Ctw 6-K, filed Oct 15, 2026
Ctw (CTW)
About this 6-K
Ctw filed this 6-K on October 15, 2026.
CTW reported FY26 revenue of $82.5 million, down 9% YoY, a $4.1 million net loss and $3.5 million Adjusted EBITDA. Segment profits rose 3% to $32.3 million; cash ended at $14.4 million with no debt. AI summary
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2026
Commission File Number: 001-42758
CTW
(Exact Name of Registrant as Specified in Its Charter)
29F, 1 Chome-9-10,
ARK Hills Sengokuyama Mori Tower
Roppongi, Minato City,
Tokyo 106-0032, Japan
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Exhibit Index
| Exhibit No. | Description | |
| 99.1 | Press Release—CTW Announces Fiscal Year 2026 Financial Results | |
| 99.2 | CTW Fiscal 2026 Supplemental Material |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: October 15, 2026 | CTW | |
| By: | /s/ Patrick Liu | |
| Name: | Patrick Liu | |
| Title: | Chief Financial Officer | |
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Exhibit 99.1
CTW Announces Fiscal Year 2026 Financial Results
Management will host an earnings webinar on Friday, October 16, at 8:30 a.m. ET
TOKYO, JAPAN, October 15, 2026 – CTW (Nasdaq: CTW) (“CTW” or “the Company”), a leading game platform company providing global access to web-based games through its flagship platform, G123.jp, today reported financial results for the fiscal year ended July 31, 2026 (“FY26”).
Financial and Business Highlights
| ● | Generated revenue of $82.5 million in FY26, down 9% YoY, while increasing segment profits 3% YoY to $32.3 million, or 33.4% of in-game purchases (up from 29.3% in FY25) |
| ● | Reduced advertising expense by $11.4 million, or 22% YoY, a notably larger decline than revenue, reflecting CTW’s ROAS-focused business model and disciplined approach to marketing spend |
| ● | Grew revenue from users outside of Japan 8% YoY to $29.7 million, or 36% of total revenue (up from 30% in FY25), led by South Korea, up 12% YoY, and Taiwan, Hong Kong and Macau, up 71% YoY collectively |
| ● | Reported net loss of $4.1 million ($0.07 per share) compared to net income of $3.8 million ($0.06 per share) in FY25, and positive Adjusted EBITDA of $3.5 million (4.2% of revenue), down 56% YoY from $8.0 million (8.8% of revenue) |
| ● | Ended FY26 with $14.4 million in cash and cash equivalents, up 18% YoY from $12.2 million, and no debt |
| ● | Opened CTW’s first North American office at One World Trade Center in New York City in February 2026, building a local team focused on partnerships, marketing, user acquisition, and corporate communications to support the Company’s global expansion initiative |
| ● | Launched 15 new games on G123.jp across FY26, including High School of the Dead Day 0 and The Apothecary Diaries Palace Chronicles, bringing total active games to 42, with 16 games in backlog as of July 31, 2026. High School of the Dead Day 0, which launched on April 28, 2026, generated approximately $6.0 million in revenue from launch through July 31, 2026, a period of slightly more than three months, or an average of approximately $2.0 million per month, making it the highest revenue-generating game on G123.jp during that period, ahead of Vivid Army. |
Comments from Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“Fiscal 2026 was a year of mixed performance for CTW. Several of our game releases did not achieve the engagement and monetization we expected, and that weighed on our overall results. Furthermore, we pulled back on advertising and user acquisition spending once we saw these weaker engagement trends, which negatively impacted our user base.
However, other developments during the year strengthened our conviction in the long-term opportunity for G123. Most notably, the launch of High School of the Dead Day 0 in the second half demonstrated the positive impact that the right combination of recognizable IP, compelling gameplay, and effective execution can have on our platform. Additionally, we also saw some encouraging signs within our user base that we believe are important when evaluating the health of the platform. While overall users declined significantly in fiscal 2026, our paying users remained remarkably resilient, increasing slightly year over year. As a result, monthly paying active users represented 3.95% of monthly active users compared with 2.62% in fiscal 2025, while average in-game purchases per monthly active user increased 35%. We believe these metrics reflect the resilience of G123’s core player base: paying users held steady even as lower acquisition spending reduced overall traffic. At the same time, daily engagement, spending per monthly paying user and early-stage retention among paying users were softer, and broadening our active user base and increasing the frequency with which our players return and spend are priorities for fiscal 2027.
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That distinction is important, as we do not view fiscal 2026 as evidence that the opportunity for our platform has diminished. Rather, the year reinforced how much the quality and execution of individual game releases matter to our results. We are taking those lessons into fiscal 2027 by becoming more focused on the games we bring to G123, how we position and market those titles, and where we allocate capital. Our objective is to build upon the characteristics that drove our stronger-performing titles and make successful launches more consistent across our portfolio. Fiscal 2026 also demonstrated that our ROAS-driven model is built to be resilient when a title underperforms and to accelerate when one succeeds. When games fell short of our return thresholds, we reduced advertising spending quickly, which is why segment profits grew and ROAS remained above 100% in a year when revenue declined. When a game demonstrates strong engagement and monetization, as High School of the Dead did following its launch Day 0 in late April, we direct marketing investment toward it to scale its audience. That discipline limited the downside this past year, and we believe it will compound the upside as the quality of our pipeline improves.
We are also encouraged by the opportunity outside Japan. International revenue grew during fiscal 2026 despite the decline in total Company revenue. Moreover, our New York presence gives us greater ability to localize our content and marketing in Western markets, pursue partnerships, and better understand North American gamers.
With 42 active games, a growing international presence, a stable base of monthly paying users, and additional titles in development, we believe the opportunity ahead of CTW remains substantial. Our task now is execution, and we enter fiscal 2027 focused on applying what we learned this year to deliver more consistent content performance, broaden our engaged audience, and return CTW to sustainable growth.”
Fiscal 2026 Results
Revenue decreased 9% in FY26 to $82.5 million compared to $90.4 million in FY25. Gross in-game purchases decreased 10% YoY to $96.8 million compared to $107.0 million in FY25, primarily reflecting weaker overall performance of newly launched games, partially offset by a 4.1% increase in revenue from existing games. Revenue from users outside of Japan increased 8% YoY to $29.7 million, or 36.0% of revenue, compared to $27.5 million, or 30.4% of revenue, in FY25, while revenue from users in Japan decreased 16% YoY to $52.8 million. In FY26, CTW launched 15 new games that collectively generated $22.0 million in revenue, compared to seven new games launched in FY25 that generated $32.3 million in revenue.
