Micware Co (MWC) Q4 2026 earnings summary

Executive summary

• Revenue reached $140.3 million, up 0.1% year-over-year (3.7% in JPY), with net income rising 20.4% year-over-year to $10.3 million, reflecting improved profitability and cost management.

• Gross margin expanded by 1.8 percentage points year-over-year to 36.8%, with significant improvements in profitability.

• Strategic focus on evolving from IVI to SDV Tier 1 supplier, expanding platform businesses like DynaPlanet, and commercializing new projects in FY 2027.

• Key partnerships with major Japanese OEMs, including Honda and Toyota, underpin recurring revenue and growth.

• Global expansion advanced with a new office in New York and subsidiaries in the U.S., Thailand, and Germany.

Financial highlights

• Revenue: $140.3 million, up 0.1% year-over-year; 3.7% growth in JPY excluding FX impact.

• Gross profit: $51.6 million, up 5.1% year-over-year; gross margin expanded to 36.8%.

• Operating profit: $15.1 million, up 9.4% year-over-year; adjusted operating profit: $15.6 million, up 5.1%.

• Net income: $10.3 million, up 20.4% year-over-year.

• R&D expenses increased 45.3% year-over-year, mainly for DynaPlanet development.

Outlook and guidance

• Plans to accelerate global expansion and evolve into a platform provider for next-generation mobility, with commercialization of DynaPlanet expected in FY 2027.

• Continued investment in SDV and LBS domains, with 30% of growth investment allocated to SDV and 70% to LBS.

• Capital allocation prioritizes platform expansion (DynaPlanet, micAuto-PF) and recurring revenue businesses.