The company achieved a 40.5% year-over-year revenue increase in 2025Q2, though structural gross margins of 75.4% are largely offset by heavy SG&A deployment that limits operating margins to 3.5%.
| Metric | TTM | Jul'25 | Jul'24 | Jul'23 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Sales/Revenue | 2.14B | 90.37M | 68.42M | 62.94M | 8.16B | 8.49B | 8.55B | 8.91B | 8.96B | 8.84B | 8.75B | 8.85B | 6.63B | 9.27B | 9.73B | 10.39B | 9.88B | 9.87B | 10.05B |
| Revenue Growth % | -74.12% | 32.07% | 8.71% | -99.23% | -3.96% | -0.67% | -4.04% | -0.6% | 1.43% | 0.97% | -1.07% | 33.35% | -28.43% | -4.73% | -6.32% | 5.17% | 0.06% | -1.76% | - |
| Cost of Goods Sold | 643.68M | 22.04M | 16.21M | 17.05M | 2.44B | 2.77B | 2.88B | 2.93B | 2.87B | 2.88B | 2.79B | 2.87B | 1.83B | 1.66B | 1.5B | 1.69B | 2.14B | 2.32B | 2.38B |
| COGS % of Revenue | - | 24.39% | 23.69% | 27.09% | 29.89% | 32.58% | 33.7% | 32.93% | 32.04% | 32.58% | 31.87% | 32.41% | 27.63% | 17.85% | 15.47% | 16.24% | 21.64% | 23.53% | 23.67% |
| Gross Profit | 1.49B | 68.33M | 52.21M | 45.89M | 5.72B | 5.73B | 5.67B | 5.98B | 6.09B | 5.96B | 5.96B | 5.98B | 4.8B | 7.62B | 8.23B | 8.7B | 7.74B | 7.55B | 7.67B |
| Gross Margin % | 69.88% | 75.61% | 76.31% | 72.91% | 70.11% | 67.42% | 66.3% | 67.07% | 67.96% | 67.42% | 68.13% | 67.59% | 72.37% | 82.15% | 84.53% | 83.76% | 78.36% | 76.47% | 76.33% |
| Gross Profit Growth % | - | 30.87% | 13.77% | -99.2% | -0.12% | 1.01% | -5.14% | -1.9% | 2.23% | -0.07% | -0.28% | 24.53% | -36.95% | -7.42% | -5.46% | 12.42% | 2.54% | -1.59% | - |
| Operating Expenses | 1.48B | 69.4M | 45.56M | 40.31M | 5.27B | 5.83B | 6.24B | 6.59B | 6.7B | 6.73B | 6.67B | 6.94B | 5.44B | 6.79B | 7.17B | 7.53B | 6.88B | 7.47B | 7.89B |
| OpEx % of Revenue | - | 76.79% | 66.58% | 64.04% | 64.64% | 68.68% | 72.95% | 73.94% | 74.79% | 76.1% | 76.26% | 78.47% | 81.93% | 73.22% | 73.67% | 72.44% | 69.65% | 75.7% | 78.54% |
| Selling, General & Admin | 1.47B | 63.87M | 44.6M | 37.39M | 659M | 799M | 925M | 1.02B | 1.01B | 1.09B | 1.06B | 1.17B | 1.5B | 1.61B | 1.85B | 1.74B | 1.64B | 1.73B | 1.75B |
| SG&A % of Revenue | - | 70.67% | 65.19% | 59.41% | 8.08% | 9.41% | 10.82% | 11.47% | 11.32% | 12.29% | 12.13% | 13.18% | 22.59% | 17.36% | 19.02% | 16.73% | 16.55% | 17.55% | 17.4% |
| Research & Development | 2.63M | 5.53M | 952.44K | 2.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 6.12% | 1.39% | 4.63% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 4.61B | 5.03B | 5.31B | 5.57B | 5.69B | 5.64B | 5.61B | 5.78B | 3.94B | 5.18B | 5.32B | 5.79B | 5.24B | 5.74B | 6.14B |
| Operating Income | 629.77M | -1.07M | 6.66M | 5.59M | 2.88B | 2.66B | 2.31B | 2.32B | 2.26B | 2.11B | 2.08B | 1.91B | 1.2B | 2.48B | 2.56B | 2.27B | 2.38B | 1.2B | 989M |
| Operating Margin % | 29.46% | -1.18% | 9.73% | 8.88% | 35.36% | 31.32% | 27.05% | 26.06% | 25.21% | 23.9% | 23.74% | 21.53% | 18.07% | 26.78% | 26.33% | 21.82% | 24.07% | 12.19% | 9.84% |
| Operating Income Growth % | - | -116% | 19.11% | -99.81% | 8.42% | 15% | -0.39% | 2.74% | 7.01% | 1.64% | 9.08% | 58.88% | -51.71% | -3.08% | 13.01% | -4.63% | 97.59% | 21.64% | - |
| EBITDA | 982.51M | 4.06M | 10.36M | 7.74M | 4.25B | 4.1B | 3.89B | 4B | 4.1B | 4.08B | 4.15B | 4.13B | 3.06B | 4.36B | 4.54B | 4.34B | 4.46B | 3.56B | 3.65B |