Segment profits* increased 3% in FY26 to $32.3 million (33.4% of in-game purchases) compared to $31.3 million in FY25 (29.3% of in-game purchases), as lower advertising expense more than offset lower in-game purchases and higher server costs. Advertising expense decreased $11.4 million, or 22%, to $41.0 million in FY26 (42.4% of in-game purchases) compared to $52.4 million in FY25 (49.0% of in-game purchases), a significantly larger decline than revenue, reflecting CTW’s focus on ROAS and disciplined management of its marketing budget. ROAS was 105.8% in FY26, compared to 116.4% in FY25.
Key operating metrics reflected a stable paying user base amid lower overall user activity. Paying monthly active users (PMAUs) were 89,053 in FY26, up 0.6% YoY from 88,503, while monthly active users (MAUs) decreased 33% YoY to 2.26 million from 3.38 million, as the decline in user activity was concentrated among non-paying users. As a result, the PMAUs to MAUs ratio increased to 3.95% from 2.62% in FY25, and ARPMAU increased 35% YoY to $3.57 from $2.64. ARPPDAU increased 4% YoY to $17.51 from $16.79, while paying daily active users (PDAUs) decreased 13% YoY to 15,152 from 17,458.
Cost of revenue increased 29% to $28.5 million in FY26 compared to $22.0 million in FY25, reflecting higher personnel, outsourcing, server and software costs and IP royalties and amortization as the Company invested in its team, infrastructure and external creative resources, partly offset by lower payment-processing fees. Revenue share to game developers and IP holders was 15.6% of in-game purchases compared to 14.9% in FY25.
General and administrative expenses increased 38% to $11.7 million compared to $8.5 million in FY25, primarily due to additional corporate and administrative personnel and higher legal, accounting and other costs of operating as a public company and the setup of the Company’s New York office, as well as approximately $0.5 million of Taiwan business tax expense, a portion of which related to prior periods. Management believes the core infrastructure required of a public company is now largely in place and expects general and administrative expenses to increase only modestly in absolute terms.
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Sales and marketing expenses decreased 17% to $45.9 million compared to $55.4 million in FY25, driven by the $11.4 million reduction in advertising expense.
Research and development expenses decreased 31% to $3.8 million compared to $5.5 million in FY25. The decrease primarily reflected the capitalization of qualifying development payroll following the Company’s early adoption of ASU 2025-06 and lower developer-advance impairment expense, rather than a reduction in development activity.
Additionally, across all functions, FY26 cost and expenses included $2.0 million of non-cash share-based compensation (none in FY25), most of which related to share options granted in December 2025.
Net Loss was $4.1 million ($0.07 per share) in FY26 compared to net income of $3.8 million ($0.06 per share) in FY25. Loss from operations was $7.3 million in FY26 compared to $1.1 million in FY25. FY25 net income included a $4.7 million contingent gain on recovery of previously impaired assets, and FY26 included a $0.2 million final recovery on the same claim and an income tax benefit of $1.7 million. Interest income, net was $0.5 million in both FY26 and FY25, as CTW maintained its bank deposits.
Adjusted EBITDA** was $3.5 million (4.2% of revenue) in FY26 compared to $8.0 million (8.8% of revenue) in FY25. CTW maintained positive Adjusted EBITDA while reducing advertising spend and continuing to invest in headcount, platform development and its global expansion initiative.
Cash and cash equivalents were $14.4 million as of July 31, 2026 compared to $12.2 million as of July 31, 2025. Net proceeds of $10.6 million received at the closing of the IPO were partially offset by net cash used in operating activities of $3.2 million and net cash used in investing activities of $4.7 million, including $4.1 million of capitalized software development costs. The Company had no debt as of July 31, 2026.
| * | 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 Webinar
Management will host an earnings webinar at 8:30 a.m. ET on Friday, October 16, 2026, to review these financial results and provide a general corporate update. Interested investors can register for the webinar 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.
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About CTW
CTW is a leading game platform company providing global access to web-based, free-to-play games inspired by popular Japanese anime IP, 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 platform, G123.jp, which has accumulated paying users in over 200 countries since its 2018 launch. Founded in Tokyo in 2013, CTW partners with anime and manga IP holders to bring officially licensed titles to players around the world with no downloads or account registration required.
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
Patrick Federle | Head of Investor Relations
investor@ctw.inc
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CTW
Key Operating Metrics
The following table includes the Company’s key operating metrics for the years ended July 31, 2026, 2025, and 2024.
| For the Years Ended | ||||||||||||
| July 31, | ||||||||||||
| 2026 | 2025 | 2024 | ||||||||||
| Gross in-game purchase amount(1) | $ | 96,813,340 | $ | 106,994,440 | $ | 84,461,982 | ||||||
| Paying daily active users (“PDAUs”)(2) | 15,152 | 17,458 | 16,446 | |||||||||
| Daily active users (“DAUs”)(2) | 245,522 | 264,149 | 197,100 | |||||||||
| PDAUs to DAUs ratio | 6.17 | % | 6.61 | % | 8.34 | % | ||||||
| Paying monthly active users (“PMAUs”)(3) | 89,053 | 88,503 | 62,621 | |||||||||
| Monthly active users (“MAUs”)(3) | 2,257,341 | 3,378,835 | 2,301,929 | |||||||||
| PMAUs to MAUs ratio | 3.95 | % | 2.62 | % | 2.72 | % | ||||||
| PDAUs to PMAUs ratio | 17.01 | % | 19.73 | % | 26.26 | % | ||||||
| DAUs to MAUs ratio | 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 retention rate for paying users(4) | 57.4 | % | 59.6 | % | 62.7 | % | ||||||
| Day 7 retention rate for paying users(4) | 35.8 | % | 37.5 | % | 41.0 | % | ||||||
| Day 30 retention rate for paying users(4) | 17.1 | % | 17.1 | % | 21.3 | % | ||||||
| Day 1 retention rate for active users(5) | 6.1 | % | 5.9 | % | 6.2 | % | ||||||
| Day 7 retention rate for active users(5) | 2.6 | % | 2.2 | % | 2.4 | % | ||||||
| Day 30 retention rate for active users(5) | 1.0 | % | 0.8 | % | 0.9 | % | ||||||
| Return on advertisement spend (“ROAS”) | 105.8 | % | 116.4 | % | 99.3 | % | ||||||
| (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. Paying 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 active user retention rate for the period is then determined by averaging these daily platform retention rates over all days in the respective period. |
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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 monthly 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 monthly 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 months 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 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; |
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CTW
Consolidated Statements of Comprehensive (Loss) Income
(Amounts in U.S. dollars, except for number of shares and per share data)
