TOKYO, Nov. 17, 2025 (GLOBE NEWSWIRE) -- CTW Cayman (Nasdaq: CTW) ("CTW" or "the Company"), a leading game platform company providing global access to web-based games through its flagship HTML5 platform, G123.jp, reports financial results for the six months ("2H25") and fiscal year ended July 31, 2025 ("FY25").
Financial and Business Highlights
-- Achieved record revenue of $90.4 million in FY25, up 32% YoY, including
41% YoY growth in 2H25
-- Delivered net income of $3.8 million ($0.06 per share) and Adjusted
EBITDA of $8.0 million in FY25, while actively advertising to support
robust new game launches and scaling global operations for growth
-- Launched seven new games on G123.jp during FY25, including the popular So
I'm a Spider, So What? Ruler of the Labyrinth, bringing total active
games to 29, with a robust pipeline slate for FY26 including 24 games in
backlog
-- Successfully completed Initial Public Offering in August 2025, raising
$12.0 million in gross proceeds
Comments from Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
"We are proud to have built the world's leading platform that allows gamers to enjoy playing anime-based games without the need to download special apps or be distracted by in-game ads. Our strong fiscal 2025 results are indicative of our creative vision, strategic direction, and steady execution, all bearing fruit on an increasingly larger scale. Yet, I believe that our journey is just getting started as a public company."
"Revenue of $90.4 million in fiscal 2025 grew 32%, with accelerated growth of 41% YoY in the second half of the year as compared to the second half of fiscal 2024, reflecting high engagement with our platform and the success of our recently launched games. Encouragingly, revenue increased in all of our major geographic markets in 2025, confirming global interest in anime and in our ability to source and launch games based on compelling IP. This performance is in line with our strategic focus to expand our user base beyond Japan, our historically largest market, and into other regions, especially North America. Users outside of Japan accounted for 30% of revenue in fiscal 2025, up from 19% in the previous year, and we believe we can expand even further into other markets as anime increasingly goes mainstream around the world."
"In fiscal 2025, we launched seven new games, including hits such as So I'm a Spider, So What? Ruler of the Labyrinth and Arifureta: From Commonplace to World's Strongest -- Rebellion Soul. Together, these seven new games generated $32.3 million in revenue in 2025 and more than offset the maturation of other our existing games, consistent with the gradual tapering of activity for games that follow a natural lifecycle. This dynamic of continuously growing our business through new game launches and user-acquisition marketing is at the very core of our operating model. Our robust pipeline of new launches should continue to drive strong revenue growth in fiscal 2026 and beyond. Notably, the Doraemon Comic Traveler and Crayon Shinchan: My Sugoroku Great Strategy games are close to launch and are each based on rich anime history and represent the most valuable licensed IP in our corporate history. We expect strong global interest from gamers who are familiar with these main characters and healthy in-game purchases from each of those titles."
"We have invested considerably over the past year to ensure the scalability of our operations. Investments in R&D and personnel in Shanghai and Taipei, especially to strengthen our AI capabilities, have us well positioned for future growth. We have also made initial investments in North America, a large and relatively untapped market for us, and plan to continue this effort in fiscal 2026. While these recent investments may have masked our full potential profitability in 2025, they have also reinforced the foundation to prepare us for future profitable growth, especially when combined with our pipeline of games and our proven ability to secure valuable licensed IP and efficient user acquisition."
Fiscal 2025 Results
Revenue increased 32% in FY25 to $90.4 million compared to $68.4 million in FY24, with the rate of growth accelerating in the second half of the fiscal year (2H25) to 41% when compared to 2H24. The strong revenue growth was driven by higher in-game purchases, which increased 27% YoY to $107.0 million as compared to $84.5 million in FY24, and lower revenue share percentage paid to developers which decreased to 12.2% of gross in-game purchases in FY25 from 16.1% in FY24. In FY25, CTW launched seven new games that collectively generated $32.3 million in revenue, compared to 15 new games launched in FY24 that generated $12.6 million in revenue.
