Micware plans to expand beyond infotainment into software-defined vehicles through its micAuto platform, which is expected to begin generating revenue in fiscal 2027, and into 3D spatial intelligence through its DynaPlanet platform. The company delivered a record 36.8% gross margin in fiscal 2026, with gross profit rising to $51.6 million and adjusted operating profit reaching $15.6 million despite a 40% increase in research and development spending. Micware remains heavily dependent on Japan and a few customers: the Honda Group contributed 50.6% of fiscal 2026 revenue, while roughly 98.5% of revenue came from Japan.
The company plans to use its Nasdaq listing and U.S. operations to pursue international growth. 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. → Looking Beyond CrowdStrike? 3 AI Security Stocks Stand Out Micware develops in-vehicle infotainment, navigation and mobility software for automotive customers including Toyota, Honda, Daihatsu and Denso.
The company, founded in 2003, has about 600 employees, more than 300 patents, six operating entities and 13 branch offices in Japan, according to President of Micware North America Takashi Harishima. It also has subsidiaries in the United States, Thailand and Germany. 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. → 3 Robotics Stocks Under $10: Value, Momentum, or Bet? 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. → Is SiTime the Best AI Stock You've Never Heard Of?
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.
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