| For the years ended July 31, | ||||||||||||
| 2026 | 2025 | 2024 | ||||||||||
| Revenue | $ | 82,509,410 | $ | 90,370,793 | $ | 68,424,577 | ||||||
| Cost and expenses: | ||||||||||||
| Cost of revenue | 28,471,179 | 22,040,054 | 16,211,779 | |||||||||
| General and administrative expenses | 11,693,359 | 8,479,853 | 5,177,570 | |||||||||
| Research and development expenses | 3,805,447 | 5,528,733 | 952,440 | |||||||||
| Sales and marketing expenses | 45,863,160 | 55,387,277 | 39,426,506 | |||||||||
| Total cost and expenses | 89,833,145 | 91,435,917 | 61,768,295 | |||||||||
| (Loss) income from operations | (7,323,735 | ) | (1,065,124 | ) | 6,656,282 | |||||||
| Other income (expense): | ||||||||||||
| Interest income, net | 540,933 | 494,358 | 300,985 | |||||||||
| Foreign currency transaction gain (loss) | 293,764 | (287,946 | ) | 784,674 | ||||||||
| Other income | 424,638 | 555,012 | 454,286 | |||||||||
| Contingent gain on recovery of previously impaired assets | 238,561 | 4,709,029 | — | |||||||||
| Total other income, net | 1,497,896 | 5,470,453 | 1,539,945 | |||||||||
| (Loss) income before income tax | (5,825,839 | ) | 4,405,329 | 8,196,227 | ||||||||
| Income tax (benefit) expense | (1,694,171 | ) | 576,766 | 2,218,588 | ||||||||
| Net (loss) income | $ | (4,131,668 | ) | $ | 3,828,563 | $ | 5,977,639 | |||||
| Other comprehensive loss: | ||||||||||||
| Foreign currency translation adjustment | $ | (804,411 | ) | $ | (42,427 | ) | $ | (1,021,512 | ) | |||
| Comprehensive (loss) income | $ | (4,936,079 | ) | $ | 3,786,136 | $ | 4,956,127 | |||||
| (Loss) earnings per share – basic and diluted | $ | (0.07 | ) | $ | 0.06 | $ | 0.10 | |||||
| Weighted average number of ordinary shares outstanding – basic and diluted | 62,418,382 | 60,000,000 | 60,000,000 | |||||||||
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CTW
Consolidated Balance Sheets
(Amounts in U.S. dollars, except for number of shares)
| As of July 31, | ||||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 14,437,097 | $ | 12,208,630 | ||||
| Restricted cash | 125,812 | 160,620 | ||||||
| Accounts receivable, net | 1,688,806 | 1,410,083 | ||||||
| Deferred offering cost | — | 1,429,523 | ||||||
| Prepaid expenses and other current assets | 4,293,774 | 2,866,243 | ||||||
| Total current assets | 20,545,489 | 18,075,099 | ||||||
| Non-current assets: | ||||||||
| Property, plant and equipment, net | 1,078,644 | 1,098,679 | ||||||
| Intangible assets, net | 3,536,837 | — | ||||||
| Prepaid royalties, net | 4,063,304 | 3,499,962 | ||||||
| Investments in films and television programs, net | 225,967 | 576,956 | ||||||
| Advance to game developers, net | 17,932,786 | 14,561,726 | ||||||
| Deferred tax assets, net | 102,939 | 49,067 | ||||||
| Right-of-use assets, net | 6,100,345 | 6,782,354 | ||||||
| Restricted cash, noncurrent | 497,905 | — | ||||||
| Other noncurrent assets | 755,590 | 1,858,413 | ||||||
| Total non-current assets | 34,294,317 | 28,427,157 | ||||||
| TOTAL ASSETS | $ | 54,839,806 | $ | 46,502,256 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,289,251 | $ | 2,377,279 | ||||
| Accrued advertising expenses | 4,792,659 | 475,099 | ||||||
| Tax payable | 1,774,598 | 293,482 | ||||||
| Lease liabilities – current | 2,230,338 | 2,728,326 | ||||||
| Accrued expenses and other current liabilities | 1,965,165 | 2,549,763 | ||||||
| Total current liabilities | 13,052,011 | 8,423,949 | ||||||
| Non-current liabilities: | ||||||||
| Lease liabilities – noncurrent | 4,053,098 | 4,222,089 | ||||||
| Deferred tax liabilities, net | 3,629,799 | 6,208,161 | ||||||
| Total non-current liabilities | 7,682,897 | 10,430,250 | ||||||
| Total liabilities | 20,734,908 | 18,854,199 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity: | ||||||||
| Class A ordinary shares ($0.0001 par value; 200,000,000 shares authorized; 52,616,000 and 48,000,000 shares issued, and 50,529,048 and 48,000,000 shares outstanding, as of July 31, 2026 and 2025, respectively)* | 5,053 | 4,800 | ||||||
| Class B ordinary shares ($0.0001 par value; 20,000,000 shares authorized; 12,000,000 shares issued and outstanding as of July 31, 2026 and 2025) | 1,200 | 1,200 | ||||||
| Additional paid-in capital | 12,264,982 | 872,315 | ||||||
| Statutory reserve | 691,380 | 676,416 | ||||||
| Retained earnings | 27,715,707 | 31,862,339 | ||||||
| Accumulated other comprehensive loss | (6,573,424 | ) | (5,769,013 | ) | ||||
| Total shareholders’ equity | 34,104,898 | 27,648,057 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 54,839,806 | $ | 46,502,256 | ||||
| * | Shares issued include 2,086,952 Class A ordinary shares held by Futu Trustee Limited in the Company’s share incentive reserve that had not been delivered to award holders as of July 31, 2026; these shares are not considered outstanding |
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CTW
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Amount in U.S. dollars, except for number of shares)
| Class A ordinary shares | Class B ordinary shares | Additional paid-in | Statutory | Retained | Accumulated other comprehensive | Total shareholders’ | ||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | capital | reserve | earnings | loss | equity | ||||||||||||||||||||||||||||
| Balance 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 income | — | — | — | — | — | — | 5,977,639 | — | 5,977,639 | |||||||||||||||||||||||||||
| Appropriation to statutory reserve | — | — | — | — | — | 817 | (817 | ) | — | — | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | — | — | — | — | — | — | — | (1,021,512 | ) | (1,021,512 | ) | |||||||||||||||||||||||||
| Balance 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 income | — | — | — | — | — | — | 3,828,563 | — | 3,828,563 | |||||||||||||||||||||||||||
| Appropriation to statutory reserve | — | — | — | — | — | 2,260 | (2,260 | ) | — | — | ||||||||||||||||||||||||||
| Capital injection | — | — | — | — | 22,467 | — | — | — | 22,467 | |||||||||||||||||||||||||||
| Foreign currency translation adjustment | — | — | — | — | — | — | — | (42,427 | ) | (42,427 | ) | |||||||||||||||||||||||||
| Balance 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 | |||||||||||||||||||
| Issuance of ordinary shares in the IPO, net of offering costs of $2,756,303 (Note 15) | 2,400,000 | 240 | — | — | 9,243,457 | — | — | — | 9,243,697 | |||||||||||||||||||||||||||
| Share-based compensation – options and RSUs (Note 16) | — | — | — | — | 1,965,368 | — | — | — | 1,965,368 | |||||||||||||||||||||||||||
| Shares issued on RSU settlement (Note 16) | 24,000 | 2 | — | — | 29,038 | — | — | — | 29,040 | |||||||||||||||||||||||||||
| Shares issued to IPO consulting firm in settlement of offering costs (Note 15) | 96,000 | 10 | — | — | 142,070 | — | — | — | 142,080 | |||||||||||||||||||||||||||
| Exercise of share options (Note 16) | 9,048 | 1 | — | — | 12,734 | — | — | — | 12,735 | |||||||||||||||||||||||||||
| Appropriation to statutory reserve | — | — | — | — | — | 14,964 | (14,964 | ) | — | — | ||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | — | (4,131,668 | ) | — | (4,131,668 | ) | |||||||||||||||||||||||||
| Foreign currency translation adjustment | — | — | — | — | — | — | — | (804,411 | ) | (804,411 | ) | |||||||||||||||||||||||||
| Balance 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 | |||||||||||||||||||
Share data are retrospectively restated for the effect of the share reorganization.
