The upfront investment phase for the new AI business and the earnings base of the existing legal business
First written in FY2016. 14 of 35 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026AdvancedAnnual report
「Consolidated results for the current fiscal year were revenue of ¥7,643 million, up 25.3% year on year, operating profit of ¥739 million, up 40.1%, and ordinary profit of ¥675 million, up 24.1%.」
In the first year after transitioning from the previous Legaltech AI and AI Solutions structure to a 3-business structure, consolidated revenue, operating profit and ordinary profit all increased. - FY2026-H1Restructuring of the earnings model under a 3-segment structureAnnual report
「Total revenue from the Life Sciences AI business was ¥274 million, up 96.0% year on year.」「Total revenue from the Risk Management business was ¥1,935 million, down 32.1% year on year, and operating profit was ¥150 million.」「Total revenue from the DX business was ¥1,166 million, up 656.2% year on year, and operating profit was ¥61 million.」
The business was reorganized from the previous structure of new AI businesses and the existing legal business into 3 businesses: Life Sciences AI, Risk Management and DX. Life Sciences AI posted higher revenue but remained loss-making, while Risk Management and DX recorded operating profit. - FY2025AdvancedAnnual report
「Total revenue from the AI Solutions business was ¥2,608 million, down 6.8% year on year. However, improved profitability from the effects of cost-structure improvements implemented in the previous fiscal year and increased recurring revenue in the business intelligence and economic security fields resulted in operating profit of ¥278 million, up 71.2% year on year, marking substantial profit growth.」
Although the AI Solutions business recorded lower revenue, it posted operating profit of ¥278 million, while the Legaltech AI business also posted operating profit of ¥250 million. Both businesses were profitable at the operating level for the full year. - FY2025-H1Both businesses profitable for the interim periodAnnual report
「As a result, consolidated results for the interim period were revenue of ¥3,145 million, down 8.8% year on year, while operating profit was ¥290 million, compared with an operating loss of ¥559 million in the same period of the previous year.」
The AI Solutions business recorded operating profit of ¥57 million, and the Legaltech AI business recorded operating profit of ¥233 million, with both businesses profitable for the interim consolidated period. Although revenue declined year on year, consolidated operating results shifted from a loss to a profit. - FY2024AI business turned profitable; legal business losses narrowedAnnual report
「Total revenue from the AI Solutions business was ¥2,798 million, up 51.2% year on year, with operating profit of ¥162 million. The Legaltech AI business recorded an operating loss of ¥348 million, compared with an operating loss of ¥1,042 million in the same period of the previous year.」
The AI Solutions business turned profitable at the operating level, while the Legaltech AI business remained loss-making but reduced its loss. The structure of using the existing legal business as the earnings base while investing in AI resulted in profitability on the AI side and continued losses on the legal side. - FY2024-Q3WorsenedAnnual report
「As a result, consolidated results for the first nine months of the current fiscal year were revenue of ¥5,179 million, down 9.5% year on year, an operating loss of ¥681 million, compared with an operating loss of ¥636 million in the same period of the previous year, and an ordinary loss of ¥619 million, compared with an ordinary loss of ¥572 million.」
While the AI Solutions business posted higher revenue, lower revenue from the Legaltech AI business resulted in a 9.5% year-on-year decline in consolidated revenue, and the operating loss widened to ¥681 million. The deterioration in the structure of using the existing legal business as the earnings base while investing in AI continued. - FY2024-Q2WorsenedAnnual report
「As a result, consolidated results for the first half of the current fiscal year were revenue of ¥3,448 million, down 17.0% year on year, and an operating loss of ¥559 million, compared with an operating loss of ¥225 million in the same period of the previous year.」
Although the AI Solutions business posted higher revenue, lower revenue from the Legaltech AI business resulted in a 17.0% year-on-year decline in consolidated revenue, and the operating loss widened to ¥559 million. - FY2024-Q1WorsenedAnnual report
「As a result, consolidated results for the first quarter of the current fiscal year were revenue of ¥1,473 million, down 30.2% year on year, and an operating loss of ¥573 million, compared with an operating loss of ¥168 million in the same period of the previous year.」
