Micware Co., Ltd. Announces Financial Results for Fiscal Year Ended February 28, 2026

(Note) Unless otherwise specified, all dates mentioned in this release are based on Eastern Standard Time (ET).

Kobe, Japan – June 30, 2026 – Micware Co., Ltd. (the "Company" or "Micware"), a Japanese company providing software development services and innovative IT solutions primarily in the automotive and mobility sectors, today announced its financial results for the fiscal year ended February 28, 2026.

Financial Highlights for the Fiscal Year Ended February 28, 2026

Revenue for the fiscal year ended February 28, 2026, was ¥21.9 billion (US$140.3 million), an increase of 3.7% from ¥21.1 billion in the previous fiscal year.

Gross profit for the fiscal year ended February 28, 2026, was ¥8.0 billion (US$51.6 million), an increase of 8.9% from ¥7.4 billion in the previous fiscal year.

Gross profit margin for the fiscal year ended February 28, 2026, was 36.8%, up from 35.0% in the previous fiscal year.

Operating income for the fiscal year ended February 28, 2026, was ¥2.4 billion (US$15.1 million), an increase of 9.4% from ¥2.2 billion in the previous fiscal year.

Net income for the fiscal year ended February 28, 2026, was ¥1.6 billion (US$10.4 million), an increase of 19.6% from ¥1.4 billion in the previous fiscal year.

Net income attributable to common shareholders of the Company for the fiscal year ended February 28, 2026, was ¥1.6 billion (US$10.3 million), an increase of 20.4% from ¥1.3 billion in the previous fiscal year.

Adjusted operating income for the fiscal year ended February 28, 2026, was ¥2.4 billion (US$15.6 million), an increase of 5.1% from ¥2.3 billion in the previous fiscal year.

Basic and diluted earnings per share for the fiscal year ended February 28, 2026, were ¥28.58 (US$0.18), an increase from ¥25.49 in the previous fiscal year.

Kenji Narushima, Representative Director, Chairman and CEO of Micware, stated, "We are pleased to report strong performance for the fiscal year ended February 28, 2026. We are particularly proud of the steady growth in revenue and improved profitability, with revenue up 3.7% and net income up 19.6% year-over-year. These results demonstrate our consistent execution in our core automotive software business, supported by rigorous cost management and operational excellence."

"Beyond our financial performance, our Initial Public Offering (IPO) marked a significant milestone for Micware. On May 14, 2026, we successfully listed on the Nasdaq Global Market under the ticker symbol 'MWC'. This achievement is a testament to the dedication of our employees over the years, as well as the unwavering trust and support from our customers, partners, and everyone who has supported Micware. We view this listing not merely as an 'arrival point' but as a 'new starting point.' We are confident that this listing will provide us with enhanced visibility and resources for further growth as we pursue our long-term vision."

Narushima continued, "Looking ahead, we plan to expand our business through two strategic priorities. We are evolving from a Tier 1 software supplier for In-Vehicle Infotainment (IVI) to a Tier 1 software supplier for Software Defined Vehicles (SDV). This evolution will be supported by continued investment in our proprietary IVI software platform, micAuto-PF, which we believe will strengthen our core automotive software capabilities and drive our transition towards SDV-related solutions. In parallel, we are continuing our long-term, multi-year investment in research and development, with a particular focus on activities related to our Dynamic Street Map & Marketplace (DSMM). Effective July 1, 2026, the DSMM project will be renamed 'DynaPlanet.' We are confident that the commercialization of DynaPlanet, scheduled for the fiscal year ending February 2027, will expand our addressable market, diversify our revenue base, and enhance our competitive position. Through these initiatives, we aim to strengthen our technological capabilities, diversify our revenue streams, and deliver long-term value to our customers and shareholders, thereby supporting Micware's next phase of growth."

Financial Results for the Fiscal Year Ended February 28, 2026

Our financial results can be viewed on our IR website as of our press release dated June 30, 2026.

Information Regarding Earnings Conference Call

We will hold an earnings conference call on July 1, 2026, at 8:00 AM Eastern Time (9:00 PM Japan Standard Time). Those who wish to participate in our earnings conference call can do so using the access information below.

Conference Call Connection Information:

Date: July 1, 2026

Time: 8:00 AM ET (9:00 PM JST)

Registration Link: https://zoom.us/webinar/register/WN_lgiHZECmQ7G1LYvpUDGWDw#/

Pre-registration via the link above is required to attend the conference call. Upon completion of registration, you will receive details on dial-in and participation instructions. To ensure a smooth connection, please join at least 15 minutes prior to the start time.

For those unable to attend, a recording will be available approximately one hour after the conclusion of the conference call until June 30, 2027.

The live and archived webcast of the conference call will also be available on our IR website at www.ir-micware.com/ja.

Information Regarding Exchange Rates

For the convenience of readers, this press release includes U.S. dollar ( "USD" or "$") equivalents for certain Japanese yen ( "JPY") amounts. The conversion of Japanese yen to U.S. dollars is based on the exchange rate of US$1.00 = ¥156.05, as published on the website of the U.S. Federal Reserve, for the final business day of the fiscal year ended February 28, 2026, which was February 27, 2026.

