Monitor FY27 game pipeline execution and user acquisition efficiency; the success of High School of the Dead Day 0 shows IP-driven titles can drive revenue, but the 33% MAU decline and lower ROAS suggest the platform needs sustained high-quality releases to reverse the trend.
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Executive Summary
CTW reported FY26 revenue of $82.5M, down 9% YoY, and swung to a net loss of $4.1M from net income of $3.8M in FY25. While segment profits grew 3% and paying users remained stable, overall user activity declined sharply (MAUs -33% YoY) and the company's flagship new game launch only partially offset weaker performance from other titles. The mixed results with declining revenue and a net loss, despite cost discipline, point to a bearish read.
Key Financial Metrics
Key Facts
- FY26 revenue of $82.5M, down 9% YoY from $90.4M
- Net loss of $4.1M ($0.07 per share) vs net income of $3.8M ($0.06 per share) in FY25
- Adjusted EBITDA fell 56% to $3.5M (4.2% of revenue) from $8.0M (8.8% of revenue)
- MAUs decreased 33% YoY to 2.26M from 3.38M; PMAUs up 0.6% to 89,053
- Advertising expense reduced 22% YoY to $41.0M; ROAS declined to 105.8% from 116.4%
- High School of the Dead Day 0 generated ~$6.0M in ~3 months, averaging ~$2.0M/month
- Cash and equivalents $14.4M, up 18% YoY, with no debt
Financial Impact
Revenue decline of $7.9M (9% YoY) and swing to net loss of $4.1M from net income of $3.8M; Adjusted EBITDA down $4.5M (56%)
Risk Factors
- Continued decline in MAUs and user engagement metrics (Day 1/7/30 retention rates for paying users all down YoY)
- Dependence on a few high-performing titles; new game revenue fell to $22.0M from $32.3M despite launching 15 vs 7 games
- ROAS declining to 105.8% leaves thin margin for advertising spend efficiency
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3382159 |
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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