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    MWC
    Earnings call· Feb 2026(FY26)

    Micware Co. FY26 earnings call MWC

    Jul 1, 2026 Source

    Executive summary

    Micware Co., Ltd. FY26 - Profitability Improves Amidst Strategic Investments and NASDAQ Listing

    Micware concluded its fiscal year 2026 with improved profitability, driven by gross margin expansion and disciplined expense control, despite largely flat U.S. dollar revenue. The company made significant strategic investments in R&D, particularly for its DynaPlanet platform, and achieved a major milestone with its NASDAQ listing. Management is focused on evolving its core automotive software business and expanding into new recurring revenue streams through its 3D spatial platform.

    Highlights

    5

    • Gross profit increased by 5.1% year-over-year to USD 51.6 million, with gross margin expanding by 1.8 percentage points to 36.8%.

    • Operating profit rose by 5.6% to USD 15.1 million, and adjusted operating profit reached USD 15.6 million.

    • Net income increased 17.0% year-over-year to USD 10.3 million.

    • Increased R&D expenses by 40.0% year-over-year while delivering steady profit growth.

    • Successfully listed on the NASDAQ Global Market, raising USD 26.2 million in total proceeds.

    Concerns

    1

    • Revenue remained largely in line with the previous year, increasing only 0.1% year-over-year to USD 140.3 million on a U.S. dollar basis.

    Guidance & targets

    2
    CategoryTargetConfidence
    DynaPlanet full-scale service and platform development
    Full-scale service and platform development
    medium materiality
    High
    DynaPlanet business scale expansion and new revenue opportunities
    Expand the scale of the business and create new revenue opportunities
    medium materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Software Development Services
    Remained the core revenue source, driven by successor vehicle development projects in SDV and expansion of connected mobility services in LBS. Serves as a foundation for competitive advantage and investment in new growth areas.
    % of Total Revenue: 80%
    		USD 112.3 million———

    Operational metrics

    15
    Operating profit
    USD 15.1 million+5.6% YoY
    FY26

    GAAP operating profit.

    Adjusted operating profit
    USD 15.6 million+2.0% YoY (USD basis), +5.1% YoY (JPY basis)
    FY26

    Non-GAAP operating profit.

    Gross profit
    USD 51.6 million+5.1% YoY (USD basis), +8.9% YoY (JPY basis)
    FY26

    Compared to USD 49.1 million in FY25.

    Net income
    USD 10.3 million+17.0% YoY (USD basis), +20.4% YoY (JPY basis)
    FY26

    Attributable to ordinary shareholders.

    Gross margin
    36.8%+1.8 percentage points YoY
    FY26

    Expanded from 35% in FY25, driven by a higher portion of value-added upstream processes.

    Cash and cash equivalents
    USD 52.9 millionvs USD 50.9 million at FY25 end
    As of Feb 28, 2026
    Total assets
    USD 156.6 millionvs USD 152.5 million at FY25 end
    As of Feb 28, 2026
    Total liabilities
    USD 107.5 millionvs USD 101.4 million at FY25 end
    As of Feb 28, 2026
    Total equity
    USD 52.7 millionvs USD 44.6 million at FY25 end
    As of Feb 28, 2026
    Net cash provided by operating activities
    USD 13.3 million
    FY26

    Driven by solid net income and stronger customer cash collections.

    Net cash used in investing activities
    USD 5.1 million
    FY26

    Primarily for strategic investments, capital expenditures, and acquisitions.

    Net cash used in financing activities
    USD 4.8 million
    FY26

    Primarily reflecting loan repayments.

    Headcount
    approximately 600
    Current

    Global team worldwide.

    Growth investment allocation
    30%
    Future

    Aimed at strengthening existing business competitiveness.

    Growth investment allocation
    70%
    Future

    Aimed at creating new growth opportunities, including DynaPlanet.

    Industry KPIs

    3
    MetricValueDetails
    Revenue growthUSD 140.3 millionUSD
    Operating FCF margin rule of 4011.1% (non-GAAP operating margin), 9.5% (FCF margin)%
    Headcount internal ai productivityapproximately 600employees

    Product announcements

    3
    ProductTypeDetails
    DynaPlanetupdate
    DynamicShareMaplaunch
    PreSpotlaunch

    Deals & partnerships

    2
    NASDAQ Global MarketIPOUSD 26.2 million

    Initial public offering and listing on NASDAQ Global Market on May 14, 2026. Total proceeds of USD 26.2 million.

