Micware (NASDAQ:MWC) outlined plans to expand from its established automotive software business into next-generation software-defined vehicles and spatial intelligence platforms during a Sidoti Conference presentation.
Founder and CEO Kenji Narushima said the Japan-based company’s strategy is built around two primary platforms: micAuto, its automotive software platform, and DynaPlanet, an intelligent 3D platform intended to support location-based services and recurring revenue opportunities.
Financial performance and customer concentration
Takashi Harishima, president of Micware North America, said the company has grown to approximately 600 employees and holds more than 300 patents. Micware operates six entities and 13 branch offices in Japan, with subsidiaries in the United States, Thailand and Germany.
Harishima said revenue increased 19.9% to JPY 140.2 million in fiscal 2025 from JPY 116.9 million in fiscal 2024, before remaining essentially stable at JPY 140.3 million in fiscal 2026. Software development services accounted for about 80% of revenue in each of the last three years, he said.
Gross profit rose from JPY 35.5 million in fiscal 2024 to JPY 49.1 million in fiscal 2025 and JPY 51.6 million in fiscal 2026. The company reported a record gross margin of 36.8% in fiscal 2026. Adjusted operating profit increased from JPY 13.5 million in fiscal 2024 to JPY 15.6 million in fiscal 2026, while net income attributable to ordinary shareholders rose from JPY 9.1 million to JPY 10.3 million over the same period.
Harishima added that cash and cash equivalents nearly doubled since fiscal 2024, while total debt declined to JPY 34.5 million as of February 2026 from JPY 40.3 million as of February 2025. He said operating profit increased even as research and development spending rose 40%.
Narushima acknowledged that the company manages customer concentration carefully. In fiscal 2026, the Honda Group represented 50.6% of revenue, Toyota Group represented 16.3%, and Uni Electronics accounted for 11.4%, he said. Micware also works with Mazda and Daihatsu and expects its platform initiatives to broaden its revenue base over time.
Platform strategy and planned organizational changes
Micware plans to allocate 30% of its capital toward its software-defined vehicle business and the micAuto platform, while directing the remaining 70% to the location-based services business and DynaPlanet, according to Narushima.
The micAuto platform is designed to enable software reuse across vehicle programs and support multiple operating systems, devices and cloud functions. The company expects the platform to begin contributing revenue in fiscal 2027. Harishima said Micware is also working to add advanced driver-assistance systems and autonomous-driving functionality to the platform.
DynaPlanet, formerly known as Dynamic Street Map and Marketplace, combines location data with digital content including text, images, audio, video and 3D content. One application, called PreSpot, enables users to view the perspective from a selected stadium seat before making a reservation. Narushima said Micware intends to pursue business-to-business, government and consumer-facing uses, including transaction commissions and third-party licensing.
The company plans to launch Micware Spacia in early September, a new organization focused on next-generation spatial intelligence. Narushima said the launch, together with an expansion of Micware Automotive, is intended to support execution of the company’s two-platform strategy. He said Micware expects to provide additional details on its growth roadmap as the businesses progress.
International expansion
Micware selected Nasdaq as part of its effort to raise its global profile, Narushima said. He described the listing as a step toward transforming the company from a Japanese automotive software company into a global technology company, rather than simply a capital-raising event.
International revenue remains limited. Harishima said approximately 98.5% of revenue comes from Japan, while the U.S. accounts for about 1.4%. Micware North America, based in Columbus, Ohio, is focused on developing relationships with North American OEMs and partners and identifying new business opportunities.
In software-defined vehicles, Micware identified Panasonic, SCSK, Tata and KPIT as competitors. In location-based services, it cited HERE, TomTom, Mapbox and Google. Harishima said Micware differentiates itself through close OEM collaboration, automotive systems knowledge and customized solutions, while noting that companies such as Denso and Panasonic can be both competitors and development partners depending on the project.
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.
