Ma ageme t will host a ea i gs webi a o F iday, Octobe 16, at 8:30 a.m. ET
TOKYO, Oct. 15, 2026 (GLOBE NEWSWIRE) — CTW (Nasdaq: CTW) (“CTW” o “the Compa y”), a leadi g game platfo m compa y p ovidi g global access to web-based games th ough its flagship platfo m, G123.jp, today epo ted fi a cial esults fo the fiscal yea e ded July 31, 2026 (“FY26”).
- Ge e ated eve ue of $82.5 millio i FY26, dow 9% YoY, while i c easi g segme t p ofits 3% YoY to $32.3 millio , o 33.4% of i -game pu chases (up f om 29.3% i FY25)
- Reduced adve tisi g expe se by $11.4 millio , o 22% YoY, a otably la ge decli e tha eve ue, eflecti g CTW’s ROAS-focused busi ess model a d discipli ed app oach to ma keti g spe d
- G ew eve ue f om use s outside of Japa 8% YoY to $29.7 millio , o 36% of total eve ue (up f om 30% i FY25), led by South Ko ea, up 12% YoY, a d Taiwa , Ho g Ko g a d Macau, up 71% YoY collectively
- Repo ted et loss of $4.1 millio ($0.07 pe sha e) compa ed to et i come of $3.8 millio ($0.06 pe sha e) i FY25, a d positive Adjusted EBITDA of $3.5 millio (4.2% of eve ue), dow 56% YoY f om $8.0 millio (8.8% of eve ue)
- E ded FY26 with $14.4 millio i cash a d cash equivale ts, up 18% YoY f om $12.2 millio , a d o debt
- Ope ed CTW’s fi st No th Ame ica office at O e Wo ld T ade Ce te i New Yo k City i Feb ua y 2026, buildi g a local team focused o pa t e ships, ma keti g, use acquisitio , a d co po ate commu icatio s to suppo t the Compa y’s global expa sio i itiative
- Lau ched 15 ew games o G123.jp ac oss FY26, i cludi g High School of the Dead Day 0 a d The Apotheca y Dia ies Palace Ch o icles, b i gi g total active games to 42, with 16 games i backlog as of July 31, 2026. High School of the Dead Day 0, which lau ched o Ap il 28, 2026, ge e ated app oximately $6.0 millio i eve ue f om lau ch th ough July 31, 2026, a pe iod of slightly mo e tha th ee mo ths, o a ave age of app oximately $2.0 millio pe mo th, maki g it the highest eve ue-ge e ati g game o G123.jp du i g that pe iod, ahead of Vivid A my.
“Fiscal 2026 was a yea of mixed pe fo ma ce fo CTW. Seve al of ou game eleases did ot achieve the e gageme t a d mo etizatio we expected, a d that weighed o ou ove all esults. Fu the mo e, we pulled back o adve tisi g a d use acquisitio spe di g o ce we saw these weake e gageme t t e ds, which egatively impacted ou use base.
Howeve , othe developme ts du i g the yea st e gthe ed ou co victio i the lo g-te m oppo tu ity fo G123. Most otably, the lau ch of High School of the Dead Day 0 i the seco d half demo st ated the positive impact that the ight combi atio of ecog izable IP, compelli g gameplay, a d effective executio ca have o ou platfo m. Additio ally, we also saw some e cou agi g sig s withi ou use base that we believe a e impo ta t whe evaluati g the health of the platfo m. While ove all use s decli ed sig ifica tly i fiscal 2026, ou payi g use s emai ed ema kably esilie t, i c easi g slightly yea ove yea . As a esult, mo thly payi g active use s ep ese ted 3.95% of mo thly active use s compa ed with 2.62% i fiscal 2025, while ave age i -game pu chases pe mo thly active use i c eased 35%. We believe these met ics eflect the esilie ce of G123’s co e playe base: payi g use s held steady eve as lowe acquisitio spe di g educed ove all t affic. At the same time, daily e gageme t, spe di g pe mo thly payi g use a d ea ly-stage ete tio amo g payi g use s we e softe , a d b oade i g ou active use base a d i c easi g the f eque cy with which ou playe s etu a d spe d a e p io ities fo fiscal 2027.
That disti ctio is impo ta t, as we do ot view fiscal 2026 as evide ce that the oppo tu ity fo ou platfo m has dimi ished. Rathe , the yea ei fo ced how much the quality a d executio of i dividual game eleases matte to ou esults. We a e taki g those lesso s i to fiscal 2027 by becomi g mo e focused o the games we b i g to G123, how we positio a d ma ket those titles, a d whe e we allocate capital. Ou objective is to build upo the cha acte istics that d ove ou st o ge -pe fo mi g titles a d make successful lau ches mo e co siste t ac oss ou po tfolio. Fiscal 2026 also demo st ated that ou ROAS-d ive model is built to be esilie t whe a title u de pe fo ms a d to accele ate whe o e succeeds. Whe games fell sho t of ou etu th esholds, we educed adve tisi g spe di g quickly, which is why segme t p ofits g ew a d ROAS emai ed above 100% i a yea whe eve ue decli ed. Whe a game demo st ates st o g e gageme t a d mo etizatio , as High School of the Dead did followi g its lau ch Day 0 i late Ap il, we di ect ma keti g i vestme t towa d it to scale its audie ce. That discipli e limited the dow side this past yea , a d we believe it will compou d the upside as the quality of ou pipeli e imp oves.