Both the AI Solutions business and the Legaltech AI business recorded losses, resulting in a 30.2% year-on-year decline in consolidated revenue and an operating loss of ¥573 million. The earnings base of both the existing legal business and the AI business continued to deteriorate. - FY2023WorsenedAnnual report
「Consolidated results for the current fiscal year were revenue of ¥7,215 million, down 34.0% year on year, and an operating loss of ¥1,362 million, compared with operating profit of ¥1,722 million in the same period of the previous year.」
Both the AI business and the existing legal business recorded segment losses, and the consolidated results shifted from operating profit in the same period of the previous year to an operating loss. Deterioration was evident both in the front-loaded investment in AI and in the earnings base of the legal business. - FY2023-Q3WorsenedAnnual report
「As a result, consolidated results for the first nine months of the current fiscal year were revenue of ¥5,723 million, down 32.8% year on year, an operating loss of ¥636 million, compared with operating profit of ¥1,394 million in the same period of the previous year, an ordinary loss of ¥572 million, compared with ordinary profit of ¥1,404 million, and a quarterly net loss attributable to owners of the parent of ¥1,073 million, compared with quarterly net profit attributable to owners of the parent of ¥930 million. Results were below those of the same period of the previous year.」
Both the AI Solutions business and the Legaltech AI business recorded segment losses, resulting in a 32.8% year-on-year decline in consolidated revenue and an operating loss of ¥636 million. - FY2023-Q2WorsenedAnnual report
「As a result, consolidated results for the first half of the current fiscal year were revenue of ¥4,152 million, down 29.9% year on year, an operating loss of ¥225 million, compared with operating profit of ¥1,206 million in the same period of the previous year, an ordinary loss of ¥129 million, compared with ordinary profit of ¥1,215 million, and a quarterly net loss attributable to owners of the parent of ¥654 million, compared with quarterly net profit attributable to owners of the parent of ¥813 million. Results were below those of the same period of the previous year.」
Both the AI Solutions business and the Legaltech AI business recorded segment losses, and the consolidated results also shifted from operating profit in the same period of the previous year to an operating loss. The earnings base deteriorated in both the existing legal business and the new AI business. - FY2023-Q1WorsenedAnnual report
「Operating profit was ¥2 million, down 98.6% year on year.」「Operating loss was ¥170 million, compared with operating profit of ¥435 million in the same period of the previous year.」」
After both the AI Solutions business and the Legaltech AI business had recorded operating profit in the same period of the previous year, the AI Solutions business saw its profit shrink substantially in the current quarter, while the Legaltech AI business shifted to an operating loss. - FY2022-Q3Continued operating profitability and profit growth in both businessesAnnual report
「As a result, consolidated results for the first nine months of the current fiscal year were revenue of ¥8,522 million, up 12.7% year on year, operating profit of ¥1,394 million, compared with ¥66 million in the same period of the previous year, ordinary profit of ¥1,404 million, compared with an ordinary loss of ¥8 million, and quarterly net profit attributable to owners of the parent of ¥930 million, compared with a quarterly net loss attributable to owners of the parent of ¥13 million. Results exceeded those of the same period of the previous year, and consolidated revenue and earnings were in line with expectations.」
Both the AI Solutions business and the Legaltech AI business recorded operating profit, and consolidated revenue and earnings substantially exceeded the levels of the same period of the previous year. - FY2022-Q2Both businesses posted higher revenue and profitAnnual report
「As a result, consolidated results for the first half of the current fiscal year included revenue of ¥5,926 million, up 17.4% year on year. In terms of earnings, operating profit was ¥1,206 million, compared with an operating loss of ¥160 million in the same period of the previous year, and ordinary profit was ¥1,215 million, compared with an ordinary loss of ¥187 million, representing substantial profit growth.」
Both the AI Solutions business and the Legaltech AI business recorded operating profit, and consolidated revenue and operating profit both exceeded the levels of the same period of the previous year. - FY2022-Q1Continued quarterly profit growth in both businessesAnnual report
