CTW, a leading game platform company, has reported its financial results for the fiscal year ending July 31, 2026. The results indicate a mixed performance, with a notable decline in revenue but an increase in segment profits. This update is significant as it reflects the company's ongoing adjustments in response to market challenges and user engagement trends.
Founded in 2013 and based in Tokyo, CTW operates under the Standard Industrial Classification of Services-Computer Processing & Data Preparation (SIC 7374). The company is publicly traded on the Nasdaq under the ticker CTW. CTW is recognized for its flagship platform, G123.jp, which provides global access to web-based games inspired by popular Japanese anime.
In its recent filing, CTW announced a revenue of $82.5 million for fiscal year 2026, a decrease of 9% compared to the previous year. Despite this decline, the company reported a 3% increase in segment profits, reaching $32.3 million, which represents 33.4% of in-game purchases. This increase in segment profits was attributed to a significant reduction in advertising expenses, which fell by $11.4 million, or 22% year-over-year.
CTW's filing provided several key highlights from the fiscal year. The company experienced a notable increase in revenue from international users, which grew by 8% to $29.7 million, now accounting for 36% of total revenue. However, revenue from users in Japan decreased by 16% to $52.8 million. The company also launched 15 new games during the fiscal year, generating $22 million in revenue, although this was less than the $32.3 million generated from seven new games launched in the previous year.
CTW reported a net loss of $4.1 million for the fiscal year, compared to a net income of $3.8 million in fiscal year 2025. The decrease in overall user activity was concentrated among non-paying users, with monthly active users dropping by 33% to 2.26 million. However, the number of paying monthly active users increased slightly to 89,053, indicating resilience among its core player base.
Ryuichi Sasaki, the Founder, CEO, and Chairman of CTW, commented on the fiscal year results, stating, “Fiscal 2026 was a year of mixed performance for CTW. Several of our game releases did not achieve the engagement and monetization we expected, which weighed on our overall results.” He emphasized the importance of focusing on the quality and execution of game releases moving forward.
Looking ahead, CTW plans to refine its approach to game development and marketing. The company aims to leverage the lessons learned from fiscal 2026 to enhance the performance of its game portfolio and expand its user base. With a stable base of monthly paying users and a growing international presence, CTW believes it has substantial opportunities ahead.
CTW will host an earnings webinar on October 16, 2026, at 8:30 a.m. ET to discuss these financial results and provide further insights into the company's strategy moving forward. Investors and stakeholders are encouraged to participate to gain a deeper understanding of CTW's plans for growth and recovery.