We a e also e cou aged by the oppo tu ity outside Japa . I te atio al eve ue g ew du i g fiscal 2026 despite the decli e i total Compa y eve ue. Mo eove , ou New Yo k p ese ce gives us g eate ability to localize ou co te t a d ma keti g i Weste ma kets, pu sue pa t e ships, a d bette u de sta d No th Ame ica game s.
With 42 active games, a g owi g i te atio al p ese ce, a stable base of mo thly payi g use s, a d additio al titles i developme t, we believe the oppo tu ity ahead of CTW emai s substa tial. Ou task ow is executio , a d we e te fiscal 2027 focused o applyi g what we lea ed this yea to delive mo e co siste t co te t pe fo ma ce, b oade ou e gaged audie ce, a d etu CTW to sustai able g owth.”
Additio ally, ac oss all fu ctio s, FY26 cost a d expe ses i cluded $2.0 millio of o -cash sha e-based compe satio ( o e i FY25), most of which elated to sha e optio s g a ted i Decembe 2025.
| * | Fu the cla ificatio a d expla atio of Segme t p ofits ca be fou d i the Segme t Repo ti g sectio of the elease a d at ctw.i c/i vesto s. |
| ** | Fu the cla ificatio a d expla atio of o -GAAP measu es a d eco ciliatio to the most compa able GAAP measu e ca be fou d i the “U.S. GAAP Reco ciliatio of No -GAAP Adjusted Results” sectio of the elease a d at ctw.i c/i vesto s. |
Ma ageme t will host a ea i gs webi a at 8:30 a.m. ET o F iday, Octobe 16, 2026, to eview these fi a cial esults a d p ovide a ge e al co po ate update. I te ested i vesto s ca egiste fo the webi a he e.
The Compa y has posted a suppleme tal slide p ese tatio accompa yi g this elease to its i vesto elatio s website at ctw.i c/i vesto s. I vesto s a e e cou aged to eview these mate ials i co ju ctio with this elease.
CTW is a leadi g game platfo m compa y p ovidi g global access to web-based, f ee-to-play games i spi ed by popula Japa ese a ime IP, i cludi g So I’m a Spide , So What? Rule of the Laby i th, A ifu eta: F om Commo place to Wo ld’s St o gest – Rebellio Soul, a d Quee ’s Blade Limit B eak. CTW delive s these games th ough its globally accessible flagship platfo m, G123.jp, which has accumulated payi g use s i ove 200 cou t ies si ce its 2018 lau ch. Fou ded i Tokyo i 2013, CTW pa t e s with a ime a d ma ga IP holde s to b i g officially lice sed titles to playe s a ou d the wo ld with o dow loads o accou t egist atio equi ed.
Fo mo e i fo matio , visit www.ctw.i c o G123.jp.
This a ou ceme t co tai s fo wa d-looki g stateme ts withi the mea i g of Sectio 21E of the U.S. Secu ities Excha ge Act of 1934, as ame ded. These fo wa d-looki g stateme ts a e made u de the “safe ha bo ” p ovisio s of the U.S. P ivate Secu ities Litigatio Refo m Act of 1995. These stateme ts ca be ide tified by te mi ology such as “will,” “expects,” “a ticipates,” “futu e,” “i te ds,” “pla s,” “believes,” “estimates,” “pote tial,” “co ti ue,” “o goi g,” “ta gets,” “guida ce” a d simila stateme ts. CTW may also make w itte o o al fo wa d-looki g stateme ts i its pe iodic epo ts to the U.S. Secu ities a d Excha ge Commissio (the “SEC”), i its a ual epo t to sha eholde s, i p ess eleases a d othe w itte mate ials a d i o al stateme ts made by its office s, di ecto s o employees to thi d pa ties. A y stateme ts that a e ot histo ical facts, i cludi g stateme ts about CTW’s beliefs a d expectatio s, a e fo wa d-looki g stateme ts. Fo wa d-looki g stateme ts i volve i he e t isks a d u ce tai ties. A umbe of facto s could cause actual esults to diffe mate ially f om those co tai ed i a y fo wa d-looki g stateme t, i cludi g but ot limited to the followi g: CTW’s g owth st ategies; its futu e busi ess developme t, esults of ope atio s a d fi a cial co ditio ; its ability to dist ibute successful a d e gagi g games with high “playability” o its platfo m; its ability to efficie tly att act a d etai e d-use s who come to play a d make i -game pu chases; its ability to achieve positive etu o i vestme t o use acquisitio effo ts; its ability to establish a d mai tai elatio ships with game develope s; gove me tal policies a d egulatio s elati g to CTW’s i dust y; a d ge e al eco omic a d busi ess co ditio s globally a d i Japa a d assumptio s u de lyi g o elated to a y of the fo egoi g. Fu the i fo matio ega di g these a d othe isks, u ce tai ties o facto s is i cluded i CTW’s fili gs with the SEC. All i fo matio p ovided i this p ess elease a d i the attachme ts is as of the date of this p ess elease, a d CTW u de takes o obligatio to update a y fo wa d-looki g stateme t, except as equi ed u de applicable law.