| EBITDA Margin % | 45.97% | 4.5% | 15.14% | 12.29% | 52.08% | 48.24% | 45.54% | 44.9% | 45.73% | 46.14% | 47.46% | 46.68% | 46.19% | 46.99% | 46.63% | 41.78% | 45.2% | 36.1% | 36.31% |
| EBITDA Growth % | -77.24% | -60.77% | 33.89% | -99.82% | 3.69% | 5.21% | -2.67% | -2.39% | 0.52% | -1.83% | 0.58% | 34.75% | -29.64% | -4.01% | 4.56% | -2.78% | 25.29% | -2.33% | - |
| D&A (Non-Cash Add-back) | 352.75M | 5.13M | 3.7M | 2.15M | 1.36B | 1.44B | 1.58B | 1.68B | 1.84B | 1.97B | 2.08B | 2.23B | 1.87B | 1.87B | 1.98B | 2.07B | 2.09B | 2.36B | 2.66B |
| EBIT | 623.63M | -1.07M | 6.66M | 5.59M | 2.85B | 2.61B | 2.26B | 2.24B | 2.21B | 2.07B | 2.02B | 1.83B | 0 | 1.26B | 1.29B | 0 | 0 | 1.24B | 923M |
| Net Interest Income | -93.21M | 494.36K | 300.99K | 41.03K | -380M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 794.63K | 494.36K | 300.99K | 41.03K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 94M | 0 | 0 | 0 | 380M | 448M | 465M | 478M | 473M | 464M | 450M | 443M | 0 | -615M | -632M | -589M | -610M | -616M | -607M |
| Other Income/Expense | -100.13M | 5.47M | 1.54M | -351.77K | -416M | -501M | -522M | -559M | -527M | -503M | -512M | -514M | -307M | -610M | -641M | 0 | 0 | 648M | 541M |
| Pretax Income | 529.63M | 4.41M | 8.2M | 5.24M | 2.47B | 2.16B | 1.79B | 1.76B | 1.73B | 1.61B | 1.57B | 1.39B | 892M | 1.87B | 1.92B | 2.27B | 2.38B | 1.85B | 1.53B |
| Pretax Margin % | 24.78% | 4.87% | 11.98% | 8.32% | 30.26% | 25.42% | 20.95% | 19.79% | 19.33% | 18.21% | 17.89% | 15.72% | 13.44% | 20.2% | 19.74% | 21.82% | 24.07% | 18.75% | 15.23% |
| Income Tax | 137.8M | 576.77K | 2.22M | 1.84M | 641M | 494M | 134M | 678M | 659M | 639M | 602M | 542M | 349M | 791M | 724M | 829M | 885M | 648M | -541M |
| Effective Tax Rate % | 26.02% | 13.09% | 27.07% | 35.1% | 25.97% | 22.88% | 7.48% | 38.46% | 38.03% | 39.71% | 38.44% | 38.96% | 39.13% | 42.23% | 37.69% | 36.57% | 37.23% | 35.01% | -35.36% |
| Net Income | 391.83M | 3.83M | 5.98M | 3.4M | 1.83B | 1.67B | 1.66B | 1.08B | 1.07B | 970M | 964M | 849M | 543M | 1.08B | 1.2B | 1.44B | 1.49B | 1.2B | 977M |
| Net Margin % | 18.33% | 4.24% | 8.74% | 5.4% | 22.4% | 19.6% | 19.38% | 12.18% | 11.98% | 10.98% | 11.01% | 9.6% | 8.18% | 11.67% | 12.3% | 13.84% | 15.11% | 12.19% | 9.72% |
| Net Income Growth % | -78.77% | -35.95% | 75.9% | -99.81% | 9.73% | 0.48% | 52.72% | 1.02% | 10.72% | 0.62% | 13.55% | 56.35% | -49.82% | -9.61% | -16.76% | -3.62% | 24.02% | 23.13% | - |
| Net Income (Continuing) | 391.83M | 3.83M | 5.98M | 3.4M | 1.83B | 1.67B | 1.66B | 1.08B | 1.07B | 970M | 964M | 849M | 543M | 1.08B | 1.2B | 1.44B | 1.49B | 1.2B | 977M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.53 | 0.06 | 0.50 | 0.28 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EPS Growth % | - | -87.24% | 78.57% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EPS (Basic) | - | 0.06 | 0.50 | 0.28 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 60M | 60M | 12M | 12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Basic Shares Outstanding | 60M | 60M | 12M | 12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - | - | 87.58% | 76.58% | 60.35% | 119.82% | 125.7% | 144.33% | 137.45% | 135.45% | 165.75% | 208.87% | 167.08% | 139.08% | 160.86% | 160.1% | 259.57% |