9
CTW
Consolidated Statements of Cash Flows
(Amounts in U.S. dollars)
| For the years ended July 31, | ||||||||||||
| 2026 | 2025 | 2024 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net (loss) income | $ | (4,131,668 | ) | $ | 3,828,563 | $ | 5,977,639 | |||||
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||||||
| Share-based compensation | 1,994,408 | — | — | |||||||||
| Depreciation and amortization | 2,560,907 | 2,673,255 | 2,067,706 | |||||||||
| Impairment of advance to game developers | 2,635,761 | 3,147,411 | 401,451 | |||||||||
| Impairment of prepaid royalties | — | 483,149 | — | |||||||||
| Minimum guarantee carried over by licensor | (30,522 | ) | — | — | ||||||||
| Impairment of investments in films and television programs | — | — | 46,453 | |||||||||
| Amortization of right-of-use assets | 2,881,333 | 2,455,211 | 1,634,833 | |||||||||
| Loss from termination of operating lease agreement | — | 33,055 | — | |||||||||
| Loss (gain) from disposal, derecognition and impairment of property, equipment and software | 31,543 | 21,332 | (19,931 | ) | ||||||||
| Foreign currency exchange (gain) loss, net | (726,079 | ) | 450,964 | (742,819 | ) | |||||||
| Deferred income tax (benefit) expense | (2,399,972 | ) | 507,034 | 1,734,765 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable, net | (352,516 | ) | (33,896 | ) | 12,495 | |||||||
| Amount due from related parties | (9,414 | ) | — | — | ||||||||
| Prepaid expenses and other current assets, net | (749,702 | ) | (630,207 | ) | (1,536,692 | ) | ||||||
| Advance to game developers, net | (6,007,955 | ) | (3,946,469 | ) | (4,559,682 | ) | ||||||
| Prepaid royalties, net | (1,380,447 | ) | (2,024,883 | ) | (2,105,413 | ) | ||||||
| Other non-current assets | (350,040 | ) | (80,476 | ) | 374,397 | |||||||
| Accounts payable | 29,205 | (939,611 | ) | (811,959 | ) | |||||||
| Accrued advertising expenses | 4,438,296 | (2,948,326 | ) | 931,036 | ||||||||
| Tax payable | 1,500,692 | (518,420 | ) | 149,583 | ||||||||
| Accrued expenses and other current liabilities | (200,322 | ) | 87,188 | (13,896 | ) | |||||||
| Operating lease liabilities | (2,851,219 | ) | (2,501,114 | ) | (1,898,561 | ) | ||||||
| Amount due to related parties | (39,282 | ) | 47,615 | (53,758 | ) | |||||||
| Net cash (used in) provided by operating activities | $ | (3,156,993 | ) | $ | 111,375 | $ | 1,587,647 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Purchase of property and equipment | (408,305 | ) | (584,668 | ) | (710,457 | ) | ||||||
| Proceeds from disposal of property and equipment | 25,723 | 28,109 | 106,374 | |||||||||
| Investments in films and television programs | (149,345 | ) | (258,882 | ) | (569,647 | ) | ||||||
| Purchase of intangible assets and capitalized software development costs | (4,131,713 | ) | (9,947 | ) | — | |||||||
| Advances to third-party loan | — | (410,000 | ) | — | ||||||||
| Proceeds from due from related parties | — | 55,351 | — | |||||||||
| Net cash used in investing activities | $ | (4,663,640 | ) | $ | (1,180,037 | ) | $ | (1,173,730 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Proceeds from shareholder’s contribution | — | 22,202 | — | |||||||||
| Proceeds from issuance of ordinary shares in IPO, net of underwriting discounts and issuance costs deducted at closing | 10,645,000 | — | — | |||||||||
| Proceeds from exercise of share options | 6,473 | — | — | |||||||||
| Payment of other offering costs | (114,671 | ) | (1,134,538 | ) | — | |||||||
| Net cash provided by (used in) financing activities | $ | 10,536,802 | $ | (1,112,336 | ) | $ | — | |||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (24,605 | ) | (44,017 | ) | (812,504 | ) | ||||||
| Net change in cash, cash equivalents and restricted cash | $ | 2,691,564 | $ | (2,225,015 | ) | $ | (398,587 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of the year | 12,369,250 | 14,594,265 | 14,992,852 | |||||||||
| Cash, cash equivalents and restricted cash, end of the year | $ | 15,060,814 | $ | 12,369,250 | $ | 14,594,265 | ||||||
| For the years ended July 31, | ||||||||||||
| 2026 | 2025 | 2024 | ||||||||||
| Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: | ||||||||||||
| Cash and cash equivalents | $ | 14,437,097 | $ | 12,208,630 | $ | 14,461,251 | ||||||
| Restricted cash – current | 125,812 | 160,620 | 133,014 | |||||||||
| Restricted cash – noncurrent | 497,905 | — | — | |||||||||
| Total cash, cash equivalents and restricted cash | $ | 15,060,814 | $ | 12,369,250 | $ | 14,594,265 | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
| Income taxes paid (refunded), net | $ | (292,899 | ) | $ | 4,527 | $ | 6,928 | |||||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 3,139,813 | $ | 2,602,143 | $ | 1,969,440 | ||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||||||
| Right-of-use assets obtained in exchange for operating lease liabilities | $ | 2,431,609 | $ | 5,129,642 | $ | 1,685,257 | ||||||
| Derecognition of right-of-use assets and lease liabilities on lease termination | $ | — | $ | 516,625 | $ | — | ||||||
| Purchases of property and equipment included in accrued expenses and payables | $ | 25,563 | $ | — | $ | — | ||||||
| Prepayments transferred to property and equipment | $ | 91,103 | $ | — | $ | — | ||||||
