FRONTEO,Inc. (2158) Stock Price

FRONTEO operates two main business segments: AI Solutions and Legal Tech AI.

The AI Solutions segment is divided into three areas: Life Science AI, Business Intelligence, and Economic Security. In Life Science AI, FRONTEO provides "Drug Discovery AI Factory (DDAIF)," an AI-powered drug discovery support service that leverages natural language processing technology to assist in identifying target molecules for new drug development.

In the AI medical device field, FRONTEO is developing "SDS-881," an AI program medical device for cognitive function testing. The company is also exploring the development of medical devices targeting neuropsychiatric disorders such as schizophrenia and ADHD.

In Business Intelligence, FRONTEO offers audit solutions "KIBIT Eye" and "KIBIT Knowledge Probe" using its proprietary AI "KIBIT," supporting corporate compliance and regulatory adherence. Additionally, the skill transfer support solution "Takumi KIBIT Zero" promotes knowledge sharing within organizations.

In Economic Security, FRONTEO uses "KIBIT Seizu Analysis" to conduct supply chain analysis and shareholder control network analysis, supporting corporate economic security measures.

The Legal Tech AI segment leverages the proprietary AI "KIBIT" to conduct fraud investigations and digital data preservation and analysis. In digital forensics investigations, FRONTEO assists in clarifying internal fraud and data breaches. In eDiscovery support, it facilitates the disclosure process of electronic evidence required for international litigation and regulatory compliance, enabling companies to respond swiftly and accurately.

FRONTEO aims to realize fairness in the information society by leveraging its proprietary AI technology, "KIBIT." The company is particularly focused on the Life Science AI sector, advancing AI drug discovery and AI medical device development. Through these efforts, FRONTEO is working toward a world where people can access necessary information across various aspects of society.

In the fiscal year ending March 2025, FRONTEO achieved consolidated operating profit for the first time in three years, with its AI Solutions business recording higher operating profit than its Legal Tech AI business. Growth in the Life Science AI sector has been particularly notable, with successful co-creation projects in the AI drug discovery domain. Looking toward the medium-term management plan for the fiscal year ending March 2029, FRONTEO will position Life Science AI as its core business and continue aggressive investment.

Toward its medium-term management plan for the fiscal year ending March 2029, FRONTEO is positioning Life Science AI as its core business while strengthening its DX business for the manufacturing sector. In 2025, the company made Alnets Corporation a subsidiary and is restructuring its business portfolio. These changes include modifications to reporting segments to accelerate growth strategy.

In the Life Science AI business, FRONTEO is expanding operations in two areas—AI drug discovery and AI medical devices—by utilizing natural language processing AI technology. In AI drug discovery, the company is extracting previously unreported target molecules and advancing co-creation projects with pharmaceutical companies. This aims to improve drug discovery productivity and increase success rates.

In the AI medical device sector, FRONTEO is developing diagnostic support AI programs for dementia and depression, building a revenue foundation following product launch. The company is also pursuing cross-industry alliances in non-medical device areas and exploring medical device development in the neuropsychiatric disease domain. These initiatives aim to achieve non-linear growth.

In the Risk Management business, FRONTEO is strengthening business intelligence and compliance support to meet growing demand for AI audit solutions. In the Legal Tech AI sector, the company supports rapid corporate response through digital forensics investigations and eDiscovery support.

In the economic security sector, FRONTEO provides supply chain analysis and shareholder control network analysis to support corporate risk management. In the DX business, the company is promoting production innovation for the manufacturing sector using AI and deploying professional support solutions.