CTW Cayman, a Tokyo-headquartered, Nasdaq-listed browser game platform operator, announced its financial results for the first half of fiscal year 2026 on Wednesday. The report shows the company recorded a net loss of $1.2 million for the period, with GAAP earnings per share at -$0.02.

Revenue remained largely flat, while new game performance fell short of expectations. In the six months ended January 31, 2026, revenue was $40.9 million, a slight decrease of 1% compared to $41.2 million in the same period last year. The company's Chief Financial Officer stated during the earnings call that the first half was a "weak period with content performance below expectations." The company launched seven new games during this time, but their performance was below internal targets. Additionally, user engagement for several established games continued to decline.

Profitability showed significant improvement, with adjusted EBITDA growing by 16%. Despite the flat revenue, the company's profitability metrics were strong. Segment profit increased by 55% year-over-year, rising from $11.6 million to $18.0 million. Adjusted EBITDA reached $4.3 million, a 16% increase from the prior year, representing 10.5% of revenue compared to 9.0% previously.

The improvement in profit margins was primarily driven by a significant optimization in advertising spending. Advertising expenses decreased by approximately 24% year-over-year, from $24.7 million to $18.8 million.

The net loss was attributed to increased costs associated with being a public company and infrastructure investments. Although both segment profit and adjusted EBITDA grew, the company reported a net loss of $1.2 million for the period, compared to a net profit of $0.6 million in the same period last year. Management stated that the widened loss primarily reflects increased operational costs associated with being a publicly listed company and higher infrastructure expenditures.

Business progress and international expansion were noted. As of the end of the quarter, the company's platform had 35 games in operation, with an additional 6 in pre-registration and 20 in the development pipeline. During the period, the company opened a New York office to support marketing, partnership, and user acquisition efforts in the North American market.