Pat ick Fede le | Head of I vesto Relatio si vesto @ctw.i c
The followi g table i cludes the Compa y’s key ope ati g met ics fo the yea s e ded July 31, 2026, 2025, a d 2024.
| G oss i -game pu chase amou t(1) | $ | 96,813,340 | $ | 106,994,440 | $ | 84,461,982 | Payi g daily active use s (“PDAUs”)(2) | 15,152 | 17,458 | 16,446 | Daily active use s (“DAUs”)(2) | 245,522 | 264,149 | 197,100 | PDAUs to DAUs atio | 6.17 | % | 6.61 | % | 8.34 | % | Payi g mo thly active use s (“PMAUs”)(3) | 89,053 | 88,503 | 62,621 | Mo thly active use s (“MAUs”)(3) | 2,257,341 | 3,378,835 | 2,301,929 | PMAUs to MAUs atio | 3.95 | % | 2.62 | % | 2.72 | % | PDAUs to PMAUs atio | 17.01 | % | 19.73 | % | 26.26 | % | DAUs to MAUs atio | 10.88 | % | 7.82 | % | 8.56 | % | ARPPDAU | $ | 17.51 | $ | 16.79 | $ | 14.07 | ARPDAU | $ | 1.08 | 1.11 | $ | 1.17 | ARPPMAU | $ | 90.60 | $ | 100.74 | $ | 112.40 | ARPMAU | $ | 3.57 | $ | 2.64 | $ | 3.06 | Day 1 ete tio ate fo payi g use s(4) | 57.4 | % | 59.6 | % | 62.7 | % | Day 7 ete tio ate fo payi g use s(4) | 35.8 | % | 37.5 | % | 41.0 | % | Day 30 ete tio ate fo payi g use s(4) | 17.1 | % | 17.1 | % | 21.3 | % | Day 1 ete tio ate fo active use s(5) | 6.1 | % | 5.9 | % | 6.2 | % | Day 7 ete tio ate fo active use s(5) | 2.6 | % | 2.2 | % | 2.4 | % | Day 30 ete tio ate fo active use s(5) | 1.0 | % | 0.8 | % | 0.9 | % | Retu o adve tiseme t spe d (“ROAS”) | 105.8 | % | 116.4 | % | 99.3 | % |
| (1) | “G oss i -game pu chase amou t” mea s the total i -pu chase amou ts, o top-ups, paid by e d-use s fo games o G123.jp platfo m. | (2) | PDAUs a d DAUs fo each pe iod ep ese ts the ave age umbe of PDAUs a d DAUs ac oss all the days of the espective pe iod. | (3) | PMAUs a d MAUs fo each pe iod ep ese ts the ave age umbe of PMAUs a d MAUs ac oss all the mo ths of the espective pe iod. | (4) | Payi g use ete tio ate is calculated by dividi g the umbe of payi g use s who etu to the same game o a specific day (e.g., Day 1, Day 7, o Day 30) a d emai active fo at least o e mi ute, by the umbe of use s who made thei fi st i -game pu chase i that game o Day 0. Payi g use ete tio ate is measu ed o a pe -game basis a d eflects whethe the same payi g use etu s to the same game followi g thei i itial pu chase activity. We t ack payi g use ete tio ates o a pe -game basis a d mo ito use ete tio fo each subseque t day followi g a use ’s i itial i -game pu chase. Fo each day i a give pe iod, we calculate the platfo m-level payi g use ete tio ate as the ave age of the payi g use ete tio ates ac oss all games o ou platfo m. The ove all platfo m payi g use ete tio ate fo the pe iod is the dete mi ed by ave agi g these daily platfo m ete tio ates ove all days i the espective pe iod. | (5) | Active use ete tio ate is calculated by dividi g the umbe of use s who etu to the same game o a specific day (e.g., Day 1, Day 7, o Day 30) a d emai active fo at least o e mi ute, by the umbe of use s who played that game fo the fi st time o Day 0 a d i itiated gameplay by c eati g a cha acte ole o that day. Active use ete tio ate is measu ed o a pe -game basis a d o ly i cludes ew use s to that specific game. We t ack active use ete tio ates o a pe -game basis a d mo ito use ete tio fo each subseque t day followi g a use ’s i itial i -game pu chase. Fo each day i a give pe iod, we calculate the platfo m-level active use ete tio ate as the ave age of the active use ete tio ates ac oss all games o ou platfo m. The ove all platfo m active use ete tio ate fo the pe iod is the dete mi ed by ave agi g these daily platfo m ete tio ates ove all days i the espective pe iod. |
- “ARPDAU” a e to ave age daily i -game pu chase amou t pe daily active use du i g a give pe iod, calculated by dividi g the total i -game pu chase amou t i a give pe iod ge e ated o ou G123.jp platfo m by the ave age umbe of daily active use s, which is ave aged ove each day withi the espective pe iod, by fu the dividi g the umbe of days i the espective pe iod;