About Micware

Micware is a software development and IT solutions provider headquartered in Kobe, Japan, with a primary focus on the automotive and mobility sectors. The Company's core business involves the development and sale of In-Vehicle Infotainment (IVI) systems, including multimedia, navigation, Human-Machine Interface (HMI), telematics, and driver assistance functions. Additionally, the Company has strengths in developing navigation software and location-based applications for smartphones.

Since its founding in 2003, Micware has accumulated over 20 years of experience and achievements in the automotive software field. The Company has established long-term business relationships with major Japanese automotive manufacturers (OEMs) such as Honda Motor Co., Ltd. and Toyota Motor Corporation. Leveraging its engineering capabilities, proprietary technologies, and long-standing OEM relationships, Micware ranked 9th in the IVI market among Japanese Tier 1 suppliers based on revenue as of February 28, 2024, according to the industry report "IVI, Automotive Navigation Systems, and Digital Mapping Market" commissioned by the Company and prepared by Frost & Sullivan. The Company operates 6 business companies and 13 locations in Japan, and has established subsidiaries in the United States, Thailand, and Germany for its overseas expansion.

For more information, please visit our IR website at www.ir-micware.com/ja.

Non-GAAP Financial Measures

In our reporting, we supplement our consolidated financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles ( "GAAP") with certain key financial measures that are not calculated in accordance with GAAP. These non-GAAP financial measures are reconciled to the most directly comparable financial measures calculated in accordance with GAAP as follows:

(a) Represents listing-related expenses and other transformation-related expenses incurred in connection with our IPO and corporate transformation initiatives for the fiscal years ended February 29, 2024, February 28, 2025, and February 28, 2026. These expenses are recognized as expenses in the consolidated statements of operations and are not recorded as a direct charge to equity.

Adjusted operating income is a financial measure not prepared in accordance with GAAP, and the use of the term "adjusted operating income" may differ from similar measures reported by other companies and may not be comparable to similarly named measures of other companies. We believe that this non-GAAP financial measure provides useful information to investors regarding our past operating performance. We present this non-GAAP financial measure as a supplemental performance measure to facilitate the evaluation of our operating performance by excluding the impact of certain items that fluctuate period to period, while allowing for a comparison of our performance on a GAAP basis. Specifically, adjusted operating income allows us to evaluate our performance excluding the impact of certain items that we believe do not directly reflect our core business operations, such as non-recurring expenses like listing-related expenses and business transformation expenses, and other non-recurring income such as litigation-related reimbursements. This non-GAAP financial measure also serves as a key performance indicator ( "KPI") for our internal evaluation of operating performance and is used in determining incentive compensation for our management, including our executives.

Adjusted operating income is not a measure of our financial performance in accordance with GAAP, and should not be considered in isolation or as a substitute for operating income presented in accordance with GAAP, or any other financial statement data presented as measures of financial performance or liquidity. Accordingly, our non-GAAP financial measures should be considered in conjunction with our consolidated financial statements prepared in accordance with GAAP and presented in Item 8 of our Annual Report on Form 20-F. We understand that although adjusted operating income is frequently used by securities analysts, lenders, and others in their evaluation of companies, it has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results of operations as reported under GAAP. Such limitations include, for example, that adjusted operating income does not fully reflect our cash expenditures, our future capital requirements or our contractual commitments. Furthermore, adjusted operating income does not reflect changes in our working capital needs and the associated cash requirements. In addition, adjusted operating income does not reflect our interest payments on debt or the cash requirements to service our debt obligations.

Due to these limitations, adjusted operating income should not be considered as a measure of discretionary cash available to us to reinvest in our business growth or as a measure of cash available to us to meet our debt obligations.

Consolidated Balance Sheets

Consolidated Statements of Operations and Comprehensive Income

Consolidated Statements of Cash Flows

Non-GAAP Financial Measure: Adjusted Operating Income

can be viewed here (on our IR website).

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these forward-looking statements by looking for words like "approximately," "believe," "hope," "expect," "forecast," "project," "estimate," "plan," "intend," "anticipate," "will," "should," "could," "may," and "might," and other similar expressions in this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, uncertainties related to market conditions and other factors described in the "Risk Factors" section of our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ( "SEC"). We believe that the expectations reflected in the forward-looking statements are reasonable, but we cannot guarantee that such expectations will prove to be correct. We caution investors that actual results may differ materially from those projected and encourage investors to review other factors that may affect our future performance, as described in our Annual Report on Form 20-F and other SEC filings. Additional factors are described in our SEC filings, which are available at www.sec.gov.

Contact:

Micware Co., Ltd.

IR Department

Email: mic_ir@micware.co.jp

Public Relations Department

Email: mic_pr@micware.co.jp

Ascent Investor Relations LLC Tina Xiao Phone: +1-646-932-7242 Email: investors@ascent-ir.com