Segment profits* increased 16% YoY in FY25 to $31.3 million (29.3% of in-game purchases) as compared to $27.0 million in FY24 (32.0% of in-game purchases), as higher revenue was partially offset by increased advertising expense. While advertising expense increased from $52.4 million in FY25 (49.0% of revenue) as compared to $37.3 million in FY24 (44.2% of revenue), ROAS increased to 116.4% in FY25 from 99.3% in FY24.
Net Income was $3.8 million ($0.06 per share) in FY25, as compared with $6.0 million ($0.10 per share) in FY24. In FY25, $3.2 million of net income was recognized in 2H25.
Adjusted EBITDA* was $8.0 million (8.8% of revenue) in FY25, compared to $12.0 million in FY24 (17.5% of revenue). CTW maintained positive Adjusted EBITDA while actively supporting new game launches with increased advertising expenditure and higher spending to scale its global operations for future growth.
* Further clarification and explanation of Segment profits
can be found in the Segment Reporting section of the
release and at ctw.inc/investors.
** Further clarification and explanation of non-GAAP
measures and reconciliation to the most comparable
GAAP measure can be found in the "U.S. GAAP Reconciliation
of Non-GAAP Adjusted Results" section of the release
and at ctw.inc/investors.
Earnings Conference Call and Webcast
Management will host an earnings webcast at 8:30am EST on Tuesday, November 18, 2025 to review its financial results and provide a general corporate update. Interested investors can register for the webcast here.
The Company has posted a supplemental slide presentation accompanying this release to its investor relations website at ctw.inc/investors. Investors are encouraged to review these materials in conjunction with this release.
About CTW Cayman
CTW is a leading game platform company providing global access to web-based, free-to-play games inspired by popular Japanese animations, including So I'm a Spider, So What? Ruler of the Labyrinth, Arifureta: From Commonplace to World's Strongest -- Rebellion Soul, and Queen's Blade Limit Break. CTW delivers these games through its globally-accessible flagship HTML5 platform, G123.jp. According to a Frost & Sullivan Report, CTW was the largest anime IP-based H5 game platform in the world in 2023 in terms of gross billings.
For more information, visit www.ctw.inc or G123.jp.
Forward Looking Statements
This announcement contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. CTW may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about CTW's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: CTW's growth strategies; its future business development, results of operations and financial condition; its ability to distribute successful and engaging games with high "playability" on its platform; its ability to efficiently attract and retain end-users who come to play and make in-game purchases; its ability to achieve positive return on investment on user acquisition efforts; its ability to establish and maintain relationships with game developers; governmental policies and regulations relating to CTW's industry; and general economic and business conditions globally and in Japan and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in CTW's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and CTW undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Contacts
Matt Chesler, CFA
FNK IR
646-809-2183
investor@ctw.inc
CTW Cayman, Inc.
Key Operating Metrics
The following table includes the Company's key operating metrics for the years ended July 31, 2025, 2024, and 2023.
For the Years Ended July 31,
----------------------------------------------
2025 2024 2023
------------ ----------- -----------
Gross in-game
purchase
amount((1) $106,994,440 $84,461,982 $81,388,946
Paying daily
active users
("PDAUs")((2) 17,458 16,446 13,541
Daily active
users
("DAUs")((2) 264,149 197,100 189,985
PDAUs to DAUs
ratio 6.61% 8.34% 7.13%
Paying monthly
active users
("PMAUs")((3) 88,503 62,621 47,088
Monthly active
users
("MAUs")((3) 3,378,835 2,301,929 2,170,678
PMAUs to MAUs
ratio 2.62% 2.72% 2.17%
PDAUs to PMAUs
ratio 19.73% 26.26% 28.76%
DAUs to MAUs
ratio 7.82% 8.56% 8.75%
ARPPDAU $ 16.79 $ 14.07 $ 16.47
ARPDAU $ 1.11 $ 1.17 $ 1.17
ARPPMAU $ 100.74 $ 112.4 $ 144.04
ARPMAU $ 2.64 $ 3.06 $ 3.12
Day 1 retention
rate for
paying
users((4) 59.6% 62.7% 71.7%
Day 7 retention
rate for
paying
users((4) 37.5% 41% 49%
Day 30
retention rate
for paying
users((4) 17.1% 21.3% 27.9%
Day 1 retention
rate for
active
users((5) 5.9% 6.2% 5.2%
Day 7 retention
rate for
active
users((5) 2.2% 2.4% 2.1%
Day 30
retention rate
for active
users((5) 0.8% 0.9% 0.9%
Return on
advertisement
spend
("ROAS") 116.4% 99.3% 130.3%
(1) "Gross in-game purchase amount" means the total in-purchase
amounts, or top-ups, paid by end-users for games on
G123.jp platform.
