KOBE, Japan, June 30, 2026 (GLOBE NEWSWIRE) -- Micware Co., Ltd. (Nasdaq: MWC) (the "Company" or "Micware"), a Japan-based provider of software development services and innovative IT solutions mainly focused on the automotive and mobility sectors, today announced its financial results for the fiscal year ended February 28, 2026.
Fiscal Year 2026 Financial Highlights
-- Revenue was JPY21.9 billion (US$140.3 million) in fiscal year 2026, an
increase of 3.7% from JPY21.1 billion in fiscal year 2025.
-- Gross profit was JPY8.0 billion (US$51.6 million) in fiscal year 2026, an
increase of 8.9% from JPY7.4 billion in fiscal year 2025.
-- Gross profit margin was 36.8% in fiscal year 2026, which increased from
35.0% in fiscal year 2025.
-- Operating profit was JPY2.4 billion (US$15.1 million) in fiscal year
2026, an increase of 9.4% from JPY2.2 billion in fiscal year 2025.
-- Net income was JPY1.6 billion (US$10.4 million) in fiscal year 2026, an
increase of 19.6% from JPY1.4 billion in fiscal year 2025.
-- Net income attributable to the Company's ordinary shareholders was JPY1.6
billion (US$10.3 million) in fiscal year 2026, an increase of 20.4% from
JPY1.3 billion in fiscal year 2025.
-- Adjusted operating profit was JPY2.4 billion (US$15.6 million) in fiscal
year 2026, an increase of 5.1% from JPY2.3 billion in fiscal year 2025.
-- Basic and diluted earnings per share were JPY28.58 (US$0.18) in fiscal
year 2026, compared to JPY25.49 in fiscal year 2025.
Mr. Kenji Narushima, Chief Executive Officer and Chairman of Micware, remarked, "We are pleased to report strong financial results for fiscal year 2026, highlighted by steady revenue growth and improved profitability. Our revenue increased by 3.7% year over year, while net income rose by 19.6%. These results underscore our ability to execute across core automotive software business, supported by disciplined cost management and operational excellence.
"Beyond our financial results, the completion of our initial public offering was a defining milestone for Micware. On May 14, 2026, we commenced trading on the Nasdaq Global Market under the ticker symbol 'MWC.' This achievement is the result of years of dedication by our employees, as well as the continued trust and support of our customers, partners, and all those who have supported Micware along the way. We view the listing not as a destination, but as a new beginning, one that we believe provides us with greater visibility and resources as we continue to pursue our long-term vision."
Mr. Narushima continued, "Looking ahead, we intend to grow our business through two strategic priorities. We plan to evolve from an in-vehicle infotainment ("IVI") Tier 1 software supplier to a Software Defined Vehicle ("SDV") Tier 1 software supplier, supported by continued investment in our proprietary IVI software platform, micAuto-PF, which we believe will strengthen our core automotive software capabilities and support our transition toward SDV-related solutions. In parallel, we are continuing to invest in long-term, multi-year technology development, with a particular focus on research and development activities related to Dynamic Street Map & Market Place ("DSMM"). Effective July 1, 2026, the name of DSMM project will be changed to "DynaPlanet." We believe the commercialization of DynaPlanet, anticipated in fiscal year 2027, will expand our addressable market, diversify our revenue base, and strengthen our competitive position. Through these initiatives, we seek to support the next stage of Micware's growth by broadening our technology capabilities, diversifying our revenue streams, and delivering long-term value to our customers and shareholders."
Fiscal Year 2026 Financial Results
Revenue
Revenue was JPY21.9 billion (US$140.3 million) in fiscal year 2026, an increase of 3.7% from JPY21.1 billion in fiscal year 2025.
