TOKYO, May 13, 2026 (GLOBE NEWSWIRE) -- CTW (Nasdaq: CTW) ("the Company"), a leading game platform company providing global access to web-based games through its flagship HTML5 platform, G123.jp, reports financial results for the six months ending January 31, 2026 ("1H26"), highlighting the resilience of its asset-light operating model, which drove significant improvement in segment profitability and Adjusted EBITDA despite modest year-over-year revenue softness.

1H26 Financial and Business Highlights

   -- Revenue of $40.9 million in 1H26, a decline of 1% from $41.2 million in 
      the six months ended January 31, 2025 ("1H25") 
 
   -- Segment profit increased 55% year-over-year and Adjusted EBITDA increased 
      16% year-over-year, demonstrating the flexibility of CTW's asset-light 
      operating model and disciplined marketing optimization 
 
   -- Launched seven new games on G123.jp; Crayon Shinchan My Sugoroku Great 
      Strategy has become one of the Company's largest titles by in-game 
      purchases 
 
   -- 35 games were live on G123.jp as of January 31, 2026, with 6 titles in 
      pre-registration and 20 in backlog 
 
   -- Opened a New York office to support marketing, partnerships, and user 
      acquisition for international expansion 

Comments from Ryuichi Sasaki, Founder, CEO, and Chairman of CTW

"Gross in-game purchases and revenue each declined by 1% in the first half of fiscal 2026 compared to the first half of fiscal 2025, primarily due to softer-than-expected monetization from new titles, ongoing lifecycle trends in legacy games, and moderated player engagement. While these results fell short of our expectations, the period demonstrated the resilience and adaptability of our operating model.

CTW's platform is designed to react quickly to changing user behavior and monetization trends. During the period, we identified underperforming titles early and proactively reduced marketing and advertising spend, which preserved profitability and strengthened segment margins. We believe this disciplined, return-focused approach is a key differentiator for CTW.

Looking ahead, we are optimistic about the opportunities in front of us. We have already launched several new titles in the second half, including High School of the Dead and Kakegurui ALL IN, and early engagement trends are encouraging relative to our first half releases. Our upcoming content pipeline includes additional well-known anime franchises that we believe are better aligned with user demand and support strong monetization going forward.

We also continue to prioritize international expansion as a major strategic initiative. While Japan remains our largest market, we see substantial long-term potential in other regions, such as North America. Earlier this year, we established a New York City presence to support localized marketing efforts, potential strategic partnerships, and broader user acquisition initiatives. We believe our browser-first gaming ecosystem, which allows players to access games instantly across devices without downloads, is uniquely positioned within the evolving global gaming market. While the first half presented challenges, we believe CTW is still in the early stages of a much larger growth opportunity, supported by a scalable platform, a strengthening content pipeline, an expanding global footprint, and broadening global interest in anime culture."

Results for 1H26

Revenue decreased 1% year-over-year to $40.9 million, primarily reflecting underperformance of new launches in the period, normal lifecycle trends of legacy games, and softer player engagement.

Segment profit* increased 55% year-over-year to $18.0 million (37.1% of in-game purchases) as compared to $11.6 million in 1H25 (23.7% of in-game purchases), demonstrating meaningful margin expansion despite slightly lower in-game purchases. The improvement was driven by lower advertisement expenses ($18.8 million in 1H26 vs. $24.7 million in 1H25) and lower revenue share with game developers and IP holders ($8.2 million in 1H26 vs. $9.5 million in 1H25) and partially offset by higher server costs ($1.4 million in 1H26 vs. $0.9 million in 1H25) and slightly lower consolidated in-game purchases ($48.6 million in 1H26 vs. $49.1 million in 1H25).

Net Loss was $1.2 million, or $(0.02) per share, compared with net income of $0.6 million, or $0.01 per share, in 1H25, reflecting increased public company and infrastructure costs.

Adjusted EBITDA** was $4.3 million (10.5% of revenue), a 16.0% increase from $3.7 million in 1H25 (9.0% of revenue).

 
*   Further clarification and explanation of Segment profits 
     can be found in the Segment Reporting section of the 
     press release and at ctw.inc/investors. 
 
**  Further clarification and explanation of non-GAAP 
     measures and reconciliation to the most comparable 
     GAAP measure can be found in the "U.S. GAAP Reconciliation 
     of Non-GAAP Adjusted Results" section of the press 
     release and at ctw.inc/investors. 
 
 

CTW remains focused on improving content performance, expanding internationally, and maintaining disciplined capital allocation as it enters the second half of fiscal 2026.

Earnings Conference Call and Webcast

Management will host an earnings webcast at 8:30 a.m. ET on Wednesday, May 13, 2026 to review the Company's financial results and provide a general corporate update. Interested investors can register for the webcast here.

The Company has posted a supplemental slide presentation at ctw.inc/investors. Investors are encouraged to review these materials in conjunction with this press release.

About CTW

CTW is a leading global game platform company providing instant access to free-to-play, browser-based games inspired by popular Japanese animation, including So I'm a Spider, So What? Ruler of the Labyrinth, Arifureta: From Commonplace to World's Strongest -- Rebellion Soul, and Queen's Blade Limit Break. CTW delivers these games through its flagship HTML5 platform, G123.jp. For more information, visit ctw.inc.

Forward Looking Statements

This announcement contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. CTW may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about CTW's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: CTW's growth strategies; its future business development, results of operations and financial condition; its ability to distribute successful and engaging games with high "playability" on its platform; its ability to efficiently attract and retain end-users who come to play and make in-game purchases; its ability to achieve positive return on investment on user acquisition efforts; its ability to establish and maintain relationships with game developers; governmental policies and regulations relating to CTW's industry; and general economic and business conditions globally and in Japan and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in CTW's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and CTW undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Contacts

Investors:

Matt Chesler, CFA

FNK IR

646-809-2183

investor@ctw.inc

Media:

Edwina Frawley-Gangahar

EFG Media Relations

+44 7580 174672

edwina@efgmediarelations.com

CTW

Key Operating Metrics

The following table includes the Company's key operating metrics for the six-month periods ending January 31, 2026 and 2025.

 
                                          For the Six Months Ended 
                                                January 31, 
                                      -------------------------------- 
                                         2026               2025 
                                      -----------      --------------- 
Gross in-game purchase amount(1)      $48,603,849      $49,125,267 
Paying daily active users ("PDAUs")        14,519           16,373 
Daily active users ("DAUs")               236,904          247,379 
PDAUs to DAUs ratio                          6.13   %         6.62% 
Paying monthly active users 
 ("PMAUs")(2)                              75,715           76,684 
Monthly active users ("MAUs")(2)        1,984,354        3,269,618 
PMAUs to MAUs ratio                          3.82   %         2.35% 
PDAUs to PMAUs ratio                        19.18   %        21.35% 
DAUs to MAUs ratio                          11.94   %         7.57% 
ARPPDAU                               $     18.19      $     16.31 
ARPDAU                                $      1.12      $      1.08 
ARPPMAU                               $    106.99      $    106.77 
ARPMAU                                $      4.08      $      2.50 
Day 1 retention rate for paying 
 users(3)                                   58.23   %        60.74% 

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