# FRONTEO,Inc.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第23期(2025/04/01－2026/03/31) (S100YGJA)
> Page: https://vizora.meequs.com/en/company/fronteo
> Retrieved: 2026-09-30T18:37:48.062Z

## Company

Fronteo, founded in 2003, is a company in Cybersecurity listed on TSE Growth. It has 272 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | FRONTEO, Inc. |
| Ticker | 2158 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/2158.T) |
| Listing | TSE Growth |
| Head office | 東京都港区港南二丁目12番23号 |
| Representative (per filing) | 代表取締役社長 守本正宏 |
| Founded | Aug 2003 |
| Share capital | ¥915.1M |
| Employees (consolidated) | 272 |
| Average salary (parent only) | ¥9.1M |
| Fiscal year end | March |
| Website | www.fronteo.com (https://www.fronteo.com/) |
| Corporate number | 1010401051219 |
| EDINET | E05700 |
| Industries (Vizora) | Cybersecurity, IT Services & System Integration, Software & SaaS, Health Tech, CRO & Clinical Testing |

> Profile source: annual securities report (S100YGJA, filed 2026-06-23). As of filing

## Five-axis industry profile

Primary industry: Cybersecurity (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 2.5 | 20 |
| Profitability | 43.1 | 29 |
| Cash conversion | 13 | 27 |
| Efficiency | 56.9 | 29 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 53% of Fronteo's sales come from Risk management, with Digital Transformation and Life science artificial intelligence making up much of the rest.
- Out of every ¥100 of sales, about ¥10 is left as operating profit.
- Revenue changed +25.3% from the prior year, operating profit +40.1%.

## Company structure

- Segment revenue mix: Risk management 52.6%、Digital Transformation 33.9%、Life science artificial intelligence 13.5%
- Revenue → net income: ¥7643356000 → ¥544244000
- Net income → operating cash flow: ¥544244000 → ¥258038000（difference ¥-286206000）
- Main uses of operating cash flow: CapEx ¥826254000 / dividends — / buybacks ¥199934000
- Change in cash: ¥-870032000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥7.64B |  |
| Operating income | ¥739.4M | Margin 9.7% |
| Net income | ¥544.2M | Margin 7.1% |
| Free cash flow | -¥568.2M |  |
| Largest business | Risk management | of segment revenue 52.6% |
| Employees (consolidated) | 272 |  |
| EPS | ¥21.89 |  |
| Diluted EPS | ¥21.89 |  |
| Book value per share | ¥85.68 |  |
| Equity ratio | 39.7% |  |
| Shares outstanding | 39,412,000 |  |
| Treasury shares | 230,800 |  |
| Shareholders | 26,928 |  |
| Average salary (parent only) | ¥9.1M | Filing company only |
| Cash ratio | 18.7% | Cash ÷ revenue 22.6% |
| Vs. industry median margin | -4.7 pp | Cybersecurity |
| ROE | 33.6% | Derived from disclosed figures |
| ROA | 6.9% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 79% of positive segment profit
- FY2026, segment profit share differs by 26 points

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥10370080000 | ¥7643356000 | -26.3% |
| Operating income | ¥507221000 | ¥739353000 | +45.8% |
| Operating margin | 4.9% | 9.7% | +4.8 pp |
| Employees | 315 people | 272 people | -13.7% |
| Cash and equivalents | ¥3001761000 | ¥1724829000 | -42.5% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| AIソリューション → 事業再編・廃止 | 20.5% |
| リーガルテックAI → 事業再編・廃止 | 79.5% |
| 新設・再編 → ライフサイエンスAI | 13.5% |
| 新設・再編 → リスクマネジメント | 52.6% |
| 新設・再編 → DX | 33.9% |

Segment revenue source references: 5 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Risk management | — | — | ¥4019943000 | 15.1% | 2 |
| Digital Transformation | — | — | ¥2590175000 | 6.3% | 2 |
| Life science artificial intelligence | — | — | ¥1033237000 | -1.6% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 7,643 | 100.0% | S100YGJA |
| Cost of revenue | 3,737 | 48.9% | S100YGJA |
| Gross profit | 3,906 | 51.1% | S100YGJA |
| SG&A | 3,167 | 41.4% | S100YGJA |
| Operating income | 739 | 9.7% | S100YGJA |
| Ordinary income | 675 | 8.8% | S100YGJA |
| Pretax income | 665 | 8.7% | S100YGJA |
| Income tax | 121 | 1.6% | S100YGJA |
| Net income | 544 | 7.1% | S100YGJA |
| Net income attributable to owners | 544 | 7.1% | S100YGJA |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 49 |
| SG&A | 41 |
| Operating income | 10 |
| (Ref.) Net income | 7 |