-- Revenue from software development services was JPY17.5 billion (US$112.3
million) in fiscal year 2026, an increase of 2.0% from JPY17.2 billion in
fiscal year 2025. This increase was primarily attributable to: (i) a
JPY417.7 million increase in sales in the SDV segment, driven mainly by
an increase in revenue from one of the Company's existing related party
customers as development activities shifted from the previous vehicle
model development project to its successor vehicle model development
project, which was partially offset by a decrease in revenue from the
previous vehicle model development project as it moved into later-stage
activities, and (ii) a JPY89.8 million increase in sales in the
Location-Based Services ("LBS") segment, mainly due to a JPY568.3 million
increase in sales attributable to higher sales to an existing related
party customer, for connected mobility services linking vehicles and
smartphones as well as a JPY89.4 million increase attributable to
progress in a next-generation development project for an existing
Original Equipment Manufacturer ("OEM") customer outside of four-wheeled
vehicle applications, partially offset by a JPY566.9 million decrease
primarily due to certain customer projects reaching completion or
transitioning from main development phases to following phase, such as
version upgrade and evaluation support activities. These increases were
partially offset by (iii) a JPY164.1 million decrease in sales in the
other segment, mainly due to a JPY210.8 million increase in intersegment
eliminations resulting from higher intercompany transactions associated
with revenue growth in the SDV and LBS segments, partially offset by a
net JPY43.3 million increase in revenue from the Company's overseas
subsidiaries.
-- Revenue from licensing was JPY3.23 billion (US$20.7 million) in fiscal
year 2026, an increase of 1.7% from JPY3.18 billion in fiscal year 2025.
This increase was primarily attributable to a JPY209.3 million increase
in the LBS segment, driven mainly by higher license fee revenue from
multiple OEM customers, newly launched models for existing customers and
the acquisition of a new customer, partially offset by lower license fees
for multiple OEM vehicle models that had been in the market for a longer
period. This increase was also partially offset by a JPY155.5 million
decrease in sales in the SDV segment, primarily due to lower revenue from
connected services for a related party customer.
-- Revenue from software-related services was JPY1.1 billion (US$7.3
million) in fiscal year 2026, an increase of 49.5% from JPY0.8 billion in
fiscal year 2025. The increase was primarily due to a JPY367.2 million
increase in sales in the SDV segment, including JPY245.1 million in
revenue contributions from the business acquired through business
combinations during the current period as well as JPY181.2 million in
revenue from ad hoc development projects for non-OEM customers, partially
offset by a JPY110.6 million decrease in sales in the SDV segment mainly
due to the completion of technical support services for an existing
customer.
Cost of Revenue
Cost of revenue was JPY13.8 billion (US$88.7 million) in fiscal year 2026, an increase of 0.8% from JPY13.7 billion in fiscal year 2025. The increase was primarily due to the increases in personnel costs and outsourcing costs associated with the expansion of certain SDV- and LBS-related development activities.
Gross Profit
Gross profit was JPY8.0 billion (US$51.6 million) in fiscal year 2026, an increase of 8.9% from JPY7.4 billion in fiscal year 2025.
Gross profit margin was 36.8% in fiscal year 2026, an increase from 35.0% in fiscal year 2025.
Operating Expenses
Total operating expenses were JPY5.7 billion (US$36.4 million) in fiscal year 2026, an increase of 8.7% from JPY5.2 billion in fiscal year 2025.
-- Sales, general, and administrative expenses were JPY4.1 billion (US$26.6
million) in fiscal year 2026, a decrease of 0.5% from JPY4.2 billion in
fiscal year 2025. The decrease was primarily attributable to a JPY94.3
million decrease in professional fees and license fees on a combined
basis and a JPY47.8 million decrease in personnel expenses, partially
offset by an increase of JPY71.9 million in advertising expenses. The
remaining net change was primarily attributable to increases of JPY28.2
million in travel expenses and JPY25.2 million in non-income tax
expenses.
-- Research and development expenses were JPY1.5 billion (US$9.8 million) in
fiscal year 2026, an increase of 45.3% from JPY1.1 billion in fiscal year
2025. This increase was primarily attributable to increased expenditures
related to the DynaPlanet project.
Operating Profit
Operating profit was JPY2.4 billion (US$15.1 million) in fiscal year 2026, an increase of 9.4% from JPY2.2 billion in fiscal year 2025.
Net Income
Net income was JPY1.6 billion (US$10.4 million) in fiscal year 2026, an increase of 19.6% from JPY1.4 billion in fiscal year 2025.
Net Income Attributable to the Company's Ordinary Shareholders
Net income attributable to the Company's ordinary shareholders was JPY1.6 billion (US$10.3 million) in fiscal year 2026, an increase of 20.4% from JPY1.3 billion in fiscal year 2025.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were JPY28.58 (US$0.18) in fiscal year 2026, compared to JPY25.49 in fiscal year 2025.