「As a result, consolidated results for the first quarter of the current fiscal year were revenue of ¥3,067 million, up 4.6% year on year, operating profit of ¥599 million, compared with ¥40 million in the same period of the previous year, ordinary profit of ¥611 million, compared with ¥41 million, and quarterly net profit attributable to owners of the parent of ¥473 million, compared with ¥28 million. Results were substantially higher than in the same period of the previous year.」
After both businesses recovered full-year profitability in the previous fiscal year, consolidated operating profit in the first quarter of the current fiscal year was ¥599 million, a substantial increase from ¥40 million in the same period of the previous year. The AI Solutions business recorded operating profit of ¥164 million, while the Legaltech AI business recorded operating profit of ¥435 million. - FY2021Both businesses recovered full-year profitabilityAnnual report
「As a result, revenue was ¥2,124.523 million, up 57.0% year on year. In terms of operating results, the 57.0% year-on-year increase in revenue resulted in an operating profit of ¥286.476 million, compared with an operating loss of ¥178.813 million in the same period of the previous year.」
The AI Solutions business returned to full-year operating profitability, while the Legaltech AI business recorded operating profit of ¥221 million. From the state of both businesses being loss-making in the previous fiscal year, both recovered to full-year operating profitability. - FY2021-Q3Improved operating results in both businessesAnnual report
「As a result, consolidated results for the first nine months of the current fiscal year were revenue of ¥7,562 million, up 0.9% year on year, operating profit of ¥66 million, compared with an operating loss of ¥907 million in the same period of the previous year, and an ordinary loss of ¥8 million, compared with an ordinary loss of ¥949 million.」
After both businesses became loss-making in the previous fiscal year, the Legaltech AI business returned to operating profitability in the first nine months of the current fiscal year, while the AI Solutions business improved to an operating loss of only ¥2 million. Consolidated operating results turned profitable, with operating profit of ¥66 million. - FY2021-Q2Both businesses remained loss-making, but losses narrowedAnnual report
「Revenue was ¥5,047 million, up 2.8% year on year, while the operating loss was ¥160 million, compared with an operating loss of ¥776 million in the same period of the previous year, and the ordinary loss was ¥187 million, compared with an ordinary loss of ¥828 million.」
The Company was no longer in the state of both businesses being profitable for the quarter, as in the first quarter, and the consolidated operating results remained loss-making in the first half. However, the loss narrowed substantially from the same period of the previous year. - FY2021-Q1Both businesses profitable for the quarterAnnual report
「As a result, consolidated results for the first quarter of the current fiscal year were revenue of ¥2,934 million, up 13.6% year on year, operating profit of ¥40 million, compared with an operating loss of ¥444 million in the same period of the previous year, ordinary profit of ¥41 million, compared with an ordinary loss of ¥479 million, and quarterly net profit attributable to owners of the parent of ¥28 million, compared with a quarterly net loss attributable to owners of the parent of ¥444 million. Results exceeded those of the same period of the previous year.」
After both the Legaltech AI business and the AI Solutions business recorded operating losses in the previous fiscal year, both segments posted operating profit in the first quarter, and the consolidated results were also profitable at the operating, ordinary and net profit levels. - FY2020WorsenedAnnual report
「Consolidated results for the current fiscal year were revenue of ¥10,471 million, down 7.0% year on year, an operating loss of ¥844 million, compared with operating profit of ¥244 million in the previous fiscal year, and an ordinary loss of ¥992 million, compared with ordinary profit of ¥203 million.」
After both businesses achieved full-year profitability in the previous fiscal year, the Legaltech AI business and the AI Solutions business both recorded operating losses in the current fiscal year, and the consolidated results also became loss-making. - FY2020-Q3WorsenedAnnual report
「As a result, consolidated results for the first nine months of the current fiscal year were revenue of ¥7,496 million, down 10.8% year on year, an operating loss of ¥907 million, compared with operating profit of ¥241 million in the same period of the previous year, an ordinary loss of ¥949 million, compared with ordinary profit of ¥269 million, and a quarterly net loss attributable to owners of the parent of ¥1,037 million, compared with quarterly net profit attributable to owners of the parent of ¥131 million.」
