Update on DynaPlanet's progress and future plans given increased R&D.

The CEO stated that DynaPlanet is a core initiative with significant progress in core technologies and platform development in FY26. Full-scale service and platform development is planned for FY27, with business expansion and new revenue opportunities targeted from FY28 onwards. “Looking ahead, we plan to begin full-scale service and platform development in the fiscal year ending February 28, 2027, planning to focus on enhancing service value and expanding globally.”

How will existing OEM relationships support future growth and customer acquisition?

The CEO emphasized that Honda and Toyota are critical long-term partners, accounting for a significant portion of FY26 revenue. These relationships, built on trust, are a foundation for expanding into SDV and capturing new opportunities, alongside engagement with other automotive companies like Mazda, Daihatsu, and DENSO. “And as part of our mid- to long-term customer strategy, we aim to further deepen our relationships with key OEMs, including Honda and Toyota while also expanding our customer base.”

How do subsidiaries in the U.S., Thailand, and Germany support global growth?

The CEO explained that overseas subsidiaries serve as bases for customer engagement, talent access, and new business development outside Japan. They support international operations of global Japanese OEMs and build a foundation for future expansion of the SDV business and new initiatives like DynaPlanet. “By maintaining a presence in the United States, Thailand and Germany, we are able to more effectively support our customers' international operations.”

MWC

Micware Co. (MWC) FY26 earnings call: guidance and Q&A

Earnings call· Feb 2026 (FY26)· Information Technology· Jul 1, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
DynaPlanet full-scale service and platform development	Full-scale service and platform development medium materiality	FY27 · 2027	High
DynaPlanet business scale expansion and new revenue opportunities	Expand the scale of the business and create new revenue opportunities medium materiality	FY28 onwards · 2028	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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	—	—	—

Product announcements

Product	Type	Timeline
DynaPlanet	update	—
DynamicShareMap	launch	March 2026
PreSpot	launch	announced yesterday (June 30, 2026), full product launch expected at a later date

Deals & partnerships

NASDAQ Global Market IPO USD 26.2 million

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

Honda Motors Award

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

Revenue growth largely flat on U.S. dollar basis FY26

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

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 read 7 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.