Financial Condition
As of February 28, 2026, the Company had cash and cash equivalents of JPY8.3 billion (US$52.9 million), compared to JPY7.7 billion as of February 28, 2025.
Net cash provided by operating activities was JPY2.1 billion (US$13.3 million) in fiscal year 2026, compared to JPY2.2 billion in fiscal year 2025.
Net cash used in investing activities was JPY0.8 billion (US$5.1 million) in fiscal year 2026, compared to JPY0.6 billion in fiscal year 2025.
Net cash used in financing activities was JPY0.7 billion (US$4.8 million) in fiscal year 2026, compared to net cash provided by financing activities of JPY1.9 billion in fiscal year 2025.
Recent Developments
On May 15, 2026, the Company completed its initial public offering (the "Offering") on the Nasdaq Global Market. The Company issued and sold an aggregate of 2,850,000 American Depositary Shares ("ADSs"), each representing one ordinary share, at a public offering price of US$8.00 per ADS.
On May 20, 2026, A.G.P./Alliance Global Partners, as the sole underwriter of the Offering, exercised its over-allotment option in full to purchase an additional 427,500 ADSs, each representing one ordinary share, at the public offering price of $8.00 per ADS. The total gross proceeds received from the Offering, including proceeds from the exercise of the over-allotment option, were $26.2 million, before deducting underwriting discounts and offering expenses.
The Company's ADSs first began trading on the Nasdaq Global Market on May 14, 2026, under the ticker symbol "MWC."
Earnings Call Information
The Company will host an earnings call at 8:00 am U.S. Eastern Time (9:00 pm Japan Standard Time) on July 1, 2026. To attend the earnings call, please use the following access information.
Access details:
Date: July 1, 2026
Time: 8:00 am U.S. Eastern Time (9:00 pm Japan Standard
Time)
Pre-registration Link: https://zoom.us/webinar/register/WN_lgiHZ
ECmQ7G1LYvpUDGWDw#/
For participation in the earnings call, pre-registration is required using the link above. Dial-in details and access instructions will be provided upon registration. Please join at least 15 minutes before the commencement of the call to ensure timely participation.
For those unable to participate, a video replay of the conference call will be available from approximately one hour after the end of the live call until June 30, 2027.
An archived webcast of the conference call will also be available at the Company's investor relations website at www.ir-micware.com.
Exchange Rate Information
This announcement contains translations of certain Japanese Yen ("JPY") amounts into U.S. dollars ("USD" or "$") for the convenience of the reader. Translations of amounts from JPY into USD have been made at the exchange rate of JPY156.05 = $1.00, which was the foreign exchange rate on February 27, 2026, the last business day in fiscal year ended February 28, 2026, as published on the website of the United States Federal Reserve Board.
About Micware Co., Ltd.
Micware Co., Ltd. is a Japan-based provider of software development services and innovative IT solutions 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.
Since its founding in 2003, Micware has built over 20 years of experience in automotive software and has established long-term relationships with major OEMs in Japan, including Honda Motor Co., Ltd. and Toyota Motor Corporation. Leveraging its engineering capabilities, proprietary technologies, and long-standing OEM relationships, the Company was ranked 9th among Japan-based Tier 1 suppliers in the IVI market in terms of revenue as of February 28, 2024, according to an industry report titled "IVI, Automotive Navigation System and Digital Mapping Market" commissioned by the Company and prepared by Frost & Sullivan. Micware operates across Japan through six operating entities and 13 branch offices and has established subsidiaries in the United States, Thailand, and Germany for overseas operations.
For more information, please visit the Company's IR website: www.ir-micware.com.
Non-GAAP Financial Measures
In the Company's report, it discusses key financial measures that are not calculated in accordance with the United States Generally Accepted Accounting Principles ("GAAP") to supplement its consolidated financial statements presented on a GAAP basis. These non-GAAP financial measures are reconciled from their most directly comparable financial measures determined in accordance with GAAP as follows:
For the Fiscal Years Ended
-----------------------------------------
February
February February February 28,
29, 2024 28, 2025 28, 2026 2026
---------- --------- --------- --------
JPY JPY JPY US$
Operating Profit 1,892,397 2,160,301 2,364,008 15,149
Plus:
listing-related
and
transformational
expenses(a) 126,165 149,685 62,934 403
--------- --------- --------- --------
Adjusted Operating
Profit 2,018,562 2,309,986 2,426,942 15,552
========= ========= ========= ========
(a) (Represents listing-related and other transformational
expenses incurred in connection with the Company's
IPO and corporate transformation initiatives for the
fiscal years ended February 29, 2024 and February
28, 2025 and 2026. These costs were recognized as
expenses in the statement of operations and were not
recorded as direct deductions from equity.)
