Micware Co (MWC) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue was $66.4M, down 4.9% in USD but up 3.4% to JPY10,612.7M; gross margin rose 4.9 pp to 36.3%.

• Adjusted operating profit increased 22.7% in USD and 33.4% in JPY, while reported operating profit and net income declined in USD.

• Higher-value SDV development work expanded gross profit; R&D investment rose 46.9% as micAuto-PF and DynaPlanet-PF advanced toward platform-based growth.

Financial highlights

• Gross profit was $24.1M, up 9.9% in USD and 19.5% in JPY to JPY3,847.9M; cost of revenue fell 3.9% to JPY6,764.8M.

• Operating profit was $4.9M, down 7.6% in USD and up 0.5% in JPY; adjusted operating profit was $6.9M, up 22.7% in USD and 33.4% to JPY1,100.5M.

• Net income attributable to ordinary shareholders was $3.9M, down 18.9% in USD; net income was JPY612.9M, down 13.5%.

• R&D spend was $5.2M, up 46.9% YoY; in JPY, R&D rose 59.7% to JPY829.2M, mainly due to DynaPlanet development.

Outlook and guidance

• R&D investment is expected to continue through FY2027 and beyond, with near-term profit pressure; core-business adjusted operating profit growth supports investment.

• DynaPlanet Studio is planned to launch in January 2027, enabling users to create, publish, share and monetize virtual-world content.

• Domestic revenue remains the core driver; the aim is to grow international revenue, with large-scale DynaPlanet B2B, B2G and OEM deployments as medium- to long-term opportunities.

• The strategy expands micAuto from IVI into SDV services and advances DynaPlanet through technology and talent investment toward sustainable growth.