CTW reports improved segment profits amid 1H 2026 international expansion

CTW (NASDAQ:CTW) announced Wednesday that revenue for the six months ending January 31, 2026, reached $40.9 million, a 1% decline from the $41.2 million reported in the prior-year period.

Management attributed the softness to the natural lifecycle of legacy titles and slower-than-anticipated monetization of new releases.

Despite the marginal revenue decline, the company's "asset-light" operating model yielded a 55% jump in segment profit to $18.0 million.

This improvement was primarily driven by disciplined marketing spend, which was reduced to $18.8 million from $24.7 million a year ago.

Adjusted EBITDA also rose 16% to $4.3 million.

However, the company swung to a net loss of $1.2 million ($0.02 per share) from a prior net income of $0.6 million, largely due to rising infrastructure and public company costs.

During the first half, CTW launched seven new games on its flagship G123 platform, bringing its total live library to 35 titles.

Among the top performers was Crayon Shinchan My Sugoroku Great Strategy, which has emerged as one of the platform's leading games by in-game purchases.

To fuel further growth outside its home market of Japan, CTW recently opened a new office in New York City’s World Trade Center.

The location is intended to serve as a hub for North American user acquisition and to capitalize on the increasing global popularity of anime-integrated gaming content.