Adjusted income from operations is a financial measure that is not calculated in accordance with GAAP, and the use of the terms adjusted income from operations may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. The Company believes the non-GAAP financial measure provides investors with useful information with respect to its historical operations. The Company presents the non-GAAP financial measure as supplemental performance measures because it facilitates a comparative assessment of the Company's operating performance relative to its performance based on its results under GAAP, while isolating the effects of some items that vary from period to period. Specifically, adjusted income from operations allows the Company to assess its performance without the impact of the specifically identified items that it believes do not directly reflect its core operations, including non-recurring costs, such as listing-related and transformational expenses, other non-recurring income, such as litigation-related reimbursement. The non-GAAP financial measure also functions as key performance indicator used to evaluate the Company's operating performance internally, and it is used in connection with the determination of incentive compensation for management, including executive officers.
Adjusted income from operations is not a measurement of the Company's financial performance under GAAP and should not be considered in isolation or as an alternative to income from operations or any other financial statement data presented as indicators of financial performance or liquidity, each as presented in accordance with GAAP. Consequently, the Company's non-GAAP financial measure should be considered together with its consolidated financial statements, which are prepared in accordance with GAAP and included in Item 8 of its annual report on Form 20-F. The Company understands that although adjusted income from operations is frequently used by securities analysts, lenders and others in their evaluation of companies, it has limitations as analytical tools, and you should not consider it in isolation, or as a substitute for analysis of its results as reported under GAAP. Some of these limitations are: adjusted income from operations does not fully reflect the Company's cash expenditures, future requirements for capital expenditures or contractual commitments; adjusted income from operations does not reflect changes in, or cash requirements for, the Company's working capital needs; adjusted income from operations does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on debt.
Because of these limitations, adjusted income from operations should not be considered as discretionary cash available to the Company to reinvest in the growth of the Company's business or as measure of cash that will be available to the Company to meet its obligations.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the annual report on
Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the annual report on Form 20-F and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
For more information, please contact:
Micware Co., Ltd.
Investor Relations Department
Email: mic_ir@micware.co.jp
Public Relations
Email: mic_pr@micware.co.jp
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
MICWARE CO., LTD.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Japanese yen ("JPY"), and in thousands of U.S. Dollars ("US$"), except for number of shares and per share data)
As of
As of As of February
February February 28,
28, 2025 28, 2026 2026
----------- ---------- --------
JPY JPY US$
ASSETS
Current Assets
Cash and cash
equivalents 7,670,463 8,259,660 52,930
Accounts
receivable, net 1,518,878 1,758,584 11,269
Accounts
receivable due
from related
parties, net 1,019,357 86,934 557
Contract assets 436,167 223,490 1,432
Contract assets
due from related
parties 1,573,389 3,126,224 20,033
Inventories 48,629 18,902 121
Tax receivable 344,813 4,929 32
Prepayments and
other current
assets 1,427,733 1,026,648 6,579
Prepayments and
other current
assets due from
related parties 18,694 13,074 84
---------- ---------- --------
Total current
assets 14,058,123 14,518,445 93,037
Non-current Assets
Property and
equipment, net 1,878,472 1,849,599 11,853
Operating lease
right-of-use
assets, net 3,909,012 3,834,503 24,572
Intangible assets,
net 87,768 206,920 1,326
Long-term
investments 219,649 317,000 2,031
Goodwill 197,650 239,228 1,533
Deferred offering
costs 86,174 231,986 1,487
Deferred tax
assets, net 687,365 1,028,394 6,590
Long-term
prepayments and
other non-current
assets 1,848,634 2,213,137 14,182
---------- ---------- --------
Total non-current
assets 8,914,724 9,920,767 63,574
---------- ---------- --------
TOTAL ASSETS 22,972,847 24,439,212 156,611
========== ========== ========
LIABILITIES,
MEZZANINE EQUITY,
AND EQUITY
Current liabilities
Short-term
borrowings - 800,000 5,127
Current portion of
long-term
borrowings 1,804,164 2,021,924 12,957
Accounts payable 1,362,985 1,217,573 7,802
Accounts payable
due to a related
party 288,205 188,264 1,206
Current portion of
contract
liabilities 708,035 763,650 4,894
Current portion of
contract
liabilities due
to a related
party - 646,603 4,144
Operating lease
liabilities,
current 881,838 1,206,136 7,729
Taxes payable 922,102 530,424 3,399
Accrued expenses
and other current
liabilities 1,350,327 1,388,559 8,898
Accrued expenses
and other current
liabilities due
to related
parties 1,547 873 6
---------- ---------- --------
Total current
liabilities 7,319,203 8,764,006 56,162
Non-current
liabilities
Long-term
borrowings 4,273,240 2,565,203 16,438
Contract
liabilities,
non-current 723,188 877,430 5,623
Operating lease
liabilities,
non-current 3,214,665 2,880,319 18,458
Deferred tax
liabilities, net - 61,513 394
Other non-current
liabilities 660,003 678,073 4,345
---------- ---------- --------
Total non-current
liabilities 8,871,096 7,062,538 45,258
---------- ---------- --------
TOTAL LIABILITIES 16,190,299 15,826,544 101,420
========== ========== ========
COMMITMENTS AND
CONTINGENCIES
Mezzanine equity
Redeemable
ordinary shares
(313,300 shares
issued and
outstanding as of
February 28, 2025
and February 28,
2026)* 71,500 391,124 2,506
---------- ---------- --------
TOTAL MEZZANINE
EQUITY 71,500 391,124 2,506
========== ========== ========
Equity
Ordinary shares,
125,320,000
shares
authorized;
58,054,490 shares
issued and
55,403,490 shares
outstanding as of
February 28,
2025, and
58,054,490 shares
issued and
55,828,614 shares
outstanding as of
February 28,
2026* 480,000 480,000 3,076
Treasury shares,
2,337,700 and
1,912,576 shares
as of February
28, 2025 and
February 28,
2026,
respectively* (489,121) (410,683) (2,632)
Additional paid-in
capital 926,301 997,803 6,394
Retained earnings 5,540,108 6,823,084 43,724
Accumulated other
comprehensive
income 69,722 118,474 759
---------- ---------- --------
Total equity
attributable to
shareholders of
the Company 6,527,010 8,008,678 51,321
Non-controlling
interests 184,038 212,866 1,364
---------- ---------- --------
TOTAL EQUITY 6,711,048 8,221,544 52,685
---------- ---------- --------
TOTAL LIABILITIES,
MEZZANINE EQUITY AND
EQUITY 22,972,847 24,439,212 156,611
========== ========== ========
(*) (The shares and per share information are presented
on a retroactive basis to reflect the share split
from 1 to 130, which became effective on March 1,
2024, and reflect the share split from 1 to 241, which
became effective on March 31, 2026.)
MICWARE CO., LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Amounts in thousands of JPY, and in thousands of US$, except for number of shares and per share data)
For the Fiscal Years Ended
--------------------------------------------------
February February February February
29, 2024 28, 2025 28, 2026 28, 2026
----------- ---------- ---------- ----------
JPY JPY JPY US$
Revenue -- third
parties 7,476,565 7,276,479 7,257,218 46,506
Revenue -- related
parties 10,040,166 13,842,825 14,638,572 93,807
---------- ---------- ---------- ----------
Total Revenue 17,516,731 21,119,304 21,895,790 140,313
Cost of revenue 12,193,425 13,729,851 13,845,797 88,727
---------- ---------- ---------- ----------
Gross profit 5,323,306 7,389,453 8,049,993 51,586
Operating expenses
Selling, general,
and
administrative
expenses 2,469,969 4,171,455 4,149,281 26,589
Research and
development
expenses 960,940 1,057,697 1,536,704 9,848
---------- ---------- ---------- ----------
Total operating
expenses 3,430,909 5,229,152 5,685,985 36,437
---------- ---------- ---------- ----------
Operating profit 1,892,397 2,160,301 2,364,008 15,149
========== ========== ========== ==========
Other income
(expense)
Interest
expenses, net (36,978) (49,498) (42,785) (274)
(Loss) gain from
disposal of
long-lived
assets (154) (1,370) 1,092 7
Gain (loss) from
change in fair
market value of
equity
securities 71,165 (44,352) (112,100) (718)
Gain (loss) from
foreign currency
exchange 8,904 (34,515) 12,735 82
Impairment loss
on long-term
investment - - (91,021) (583)
Gain on bargain
purchase - - 106,805 684
Other income, net 3,735 5,981 83,557 535
---------- ---------- ---------- ----------
Total other
income
(expense), net 46,672 (123,754) (41,717) (267)
---------- ---------- ---------- ----------
INCOME BEFORE INCOME
TAX PROVISION 1,939,069 2,036,547 2,322,291 14,882
PROVISION
(BENEFIT) FOR
INCOME TAXES
Current 703,501 953,843 1,030,260 6,602
Deferred (163,968) (271,623) (327,464) (2,098)
---------- ---------- ---------- ----------
Total provision
for income
taxes 539,533 682,220 702,796 4,504
---------- ---------- ---------- ----------
Net income 1,399,536 1,354,327 1,619,495 10,378
========== ========== ========== ==========
Less: net income
attributable to
non-controlling
interests (28,902) (23,709) (16,895) (108)
---------- ---------- ---------- ----------
Net income
attributable to the
Company's ordinary
shareholders 1,370,634 1,330,618 1,602,600 10,270
========== ========== ========== ==========
Other
comprehensive
income, net of
tax:
Foreign currency
translation
adjustments 44,105 248 60,685 389
---------- ---------- ---------- ----------
Total comprehensive
income 1,443,641 1,354,575 1,680,180 10,767
========== ========== ========== ==========
Less: comprehensive
income attributable
to non-controlling
interests (42,137) (23,572) (28,828) (185)
---------- ---------- ---------- ----------
Comprehensive income
attributable to the
Company 1,401,504 1,331,003 1,651,352 10,582
========== ========== ========== ==========
WEIGHTED AVERAGE
NUMBER OF ORDINARY
SHARES
Basic* 53,040,492 52,192,776 56,070,866 56,070,866
Diluted* 53,040,492 52,192,776 56,070,866 56,070,866
EARNINGS PER SHARE
Basic* 25.84 25.49 28.58 0.18
Diluted* 25.84 25.49 28.58 0.18
(*) (The shares and per share information are presented
on a retroactive basis to reflect the share split
from 1 to 130, which became effective on March 1,
2024, and reflect the share split from 1 to 241, which
became effective on March 31, 2026.)
MICWARE CO., LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of JPY, and in thousands of US$)
For the Fiscal Years Ended
------------------------------------------------
February
February February February 28,
29, 2024 28, 2025 28, 2026 2026
----------- ---------- ---------- --------
JPY JPY JPY US$
Cash flows from
operating
activities
Net income 1,399,536 1,354,327 1,619,495 10,378
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Depreciation
and
amortization
expense 423,597 441,932 429,103 2,750
Amortization of
operating
lease
right-of-use
assets 651,593 929,705 1,156,300 7,409
Provisions for
inventory
valuation
losses - - 30,688 197
Loss (gain) on
disposal of
property and
equipment 154 (219) (1,092) (7)
Loss on
disposal of
intangible
assets - 1,589 - -
Change in fair
value of
marketable
securities (71,165) 44,352 112,100 718
Impairment loss
on long- term
investment - - 91,021 583
Gain on bargain
purchase - - (106,805) (684)
Deferred tax
benefit (163,968) (271,623) (327,464) (2,098)
Changes in
