Micware (NASDAQ:MWC), a Japan-based automotive software developer, outlined plans to expand from its in-vehicle infotainment software business into broader software-defined vehicle and spatial intelligence platforms during a company presentation.
Founder and Chief Executive Officer Kenji Narushima said the company’s strategy is centered on two growth pillars: the micAuto automotive software platform and DynaPlanet, a 3D location-data platform intended to support recurring revenue opportunities.
Financial Performance and Customer Mix
Harishima said revenue rose 19.9% to $140.2 million in fiscal 2025 from $116.9 million in fiscal 2024, before remaining essentially flat at $140.3 million in fiscal 2026. Software development services accounted for roughly 80% of total revenue in each of the past three fiscal years.
Gross profit increased from $35.5 million in fiscal 2024 to $49.1 million in fiscal 2025 and $51.6 million in fiscal 2026. The company reported a fiscal 2026 gross margin of 36.8%, which Harishima described as a record. Adjusted operating profit increased to $15.6 million in fiscal 2026 from $13.5 million in fiscal 2024, while net income attributable to ordinary shareholders rose to $10.3 million from $9.1 million.
The company said cash and cash equivalents nearly doubled from fiscal 2024 levels, while total debt declined to $34.5 million as of February 2026 from $40.3 million a year earlier. Harishima also said operating profit increased despite a 40% rise in research and development spending.
Micware’s revenue remains concentrated among a small number of customers. Narushima said the Honda Group represented 50.6% of fiscal 2026 revenue, followed by the Toyota Group at 16.3% and Uni Electronics at 11.4%.
“Our relationships with Toyota and Honda are foundation of our business, and we recognize that customer concentration is something we manage carefully,” Narushima said. He characterized the relationships, developed over more than two decades, as a competitive advantage and said Micware is also working with other automakers including Daihatsu and Mazda.
Platform Expansion Plans
Micware’s micAuto platform is designed to enable software reuse across vehicle projects and support different operating systems, devices and cloud functions. The company said it expects the platform to begin contributing revenue in fiscal 2027.
Harishima said Micware views its shift toward software-defined vehicles as an extension of its existing infotainment business. The company plans to increase upstream involvement with OEM customers, pursue additional customer relationships and integrate advanced driver-assistance system and autonomous-driving capabilities into micAuto.
“Our strategy is to build on capabilities and customer relationships we already have while gradually expanding the software domains in which Micware can create value,” Harishima said.
DynaPlanet, formerly known as Dynamic Street Map & Market Place, is intended to combine location information with text, images, audio, video and 3D content. Narushima said its initial offering, Dynamic Share Map, is intended to create monetization opportunities using location-based digital content. Another application, PreSpot, allows users to preview the view from a selected stadium seat before reserving it.
Narushima contrasted the platform with traditional digital maps, which he said generally provide static location information. DynaPlanet is intended to continuously update 3D spatial information using data such as images and video from everyday devices, with potential uses in navigation, tourism, advertising and other location-based services.
Capital Allocation and International Growth
Micware plans to allocate 30% of its capital toward its software-defined vehicle business and micAuto platform, while directing 70% to its location-based services business and DynaPlanet. The company plans to establish Micware Spacia, a new company focused on next-generation spatial intelligence, in the first week of September 2026.
The company said it intends to pursue business-to-business and government opportunities for DynaPlanet in Japan and overseas, as well as revenue from transaction commissions and third-party licensing.
International operations currently represent a limited portion of Micware’s revenue. Harishima said approximately 98.5% of company revenue comes from Japan, while the U.S. contributes approximately 1.4%. Micware North America, based in Columbus, Ohio, is intended to help develop relationships with North American OEMs and partners.
Narushima said Micware selected Nasdaq as part of its goal to expand internationally, increase visibility with global investors and partners, and attract talent. He said the initial public offering was not solely intended to raise capital, but also to support the company’s transition from a Japanese automotive software provider into a global technology company.
About Micware (NASDAQ:MWC)
Micware Co Ltd. is a provider of software development services and an IT solution mainly focused on the automotive and mobility sectors. The Company is primarily engaged in the development and sale of IVI systems covering multimedia, navigation, human machine interface, telematics, and driver assistance, as well as navigation software and location information-based smartphone applications. Micware Co Ltd. is based in KOBE, Japan.