(2) PDAUs and DAUs for each period represents the average
number of PDAUs and DAUs across all the days of the
respective period.
(3) PMAUs and MAUs for each period represents the average
number of PMAUs and MAUs across all the months of
the respective period.
(4) Paying user retention rate is calculated by dividing
the number of paying users who return to the same
game on a specific day (e.g., Day 1, Day 7, or Day
30) and remain active for at least one minute, by
the number of users who made their first in-game purchase
in that game on Day 0. Pay user retention rate is
measured on a per-game basis and reflects whether
the same paying user returns to the same game following
their initial purchase activity. We track paying user
retention rates on a per-game basis and monitor user
retention for each subsequent day following a user's
initial in-game purchase. For each day in a given
period, we calculate the platform-level paying user
retention rate as the average of the paying user retention
rates across all games on our platform. The overall
platform paying user retention rate for the period
is then determined by averaging these daily platform
retention rates over all days in the respective period.
(5) Active user retention rate is calculated by dividing
the number of users who return to the same game on
a specific day (e.g., Day 1, Day 7, or Day 30) and
remain active for at least one minute, by the number
of users who played that game for the first time on
Day 0 and initiated gameplay by creating a character
role on that day. Active user retention rate is measured
on a per-game basis and only includes new users to
that specific game. We track active user retention
rates on a per-game basis and monitor user retention
for each subsequent day following a user's initial
in-game purchase. For each day in a given period,
we calculate the platform-level active user retention
rate as the average of the active user retention rates
across all games on our platform. The overall platform
paying user retention rate for the period is then
determined by averaging these daily platform retention
rates over all days in the respective period.
Glossary of Terms for Key Operating Metrics
-- "ARPDAU" are to average daily in-game purchase amount
per daily active user during a given period, calculated
by dividing the total in-game purchase amount in a
given period generated on our G123.jp platform by
the average number of daily active users, which is
averaged over each day within the respective period,
by further dividing the number of days in the respective
period;
-- "ARPPDAU" are to average daily in-game purchase amount
per paying daily active user during a given period,
calculated by dividing the total in-game purchase
amount in a given period by the average number of
paying daily active users, which is averaged over
each day within the respective period, by further
dividing the number of days in the respective period;
-- "ARPMAU" are to average daily in-game purchase amount
per monthly active user during a given period, calculated
by dividing the total in-game purchase amount in a
given period generated on our G123.jp platform by
the average number of monthly active users, which
is averaged over each month by further dividing by
the number of months in the respective period;
-- "ARPPMAU" are to average daily in-game purchase amount
per paying monthly active user during a given period,
calculated by dividing the total in-game purchase
amount in a given period by the average number of
paying monthly active users, which is averaged over
each month by further dividing by the number of month
in the respective period;
-- "DAUs" are to daily active users, which is a performance
indicator that captures the number of Active Users
who accessed our G123.jp platform at least once during
a 24-hour period. DAUs for a given period is the average
DAUs across all days in the respective period, which
is calculated by summing the number of DAUs for each
day during the given period and dividing the total
by the number of days in the respective period;
-- "MAUs" are to monthly active users, which is a performance
indicator that captures the number of Active Users
who accessed our G123.jp platform at least once during
the preceding 30-day period. MAUs for a given period