- “ARPPDAU” a e to ave age daily i -game pu chase amou t pe payi g daily active use du i g a give pe iod, calculated by dividi g the total i -game pu chase amou t i a give pe iod by the ave age umbe of payi g daily active use s, which is ave aged ove each day withi the espective pe iod, by fu the dividi g the umbe of days i the espective pe iod;
- “ARPMAU” a e to ave age mo thly i -game pu chase amou t pe mo thly active use du i g a give pe iod, calculated by dividi g the total i -game pu chase amou t i a give pe iod ge e ated o ou G123.jp platfo m by the ave age umbe of mo thly active use s, which is ave aged ove each mo th by fu the dividi g by the umbe of mo ths i the espective pe iod;
- “ARPPMAU” a e to ave age mo thly i -game pu chase amou t pe payi g mo thly active use du i g a give pe iod, calculated by dividi g the total i -game pu chase amou t i a give pe iod by the ave age umbe of payi g mo thly active use s, which is ave aged ove each mo th by fu the dividi g by the umbe of mo ths i the espective pe iod;
- “DAUs” a e to daily active use s, which is a pe fo ma ce i dicato that captu es the umbe of Active Use s who accessed ou G123.jp platfo m at least o ce du i g a 24-hou pe iod. DAUs fo a give pe iod is the ave age DAUs ac oss all days i the espective pe iod, which is calculated by summi g the umbe of DAUs fo each day du i g the give pe iod a d dividi g the total by the umbe of days i the espective pe iod;
- “MAUs” a e to mo thly active use s, which is a pe fo ma ce i dicato that captu es the umbe of Active Use s who accessed ou G123.jp platfo m at least o ce du i g the p ecedi g 30-day pe iod. MAUs fo a give pe iod is the ave age MAUs ac oss all mo ths i the espective pe iod, which is calculated by summi g the umbe of MAUs fo each mo th du i g the give pe iod a d dividi g the total by the umbe of mo ths i the espective pe iod;
- “PDAUs” a e to payi g daily active use s, which is a pe fo ma ce i dicato that captu es the umbe of use s who made at least o e i -game pu chase, a d have spe t at least o e (1) mi ute o G123.jp platfo m du i g the p ecedi g 24-hou pe iod. PDAUs fo a give pe iod is the ave age PDAUs ac oss all days i the espective pe iod, which is calculated by summi g the umbe of PDAUs fo each day du i g the give pe iod a d dividi g the total by the umbe of days i the espective pe iod;
- “PMAUs” a e to payi g mo thly active use s, which is a pe fo ma ce i dicato that captu es the umbe of use s who made at least o e i -game pu chase, a d have spe t at least o e (1) mi ute o G123.jp platfo m du i g the p ecedi g 30-day pe iod. PMAUs fo a give pe iod is the ave age PMAUs ac oss all mo ths i the espective pe iod, which is calculated by summi g the umbe of PMAUs fo each mo th du i g the give pe iod a d dividi g the total by the umbe of mo ths i the espective pe iod;
- “ROAS” a e to etu o adve tiseme t spe di g based o c eated use s, calculated by dividi g i -game pu chase amou t ge e ated by c eated use by adve tisi g expe ses du i g the applicable pe iod. Adve tisi g expe ses i clude all expe ses eco ded u de adve tisi g expe ses i ou fi a cial stateme ts du i g the applicable pe iod, which co sist p ima ily of paid media costs fo o li e cha els a d ad placeme ts that a e di ectly att ibutable to digital ma keti g effo ts aimed at acqui i g ew use s. We exclude f om ou ROAS calculatio the costs ot classified as adve tisi g expe ses, i cludi g (i) compe satio fo ma keti g pe so el, (ii) t avel expe ses, eve t- elated costs, a d (iii) ge e al ove head, which a e ot co side ed adve tisi g expe ses u de ou accou ti g policies a d a e sepa ately epo ted withi the b oade sales a d ma keti g expe ses li e item i ou fi a cial stateme ts. I -game pu chases ge e ated by c eated use s eflect o ly spe di g by use s acqui ed du i g the applicable pe iod a d exclude i -game pu chases made by existi g use s. This diffe s f om the g oss i -game pu chase amou ts disclosed elsewhe e, which ep ese t total spe di g by all use s o the platfo m;
