Fiscal Year 2026 Financial Highlights
- Revenue was
JPY21.9 billion (US$140.3 million ) in fiscal year 2026, an increase of 3.7% fromJPY21.1 billion in fiscal year 2025. - Gross profit was
JPY8.0 billion (US$51.6 million ) in fiscal year 2026, an increase of 8.9% fromJPY7.4 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% fromJPY2.2 billion in fiscal year 2025. - Net income was
JPY1.6 billion (US$10.4 million ) in fiscal year 2026, an increase of 19.6% fromJPY1.4 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% fromJPY1.3 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% fromJPY2.3 billion in fiscal year 2025. - Basic and diluted earnings per share were
JPY28.58 (US$0.18 ) in fiscal year 2026, compared toJPY25.49 in fiscal year 2025.
Mr.
“Beyond our financial results, the completion of our initial public offering was a defining milestone for Micware. On
Fiscal Year 2026 Financial Results
Revenue
Revenue was
- Revenue from software development services was
JPY17.5 billion (US$112.3 million ) in fiscal year 2026, an increase of 2.0% fromJPY17.2 billion in fiscal year 2025. This increase was primarily attributable to: (i) aJPY417.7 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) aJPY89.8 million increase in sales in the Location-Based Services (“LBS”) segment, mainly due to aJPY568.3 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 aJPY89.4 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 aJPY566.9 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) aJPY164.1 million decrease in sales in the other segment, mainly due to aJPY210.8 million increase in intersegment eliminations resulting from higher intercompany transactions associated with revenue growth in the SDV and LBS segments, partially offset by a netJPY43.3 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% fromJPY3.18 billion in fiscal year 2025. This increase was primarily attributable to aJPY209.3 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 aJPY155.5 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% fromJPY0.8 billion in fiscal year 2025. The increase was primarily due to aJPY367.2 million increase in sales in the SDV segment, includingJPY245.1 million in revenue contributions from the business acquired through business combinations during the current period as well asJPY181.2 million in revenue from ad hoc development projects for non-OEM customers, partially offset by aJPY110.6 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
Gross Profit
Gross profit was
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
- Sales, general, and administrative expenses were
JPY4.1 billion (US$26.6 million ) in fiscal year 2026, a decrease of 0.5% fromJPY4.2 billion in fiscal year 2025. The decrease was primarily attributable to aJPY94.3 million decrease in professional fees and license fees on a combined basis and aJPY47.8 million decrease in personnel expenses, partially offset by an increase ofJPY71.9 million in advertising expenses. The remaining net change was primarily attributable to increases ofJPY28.2 million in travel expenses andJPY25.2 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% fromJPY1.1 billion in fiscal year 2025. This increase was primarily attributable to increased expenditures related to the DynaPlanet project.
Operating Profit
Operating profit was
Net Income
Net income was
Net Income Attributable to the Company’s Ordinary Shareholders
Net income attributable to the Company’s ordinary shareholders was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were
Financial Condition
As of
Net cash provided by operating activities was
Net cash used in investing activities was
Net cash used in financing activities was
Recent Developments
On
On
The Company’s ADSs first began trading on the Nasdaq Global Market on
Earnings Call Information
The Company will host an earnings call at
| Access details: | ||
| Date: | ||
| Time: | 8:00 am U. | |
| Pre-registration Link: | https://zoom.us/webinar/register/WN_lgiHZECmQ7G1LYvpUDGWDw#/ | |
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
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 | ||||||||||||||
2024 | 2025 | 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 |
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
For more information, please contact:
Investor Relations Department
Email: mic_ir@micware.co.jp
Public Relations
Email: mic_pr@micware.co.jp
Ascent Investor Relations LLC
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Japanese yen (“JPY”), and in thousands of
| As of 2025 | As of 2026 | As of 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 | |||||||||
| 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 | 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 | 480,000 | 480,000 | 3,076 | |||||||||
| (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 |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Amounts in thousands of JPY, and in thousands of US$, except for number of shares and per share data)
| For the Fiscal Years Ended | ||||||||||||||||
2024 | 2025 | 2026 | 2026 | |||||||||||||
| JPY | JPY | JPY | US$ | |||||||||||||
| 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 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of JPY, and in thousands of US$)
| For the Fiscal Years Ended | ||||||||||||||||
2024 | 2025 | 2026 | 2026 | |||||||||||||
| JPY | JPY | JPY | US$ | |||||||||||||
| 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 | ||||||||||||||||
2024 | 2025 | 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 |
