CTW Cayman (CTW) H1 2026 earnings summary

Executive summary

• Revenue for the first half of fiscal 2026 was $41 million, down 0.7% to 1% year-over-year, reflecting softer content performance and underperforming new game launches.

• Despite lower revenue, monetization quality improved, with higher ARPDAU and ARPU, and a stable base of paying users.

• Operating loss was $1.7 million, and net loss was $1.2 million versus net income of $0.6 million last year, due to higher public company and infrastructure costs.

• Adjusted EBITDA rose to $4.3 million (10.5% margin), and segment profit increased to $18 million, highlighting strong core economics and improved operational efficiency.

• Seven new games launched, with Crayon Shinchan My Sugoroku Great Strategy becoming a top title by in-game purchases.

Financial highlights

• Gross in-game purchases were $43.6 million to $48.6 million, down year-over-year.

• Monthly active users declined to 2.0 million from 3.3 million, but paying monthly active users remained stable at ~75,700.

• Conversion rate improved to 3.82%; ARPDAU increased to $18.90 from $16.31; ARPU rose to $4 from $2.50.

• ROAS improved to 109% from 106%.

• Cost of revenue increased 39.6% to $13.9 million; G&A expenses up 13.6% to $5.1 million; R&D up 25.3% to $1.7 million.

Outlook and guidance

• International expansion, especially in North America, remains a strategic priority, with a goal to reach 50-60% of revenue from outside Japan in 2-3 years.

• Pipeline includes 20 titles, with 5-6 in pre-registration and several tied to popular anime IPs.

• Early engagement trends for new second-half titles are encouraging.