Exceed World, Inc., a Japan-focused e-learning and online gaming membership company, reported a sharp downturn for the year ended September 30, 2025. Revenue fell to $8.6 million from $24.4 million, mainly because recruitment activity by premium Force Club members declined, which is central to its multilevel marketing model.
The company swung from net income of $1.2 million to a net loss of $6.9 million, as fixed administrative costs of about $9.8 million outweighed the smaller gross profit base. Operating cash flow moved from an inflow of $2.7 million to an outflow of $8.1 million, and cash dropped to $7.4 million from $17.6 million, though working capital remained positive at $5.3 million.
The business continues to focus on Force Club memberships and the newer Connector Plan game membership, all primarily in Japan, supported by 57 employees. The company added bank borrowing, including a new credit line and long-term loans totaling about $1.5 million, and recorded modest legal settlements and contingencies related to contract cancellations.