% year on year.」
Although inquiries increased, Legal Tech AI business revenue, whose main foundation is the U.S. and e-discovery, declined 23.0% year on year, and the deterioration in the business structure continued. - FY2024-Q2WorsenedAnnual report
「In the Legal Tech AI business, inquiries increased as a result of various initiatives to further rebuild the customer base, but this has not yet led to a recovery in revenue. Revenue was ¥2,113.242 million, down 33.6% year on year.」
Legal Tech AI business revenue, whose main foundation is the U.S. and e-discovery, declined 33.6% year on year, and the deterioration in the business structure continued. - FY2024-Q1WorsenedAnnual report
「As a result, revenue was ¥1,012.728 million, down 36.0% year on year, and the decline in revenue resulted in an operating loss of ¥343.303 million, compared with an operating loss of ¥174.170 million in the previous year.」
The Legal Tech AI business, whose main foundation is the U.S. and e-discovery, saw revenue decline 36.0% year on year, while its operating loss widened. - FY2023WorsenedAnnual report
「FRONTEO USA, Inc. (1) Revenue: ¥2,624.944 million」
For the business foundation centered on the U.S. and e-discovery, full-year FRONTEO USA revenue was ¥2,624.944 million. The Legal Tech AI business as a whole also reported revenue of ¥5,364.787 million, down 39.3% year on year, as performance deteriorated further in the U.S.-centered business structure. - FY2023-Q3WorsenedAnnual report
「As a result, revenue was ¥4,313.368 million, down 38.5% year on year, and the decline in revenue resulted in an operating loss of ¥497.847 million, compared with operating profit of ¥1,072.940 million in the previous year.」
Legal Tech AI business revenue declined 38.5% year on year, with the business shifting from operating profit of ¥1,072.940 million in the previous year to an operating loss of ¥497.847 million. The deterioration in performance of the business structure centered on the U.S. and e-discovery progressed further. - FY2023-Q2WorsenedAnnual report
「As a result, revenue was ¥3,182.385 million, down 35.7% year on year, and the decline in revenue resulted in an operating loss of ¥176.798 million, compared with operating profit of ¥970.130 million in the previous year.」
The Legal Tech AI business saw revenue decline 35.7% year on year and shifted to an operating loss due to sluggish orders for large-scale cases and the strategic reduction of non-AI business. - FY2023-Q1Sharp decline in Legal Tech AI revenueAnnual report
「As a result, revenue was ¥1,581.180 million, down 37.4% year on year, and the decline in revenue resulted in an operating loss of ¥169.852 million, compared with operating profit of ¥434.671 million in the previous year.」
Business constraints caused by unauthorized access at the U.S. subsidiary and sluggish orders for large-scale cases resulted in a 37.4% year-on-year decline in Legal Tech AI revenue and a shift to an operating loss. Performance volatility in the business structure centered on the U.S. and e-discovery became evident. - FY2021Decline in the U.S. revenue ratioAnnual report
「FRONTEO USA, Inc. (1) Revenue: ¥5,177.903 million」
FRONTEO USA revenue was ¥5,177.903 million. U.S. revenue accounted for 49.9% of consolidated revenue, down from more than half in the previous year, but the U.S. remains a key business foundation. - FY2021-Q1AdvancedAnnual report
「As a result, Legal Tech AI business revenue was ¥2,444.601 million, up 6.1% year on year. Operating profit was ¥2.980 million, compared with an operating loss of ¥357.075 million in the previous year, as the shift to an AI-centered business model with high expected margins in e-discovery services and the continued benefits of improved cost structures at the U.S. subsidiary contributed to the result.」
The Legal Tech AI business reported higher revenue and returned to operating profit due to the effects of shifting to an AI-centered model and improving the cost structure of the U.S. subsidiary. - FY2020WorsenedAnnual report
「Legal Tech AI business revenue was ¥9,117.422 million, down 7.3% year on year. Operating results were an operating loss of ¥665.630 million, compared with operating profit of ¥110.773 million in the previous year.」
The Legal Tech AI business, centered on the U.S. and e-discovery, saw full-year revenue decline and shifted from operating profit in the previous year to an operating loss. - FY2020-Q3WorsenedAnnual report
「In the e-discovery service business, the flow of transactions has recently changed, with decision-making authority over vendor selection, which had traditionally been left entirely to law firms, shifting to client companies with a strong focus on quality and cost. The company is making steady progress in transitioning to an AI-centered business model in response to this change in the market environment. However, it has not yet secured any large-scale orders, and revenue was ¥5,971.698 million, down 16.9% year on year.」
While the transition to an AI-centered business model is progressing steadily, no large-scale orders have yet been secured, and e-discovery service revenue declined 16.9% year on year. - FY2020-Q2WorsenedAnnual report