is the average MAUs across all months in the respective
period, which is calculated by summing the number
of MAUs for each month during the given period and
dividing the total by the number of months in the
respective period;
-- "PDAUs" are to paying daily active users, which is
a performance indicator that captures the number of
users who made at least one in-game purchase, and
have spent at least one (1) minute on G123.jp platform
during the preceding 24-hour period. PDAUs for a given
period is the average PDAUs across all days in the
respective period, which is calculated by summing
the number of PDAUs for each day during the given
period and dividing the total by the number of days
in the respective period;
-- "PMAUs" are to paying monthly active users, which
is a performance indicator that captures the number
of users who made at least one in-game purchase, and
have spent at least one (1) minute on G123.jp platform
during the preceding 30-day period. PMAUs for a given
period is the average PMAUs across all months in the
respective period, which is calculated by summing
the number of PMAUs for each month during the given
period and dividing the total by the number of months
in the respective period;
-- "ROAS" are to return on advertisement spending based
on created users, calculated by dividing in-game purchase
amount generated by created user divided by advertising
expenses during the applicable period. Advertising
expenses include all expenses recorded under advertising
expenses in our financial statements during the applicable
period, which consist primarily of paid media costs
for online channels and ad placements that are directly
attributable to digital marketing efforts aimed at
acquiring new users. We exclude from our ROAS calculation
the costs not classified as advertising expenses,
including (i) compensation for marketing personnel,
(ii) travel expenses, event-related costs, and (iii)
general overhead, which are not considered advertising
expenses under our accounting policies and are separately
reported within the broader sales and marketing expenses
line item in our financial statements. In-game purchases
generated by created users reflect only spending by
users acquired during the applicable period and exclude
in-game purchases made by existing users. This differs
from the gross in-game purchase amounts disclosed
elsewhere, which represent total spending by all users
on the platform;
CTW Cayman, Inc.
Consolidated Statements of Comprehensive Income
(Amounts in U.S. dollars, except for number of shares)
For the Years Ended July 31,
---------------------------------------
2025 2024 2023
----------- ----------- -----------
Revenue $90,370,793 $68,424,577 $62,944,073
Cost and
expenses:
Cost of revenue 22,040,054 16,211,779 17,049,167
General &
administrative
expenses 8,479,853 5,177,570 4,473,647
Research &
development
expenses 5,528,733 952,440 2,913,436
Sales and
marketing
expenses 55,387,277 39,426,506 32,919,491
---------- ---------- ----------
Total cost and
expenses 91,435,917 61,768,295 57,355,741
---------- ---------- ----------
Income (loss) from
operation (1,065,124) 6,656,282 5,588,332
---------- ---------- ----------
Other income
(expense)
Interest income,
net 494,358 300,985 41,035
Foreign currency
transaction gain
(loss) (287,946) 784,674 (566,100)
Other income 555,012 454,286 173,291
Contingent gain
on recovery of
previously
impaired assets 4,709,029 -- --
---------- ---------- ----------
Other income
(expense), net 5,470,453 1,539,945 (351,774)
---------- ---------- ----------
Income before
income tax
expense 4,405,329 8,196,227 5,236,558
---------- ---------- ----------
Income tax expense 576,766 2,218,588 1,838,174
---------- ---------- ----------
Net income 3,828,563 5,977,639 3,398,384
---------- ---------- ----------
Other
comprehensive
income
Foreign currency
translation
adjustment (42,427) (1,021,512) (1,151,842)
---------- ---------- ----------
Comprehensive
income $ 3,786,136 $ 4,956,127 $ 2,246,542
========== ========== ==========
Earnings per
share
Basic and Diluted* $ 0.06 $ 0.10 $ 0.06
========== ========== ==========
Weighted average
number of
ordinary shares
Basic and Diluted* 60,000,000 60,000,000 60,000,000
========== ========== ==========
* Retrospectively restated for effect of share reorganization
CTW Cayman, Inc.
