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, CFAFNK
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