| Reve ue | $ | 82,509,410 | $ | 90,370,793 | $ | 68,424,577 | Cost a d expe ses: | Cost of eve ue | 28,471,179 | 22,040,054 | 16,211,779 | Ge e al a d admi ist ative expe ses | 11,693,359 | 8,479,853 | 5,177,570 | Resea ch a d developme t expe ses | 3,805,447 | 5,528,733 | 952,440 | Sales a d ma keti g expe ses | 45,863,160 | 55,387,277 | 39,426,506 | Total cost a d expe ses | 89,833,145 | 91,435,917 | 61,768,295 | (Loss) i come f om ope atio s | (7,323,735 | ) | (1,065,124 | ) | 6,656,282 | Othe i come (expe se): | I te est i come, et | 540,933 | 494,358 | 300,985 | Fo eig cu e cy t a sactio gai (loss) | 293,764 | (287,946 | ) | 784,674 | Othe i come | 424,638 | 555,012 | 454,286 | Co ti ge t gai o ecove y of p eviously impai ed assets | 238,561 | 4,709,029 | — | Total othe i come, et | 1,497,896 | 5,470,453 | 1,539,945 | (Loss) i come befo e i come tax | (5,825,839 | ) | 4,405,329 | 8,196,227 | I come tax (be efit) expe se | (1,694,171 | ) | 576,766 | 2,218,588 | Net (loss) i come | $ | (4,131,668 | ) | $ | 3,828,563 | $ | 5,977,639 | Othe comp ehe sive loss: | Fo eig cu e cy t a slatio adjustme t | $ | (804,411 | ) | $ | (42,427 | ) | $ | (1,021,512 | ) | Comp ehe sive (loss) i come | $ | (4,936,079 | ) | $ | 3,786,136 | $ | 4,956,127 | (Loss) ea i gs pe sha e – basic a d diluted | $ | (0.07 | ) | $ | 0.06 | $ | 0.10 | Weighted ave age umbe of o di a y sha es outsta di g – basic a d diluted | 62,418,382 | 60,000,000 | 60,000,000 |
| Cu e t assets: | Cash a d cash equivale ts | $ | 14,437,097 | $ | 12,208,630 | Rest icted cash | 125,812 | 160,620 | Accou ts eceivable, et | 1,688,806 | 1,410,083 | Defe ed offe i g cost | — | 1,429,523 | P epaid expe ses a d othe cu e t assets | 4,293,774 | 2,866,243 | Total cu e t assets | 20,545,489 | 18,075,099 | No -cu e t assets: | P ope ty, pla t a d equipme t, et | 1,078,644 | 1,098,679 | I ta gible assets, et | 3,536,837 | — | P epaid oyalties, et | 4,063,304 | 3,499,962 | I vestme ts i films a d televisio p og ams, et | 225,967 | 576,956 | Adva ce to game develope s, et | 17,932,786 | 14,561,726 | Defe ed tax assets, et | 102,939 | 49,067 | Right-of-use assets, et | 6,100,345 | 6,782,354 | Rest icted cash, o cu e t | 497,905 | — | Othe o cu e t assets | 755,590 | 1,858,413 | Total o -cu e t assets | 34,294,317 | 28,427,157 | $ | 54,839,806 | $ | 46,502,256 | Cu e t liabilities: | Accou ts payable | $ | 2,289,251 | $ | 2,377,279 | Acc ued adve tisi g expe ses | 4,792,659 | 475,099 | Tax payable | 1,774,598 | 293,482 | Lease liabilities – cu e t | 2,230,338 | 2,728,326 | Acc ued expe ses a d othe cu e t liabilities | 1,965,165 | 2,549,763 | Total cu e t liabilities | 13,052,011 | 8,423,949 | No -cu e t liabilities: | Lease liabilities – o cu e t | 4,053,098 | 4,222,089 | Defe ed tax liabilities, et | 3,629,799 | 6,208,161 | Total o -cu e t liabilities | 7,682,897 | 10,430,250 | Total liabilities | 20,734,908 | 18,854,199 | Commitme ts a d co ti ge cies | Sha eholde s’ equity: | Class A o di a y sha es ($0.0001 pa value; 200,000,000 sha es autho ized; 52,616,000 a d 48,000,000 sha es issued, a d 50,529,048 a d 48,000,000 sha es outsta di g, as of July 31, 2026 a d 2025, espectively)* | 5,053 | 4,800 | Class B o di a y sha es ($0.0001 pa value; 20,000,000 sha es autho ized; 12,000,000 sha es issued a d outsta di g as of July 31, 2026 a d 2025) | 1,200 | 1,200 | Additio al paid-i capital | 12,264,982 | 872,315 | Statuto y ese ve | 691,380 | 676,416 | Retai ed ea i gs | 27,715,707 | 31,862,339 | Accumulated othe comp ehe sive loss | (6,573,424 | ) | (5,769,013 | ) | Total sha eholde s’ equity | 34,104,898 | 27,648,057 | $ | 54,839,806 | $ | 46,502,256 |
| * | Sha es issued i clude 2,086,952 Class A o di a y sha es held by Futu T ustee Limited i the Compa y’s sha e i ce tive ese ve that had ot bee delive ed to awa d holde s as of July 31, 2026; these sha es a e ot co side ed outsta di g |