Consolidated Balance Sheets
(Amounts in U.S. dollars, except for number of shares)
As of July 31,
-------------------------
2025 2024
----------- -----------
ASSETS
Current assets:
Cash and cash equivalent $12,208,630 $14,461,251
Restricted cash 160,620 133,014
Accounts receivable, net 1,410,083 1,379,288
Deferred offering cost 1,429,523 --
Prepaid expenses and other current
assets 2,866,243 2,184,676
---------- ----------
Total current assets 18,075,099 18,158,229
---------- ----------
Non-current assets:
Property, plant and equipment, net 1,098,679 935,247
Prepaid royalties, net 3,499,962 3,660,198
Investments in films and television
programs, net 576,956 800,033
Advance to game developer, net 14,561,726 14,167,091
Deferred tax assets, net 49,067 5,946
Rights-of-use assets, net 6,782,354 4,384,300
Other noncurrent assets 1,858,413 1,831,463
---------- ----------
Total non-current assets 28,427,157 25,784,278
---------- ----------
TOTAL ASSETS $46,502,256 $43,942,507
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,377,279 $ 3,321,614
Accrued advertising expenses 475,099 3,696,323
Tax payable 293,482 810,716
Lease liabilities - current 2,728,326 2,121,666
Accrued expenses and other current
liabilities 2,549,763 2,062,560
---------- ----------
Total current liabilities 8,423,949 12,012,879
---------- ----------
Non-current liabilities:
Lease liabilities - noncurrent 4,222,089 2,425,578
Deferred tax liabilities, net 6,208,161 5,664,596
---------- ----------
Total non-current liabilities 10,430,250 8,090,174
---------- ----------
Total liabilities 18,854,199 20,103,053
---------- ----------
Shareholders' equity
Class A ordinary shares, par value
$0.0001 per share, 200,000,000 shares
authorized, 48,000,000 shares issued
and outstanding as of July 31, 2025
and 2024* 4,800 4,800
Class B ordinary shares, par value
$0.0001 per share, 20,000,000 shares
authorized, 12,000,000 shares issued
and outstanding as of July 31, 2025
and 2024* 1,200 1,200
Additional paid-in capital 872,315 849,848
Statutory reserve 676,416 674,156
Retained earnings 31,862,339 28,036,036
Accumulated other comprehensive income
(loss) (5,769,013) (5,726,586)
---------- ----------
Total Shareholders' equity 27,648,057 23,839,454
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $46,502,256 $43,942,507
========== ==========
* Retrospectively restated for effect of share reorganization;
As of July 31, 2025, the Company's authorized share
capital consists of 500,000,000 ordinary shares of
US$0.0001 par value each, comprising 200,000,000 Class
A shares, 20,000,000 Class B shares and 280,000,000
ordinary shares authorized but not designated. The
Board of Directors is authorized, prior to issuance,
to designate any of the unissued 280,000,000 ordinary
shares as either Class A or Class B.
CTW Cayman, Inc.
Consolidated Statements of Cash Flows
(Amounts in U.S. dollars, except for number of shares)
For the Years Ended July 31,
---------------------------------------
2025 2024 2023
----------- ----------- -----------
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Net income $ 3,828,563 $ 5,977,639 $ 3,398,384
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Depreciation and
amortization 2,673,255 2,067,706 779,368
Impairment of
advance to game
developers 3,147,411 401,451 2,457,900
Impairment of
prepaid
royalties 483,149 -- 831,624
Impairment of
investments in
films and
television
programs -- 46,453 --
Amortization of
right-of-use
asset 2,455,211 1,634,833 1,369,188
Loss from
termination of
operating lease
agreement 33,055 -- --
(Gain)/Losses from
disposal of
property,
equipment and
software 21,332 (19,931) --
Foreign currency
exchange (gain)
loss 450,964 (742,819) --
Deferred income
tax expenses 507,034 1,734,765 1,811,466
Changes in
operating assets
and liabilities:
Accounts
receivable, net (33,896) 12,495 27,836
Prepaid expenses
and other current
asset, net (630,207) (1,536,692) 2,462,046
Advance to game
developers, net (3,946,469) (4,559,682) (7,565,487)