### Margin funnel

Gross margin 51.1% → Operating margin 9.7% → Net margin 7.1%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +25.3%; Core profit growth: +40.1%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 1.59×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 6,099 | 7,643 | 1,544 | +25.3% |
| Gross profit | 3,453 | 3,906 | 453 | +13.1% |
| Operating income | 528 | 739 | 212 | +40.1% |
| Net income attributable to owners | 555 | 544 | -11 | -2.0% |
| Operating cash flow | 753 | 258 | -495 | -65.7% |
| Free cash flow | 469 | -568 | -1,037 | -221.1% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 10,471 | -844 | -8.1% | -930 | -229 | -1,030 | S100LPYH |
| FY ending Mar 2021 | 10,370 | 507 | 4.9% | 359 | 2,027 | 1,449 | S100OLRJ |
| FY ending Mar 2022 | 10,933 | 1,722 | 15.7% | 1,309 | 2,376 | 1,722 | S100R9WH |
| FY ending Mar 2023 | 7,215 | -1,362 | -18.9% | -1,701 | -915 | -1,537 | S100UKO4 |
| FY ending Mar 2024 | 7,375 | -185 | -2.5% | -2,843 | 1,710 | 1,230 | S100W3VR |
| FY ending Mar 2025 | 6,099 | 528 | 8.6% | 555 | 753 | 469 | S100YGJA |
| FY ending Mar 2026 | 7,643 | 739 | 9.7% | 544 | 258 | -568 | S100YGJA |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥28.1M |
| Operating income per employee (consolidated) | ¥2.7M |
| Net income per employee (consolidated) | ¥2M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 310 | 288 | 225 | 206 | 272 |
| Average salary (parent company) | ¥7.9M | ¥9M | ¥8.8M | ¥9M | ¥9.1M |
| Average age (parent company) | 39.9 years | 42.2 years | 42.7 years | 43.2 years | 43.8 years |
| Average tenure (parent company) | 3.2 years | 2.9 years | 3.2 years | 3.6 years | 4.1 years |

Year over year: Employees (consolidated) +32.0% · Revenue (consolidated) +25.3%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Life science artificial intelligence | 1,033 | 13.5% | -16 | -1.6% |
| Risk management | 4,020 | 52.6% | 606 | 15.1% |
| Digital Transformation | 2,590 | 33.9% | 162 | 6.3% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Life science artificial intelligence | 13.5% | — | — | -1.6% |
| Risk management | 52.6% | 78.9% | 26.3 | 15.1% |
| Digital Transformation | 33.9% | 21.1% | -12.8 | 6.3% |

Loss-making segment (excluded from profit shares): Life science artificial intelligence -16 JPY mn

Segment → industry: Risk management → Cybersecurity / Digital Transformation → IT Services & System Integration / Digital Transformation → Software & SaaS / Risk management → Software & SaaS / Life science artificial intelligence → Health Tech / Life science artificial intelligence → CRO & Clinical Testing