| Bala ce as of July 31, 2023 | 48,000,000 | $ | 4,800 | 12,000,000 | $ | 1,200 | $ | 849,848 | $ | 673,339 | $ | 22,059,214 | $ | (4,705,074 | ) | $ | 18,883,327 | Net i come | — | — | — | — | — | — | 5,977,639 | — | 5,977,639 | App op iatio to statuto y ese ve | — | — | — | — | — | 817 | (817 | ) | — | — | Fo eig cu e cy t a slatio adjustme t | — | — | — | — | — | — | — | (1,021,512 | ) | (1,021,512 | ) | Bala ce as of July 31, 2024 | 48,000,000 | $ | 4,800 | 12,000,000 | $ | 1,200 | $ | 849,848 | $ | 674,156 | $ | 28,036,036 | $ | (5,726,586 | ) | $ | 23,839,454 | Net i come | — | — | — | — | — | — | 3,828,563 | — | 3,828,563 | App op iatio to statuto y ese ve | — | — | — | — | — | 2,260 | (2,260 | ) | — | — | Capital i jectio | — | — | — | — | 22,467 | — | — | — | 22,467 | Fo eig cu e cy t a slatio adjustme t | — | — | — | — | — | — | — | (42,427 | ) | (42,427 | ) | Bala ce as of July 31, 2025 | 48,000,000 | $ | 4,800 | 12,000,000 | $ | 1,200 | $ | 872,315 | $ | 676,416 | $ | 31,862,339 | $ | (5,769,013 | ) | $ | 27,648,057 | Issua ce of o di a y sha es i the IPO, et of offe i g costs of $2,756,303 (Note 15) | 2,400,000 | 240 | — | — | 9,243,457 | — | — | — | 9,243,697 | Sha e-based compe satio – optio s a d RSUs (Note 16) | — | — | — | — | 1,965,368 | — | — | — | 1,965,368 | Sha es issued o RSU settleme t (Note 16) | 24,000 | 2 | — | — | 29,038 | — | — | — | 29,040 | Sha es issued to IPO co sulti g fi m i settleme t of offe i g costs (Note 15) | 96,000 | 10 | — | — | 142,070 | — | — | — | 142,080 | Exe cise of sha e optio s (Note 16) | 9,048 | 1 | — | — | 12,734 | — | — | — | 12,735 | App op iatio to statuto y ese ve | — | — | — | — | — | 14,964 | (14,964 | ) | — | — | Net loss | — | — | — | — | — | — | (4,131,668 | ) | — | (4,131,668 | ) | Fo eig cu e cy t a slatio adjustme t | — | — | — | — | — | — | — | (804,411 | ) | (804,411 | ) | Bala ce as of July 31, 2026 | 50,529,048 | $ | 5,053 | 12,000,000 | $ | 1,200 | $ | 12,264,982 | $ | 691,380 | $ | 27,715,707 | $ | (6,573,424 | ) | $ | 34,104,898 |
Sha e data a e et ospectively estated fo the effect of the sha e eo ga izatio .
| Net (loss) i come | $ | (4,131,668 | ) | $ | 3,828,563 | $ | 5,977,639 | Adjustme ts to eco cile et (loss) i come to et cash (used i ) p ovided by ope ati g activities: | Sha e-based compe satio | 1,994,408 | — | — | Dep eciatio a d amo tizatio | 2,560,907 | 2,673,255 | 2,067,706 | Impai me t of adva ce to game develope s | 2,635,761 | 3,147,411 | 401,451 | Impai me t of p epaid oyalties | — | 483,149 | — | Mi imum gua a tee ca ied ove by lice so | (30,522 | ) | — | — | Impai me t of i vestme ts i films a d televisio p og ams | — | — | 46,453 | Amo tizatio of ight-of-use assets | 2,881,333 | 2,455,211 | 1,634,833 | Loss f om te mi atio of ope ati g lease ag eeme t | — | 33,055 | — | Loss (gai ) f om disposal, de ecog itio a d impai me t of p ope ty, equipme t a d softwa e | 31,543 | 21,332 | (19,931 | ) | Fo eig cu e cy excha ge (gai ) loss, et | (726,079 | ) | 450,964 | (742,819 | ) | Defe ed i come tax (be efit) expe se | (2,399,972 | ) | 507,034 | 1,734,765 | Cha ges i ope ati g assets a d liabilities: | Accou ts eceivable, et | (352,516 | ) | (33,896 | ) | 12,495 | Amou t due f om elated pa ties | (9,414 | ) | — | — | P epaid expe ses a d othe cu e t assets, et | (749,702 | ) | (630,207 | ) | (1,536,692 | ) | Adva ce to game develope s, et | (6,007,955 | ) | (3,946,469 | ) | (4,559,682 | ) | P epaid oyalties, et | (1,380,447 | ) | (2,024,883 | ) | (2,105,413 | ) | Othe o -cu e t assets | (350,040 | ) | (80,476 | ) | 374,397 | Accou ts payable | 29,205 | (939,611 | ) | (811,959 | ) | Acc ued adve tisi g expe ses | 4,438,296 | (2,948,326 | ) | 931,036 | Tax payable | 1,500,692 | (518,420 | ) | 149,583 | Acc ued expe ses a d othe cu e t liabilities | (200,322 | ) | 87,188 | (13,896 | ) | Ope ati g lease liabilities | (2,851,219 | ) | (2,501,114 | ) | (1,898,561 | ) | Amou t due to elated pa ties | (39,282 | ) | 47,615 | (53,758 | ) | Net cash (used i ) p ovided by ope ati g activities | $ | (3,156,993 | ) | $ | 111,375 | $ | 1,587,647 | Pu chase of p ope ty a d equipme t | (408,305 | ) | (584,668 | ) | (710,457 | ) | P oceeds f om disposal of p ope ty a d equipme t | 25,723 | 28,109 | 106,374 | I vestme ts i films a d televisio p og ams | (149,345 | ) | (258,882 | ) | (569,647 | ) | Pu chase of i ta gible assets a d capitalized softwa e developme t costs | (4,131,713 | ) | (9,947 | ) | — | Adva ces to thi d-pa