Both the Legaltech AI business and the AI Solutions business recorded losses, and the consolidated results shifted from operating profit in the same period of the previous year to an operating loss of ¥907 million. The performance of the structure in which the existing legal business serves as the earnings base while investments are made in the AI business deteriorated. - FY2020-Q2WorsenedAnnual report
「As a result, consolidated results for the first half of the current fiscal year were revenue of ¥4,909 million, down 12.5% year on year, and an operating loss of ¥776 million, compared with operating profit of ¥197 million in the same period of the previous year.」
While the AI Solutions business posted higher revenue, lower revenue and losses in the Legaltech AI business resulted in a 12.5% year-on-year decline in consolidated revenue and an operating loss of ¥776 million. - FY2020-Q1WorsenedAnnual report
「As a result, consolidated results for the first quarter of the current fiscal year were weak, with revenue of ¥2,583 million, down 6.3% year on year, an operating loss of ¥444 million, compared with operating profit of ¥159 million in the same period of the previous year, and an ordinary loss of ¥479 million, compared with ordinary profit of ¥222 million.」
After both businesses achieved full-year profitability in the previous fiscal year, the Legaltech AI business and the AI Solutions business both recorded operating losses in the current quarter, and the consolidated results were also loss-making at the operating, ordinary and net profit levels. - FY2019Both businesses profitable for the full yearAnnual report
「Revenue from the AI Solutions business reached a record high of ¥1,427.243 million, up 56.7% year on year. In terms of operating results, the business posted an operating profit of ¥133.637 million, compared with an operating loss of ¥282.548 million in the same period of the previous year, as the sales and marketing activities pursued to date began to bear fruit, resulting in a return to full-year operating profitability.」
The AI Solutions business returned to full-year operating profitability, while the Legaltech AI business recorded operating profit of ¥111 million. The consolidated results were also profitable at all levels. - FY2019-Q2Continued profitability at all levelsAnnual report
「Revenue was ¥5,610 million, down 4.1% year on year, operating profit was ¥197 million, compared with an operating loss of ¥649 million in the same period of the previous year, ordinary profit was ¥299 million, compared with an ordinary loss of ¥687 million, and profit attributable to owners of the parent was ¥186 million, compared with a loss attributable to owners of the parent of ¥950 million. The Company achieved profitability at all levels.」
Following the previous quarter, the Company remained profitable at all levels, including operating profit, ordinary profit and profit attributable to owners of the parent. - FY2019-Q1Consolidated profitability and improved earningsAnnual report
「Revenue and profit both increased year on year, and the company achieved profitability at every level of profit.」
The Legal Tech business recorded operating profit of ¥237.083 million, while the AI Solutions business continued to report an operating loss of ¥78.223 million. On a consolidated basis, operating profit, ordinary profit and quarterly net income attributable to owners of the parent were all positive. - FY2018Improved profitability in both businessesAnnual report
「The Legal Tech business as a whole achieved full-year operating profitability.」
The existing Legal Tech business returned to full-year operating profit of ¥491.630 million, while the AI Solutions business posted revenue growth and progressed toward quarterly profitability but recorded a full-year operating loss of ¥313.915 million. - FY2018-Q3AI business returns to quarterly profitabilityAnnual report
「As a result, revenue for the AI business segment as a whole in the third quarter was 5 times the level of the same quarter a year earlier, substantially surpassing the previous record, and we achieved our first quarterly operating profit.」
The AI business remained in an upfront investment phase, with a cumulative operating loss of ¥351.768 million, but achieved its first quarterly operating profit. The Legal business also had a cumulative operating loss of ¥83.252 million, although the loss narrowed from the same period of the previous year. - FY2018-Q2Legal business returns to quarterly profitabilityAnnual report