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 258 | 3.4% | S100YGJA |
| Capital expenditure | 826 | 10.8% | S100YGJA |
| Free cash flow | -568 | -7.4% | 算出 |
| Investing cash flow | -2,486 | -32.5% | S100YGJA |
| Financing cash flow | 1,336 | 17.5% | S100YGJA |
| Share buyback | 200 | 2.6% | S100YGJA |
| Change in cash | -870 | -11.4% | S100YGJA |
| Cash and equivalents | 1,725 | 22.6% | S100YGJA |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 3,458 | 1,472 | 3,039 | 2,595 | 1,725 | S100UKO4, S100W3VR, S100YGJA |
| Total assets | 11,825 | 9,145 | 7,523 | 6,467 | 9,202 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Net assets | 6,441 | 5,050 | 2,840 | 3,228 | 3,845 | S100UKO4, S100W3VR, S100YGJA |
| Share capital | 3,035 | 3,042 | 3,049 | 899 | 915 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Property, plant and equipment | 709 | 427 | 322 | 299 | 451 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Intangible assets excluding goodwill | 4,184 | 4,025 | 912 | 824 | 2,479 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Goodwill | 1,403 | 1,346 | — | — | 1,039 | S100R9WH, S100UKO4, S100YGJA |
| Investment securities | 853 | 905 | 1,178 | 967 | 2,093 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Current assets | 5,941 | 3,644 | 4,965 | 4,003 | 3,835 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Current liabilities | 2,600 | 2,209 | 3,423 | 2,844 | 4,181 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Short-term borrowings | — | 500 | 1,200 | 1,000 | 2,600 | S100UKO4, S100W3VR, S100YGJA |
| Long-term borrowings | 2,375 | 1,645 | 938 | 289 | 958 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Total liabilities | 5,384 | 4,095 | 4,683 | 3,239 | 5,358 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Equity attributable to owners of parent | 5,667 | 3,705 | 875 | 1,431 | 1,807 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Retained earnings | -140 | -2,117 | -4,960 | -104 | 440 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |
| Treasury stock | -0 | -0 | -0 | -0 | -200 | S100R9WH, S100UKO4, S100W3VR, S100YGJA |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 19% | S100YGJA |
| Property, plant and equipment | 5% | S100YGJA |
| Intangibles and goodwill | 38% | S100YGJA |
| Investment securities | 23% | S100YGJA |
| Other assets | 15% | S100YGJA |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 58% | S100YGJA |
| Equity | 42% | S100YGJA |
| Other liabilities | 0% | S100YGJA |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 11,825 | 9,145 | 7,523 | 6,467 | 9,202 |
| Equity | 6,441 | 5,050 | 2,840 | 3,228 | 3,845 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 3,458 | 1,472 | 3,039 | 2,595 | 1,725 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 5.9% | S100YGJA |
| Fixed assets ÷ total assets | 4.9% | S100YGJA |
| Goodwill ÷ parent equity | 57.5% | S100YGJA |

Goodwill over 4 years: 1,403 → 1,039 JPY; total investing cash flow: -4,165 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 18.7% |
| Cash ÷ revenue | 22.6% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 34.9% |
| Cash vs. profit gap | -286 JPY mn (of net income -52.6%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | — |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 10.8% |
| Investing CF relative to operating CF | 963.4% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 12.0% | 0.92× | 11.1% | 2.09× | 23.1% | S100R9WH |
| 2023 | — | —× | -16.2% | —× | — | S100UKO4 |
| 2024 | — | —× | -34.1% | —× | — | S100W3VR |
| 2025 | 9.1% | 0.87× | 7.9% | 6.07× | 48.2% | S100YGJA |
| 2026 | 7.1% | 0.98× | 6.9% | 4.84× | 33.6% | S100YGJA |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 守本 正宏 | Major shareholder | 16.3% | 2026-03-31 |
| 株式会社フォーカスシステムズ | Major shareholder | 9.3% | 2026-03-31 |
| 池上 成朝 | Major shareholder | 6.7% | 2026-03-31 |
| 上田八木短資株式会社 | Major shareholder | 1.3% | 2026-03-31 |
| 株式会社学研ホールディングス | Major shareholder | 1.0% | 2026-03-31 |
| 野村證券株式会社 | Major shareholder | 0.8% | 2026-03-31 |
| 三菱ＵＦＪモルガン・スタンレー証券株式会社 | Major shareholder | 0.7% | 2026-03-31 |
| 楽天証券株式会社共有口 | Major shareholder | 0.6% | 2026-03-31 |
| 堀田 高志 | Major shareholder | 0.4% | 2026-03-31 |
| 野崎 周作 | Major shareholder | 0.4% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第23期(2025/04/01－2026/03/31) | S100YGJA | 2026-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YGJA,, |
| 有価証券報告書－第22期(2024/04/01－2025/03/31) | S100W3VR | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W3VR,, |
| 訂正有価証券報告書－第21期(2023/04/01－2024/03/31) | S100UKO4 | 2024-10-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100UKO4,, |
| 有価証券報告書－第20期(2022/04/01－2023/03/31) | S100R9WH | 2023-06-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R9WH,, |
| 有価証券報告書－第19期(令和3年4月1日－令和4年3月31日) | S100OLRJ | 2022-06-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OLRJ,, |
| 有価証券報告書－第18期(令和2年4月1日－令和3年3月31日) | S100LPYH | 2021-06-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LPYH,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).