CTW Cayman (CTW) investor relations material

Executive summary

• FY26 revenue declined 8.7% to $82.5M and gross in-game purchases fell 9.5% to $96.8M; segment profit rose 3% to $32.3M as lower advertising costs offset weaker game performance.

• Net loss was $4.1M versus FY25 net income of $3.8M; Adjusted EBITDA remained positive at $3.47M, or 4.2% of revenue.

Financial highlights

• Operating loss was $7.3M versus FY25 operating income of $1.1M; net loss was $4.1M versus net income of $3.8M.

• Adjusted EBITDA was $3.47M, or 4.2% of revenue, versus $7.96M, or 8.8%, in FY25; FY26 reconciliation included $2.64M of developer-advance impairment.

• Advertising expense fell 21.7% to $41.0M and sales and marketing expense declined 17.2% to $45.9M.

• Cost of revenue rose 29.2% to $28.5M and G&A increased 37.9% to $11.7M; R&D declined 31.2% to $3.8M.

• Revenue from existing games increased 4.1%, partly offsetting weaker new-game performance.

Outlook and guidance

• FY27 priorities include more consistent game performance, audience growth, and a return to sustainable growth; no specific revenue or earnings targets were stated.

• Marketing will focus on titles with strong engagement and monetization, with greater emphasis on game selection, positioning, and capital allocation.

• G&A is expected to increase only modestly in absolute terms as core public-company infrastructure is largely in place.

• Platform investment will continue, including AI-enabled tools, data analytics, and workflow automation; annual amortization on capitalized software is expected to be ~$1M in each of the next two fiscal years.