Prepaid royalties,
net (2,024,883) (2,105,413) (1,938,905)
Other non-current
assets (80,476) 374,397 (280,676)
Accounts payable (939,611) (811,959) 1,130,431
Accrued
advertising
expenses (2,948,326) 931,036 77,822
Tax payable (518,420) 149,583 253,613
Accrued expenses
and other current
liabilities 87,188 (13,896) (1,002,834)
Operating Lease
liabilities (2,501,114) (1,898,561) (1,250,884)
Amount to related
parties 47,615 (53,758) (1,741)
---------- ---------- ----------
Net cash provided
by operating
activities 111,375 1,587,647 2,559,151
---------- ---------- ----------
CASH FLOWS FROM
INVESTING
ACTIVITIES
Purchase of
property and
equipment (584,668) (710,457) (134,787)
Proceeds from
disposal of
property and
equipment 28,109 106,374 231,514
Investments in
films and
television
programs (258,882) (569,647) (581,962)
Purchase of
intangible asset (9,947) -- --
Advances to
third-party loan (410,000) -- --
Proceeds from due
from related
parties 55,351 -- --
---------- ---------- ----------
Net cash used in
investing
activities (1,180,037) (1,173,730) (485,236)
---------- ---------- ----------
CASH FLOWS FROM
FINANCING
ACTIVITIES
Proceeds from
shareholder's
contribution 22,202 -- --
Deferred offering
cost (1,134,538) -- --
---------- ---------- ----------
Net cash used in
financing
activities (1,112,336) -- --
---------- ---------- ----------
Effect of exchange
rate changes (44,017) (812,504) (998,138)
Net change in
cash, cash
equivalents and
restricted cash (2,225,015) (398,587) 1,075,777
---------- ---------- ----------
Cash, cash
equivalents and
restricted cash,
beginning of the
year 14,594,265 14,992,852 13,917,075
---------- ---------- ----------
Cash, cash
equivalents and
cash equivalents,
end of the year $12,369,250 $14,594,265 $14,992,852
========== ========== ==========
Cash, cash
equivalent and
restricted cash,
end of the year $12,369,250 $14,594,265 $14,992,852
Less: restricted
cash, end of the
year 160,620 133,014 140,682
Cash and cash
equivalent, end
of the year $12,208,630 $14,461,251 $14,852,170
SUPPLEMENTAL
DISCLOSURE OF
CASH FLOW
INFORMATION:
Cash paid for
income tax $ $ 6,928 $ 1,924
Cash paid for
operating leases $ 2,602,143 $ 1,969,440 $ 1,314,835
Supplemental
disclosures of
non-cash
activities:
Obtaining
right-of-use
assets in
exchange for
operating lease
liabilities $ 5,129,642 $ 1,685,257 $ 30,184
Derecognition of
right-of-use
assets and lease
liabilities
related to
terminated lease
agreement $ 516,625 $ -- $ --
CTW Cayman, Inc.
U.S. GAAP Reconciliation of Non-GAAP Adjusted Results
(Amounts in U.S. dollars thousands)
(unaudited)
Reconciliation to the most directly comparable U.S. GAAP measure of the on-GAAP measures included in this press release is as follows. The following table reconciles the Company's net income (loss) to Adjusted EBITDA:
Fiscal
(in USD '000) Fiscal 2025 Fiscal 2024 2023
-------------------------- ------------------------- -------
H1 H1 H2
2025 H2 2025 FY 2025 2024 2024 FY 2024 FY 2023
------ ------- ------- ------ ------ ------- -------
Net income $ 639 $ 3,190 $ 3,829 $3,971 $2,006 $ 5,978 $ 3,398
Depreciation
and
amortization 1,323 1,350 2,673 899 1,168 2,068 779
Amortization of
right-of-use
asset 1,017 1,438 2,455 755 880 1,635 1,369
Interest
income, net (283) (212) (494) (1) (300) (301) (41)
Income tax
expense (384) 961 577 1,999 220 2,219 1,838
Extraordinary
Income -- (4,709) (4,709) -- -- -- --
Impairment of
advance to
game
developers 1,114 2,034 3,147 413 (11) 401 2,458
Impairment of
prepaid
royalties 279 204 483 -- -- -- 832
----- ------ ------ ----- ----- ------ ------
Adjusted EBITDA
(non-GAAP) $3,705 $ 4,256 $ 7,961 $8,037 $3,962 $11,999 $10,634
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CTW Cayman has determined to supplement its consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), presented elsewhere within this report, with non-GAAP adjusted EBITDA, "Earnings Before Interest, Taxes, Depreciation, and Amortization."