High User Acquisition Costs
According to the most recent quarterly filings, CTW achieved a 40.5% year-over-year revenue growth rate, signaling that the G123 platform's frictionless HTML5 distribution model is successfully capturing market share within the competitive Japanese digital entertainment landscape despite broader industry headwinds.
The acceleration in top-line performance suggests that the company's strategy of bypassing native app store ecosystems is resonating with users. Investors should monitor whether this growth trajectory remains sustainable as the company attempts to scale its international presence beyond the domestic Japanese market.
As reported in financial statements, CTW maintains a robust gross margin of 75.4%, which appears to be a direct result of the company's structural avoidance of the 30% platform commission fees typically levied against native mobile gaming applications.
This high gross margin profile provides the company with significant flexibility to reinvest in user acquisition. However, the persistence of these margins warrants further investigation into whether they can be maintained as the company expands into new, potentially more expensive geographic markets.
Based on the provided income statement data, CTW's operating margin remains thin at 3.5% in 2025Q2, indicating that the company is aggressively deploying its gross profit toward SG&A expenses to fuel its rapid top-line expansion.
The current operating structure suggests that the company is prioritizing market penetration over immediate profitability. Analysts should watch for a potential inflection point where marketing spend as a percentage of revenue begins to decline, which would demonstrate true operating leverage.
Data from recent filings suggests that CTW's reliance on heavy SG&A investment to drive growth may be masking underlying profitability challenges, as evidenced by the narrow operating margins despite the company's significant 40.5% revenue growth rate.
Short-term investors should be wary of the risk that rising user acquisition costs could quickly erode the company's thin operating margins. If the payback period on these marketing investments lengthens, the company may face liquidity constraints given its relatively modest cash position.
Quick answers to the most common questions about buying CTW stock.
For fiscal year 2025, CTW Cayman Class A Ordinary Shares (CTW) reported total revenue of $90.4M. This represents a 99.1% decline compared to $10.05B in 2005.
CTW Cayman Class A Ordinary Shares (CTW) is profitable, generating $3.8M in net income for the fiscal year ending 2025 with a net profit margin of 4.2%.
CTW Cayman Class A Ordinary Shares (CTW) reported an operating income of $-1.1M, resulting in an operating profit margin of -1.2%. This margin reflects the operational efficiency of the business before interest and taxes.
CTW Cayman Class A Ordinary Shares (CTW) generated $68.3M in gross profit for the year, representing a gross profit margin of 75.6%. This demonstrates the company's core pricing power and production efficiency.