CTW · CTW Cayman Class A Ordinary Shares

CTW's 1H26 results demonstrate the strength of its asset-light model amid revenue pressure. Revenue declined 1% to $40.9 million due to softer monetization from new titles, legacy game lifecycle declines, and reduced player engagement, as noted by CEO Ryuichi Sasaki. Gross in-game purchases fell slightly to $48.6 million from $49.1 million YoY. Despite this, segment profit surged 55% to $18.0 million (37.1% of in-game purchases), driven by disciplined cost control: advertisement expenses dropped to $18.8 million from $24.7 million, and revenue share with developers/IP holders decreased to $8.2 million from $9.5 million. Server costs rose modestly to $1.4 million. Adjusted EBITDA rose 16% to $4.3 million (10.5% margin), reflecting operational leverage. GAAP net loss of $1.2 million ($(0.02)/share) compared to $0.6 million income last year, attributed to elevated public company and infrastructure expenses. User metrics showed MAUs down to 1.98 million from 3.27 million, but paying user efficiency improved with PMAUs/MAUs ratio at 3.82% vs 2.35%, ARPMAU at $4.08 vs $2.50, and ROAS at 109% vs 106%. Business highlights include launching seven games like Crayon Shinchan My Sugoroku Great Strategy, reaching 35 live titles, with a robust pipeline of 6 pre-registrations and 20 backlog titles. International push advanced with a New York office, boosting non-Japan revenue to 32% from 29%. Management remains optimistic on H2 launches like High School of the Dead and anime pipeline, emphasizing platform scalability and global anime interest. No forward guidance provided; focus on content, expansion, and capital discipline.