| Class A ordinary shares issued to IPO consulting firm charged to additional paid-in capital as offering costs | $ | 142,080 | $ | — | $ | — | ||||||
| Deferred offering costs charged to additional paid-in capital upon completion of the IPO | $ | 1,454,223 | $ | — | $ | — | ||||||
| Share option exercise proceeds receivable | $ | 6,262 | $ | — | $ | — | ||||||
10
CTW
U.S. GAAP Reconciliation of Non-GAAP Adjusted Results
(Amounts in U.S. dollars)
(unaudited)
Reconciliation to the most directly comparable U.S. GAAP measure of the non-GAAP measures included in this press release is as follows. The following table reconciles the Company’s net income (loss) to Adjusted EBITDA:
| For the years ended July 31, | ||||||||||||
| 2026 | 2025 | 2024 | ||||||||||
| Net (loss) income | $ | (4,131,668 | ) | $ | 3,828,563 | $ | 5,977,639 | |||||
| Depreciation and amortization | 2,560,907 | 2,673,255 | 2,067,706 | |||||||||
| Amortization of right-of-use assets | 2,881,333 | 2,455,211 | 1,634,833 | |||||||||
| Interest income, net | (540,933 | ) | (494,358 | ) | (300,985 | ) | ||||||
| Income tax (benefit) expense | (1,694,171 | ) | 576,766 | 2,218,588 | ||||||||
| Contingent gain on recovery of previously impaired assets | (238,561 | ) | (4,709,029 | ) | — | |||||||
| Impairment of advance to game developers | 2,635,761 | 3,147,411 | 401,451 | |||||||||
| Impairment of prepaid royalties | — | 483,149 | — | |||||||||
| Share-based compensation | 1,994,408 | — | — | |||||||||
| Adjusted EBITDA (non-GAAP) | $ | 3,467,076 | $ | 7,960,968 | $ | 11,999,232 | ||||||
CTW 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 release, with non-GAAP Adjusted EBITDA. CTW defines Adjusted EBITDA (non-GAAP) as net income (loss) before: interest income and expense, income tax expense (benefit), depreciation and amortization, impairment losses (recoveries), and other items that management considers non-core or not reflective of ongoing operations. Management believes Adjusted EBITDA (non-GAAP) highlights operating results that are more comparable across periods by excluding the effects of non-cash charges, financing decisions, and items that can vary among companies due to capital structure or tax jurisdiction differences.
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 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 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 believes the non-GAAP measure enhances the comparability of results against prior periods.
11
CTW
Segment Reporting
(Amounts in U.S. dollars)
| For the years ended July 31, | ||||||||||||
| 2026 | 2025 | 2024 | ||||||||||
| Consolidated in-game purchases | $ | 96,813,340 | $ | 106,994,440 | $ | 84,461,982 | ||||||
| Less: Revenue share with game developers and IP holders | 15,093,625 | 15,898,478 | 14,975,047 | |||||||||
| Transaction fee | 4,526,299 | 5,265,054 | 3,812,118 | |||||||||
| Advertising expense | 41,013,358 | 52,396,511 | 37,309,197 | |||||||||
| Server cost directly related to hosting the games | 3,889,772 | 2,088,553 | 1,319,704 | |||||||||
| Segment profits | $ | 32,290,286 | $ | 31,345,844 | $ | 27,045,916 | ||||||
| Less: Payroll and related cost | 17,325,876 | 13,621,485 | 9,756,710 | |||||||||
| Lease expense | 3,148,822 | 2,661,149 | 1,738,249 | |||||||||
| Depreciation and amortization expense | 2,076,874 | 2,702,360 | 2,099,728 | |||||||||
| Impairment expense | 2,635,761 | 3,632,218 | 447,904 | |||||||||
| Recoup of advances made to game developers | 3,222,344 | 3,583,143 | 2,477,840 | |||||||||
| Other cost of sales (1) | 4,490,687 | 2,087,031 | 1,563,366 | |||||||||
| Other selling and marketing expenses (2) | 2,346,442 | 1,713,981 | 1,402,889 | |||||||||
| Other general and administrative expenses (3) | 4,367,215 | 2,409,601 | 902,948 | |||||||||
| Total other operating expense | $ | 39,614,021 | $ | 32,410,968 | $ | 20,389,634 | ||||||
| (Loss) income from operations | $ | (7,323,735 | ) | $ | (1,065,124 | ) | $ | 6,656,282 | ||||
| Interest income, net | 540,933 | 494,358 | 300,985 | |||||||||
| Foreign currency transaction gain (loss) | 293,764 | (287,946 | ) | 784,674 | ||||||||
| Other income | 424,638 | 555,012 | 454,286 | |||||||||
| Contingent gain on recovery of previously impaired assets | 238,561 | 4,709,029 | — | |||||||||
| (Loss) income before income tax expense | $ | (5,825,839 | ) | $ | 4,405,329 | $ | 8,196,227 | |||||
| (1) | Other cost of sales mainly includes server and infrastructure cost that are not directly related to the host of a specific game and certain outsourcing cost. |
| (2) | Other selling and marketing expenses mainly includes cost associated with meeting, travel and promotions. |
| (3) | Other general and administrative expenses mainly includes cost associated with professional services, office supplies, recruiting and education. |
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, revenue share with game developers and IP holders, advertising expenses, transaction fees, and server cost directly related to the host of games. The above table summarizes the operating results reviewed by CODM and reconciliation to (loss) income before income tax as reported in the consolidated statements of comprehensive (loss) income.