operating assets
and
liabilities:
Accounts
receivable (26,098) 114,708 (53,770) (345)
Accounts
receivable due
from related
parties 1,244,049 (818,844) 932,423 5,975
Contract assets (48,148) (209,309) 212,677 1,363
Contract assets
due from
related
parties (1,900,379) 1,845,516 (1,552,835) (9,951)
Inventories (2,292) (43,697) (961) (6)
Tax receivables (4,244) (340,569) 339,884 2,178
Prepayments and
other assets (363,437) (1,441,012) 66,390 425
Prepayments and
other assets
due from
related
parties 15,752 (7,097) 5,620 36
Accounts
payable 244,732 178,164 (145,412) (932)
Accounts
payable due to
a related
party (97,431) (30,206) (99,941) (640)
Contract
liabilities 216,753 170,141 209,857 1,345
Contract
liabilities
due to a
related party (7,978) (92) 646,603 4,144
Accrued
expenses and
other
liabilities (488,192) 544,889 (5,335) (34)
Accrued
expenses and
other
liabilities
due to related
parties (1,426) 1,052 (674) (4)
Operating lease
liabilities (658,615) (705,040) (1,091,737) (6,996)
Taxes payable 40,260 470,572 (391,678) (2,510)
---------- ---------- ---------- --------
Net cash provided
by operating
activities 403,053 2,229,239 2,074,457 13,294
---------- ---------- ---------- --------
Cash flows from
investing
activities
Payment for
investment (50,000) (500) (300,472) (1,925)
Proceeds from
sale of
investment 26,191 - - -
Purchase of
property and
equipment (180,738) (594,987) (268,727) (1,722)
Proceeds from
sale of
property and
equipment 254 1,108 2,308 15
Purchase of
intangible
assets (14,709) (38,710) (22,712) (146)
Acquisitions - - (205,000) (1,314)
---------- ---------- ---------- --------
Net cash used in
investing
activities (219,002) (633,089) (794,603) (5,092)
---------- ---------- ---------- --------
Cash flows from
financing
activities
Proceeds from
borrowings 5,300,000 3,260,000 1,200,000 7,690
Repayment of
borrowings (4,278,044) (2,009,256) (1,890,277) (12,113)
Payments on
deferred
offering
costs - (86,174) (142,368) (912)
Repayments of
finance lease
obligation (47,906) (55,249) (63,751) (409)
Purchase of
treasury
shares (2,618,591) - - -
Reissuance of
treasury
shares 1,618,500 776,000 149,940 961
Proceeds from
issuance of
redeemable
ordinary
shares 65,000 - - -
---------- ---------- ---------- --------
Net cash provided
by (used in)
financing
activities 38,959 1,885,321 (746,456) (4,783)
---------- ---------- ---------- --------
Effect of foreign
exchange rate
changes on cash
and cash
equivalents 38,742 (644) 55,799 357
Net increase in
cash and cash
equivalents 261,752 3,480,827 589,197 3,776
Cash and cash
equivalents at
the beginning of
the year 3,927,884 4,189,636 7,670,463 49,154
---------- ---------- ---------- --------
Cash and cash
equivalents at
the end of the
year 4,189,636 7,670,463 8,259,660 52,930
========== ========== ========== ========
Supplementary
cash flow
information
Cash paid for
income taxes 677,119 816,763 1,084,760 6,951
Cash paid for
interest
expenses 36,731 53,499 71,698 459
Non-cash
financing and
investing
activities
Operating lease
right-of-use
assets obtained
in exchange for
operating lease
liabilities 126,623 3,127,334 1,081,311 6,929 Finance lease right-of-use assets obtained in exchange for finance lease liabilities 94,994 25,629 117,164 751 Remeasurement of operating lease liabilities and right-of-use assets due to modifications 8,092 - 7,674 49 Remeasurement of finance lease liabilities and right-of-use assets due to modifications - - 13,529 87 Adjustments to redeemable ordinary shares fair value measurement 3,290 3,210 319,624 2,048
Non-GAAP Financial Measures and Reconciliation
Adjusted OPERATING PROFIT
For the Fiscal Years Ended
------------------------------------------
February
February February February 28,
29, 2024 28, 2025 28, 2026 2026
---------- --------- --------- --------
JPY JPY JPY US$
OPERATING PROFIT 1,892,397 2,160,301 2,364,008 15,149
Plus:
listing-related
and
transformational
expenses(a) 126,165 149,685 62,934 403
--------- --------- --------- --------
Adjusted OPERATING
PROFIT 2,018,562 2,309,986 2,426,942 15,552
========= ========= ========= ========
(a) (Represents listing-related and other transformational
expenses incurred in connection with the Company's
IPO and corporate transformation initiatives for the
fiscal years ended February 29, 2024 and February
28, 2025 and 2026. These costs were recognized as
expenses in the statement of operations and were not
recorded as direct deductions from equity.)
(END) Dow Jones Newswires
June 30, 2026 16:15 ET
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