「In the e-discovery service business, the flow of transactions changed as decision-making authority over vendor selection, which had traditionally been left entirely to law firms, shifted to a process led by client companies with a strong focus on quality and cost. The company is working to shift to an AI-centered business model in response to this change in the market environment, but the model has not yet reached full-scale deployment, resulting in revenue of ¥3,954.755 million, down 20.8% year on year.」
In response to the shift toward client-led vendor selection, the transition to an AI-centered model has not yet reached full-scale deployment, and e-discovery service revenue declined 20.8% year on year. - FY2020-Q1Decline in revenue due to changes in U.S. business flowsAnnual report
「In the e-discovery service business, the flow of transactions changed as decision-making authority over vendor selection, which had traditionally been left entirely to law firms, shifted to a process led by client companies with a strong focus on quality and cost. The U.S. subsidiary was particularly slow to respond to this change in the market environment, resulting in revenue of ¥2,128.175 million, down 16.0% year on year.」
The company disclosed the shift in vendor selection from law firms to client companies, along with the U.S. subsidiary’s delayed response and the resulting decline in e-discovery service revenue. - FY2019Sharp decline in Legal Tech AI revenueAnnual report
「While cross-border cases in South Korea and Taiwan remained strong, lost cases and timing shifts, mainly involving U.S. Department of Justice matters, resulted in revenue of ¥9,834.826 million, down 13.0% year on year, and operating profit of ¥110.773 million, down 75.9%.」
Legal Tech AI revenue was ¥9,834.826 million, down 13.0% year on year, as lost U.S. cases and timing shifts affected full-year results. - FY2019-Q3Decline in Legal Tech revenueAnnual report
「As a result, Legal Tech business revenue was ¥7,591.577 million, down 10.0% year on year.」
Legal Tech business revenue declined 10.0% year on year due to lost U.S. cases and timing shifts, among other factors. Operating profit was recorded following structural reforms at the U.S. subsidiary. - FY2018AdvancedAnnual report
「Japan: ¥3,961.682 million; U.S.: ¥7,712.138 million; South Korea: ¥492.836 million; Other: ¥51.112 million; Total: ¥12,217.770 million」
Of full-year revenue of ¥12,217.770 million, U.S. revenue was ¥7,712.138 million, updating the U.S.-centered business structure with full-year regional figures. - FY2018-Q3AdvancedAnnual report
「As a result, Legal business revenue was ¥8,436.017 million, up 4.2% year on year.」
Cumulative Legal business revenue through the third quarter was ¥8,436.017 million, up 4.2% year on year. Revenue in Asia was ¥739.176 million, supported by the acquisition of a large-scale case. - FY2018-Q2AdvancedAnnual report
「Large projects in Japan and Taiwan performed well. In the United States, revenue was ¥5,395 million, up 9.1% year on year, due to an increase in Review projects.」
The company disclosed service revenue of ¥5,395.399 million, up 9.1% year on year, as Review cases increased in the e-discovery business, including in the U.S. - FY2018-Q1Decline in U.S. revenueAnnual report
「In the United States, we prioritized strengthening the organization under the new structure. Although the number of Review projects increased, revenue was ¥2,477 million, down 7.0% year on year, due to a decline in the number of high-margin Hosting and Process projects won.」
The U.S. e-discovery business remains a key business foundation, but quarterly revenue declined 7.0% year on year, and changes in the case mix were also disclosed. - FY2017AdvancedAnnual report
「FRONTEO USA, Inc. (1) Revenue: ¥6,800.965 million」
The company disclosed full-year revenue of ¥6,800.965 million for its U.S. subsidiary, FRONTEO USA. Full-year figures updated the business structure centered on the U.S. and e-discovery. - FY2017-Q3AdvancedAnnual report
「A sharp recovery in U.S. case wins drove monthly revenue to a record high in December.」
The company disclosed a sharp recovery in case wins and record monthly revenue in December for its Legal and e-discovery businesses, mainly in the U.S. - FY2017-Q2AdvancedAnnual report
「As a result, Legal business revenue was ¥5,143.288 million, up 17.3% year on year, but the business recorded an operating loss of ¥307.933 million.」
Legal business revenue was ¥5,143.288 million, up 17.3% year on year. While the figures reflected the expansion of the Legal and e-discovery businesses, mainly in the U.S., an operating loss of ¥307.933 million was also recorded. - FY2017-Q1AdvancedAnnual report
「In the e-discovery business, revenue increased substantially after EvD, Inc., acquired in August 2015, became a subsidiary. Revenue was ¥2,665,263 thousand, up 63.1% year on year.」
Following the EvD acquisition, quarterly revenue from the e-discovery business was ¥2,665.263 million, up 63.1% year on year. External revenue in the U.S. segment was ¥1,745.901 million. - FY2016First statedAnnual report
「The synergies from these acquisitions led to the acquisition of new customers in the United States. As a result, U.S. sales accounted for approximately 60% of total Group sales, and the Group achieved record-high sales for the current consolidated fiscal year.」
As of FY2016 following the acquisitions, U.S. sales accounted for approximately 60% of Group sales, and consolidated sales reached a record high.