12
Exhibit 99.2
Fiscal 2026 Supplemental Materials October 15, 2026
Disclaimer 2 This presentation by CTW (the "Company", "We" or "Our) contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including without limitation statements regarding our future results of operations and financial position, future revenue, timing, progress and expected results of our services and products, business strategy, prospects, research and development costs, timing and likelihood of success, the size of the market opportunities, as well as plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that are in some cases beyond our control and may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The words "anticipate," "believe," contemplate," "continue" "could," "estimate," "expect," "intend," "may," "might," "plan," "potential" "predict," "project," "should," "target," "will" or "would" or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements in this presentation are only predictions and represent our views as of the date of this presentation. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot guarantee that the future results, advancements, discoveries, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. The forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to: assumptions about our future financial and operating results, including revenue, income, expenditures, cash balances, and other financial items; our ability to execute our growth, and expansion, including our ability to meet our goals; current and future economic and political conditions; our capital requirements and our ability to raise any additional financing which we may require; our ability to attract clients and further enhance our brand recognition; our ability to hire and retain qualified management personnel and key employees in order to enable us to develop our business; and other assumptions described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F and Current Reports on Form 6-K, underlying or relating to any forward-looking statements. Accordingly, readers should not rely upon forward-looking statements as predictions of future events. Except as required by applicable law, we undertake no obligation to update publicly or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time, and it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances described in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements contained in this presentation. Market & Industry Data This presentation contains information derived from various public sources and certain information from an industry report commissioned by us and prepared by Frost & Sullivan, a third-party industry research firm, to provide information regarding our industry and market positions. This information involves a number of assumptions and limitations, and you are cautioned not to place undue reliance on these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and reports. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results to differ materially from those expressed in these publications and reports. NASDAQ: CTW Forward-Looking Statements
Fiscal 2026 Highlights 3 Paying Monthly Active Users (PMAUs) New Game Titles Launched 89K 1% YoY Growth $82.5M -8.7% YoY 15 Bringing active titles to 42 36% Up from 30% in FY 2025 $96.8M -10% YoY 105.8% -9% YoY $3.5M 4.2% Margin $4.1M Net Loss Return on Ad Spend (ROAS) Adjusted EBITDA1 % Revenue ex-Japan In-Game Purchases Revenue 1) See Non-GAAP reconciliation on page 16.
Notable Game Launches in Fiscal 2026 4 Doraemon Comic Traveler Kakegurui ALL IN High School of the Dead Day 0 The Apothecary Diaries Palace Chronicles Crayon Shinchan: My Sugoroku Great Strategy 15 New game launches in FY 2026 16 Games in backlog or pre- registration as of July 31, 2026
In-Game Purchases 5 Year-over-year growth % $39,388,946 $42,000,000 $41,929,805 $42,532,177 $49,125,267 $57,869,173 $48,603,849 $48,209,491 1H 2023 2H 2023 1H 2024 2H 2024 1H 2025 2H 2025 1H 2026 2H 2026 $81,388,946 $84,461,982 $106,994,440 $96,813,340 2023 2024 2025 2026 -16.7% -9.5%
Revenue 6 Year-over-year growth % $62,944,073 $68,424,577 $90,370,793 $82,509,410 2023 2024 2025 2026 $32,182,824 $30,761,249 $33,444,464 $34,980,113 $41,213,907 $49,156,886 $40,932,347 $41,577,063 1H 2023 2H 2023 1H 2024 2H 2024 1H 2025 2H 2025 1H 2026 2H 2026 -15.4% -8.7%
User Trends 7 Note: See Glossary of Key Terms on page 17 for definitions of key performance indicators. 47,421 46,756 54,978 70,264 76,684 100,322 75,715 102,391 47,088 62,621 88,503 89,053 1H 2023 2H 2023 1H 2024 2H 2024 1H 2025 2H 2025 1H 2026 2H 2026 FY 2023 FY 2024 FY 2025 FY 2026 2,067,851 2,273,505 2,077,715 2,526,143 3,269,618 3,488,052 1,984,354 2,530,328 2,170,678 2,301,929 3,378,835 2,257,341 1H 2023 2H 2023 1H 2024 2H 2024 1H 2025 2H 2025 1H 2026 2H 2026 FY 2023 FY 2024 FY 2025 FY 2026 Paying Monthly Active Users ("PMAUs") Year-over-year growth % Monthly Active Users ("MAUs") Year-over-year growth % 2.1% 0.6% -27.5% -33.2%
Other KPIs 8 Average Monthly in-game Purchase Amount Per Monthly Active Users ("ARPMAUs") Average Monthly in-game Purchase Amount Per Paying Monthly Active Users ("ARPPMAUs") Return on Ad Spend ("ROAS") Note: See Glossary of Key Terms on page 17 for definitions of key performance indicators. $3.12 $3.06 $2.64 $3.57 2023 2024 2025 2026 $144.04 $112.40 $100.74 $90.60 2023 2024 2025 2026 130.3% 99.3% 116.4% 105.8% 2023 2024 2025 2026
Profitability Measures 9 Note: See Glossary of Key Terms on page 17 for definitions of key performance indicators. Segment Profitability Adjusted EBITDA Net Income (Loss) $24,989,040 $27,045,916 $31,345,844 $32,290,286 2023 2024 2025 2026 $3,398,384 $5,977,639 $3,828,563 -$4,131,668 2023 2024 2025 2026 $10,633,603 $11,999,232 $7,960,968 $3,467,076 FY 2023 FY 2024 FY 2025 FY 2026
Financial Results: Trended Financial Statements and Reconciliations from GAAP to Non-GAAP
Key Performance Indicators 11 Fiscal 2025 Fiscal 2026 FY 2023 FY 2024 H1 2025 H2 2025 FY 2025 H1 2026 H2 2026 FY 2026 Gross in-game purchase amount(1) $81,388,946 $84,461,982 $49,125,267 $57,869,173 $106,994,440 $48,603,849 $48,209,491 $96,813,340 Paying daily active users ("PDAUs")(2) 13,541 16,446 16,373 18,561 17,458 14,519 15,795 15,152 Daily active users ("DAUs")(2) 189,985 197,100 247,379 281,197 264,149 236,904 254,283 245,522 PDAUs to DAUs ratio 7.13% 8.34% 6.62% 6.60% 6.61% 6.13% 6.21% 6.17% Paying monthly active users ("PMAUs")(3) 47,088 62,621 76,684 100,322 88,503 75,715 102,391 89,053 Monthly active users ("MAUs")(3) 2,170,678 2,301,929 3,269,618 3,488,052 3,378,835 1,984,354 2,530,328 2,257,341 PMAUs to MAUs ratio 2.17% 2.72% 2.35% 2.88% 2.62% 3.82% 4.05% 3.95% PDAUs to PMAUs ratio 28.76% 26.26% 21.35% 18.50% 19.73% 19.18% 15.43% 17.01% DAUs to MAUs ratio 8.75% 8.56% 7.57% 8.06% 7.82% 11.94% 10.05% 10.88% ARPPDAU $16.47 $14.07 $16.31 $17.23 $16.79 $18.19 $16.86 $17.51 ARPDAU $1.17 $1.17 $1.08 $1.14 $1.11 $1.12 $1.05 $1.08 ARPPMAU $144.04 $112.40 $106.77 $96.14 $100.74 $106.99 $78.47 $90.60 ARPMAU $3.12 $3.06 $2.50 $2.77 $2.64 $4.08 $3.18 $3.57 Day 1 retention rate for paying users(4) 71.7% 62.7% 60.7% 59.6% 59.6% 58.23% 57.35% 57.40% Day 7 retention rate for paying users(4) 49.0% 41.0% 38.5% 37.2% 37.5% 35.5% 36.7% 35.8% Day 30 retention rate for paying users(4) 27.9% 21.3% 18.5% 16.5% 17.1% 16.0% 18.8% 17.1% Day 1 retention rate for active users(5) 5.2% 6.2% 5.9% 5.4% 5.9% 6.15% 6.26% 6.10% Day 7 retention rate for active users(5) 2.1% 2.4% 2.2% 2.1% 2.2% 2.59% 2.68% 2.60% Day 30 retention rate for active users(5) 0.9% 0.9% 0.8% 0.7% 0.8% 1.0% 1.1% 1.0% Return on advertisement spend ("ROAS") 130.3% 99.3% 105.8% 125.8% 116.4% 109.3% 102.3% 105.8% Note: See Glossary of Key Terms on page 17 for definitions of key performance indicators.