    Honda MotorsAward

    Received Honda Motors' excellent appreciation award in the Development division in May 2026, recognizing robust development processes and contributions to improved product quality and cost reduction.

    Risks & headwinds

    1
    Revenue growth largely flat on U.S. dollar basisFY26

    0.1% year-over-year increase to USD 140.3 million

    Mitigation: Underlying business performance increased by 3.7% year-over-year on a Japanese yen basis, excluding FX impact. Focus on strategic investments in DynaPlanet and micAuto-PF to establish new business foundation capable of generating recurring revenue.

    Q&A highlights

    5

    How does the core software development business support future growth?

    The CFO explained that software development services, accounting for 80% of revenue ($112.3M), provide a stable foundation, competitive advantage through OEM relationships, and fund new growth areas like DynaPlanet and micAuto-PF, creating a positive growth cycle.

    “Beyond its scale, this business also serves as a key source of our competitive advantage supported by our long-standing relationships with OEMs, deep expertise in vehicle development processes and the recurring opportunities it generates for follow-on and additional development projects.”

    asked by Operator · answered by Takuma Segawa

    2 min read7 chapters

    Detailed Narrative

    01

    FY26 Financial Performance & Profitability Drivers

    Micware reported FY26 revenue of USD 140.3 million, a slight 0.1% increase year-over-year on a USD basis, but 3.7% growth on a JPY basis. Profitability significantly improved, with gross profit up 5.1% to USD 51.6 million and gross margin expanding 1.8 percentage points to 36.8%. Operating profit increased 5.6% to USD 15.1 million, and net income rose 17.0% to USD 10.3 million, driven by a favorable project mix and disciplined SG&A control.

    02

    Strategic Investments and DynaPlanet Evolution

    The company increased R&D expenses by 40.0% year-over-year, primarily for DynaPlanet, its next-generation 3D platform leveraging AI. DynaPlanet, formerly DSMM, aims to integrate location data with digital content, with its first product being DynamicShareMap. A new service, PreSpot, utilizing 3D spatial technology for stadium views, was also introduced.

    03

    Business Segment Focus and Growth Strategy

    Micware operates through SDV (Software-Defined Vehicle), LBS (Location-Based Services), and Other Services segments. Growth investment is allocated 30% to SDV for existing business competitiveness and 70% to LBS for new growth opportunities, including DynaPlanet. The strategy involves evolving from an IVI Tier 1 to an SDV Tier 1 supplier and expanding/monetizing 3D spatial platform software services to transition to a recurring revenue model.

    04

    Key Milestones and Global Expansion

    FY26 was marked by significant corporate developments, including opening a new office in New York in December 2025 to strengthen global expansion. The company launched DynamicShareMap in March 2026 and achieved a NASDAQ Global Market listing in May 2026, raising USD 26.2 million. Micware also received Honda Motors' excellent appreciation award, reflecting strong OEM partnerships.

    05

    Software Development Services as Core Foundation

    Software development services remain the core revenue source, generating USD 112.3 million and accounting for approximately 80% of total revenue in FY26. This segment, encompassing IVI, SDV, and navigation solutions, provides a stable revenue base and competitive advantage through long-standing OEM relationships and deep expertise, supporting investments in new growth areas like DynaPlanet and micAuto-PF.

    06

    Capital Allocation and M&A Approach

    Micware prioritizes growth investment in technology development, product enhancement, and talent. The company plans to actively explore strategic M&A and partnerships to strengthen technological capabilities and expand its customer base, while maintaining discipline through KPIs and annual reviews for investment and development projects.

    07

    Balance Sheet and Cash Flow Strength

    As of February 28, 2026, cash and cash equivalents stood at USD 52.9 million. The company generated USD 13.3 million in positive operating cash flow, driven by solid net income and strong customer cash collections. Net cash used in investing activities was USD 5.1 million for strategic investments and capex, while net cash used in financing was USD 4.8 million for loan repayments.

    AI-generated summary of the company’s earnings call. Not investment advice.