This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for Net Earnings (Loss) determined in accordance with U.S. GAAP, should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. CTW Cayman considers this non-GAAP measure in addition to its results prepared under current accounting standards, but it is not a substitute for, nor superior to, U.S. GAAP measures. This non-GAAP measure is provided to enhance readers' overall understanding of the Company's current financial performance and to provide further information for comparative purposes. This supplemental presentation should not be construed as an inference that the Company's future results will be unaffected by similar adjustments to Net Earnings (Loss) determined in accordance with U.S. GAAP. Specifically, CTW Cayman believes the non-GAAP measure provides useful information to management and investors by isolating certain expenses, gains, and losses that may not be indicative of the Company's core operating results and business outlook. In addition, CTW Cayman believes the non-GAAP measure enhances the comparability of results against prior periods.
CTW Cayman, Inc.
Segment Reporting
(Amounts in U.S. dollars)
For the Years Ended July 31,
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2025 2024 2023
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Consolidated in-game
purchases $106,994,440 $84,461,982 $81,388,946
Less:
Revenue share with game
developers and IP
holders 15,898,478 14,975,047 19,263,857
Transaction fee 5,265,054 3,812,118 3,659,159
Advertisement expense 52,396,511 37,309,197 31,080,465
Server cost directly
related to hosting the
games 2,088,553 1,319,704 2,396,425
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Segment profits $ 31,345,844 $27,045,916 $24,989,040
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Reconciliation from
segment profits to income
before income tax
Segment profits $ 31,345,844 $27,045,916 $24,989,040
Less: other operating
expenses:
Payroll and related cost 13,621,485 9,756,710 10,165,389
Lease expense 2,661,149 1,738,249 1,446,048
Depreciation and
amortization expense
(including amortization
of prepaid royalties) 2,702,360 2,099,728 947,512
Impairment expense 3,632,218 447,904 3,289,524
Recoup of advances made
to game developers 3,583,143 2,477,840 551,774
Other cost of sales((1) 2,087,031 1,563,366 809,739
Other selling and
marketing expenses((2) 1,713,981 1,402,889 1,307,165
Other general and
administrative
expenses((3) 2,409,601 902,948 883,557
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Total other operating
expense 32,410,968 20,389,634 19,400,708
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Income (loss) from
operation (1,065,124) 6,656,282 5,588,332
Interest income, net 494,358 300,985 41,035
Foreign Currency
Transaction gain (loss) (287,946) 784,674 (566,100)
Other income 555,012 454,286 173,291
Extraordinary income 4,709,029 -- --
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Income before income tax
expense $ 4,405,329 $ 8,196,227 $ 5,236,558
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In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU's amendments "improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses". In addition, the standard introduces new disclosure requirements specifically for entities with a single reportable segment, and it aims to help investors better understand a company's performance and assess potential future cash flows. The new guidance applies to all public entities subject to segment reporting under ASC 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Group adopted this ASU for the year ended July 31, 2025. The adoption of ASU does not change how segments are identified, aggregated, or measured, it adds incremental disclosure requirements.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Group's chief operating decision maker ("CODM") in order to allocate resources and assess performance of the segment.
The management of the Group concludes that it has only one reporting segment. The Group provides game distribution and related services to game developers. The Group's services have similar economic characteristics with respect to nature and form of the services provided. The Group's chief operating decision maker has been identified as the Chief Executive Officer, who reviews Consolidated results when making decisions about allocating resources and assessing performance of the Group, rather than by geographic area; hence the Group has only one reporting segment. CODM reviews operation results on the consolidated in-game purchase amount, recoup of advances to game developers and revenue share with game developers and IP holders, advertising expenses, transaction fees, server cost directly related to the host of games, in-house payroll cost directly related to the art and design support services provided. The following table summarizes the operating results reviewed by CODM and reconciliation to net income as reported in the consolidated statement of comprehensive income.
(END) Dow Jones Newswires
November 17, 2025 16:30 ET (21:30 GMT)