Income Statement 12 Footnote Fiscal 2025 Fiscal 2026 FY 2023 FY 2024 H1 2025 H2 2025 FY 2025 H1 2026 H2 2026 FY 2026 Revenue $ 62,944,073 $ 68,424,577 $ 41,213,907 $ 49,156,886 $ 90,370,793 $ 40,932,347 $ 41,577,063 $ 82,509,410 Cost of revenue 17,049,167 16,211,779 9,942,740 12,097,314 22,040,054 13,876,078 14,595,101 28,471,179 G&A Expenses 4,473,647 5,177,570 4,507,982 3,971,871 8,479,853 5,119,691 6,573,668 11,693,359 R&D Expenses 2,913,436 952,440 1,322,913 4,205,820 5,528,733 1,657,902 2,147,545 3,805,447 S&M Expenses 32,919,491 39,426,506 25,982,034 29,405,243 55,387,277 22,027,806 23,835,354 45,863,160 Total Expenses 57,355,741 61,768,295 41,755,669 49,680,248 91,435,917 42,681,477 47,151,668 89,833,145 Operating Income 5,588,332 6,656,282 (541,762) (523,362) (1,065,124) (1,749,130) (5,574,605) (7,323,735) Interest income, net 41,035 300,985 282,507 211,851 494,358 333,453 207,480 540,933 Foreign Currency Transaction gain (loss) (566,100) 784,674 221,056 (509,002) (287,946) 260,296 33,468 293,764 Other income 173,291 454,286 292,677 262,335 555,012 499,078 (74,440) 424,638 Contingent gain on recovery of previously impaired assets. 0 0 0 4,709,029 4,709,029 0 238,561 238,561 Other income/(expense), net (351,774) 1,539,945 796,240 4,674,213 5,470,453 1,092,827 405,069 1,497,896 Income (loss) before income tax expense 5,236,558 8,196,227 254,478 4,150,851 4,405,329 (656,303) (5,169,536) (5,825,839) Income tax expense 1,838,174 2,218,588 (384,307) 961,073 576,766 504,937 (2,199,108) (1,694,171) Net income (loss) 3,398,384 5,977,639 638,785 3,189,778 3,828,563 (1,161,240) (2,970,428) (4,131,668) Foreign currency translation adjustment (1,151,842) (1,021,512) (566,536) 524,109 (42,427) (249,230) (555,181) (804,411) Total comprehensive income (loss) 2,246,542 4,956,127 72,249 3,713,887 3,786,136 (1,410,470) (3,525,609) (4,936,079)
Balance Sheet 13 Footnote July 31, January 31, July 31, January 31, July 31, January 31, July 31, 2023 2024 2024 2025 2025 2026 2026 ASSETS Cash and cash equivalent $14,852,169 $15,531,649 $14,461,251 $15,072,866 $12,208,630 $19,497,920 $14,437,097 Restricted cash 140,683 136,761 133,014 129,127 160,620 129,741 125,812 Accounts receivable, net 1,472,103 1,528,396 1,379,288 1,600,099 1,410,083 1,625,129 1,688,806 Deferred offering cost 0 0 0 0 1,429,523 0 0 Prepaid expenses and other current assets 937,427 1,066,891 2,184,676 2,106,770 2,866,243 2,867,509 4,293,774 Total current assets 17,402,382 18,263,697 18,158,229 18,908,862 18,075,099 24,120,299 20,545,489 Total non-current assets 20,881,618 22,430,224 25,784,278 24,471,714 28,427,157 38,171,048 34,294,317 Total assets 38,284,000 40,693,921 43,942,507 43,380,576 46,502,256 62,291,347 54,839,806 LIABILITIES AND SHAREHOLDERS' EQUITY Total current liabilities 11,856,546 10,175,834 12,012,879 12,416,915 8,423,949 14,939,293 13,052,011 Total non-current liabilities 7,544,127 8,173,217 8,090,174 7,024,342 10,430,250 9,962,668 7,682,897 Total liabilities 19,400,673 18,349,051 20,103,053 19,441,257 18,854,199 24,901,961 20,734,908 Total Shareholders' equity 18,883,327 22,344,870 23,839,454 23,939,319 27,648,057 37,389,386 34,104,898 Total Liabilities and Shareholders' Equity 38,284,000 40,693,921 43,942,507 43,380,576 46,502,256 62,291,347 54,839,806
Cash Flow Statement 14 Footnote Fiscal 2025 Fiscal 2026 FY 2023 FY 2024 1H 2025 2H 2025 FY 2025 1H 2026 2H 2026 FY 2026 Net Income (loss) $3,398,384 $5,977,639 $638,785 $3,189,778 $3,828,563 ($1,161,240) ($2,970,428) ($4,131,668) Depreciation and amortization 779,368 2,067,706 1,323,096 1,350,159 2,673,255 1,109,775 1,451,132 2,560,907 Amortization of right-of-use asset 1,369,188 1,634,833 1,017,089 1,438,122 2,455,211 1,514,860 1,366,473 2,881,333 Impairment of advance to game developers 2,457,900 401,451 1,113,863 2,033,548 3,147,411 750,416 1,885,345 2,635,761 Impairment of prepaid royalties 831,624 0 278,747 204,402 483,149 0 0 0 Minimum guarantee carried over by licensor 0 0 0 0 0 0 (30,522) (30,522) Impairment of investments in films and television programs 0 46,453 0 0 0 0 0 0 Loss from termination of operating lease agreement 0 0 0 33,055 33,055 0 0 0 (Gain)/Losses from disposal of property, equipment and software 0 (19,931) (3,211) 24,543 21,332 0 31,543 31,543 Foreign currency exchange (gain) loss 0 (742,819) (65,249) 516,213 450,964 (139,961) (586,118) (726,079) Deferred income tax expenses 1,811,466 1,734,765 (510,750) 1,017,784 507,034 705,348 (3,105,320) (2,399,972) Share-based compensation 0 0 0 0 0 1,913,692 80,716 1,994,408 Changes in operating assets and liabilities (8,088,779) (9,512,450) (1,207,227) (12,281,372) (13,488,599) (5,073,894) (898,810) (5,972,704) Net cash provided by operating activities 2,559,151 1,587,647 2,585,143 (2,473,768) 111,375 (381,004) (2,775,989) (3,156,993) Net cash used in investing activities (485,236) (1,173,730) (678,657) (501,380) (1,180,037) (2,819,253) (1,844,387) (4,663,640) Net cash provided by (used in) financing activities 0 0 (639,872) (472,464) (1,112,336) 10,645,000 (108,198) 10,536,802 Effect of exchange rate changes (998,138) (812,504) (658,886) 614,869 (44,017) (186,332) 161,727 (24,605) Net change in cash, cash equivalents and restricted cash 1,075,777 (398,587) 607,728 (2,832,743) (2,225,015) 7,258,411 (4,566,847) 2,691,564 Cash, cash equivalents and restricted cash, beginning of the period 13,917,075 14,992,852 14,594,265 15,201,993 14,594,265 12,369,250 19,627,661 12,369,250 Cash, cash equivalents and restricted cash, end of the period 14,992,852 14,594,265 15,201,993 12,369,250 12,369,250 19,627,661 15,060,814 15,060,814
Revenue Recognition & Segment Profitability 15 Footnote Fiscal 2025 Fiscal 2026 FY 2023 FY 2024 1H 2025 2H 2025 FY 2025 1H 2026 2H 2026 FY 2026 Consolidated in-game purchases $81,388,946 $84,461,982 $49,125,267 $57,869,173 $106,994,440 $48,603,849 $48,209,491 $96,813,340 Less: Recoup of advances made to game developers 551,774 2,477,840 1,362,612 2,220,531 3,583,143 1,549,346 1,672,998 3,222,344 Revenue share paid to game developers 17,893,099 13,559,565 6,548,748 6,491,756 13,040,504 6,122,156 4,959,430 11,081,586 Consolidated revenue 62,944,073 68,424,577 41,213,907 49,156,886 90,370,793 40,932,347 41,577,063 82,509,410 Consolidated in-game purchases 81,388,946 84,461,982 49,125,267 57,869,173 106,994,440 48,603,849 48,209,491 96,813,340 Revenue share with game developers and IP holders 19,263,857 14,975,047 9,453,531 6,444,947 15,898,478 8,186,251 6,907,374 15,093,625 Transaction fee 3,659,159 3,812,118 2,486,795 2,778,259 5,265,054 2,245,367 2,280,932 4,526,299 Advertisement expense 31,080,465 37,309,197 24,651,703 27,744,808 52,396,511 18,760,029 22,253,329 41,013,358 Server cost directly related to hosting the games 2,396,425 1,319,704 894,239 1,194,314 2,088,553 1,400,430 2,489,342 3,889,772 Segment profits 24,989,040 27,045,916 11,638,999 19,706,845 31,345,844 18,011,772 14,278,514 32,290,286
GAAP to Non-GAAP Reconciliation 16 Fiscal 2025 Fiscal 2026 FY 2023 FY 2024 H1 2025 H2 2025 FY 2025 H1 2026 H2 2026 FY 2026 Net income $ 3,398,384 $ 5,977,639 $ 638,785 $ 3,189,778 $ 3,828,563 $(1,161,240) $(2,970,428) $(4,131,668) Depreciation and amortization 779,368 2,067,706 1,323,096 1,350,159 2,673,255 1,109,775 1,451,132 2,560,907 Amortization of right-of-use asset 1,369,188 1,634,833 1,017,089 1,438,122 2,455,211 1,514,860 1,366,473 2,881,333 Interest income, net (41,035) (300,985) (282,507) (211,851) (494,358) (333,453) (207,480) (540,933) Income tax expense 1,838,174 2,218,588 (384,307) 961,073 576,766 504,937 (2,199,108) (1,694,171) Contingent gain on recovery of previously impaired assets. 0 0 0 (4,709,029) (4,709,029) 0 (238,561) (238,561) Impairment of advance to game developers 2,457,900 401,451 1,113,863 2,033,548 3,147,411 750,416 1,885,345 2,635,761 Impairment of prepaid royalties 831,624 0 278,747 204,402 483,149 0 0 0 Share-based compensation 0 0 0 0 0 1,913,692 80,716 1,994,408 Adjusted EBITDA 10,633,603 11,999,232 3,704,766 4,256,202 7,960,968 4,298,987 (831,911) 3,467,076
Key Definitions 17 Active User Are to any user that spend at least one (1) minute on G123.jp platform during the applicable period. Active users are calculated based on cookie-based uniqueness, meaning that each unique browser-cookie combination is counted once. Note that this method does not dedupe across different browsers or devices – if the same person uses multiple devices without logging in, they will be counted multiple times. ARPMAU Are to average monthly 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 monthly in-game purchase amount per paying monthly active user during a given fiscal year, 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 the number of months in the respective period. DAU 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 Paying User Are to any user that makes at least one in-game purchase of no less than US$0.01 during the applicable period; PDAU 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 average in-game purchase amount per created user divided by average advertising expenses per created user during the applicable period Gross in-game Means the total in-purchase amounts, or top-ups, paid by end-users for purchase games on the G123.jp platform amount Retention rate Measures the percentage of users who return to the same game on a specific day (e.g. Day 1, Day 7 and Day 30) after their initial engagement. Platform retention rate is the average of the per-game retention rate of each day during a given period. References in this presentation to: