CTW Announces Fiscal Year 2026 Financial Results
Key Highlights
- ➤Revenue $82.5 million, down 9% YoY, while segment profits rose 3% to $32.3 million
- ➤Net loss $4.1 million, or $0.07 per share, versus FY25 net income of $3.8 million
- ➤International revenue rose 8% to $29.7 million, reaching 36% of total revenue
- ➤Monthly active users fell 33% to 2.26 million, while paying users increased 0.6% to 89,053
- ➤High School of the Dead Day 0 generated approximately $6.0 million through July 31, 2026
Expert Statements
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.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“Furthermore, we pulled back on advertising and user acquisition spending once we saw these weaker engagement trends, which negatively impacted our user base.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“However, other developments during the year strengthened our conviction in the long-term opportunity for G123.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“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.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“Additionally, we also saw some encouraging signs within our user base that we believe are important when evaluating the health of the platform.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“While overall users declined significantly in fiscal 2026, our paying users remained remarkably resilient, increasing slightly year over year.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“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.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“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.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“That distinction is important, as we do not view fiscal 2026 as evidence that the opportunity for our platform has diminished.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“Rather, the year reinforced how much the quality and execution of individual game releases matter to our results.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“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.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“Our objective is to build upon the characteristics that drove our stronger-performing titles and make successful launches more consistent across our portfolio.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“Fiscal 2026 also demonstrated that our ROAS-driven model is built to be resilient when a title underperforms and to accelerate when one succeeds.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“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.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“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.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“That discipline limited the downside this past year, and we believe it will compound the upside as the quality of our pipeline improves.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“We are also encouraged by the opportunity outside Japan.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“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.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“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.”
Ryuichi Sasaki, Founder, CEO, and Chairman of CTW
“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.”
Management, CTW
“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.”
TOKYO, Oct. 15, 2026 (GLOBE NEWSWIRE) -- 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)
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