ty loa | — | (410,000 | ) | — | P oceeds f om due f om elated pa ties | — | 55,351 | — | Net cash used i i vesti g activities | $ | (4,663,640 | ) | $ | (1,180,037 | ) | $ | (1,173,730 | ) | P oceeds f om sha eholde ’s co t ibutio | — | 22,202 | — | P oceeds f om issua ce of o di a y sha es i IPO, et of u de w iti g discou ts a d issua ce costs deducted at closi g | 10,645,000 | — | — | P oceeds f om exe cise of sha e optio s | 6,473 | — | — | Payme t of othe offe i g costs | (114,671 | ) | (1,134,538 | ) | — | Net cash p ovided by (used i ) fi a ci g activities | $ | 10,536,802 | $ | (1,112,336 | ) | $ | — | Effect of excha ge ate cha ges o cash, cash equivale ts a d est icted cash | (24,605 | ) | (44,017 | ) | (812,504 | ) | Net cha ge i cash, cash equivale ts a d est icted cash | $ | 2,691,564 | $ | (2,225,015 | ) | $ | (398,587 | ) | Cash, cash equivale ts a d est icted cash, begi i g of the yea | 12,369,250 | 14,594,265 | 14,992,852 | Cash, cash equivale ts a d est icted cash, e d of the yea | $ | 15,060,814 | $ | 12,369,250 | $ | 14,594,265 |
| Reco ciliatio of cash, cash equivale ts a d est icted cash to the co solidated bala ce sheets: | Cash a d cash equivale ts | $ | 14,437,097 | $ | 12,208,630 | $ | 14,461,251 | Rest icted cash – cu e t | 125,812 | 160,620 | 133,014 | Rest icted cash – o cu e t | 497,905 | — | — | Total cash, cash equivale ts a d est icted cash | $ | 15,060,814 | $ | 12,369,250 | $ | 14,594,265 | I come taxes paid ( efu ded), et | $ | (292,899 | ) | $ | 4,527 | $ | 6,928 | Cash paid fo amou ts i cluded i the measu eme t of ope ati g lease liabilities | $ | 3,139,813 | $ | 2,602,143 | $ | 1,969,440 | Right-of-use assets obtai ed i excha ge fo ope ati g lease liabilities | $ | 2,431,609 | $ | 5,129,642 | $ | 1,685,257 | De ecog itio of ight-of-use assets a d lease liabilities o lease te mi atio | $ | — | $ | 516,625 | $ | — | Pu chases of p ope ty a d equipme t i cluded i acc ued expe ses a d payables | $ | 25,563 | $ | — | $ | — | P epayme ts t a sfe ed to p ope ty a d equipme t | $ | 91,103 | $ | — | $ | — | Class A o di a y sha es issued to IPO co sulti g fi m cha ged to additio al paid-i capital as offe i g costs | $ | 142,080 | $ | — | $ | — | Defe ed offe i g costs cha ged to additio al paid-i capital upo completio of the IPO | $ | 1,454,223 | $ | — | $ | — | Sha e optio exe cise p oceeds eceivable | $ | 6,262 | $ | — | $ | — |
Reco ciliatio to the most di ectly compa able U.S. GAAP measu e of the o -GAAP measu es i cluded i this p ess elease is as follows. The followi g table eco ciles the Compa y’s et i come (loss) to Adjusted EBITDA:
| Net (loss) i come | $ | (4,131,668 | ) | $ | 3,828,563 | $ | 5,977,639 | Dep eciatio a d amo tizatio | 2,560,907 | 2,673,255 | 2,067,706 | Amo tizatio of ight-of-use assets | 2,881,333 | 2,455,211 | 1,634,833 | I te est i come, et | (540,933 | ) | (494,358 | ) | (300,985 | ) | I come tax (be efit) expe se | (1,694,171 | ) | 576,766 | 2,218,588 | Co ti ge t gai o ecove y of p eviously impai ed assets | (238,561 | ) | (4,709,029 | ) | — | Impai me t of adva ce to game develope s | 2,635,761 | 3,147,411 | 401,451 | Impai me t of p epaid oyalties | — | 483,149 | — | Sha e-based compe satio | 1,994,408 | — | — | $ | 3,467,076 | $ | 7,960,968 | $ | 11,999,232 |
CTW has dete mi ed to suppleme t its co solidated fi a cial stateme ts, p epa ed i acco da ce with accou ti g p i ciples ge e ally accepted i the U ited States of Ame ica (“U.S. GAAP”), p ese ted elsewhe e withi this elease, with o -GAAP Adjusted EBITDA. CTW defi es Adjusted EBITDA ( o -GAAP) as et i come (loss) befo e: i te est i come a d expe se, i come tax expe se (be efit), dep eciatio a d amo tizatio , impai me t losses ( ecove ies), a d othe items that ma ageme t co side s o -co e o ot eflective of o goi g ope atio s. Ma ageme t believes Adjusted EBITDA ( o -GAAP) highlights ope ati g esults that a e mo e compa able ac oss pe iods by excludi g the effects of o -cash cha ges, fi a ci g decisio s, a d items that ca va y amo g compa ies due to capital st uctu e o tax ju isdictio diffe e ces.
