Revenue declined 9% and the company swung to a GAAP loss, driven by weaker new game performance and rising costs. The stable paying user base and international growth are positives, but the core top-line contraction and margin compression are the dominant signals. Monitor the upcoming earnings webinar on October 16 for FY27 outlook and pipeline quality commentary.
Price Chart
Executive Summary
CTW reported FY26 (year ended July 31, 2026) results with revenue of $82.5 million, down 9% YoY from $90.4 million, and a net loss of $4.1 million ($0.07 per share) versus net income of $3.8 million ($0.06 per share) in FY25. The company swung to a loss as revenue declined, cost of revenue and G&A expenses rose sharply, and a prior-year contingent gain did not repeat. Adjusted EBITDA fell 56% to $3.5 million. While paying users were stable and international revenue grew 8%, the top-line decline and GAAP loss are the headline takeaways.
Key Facts
- Revenue decreased 9% YoY to $82.5 million in FY26 from $90.4 million in FY25.
- Net loss of $4.1 million ($0.07 per share) in FY26 vs. net income of $3.8 million ($0.06 per share) in FY25.
- Adjusted EBITDA declined 56% YoY to $3.5 million (4.2% of revenue) from $8.0 million (8.8% of revenue).
- Gross in-game purchases decreased 10% YoY to $96.8 million from $107.0 million.
- Cost of revenue increased 29% to $28.5 million; G&A expenses increased 38% to $11.7 million.
- Monthly active users (MAUs) decreased 33% YoY to 2.26 million from 3.38 million.
- Paying monthly active users (PMAUs) were essentially flat at 89,053, up 0.6% YoY.
- Cash and cash equivalents were $14.4 million, up 18% YoY, with no debt.
- Revenue from users outside Japan grew 8% YoY to $29.7 million, or 36% of total revenue.
Financial Impact
Revenue decline of $7.9M YoY; swing from $3.8M net income to $4.1M net loss; Adjusted EBITDA down $4.5M.
Risk Factors
- Continued revenue decline if new game launches underperform.
- Rising cost of revenue and G&A expenses could further pressure margins.
- MAU decline of 33% signals reduced user acquisition effectiveness and potential platform engagement issues.
- Dependence on hit titles like High School of the Dead Day 0 for revenue growth creates concentration risk.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001213900-26-109871 |
| Document: ea030856601ex99-2.htm | 0001213900-26-109871 |
| Document: ea0308566-6k_ctw.htm | 0001213900-26-109871 |
| Document: 0001213900-26-109871-index-headers.html | 0001213900-26-109871 |
| Document: 0001213900-26-109871-index.html | 0001213900-26-109871 |
| Document: 0001213900-26-109871.txt | 0001213900-26-109871 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 11d ago | 20-F | $1.87 $1.74 | ▲ +6.95% | ▲ +6.81% | $1.71 (+8.56%) |
Oct 15, 2026 12d ago | 6-K | $1.87 $1.75 | ▲ +6.42% | ▲ +5.99% | $1.71 (+8.56%) |
Oct 15, 2026 12d ago | Press Release | $1.87 $1.75 | ▲ +6.42% | ▲ +5.99% | $1.71 (+8.56%) |
Oct 5, 2026 22d ago | Press Release | $2.10 $2.07 | ▼ −1.43% | ▼ −1.29% | $1.71 (−18.57%) |
May 13, 2026 23w ago | 6-K | $2.90 $2.72 | ▲ +6.21% | ▲ +5.05% | $1.71 (+41.03%) |
May 13, 2026 23w ago | Press Release | $2.90 $2.72 | ▲ +6.21% | ▲ +5.05% | $1.71 (+41.03%) |
May 12, 2026 24w ago | 6-K | $2.91 $2.88 | ▼ −1.03% | ▼ −1.11% | $1.71 (−41.24%) |
Apr 17, 2026 27w ago | 6-K | $2.30 $2.75 | ▲ +19.57% | ▲ +19.01% | $1.71 (−25.65%) |
US Market Status
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