Revenue Growth - Revenue for fiscal year 2025 reached $90.4 million, representing a 32% year-over-year growth, with a notable 41% growth in the second half of the year compared to the same period in fiscal 2024[3] - Revenue for the year ended July 31, 2025, was $90,370,793, representing a 32.1% increase from $68,424,577 in 2024[21] - Consolidated in-game purchases increased to $106,994,440 in fiscal year 2025, up 26.8% from $84,461,982 in fiscal year 2024[32] User Engagement - Daily active users (DAUs) increased to 264,149 in fiscal 2025, up from 197,100 in fiscal 2024, while paying daily active users (PDAUs) rose to 17,458 from 16,446[17] - Users outside of Japan accounted for 30% of total revenue in fiscal 2025, up from 19% in the previous year, indicating successful market expansion efforts[3] Financial Performance - Net income for fiscal 2025 was $3.8 million ($0.06 per share), a decrease from $6.0 million ($0.10 per share) in fiscal 2024[8] - Net income for 2025 was $3,828,563, a decrease of 36.0% from $5,977,639 in 2024[21] - Adjusted EBITDA for fiscal 2025 was $8.0 million, representing 8.8% of revenue, despite increased advertising expenses to support new game launches[8] - Adjusted EBITDA for fiscal year 2025 was $7,961,000, compared to $11,999,000 in fiscal year 2024, indicating a decline of 33.4%[29] Expenses - Cost of revenue increased to $22,040,054 in 2025 from $16,211,779 in 2024, reflecting a 35.5% rise[21] - Research and development expenses surged to $5,528,733 in 2025, up from $952,440 in 2024, indicating a significant investment in innovation[21] - Sales and marketing expenses rose to $55,387,277 in 2025, compared to $39,426,506 in 2024, marking a 40.6% increase[21] - Total other operating expenses rose to $32,410,968 in fiscal year 2025, compared to $20,389,634 in fiscal year 2024, reflecting a significant increase of 59.1%[32] Assets and Liabilities - Total assets increased to $46,502,256 as of July 31, 2025, compared to $43,942,507 in 2024, showing growth in the company's financial position[23] - Total liabilities decreased to $18,854,199 in 2025 from $20,103,053 in 2024, indicating improved financial health[23] - Shareholders' equity rose to $27,648,057 in 2025, up from $23,839,454 in 2024, reflecting a stronger equity base[23] Other Financial Metrics - The company reported a contingent gain of $4,709,029 on recovery of previously impaired assets, contributing positively to other income[21] - The company completed its Initial Public Offering in August 2025, raising $12.0 million in gross proceeds[4] - Return on advertisement spend (ROAS) improved to 116.4% in fiscal 2025, up from 99.3% in fiscal 2024[7] - The company has a robust pipeline with 24 games in backlog for fiscal 2026, indicating strong future growth potential[4] Cash Flow - Net cash provided by operating activities decreased to $111,375 in fiscal year 2025 from $1,587,647 in fiscal year 2024[26] - Cash and cash equivalents at the end of fiscal year 2025 were $12,208,630, down from $14,461,251 at the end of fiscal year 2024[26] Impairments and Losses - Impairment of advance to game developers was $3,147,411 in fiscal year 2025, a substantial increase from $401,451 in fiscal year 2024[26] - The company reported a foreign currency transaction loss of $287,946 in fiscal year 2025, compared to a gain of $784,674 in fiscal year 2024[32]
CTW Cayman-A(CTW) - 2025 Q2 - Quarterly Report