This o -GAAP disclosu e has limitatio s as a a alytical tool, should ot be viewed as a substitute fo Net Ea i gs (Loss) dete mi ed i acco da ce with U.S. GAAP, should ot be co side ed i isolatio o as a substitute fo a alysis of ou esults as epo ted u de U.S. GAAP, o is it ecessa ily compa able to o -GAAP pe fo ma ce measu es that may be p ese ted by othe compa ies. CTW co side s this o -GAAP measu e i additio to its esults p epa ed u de cu e t accou ti g sta da ds, but it is ot a substitute fo , o supe io to, U.S. GAAP measu es. This o -GAAP measu e is p ovided to e ha ce eade s’ ove all u de sta di g of the Compa y’s cu e t fi a cial pe fo ma ce a d to p ovide fu the i fo matio fo compa ative pu poses. This suppleme tal p ese tatio should ot be co st ued as a i fe e ce that the Compa y’s futu e esults will be u affected by simila adjustme ts to Net Ea i gs (Loss) dete mi ed i acco da ce with U.S. GAAP. Specifically, CTW believes the o -GAAP measu e p ovides useful i fo matio to ma ageme t a d i vesto s by isolati g ce tai expe ses, gai s, a d losses that may ot be i dicative of the Compa y’s co e ope ati g esults a d busi ess outlook. I additio , CTW believes the o -GAAP measu e e ha ces the compa ability of esults agai st p io pe iods.
| Co solidated i -game pu chases | $ | 96,813,340 | $ | 106,994,440 | $ | 84,461,982 | Less: Reve ue sha e with game develope s a d IP holde s | 15,093,625 | 15,898,478 | 14,975,047 | T a sactio fee | 4,526,299 | 5,265,054 | 3,812,118 | Adve tisi g expe se | 41,013,358 | 52,396,511 | 37,309,197 | Se ve cost di ectly elated to hosti g the games | 3,889,772 | 2,088,553 | 1,319,704 | Segme t p ofits | $ | 32,290,286 | $ | 31,345,844 | $ | 27,045,916 | Less: Pay oll a d elated cost | 17,325,876 | 13,621,485 | 9,756,710 | Lease expe se | 3,148,822 | 2,661,149 | 1,738,249 | Dep eciatio a d amo tizatio expe se | 2,076,874 | 2,702,360 | 2,099,728 | Impai me t expe se | 2,635,761 | 3,632,218 | 447,904 | Recoup of adva ces made to game develope s | 3,222,344 | 3,583,143 | 2,477,840 | Othe cost of sales (1) | 4,490,687 | 2,087,031 | 1,563,366 | Othe selli g a d ma keti g expe ses (2) | 2,346,442 | 1,713,981 | 1,402,889 | Othe ge e al a d admi ist ative expe ses (3) | 4,367,215 | 2,409,601 | 902,948 | Total othe ope ati g expe se | $ | 39,614,021 | $ | 32,410,968 | $ | 20,389,634 | (Loss) i come f om ope atio s | $ | (7,323,735 | ) | $ | (1,065,124 | ) | $ | 6,656,282 | I te est i come, et | 540,933 | 494,358 | 300,985 | Fo eig cu e cy t a sactio gai (loss) | 293,764 | (287,946 | ) | 784,674 | Othe i come | 424,638 | 555,012 | 454,286 | Co ti ge t gai o ecove y of p eviously impai ed assets | 238,561 | 4,709,029 | — | (Loss) i come befo e i come tax expe se | $ | (5,825,839 | ) | $ | 4,405,329 | $ | 8,196,227 |
| (1) | Othe cost of sales mai ly i cludes se ve a d i f ast uctu e cost that a e ot di ectly elated to the host of a specific game a d ce tai outsou ci g cost. | (2) | Othe selli g a d ma keti g expe ses mai ly i cludes cost associated with meeti g, t avel a d p omotio s. | (3) | Othe ge e al a d admi ist ative expe ses mai ly i cludes cost associated with p ofessio al se vices, office supplies, ec uiti g a d educatio . |
A ope ati g segme t is a compo e t of the G oup that e gages i busi ess activities f om which it may ea eve ues a d i cu expe ses, a d is ide tified o the basis of the i te al fi a cial epo ts that a e p ovided to a d egula ly eviewed by the G oup’s chief ope ati g decisio make (“CODM”) i o de to allocate esou ces a d assess pe fo ma ce of the segme t.
The ma ageme t of the G oup co cludes that it has o ly o e epo ti g segme t. The G oup p ovides game dist ibutio a d elated se vices to game develope s. The G oup’s se vices have simila eco omic cha acte istics with espect to atu e a d fo m of the se vices p ovided. The G oup’s chief ope ati g decisio make has bee ide tified as the Chief Executive Office , who eviews Co solidated esults whe maki g decisio s about allocati g esou ces a d assessi g pe fo ma ce of the G oup, athe tha by geog aphic a ea; he ce the G oup has o ly o e epo ti g segme t. CODM eviews ope atio esults o the co solidated i -game pu chase amou t, eve ue sha e with game develope s a d IP holde s, adve tisi g expe ses, t a sactio fees, a d se ve cost di ectly elated to the host of games. The above table summa izes the ope ati g esults eviewed by CODM a d eco ciliatio to (loss) i come befo e i come tax as epo ted i the co solidated stateme ts of comp ehe sive (loss) i come.