「In the second quarter of the current consolidated fiscal year, the quarterly consolidated operating result turned positive at ¥13.903 million as a result of the earnings structure reforms in the Legal business described above. We will continue to implement the reforms steadily toward restoring operating profit for the consolidated fiscal year.」
The AI business continued to record an operating loss, and the Legal business had a cumulative operating loss of ¥286.195 million, but generated quarterly operating profit of ¥13.903 million in the second quarter alone. - FY2018-Q1WorsenedAnnual report
「As a result, Legal business revenue was ¥2,575.406 million, down 6.7% year on year, and the business recorded an operating loss of ¥435.380 million, compared with an operating loss of ¥34.369 million in the previous year. AI business revenue was ¥101.665 million, up 210.8% year on year, but the business recorded an operating loss of ¥227.033 million, compared with an operating loss of ¥141.954 million in the previous year, due to ¥328.699 million in expenses for new product development and sales and marketing activities.」
The AI business continued to report higher revenue while recording an operating loss, and the existing Legal business saw both lower revenue and an operating loss of ¥435.380 million. The loss-making structure continued in both the existing earnings base and AI upfront investment. - FY2017WorsenedAnnual report
「As a result, Legal business revenue was ¥10,919.718 million, up 4.7% year on year, but the business recorded an operating loss of ¥477.736 million, compared with operating profit of ¥598.766 million in the previous year, due to the aforementioned decline in revenue from South Korean clients, the recognition of temporary amortization, audit and other expenses, and a decline in the gross margin on revenue resulting from changes in the product mix. As a result, AI business revenue was ¥288.011 million, up 142.2% year on year, but the business recorded an operating loss of ¥728.925 million, compared with an operating loss of ¥527.420 million in the previous year, due to ¥1,016.937 million in expenses for new product development and sales and marketing activities.」
AI business revenue increased, but its operating loss widened due to upfront investment, while the existing Legal business shifted from operating profit in the previous year to an operating loss of ¥477.736 million. - FY2017-Q3RestatedAnnual report
「As a result, AI business revenue was ¥142.929 million, up 121.3% year on year, but the business recorded an operating loss of ¥501.025 million due to ¥643.955 million in expenses for new product development and sales and marketing activities. As a result, Legal business revenue was ¥8,106.294 million, up 7.6% year on year, but the business recorded an operating loss of ¥325.352 million.」
Although AI business revenue increased, the operating loss and upfront investment phase continued, while the existing Legal business also recorded an operating loss despite higher revenue. This reaffirmed the structure of the existing earnings base and AI investment. - FY2017-Q2WorsenedAnnual 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.」
While the AI business remained in an upfront investment phase, the existing Legal business, which had previously generated profit, recorded an operating loss in the quarter, indicating a deterioration in the earnings base. The company attributed this mainly to one-time expenses and other factors. - FY2017-Q1RestatedAnnual report
「Looking only at the new businesses using artificial intelligence technology, rather than the business classifications described above, revenue was ¥34.383 million and the operating loss was ¥186.479 million. These businesses comprise digital marketing, healthcare and business intelligence. By contrast, the existing Legal-related business generated revenue of ¥2,758.448 million and operating profit of ¥9.695 million. Although revenue of ¥131.000 million described above was deferred to the following quarter and beyond, the business recorded operating profit.」
The AI new business remains in an upfront investment phase, with revenue of ¥34.383 million and an operating loss of ¥186.479 million, while the existing Legal business generated revenue of ¥2,758.448 million and operating profit of ¥9.695 million. - FY2016First statedAnnual report
「It cannot be denied that the new business remains in an upfront investment phase, including research and development. By contrast, the existing Legal-related business generated revenue of ¥10,449.588 million and operating profit of ¥806.297 million, and can be said to be generating stable profits.」
The AI new business remains in an upfront investment phase, with revenue of ¥103.418 million and an operating loss of ¥737.174 million, while the existing Legal business recorded operating profit of ¥806.297 million.