TinyBuild posted $20 million in revenue for the first half of 2026, up 18% year-over-year, with 85% of that figure drawn from first and second-party owned intellectual property, the publisher disclosed in its unaudited interim results for the six months ending June 30.

The topline growth ran on "strong catalogue performance and new launches." Profitability moved in the opposite direction, however: gross profit fell 5.7% to $9.8 million from $10.4 million, a decline TinyBuild tied to higher royalty payments on second-party releases.

Adjusted EBITDA dropped 23.2% to $3.2 million from $4.2 million as marketing spend ramped around those launches. The split underscores the short-term P&L hit publishers absorb when scaling new IP beyond a back-catalogue base.

What drove the revenue mix?

Back catalogue titles accounted for 68% of gaming revenue during the period. Evergreen properties such as Hello Neighbor and Graveyard Keeper continued to monetize across multiple years, providing the cash base that funded new title launches including Hozy, All Will Fall, and Sand: Raiders of Sophie.

Catalogue expansion during the period included the console launch of I Am Future, DLC for The King is Watching, and the Nintendo Switch release of Kill It With Fire 2.

How is the company reading the margin pressure?

Both the gross profit and EBITDA contractions trace back to the same cause: TinyBuild spent more on royalties and marketing to bring second-party titles to market.

Returns on those investments have not yet fully cycled through the P&L, since royalty and marketing outlays typically front-load relative to the multi-year revenue tail those releases can carry.

Headcount stayed "broadly stable" at close to 200 employees, indicating the increased marketing and royalty outflows did not stem from headcount expansion.

What did leadership say?

CEO Alex Nichiporchik framed the period as validation of TinyBuild's IP-led model: "TinyBuild is well-positioned with a strong pipeline and a proven ability to attract, screen and market games, both from existing and brand-new IP."

He added: "Our balanced investment strategy aims at building a diversified portfolio of high-potential own-IP, and our multimedia franchise model allows us to extend the life of our IP, maximising our return on investment."

Nichiporchik said the medium-term strategy targets expansion as a leading global developer and publisher "focusing on IP ownership while creating long-term scalable franchises across multiple media formats."

What does the pipeline look like?

TinyBuild is pointing investors toward a second half built around larger-budget releases. The pipeline disclosed in the interim results includes several titles with budgets exceeding $5 million, high-potential IPs the company has not yet named, and catalogue expansions across existing franchises. Management expects full-year results to land ahead of expectations.

Who else is paying attention?

In June, Griffin Gaming Partners acquired a 3.24% equity stake in TinyBuild, citing the publisher's stable IP base and its record of building "sustainable franchises with global reach."

The buy-in from a venture firm focused on interactive entertainment adds external validation ahead of the larger-budget slate.

What changes for studios and investors?

For studios pitching to TinyBuild, the 85% owned-IP share signals continued appetite for both first-party development deals and second-party publishing relationships, with royalties on the latter visibly impacting margins during launch years.

For investors, the divergence between revenue growth and EBITDA contraction puts the spotlight on H2 2026 marketing ROI and on the second-party slate's contribution to the back catalogue over the next 12 to 24 months.

The full-year print, the first $5 million-plus releases, and any disclosure on Griffin Gaming Partners' longer-term stake are the next data points worth watching.