Micware FY26 revenue rises 3.7% to JPY21.9 billion
Micware Co., Ltd. announced its financial results for the fiscal year ended February 28, 2026, reporting a 3.7% increase in revenue to JPY21.9 billion and a 19.6% rise in net income to JPY1.6 billion. The company highlighted improved profitability, expanded gross margins, and significant growth in software-related services revenue. Additionally, Micware completed its initial public offering on the Nasdaq Global Market, raising total gross proceeds of US$26.2 million, and outlined strategic plans to transition to a Software Defined Vehicle supplier and commercialize its DynaPlanet project in fiscal year 2027.
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Micware Co., Ltd. reported financial results for the fiscal year ended February 28, 2026, highlighting a 3.7% increase in revenue to JPY21.9 billion and a 19.6% rise in net income to JPY1.6 billion. The Japan-based provider of software development services for the automotive and mobility sectors also completed its initial public offering (IPO) on the Nasdaq Global Market under the ticker symbol "MWC" on May 14, 2026.
Financial Performance
Revenue for fiscal year 2026 was JPY21.9 billion (US$140.3 million), compared to JPY21.1 billion in the prior year. Gross profit increased 8.9% to JPY8.0 billion, with gross profit margin expanding to 36.8% from 35.0%. Operating profit rose 9.4% to JPY2.4 billion. Net income attributable to ordinary shareholders grew 20.4% to JPY1.6 billion. Basic and diluted earnings per share were JPY28.58 (US$0.18), compared to JPY25.49 in fiscal year 2025.
| Metric | Fiscal Year 2026 | Fiscal Year 2025 | Change |
|---|---|---|---|
| Revenue | JPY21.9 billion | JPY21.1 billion | +3.7% |
| Gross Profit | JPY8.0 billion | JPY7.4 billion | +8.9% |
| Operating Profit | JPY2.4 billion | JPY2.2 billion | +9.4% |
| Net Income | JPY1.6 billion | JPY1.4 billion | +19.6% |
Segment Performance
Revenue from software development services was JPY17.5 billion, an increase of 2.0%, driven by growth in the Software Defined Vehicle (SDV) and Location-Based Services (LBS) segments. Revenue from licensing was JPY3.23 billion, up 1.7%, while revenue from software-related services surged 49.5% to JPY1.1 billion. Research and development expenses increased 45.3% to JPY1.5 billion, primarily due to investments in the DynaPlanet project.
Strategic Developments
Mr. Kenji Narushima, Chief Executive Officer and Chairman, attributed the results to disciplined cost management and operational excellence. He noted that the IPO provides greater visibility and resources to pursue the company's long-term vision. Strategic priorities include evolving from an IVI Tier 1 supplier to an SDV Tier 1 supplier and commercializing the DynaPlanet project in fiscal year 2027.
Financial Condition
As of February 28, 2026, the company held cash and cash equivalents of JPY8.3 billion (US$52.9 million). Net cash provided by operating activities was JPY2.1 billion (US$13.3 million). The company issued 2,850,000 American Depositary Shares (ADSs) at a public offering price of US$8.00 per ADS, with total gross proceeds of US$26.2 million including the over-allotment option.
Earnings Call Details
Micware will host an earnings call on July 1, 2026, at 8:00 am U.S. Eastern Time (9:00 pm Japan Standard Time). Pre-registration is required to receive dial-in details. A video replay will be available approximately one hour after the call concludes until June 30, 2027, on the company’s investor relations website at www.ir-micware.com .
How will the IPO proceeds be specifically allocated to accelerate the transition from an IVI Tier 1 to an SDV Tier 1 supplier?
What are the projected revenue contributions from the commercialization of the DynaPlanet project in fiscal year 2027?
Will the significant 45.3% increase in R&D expenses continue at a similar pace to support future SDV and LBS growth?
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