EX-99.1 2 ex99-1.htm EX-99.1

 

Exhibit 99.1

 

Gamehaus Holdings Inc. Announces Unaudited Financial Results for the Second Quarter of Fiscal 2026 Ended December 31, 2025

 

SHANGHAI, March 23, 2026 /PRNewswire/ — Gamehaus Holdings Inc. (“Gamehaus” or the “Company”) (Nasdaq: GMHS), a technology-driven mobile game publisher, today announced its unaudited financial results for the second quarter of fiscal year 2026 ended December 31, 2025.

 

Second Quarter of Fiscal Year 2026 Financial Highlights

 

● Total revenue was US$26.3 million, representing a 7.8% decrease from US$28.5 million in the second quarter of fiscal year 2025. In-app purchases contributed US$23.9 million, while advertising revenue reached US$2.4 million.
● Total operating costs and expenses were US$25.4 million, representing a 10.1% reduction from US$28.3 million in the second quarter of fiscal year 2025.
● Net income was US$0.9 million, representing a 151.2% increase from US$0.4 million in the second quarter of fiscal year 2025.

 

Second Quarter of Fiscal Year 2026 Operating Highlights

 

in thousands, except percentages 

For the Three Months Ended

December 31,

 
   2025   2024 
Average MAUs1   2,760    3,832 
Average DAUs2   499    716 
ARPDAU3   0.566    0.440 
Average DPUs4   13    15 
Average Daily Payer Conversion Rate5   2.5%   2.1%
Average 7D Retention Rate6   8.7%   10.2%

 

1 Average Monthly Active Users, or Average MAUs, is defined as the number of individual users who play a game during a particular month.

2 Average Daily Active Users, or Average DAUs, is defined as the number of individual users who play a game on a particular day.

3 Average Revenue Per Daily Active User, or ARPDAU, is calculated by dividing revenue generated during a specific period by the Average DAU for that period, then further dividing by the number of days in the period.

4 Average Daily Paying Users, or Average DPUs, is defined as the number of individuals who made a purchase in a game during a particular day.

5 Average Daily Payer Conversion Rate is calculated by dividing Average DPUs for a specific period by the Average DAUs for that period.

6 Average Day Seven Retention Rate is calculated by dividing the number of new users who continue using the app on the seventh day after installation for a specific period by the total number of new users for that period.

 

Mr. Feng Xie, founder and chairman of Gamehaus, commented: “We are pleased with our second quarter results, which demonstrate continued progress in our transition toward a more efficient and sustainable operating model. Revenue of $26.3 million came in near the upper end of ourrevenue forecast for the second quarter, and more importantly, net income grew approximately 151% period-over-period while operating margin expanded to 3.3% from 0.8% in the year-ago period. These improvements reflect the cumulative impact of the disciplined adjustments we have made across our cost structure, user acquisition strategy, and product portfolio over the past several quarters. Looking ahead, we are advancing a diversified product pipeline across both RPG and Puzzle genres, with multiple titles moving into active development and scheduled launches. We remain focused on strengthening our platform capabilities and leveraging AI-driven efficiencies to position us for our next phase of growth.”

 

 
 

 

Second Quarter of Fiscal Year 2026 Unaudited Financial Results

 

Revenue

 

Total revenue was US$26.3 million in the second quarter of fiscal year 2026, decreasing 7.8% from US$28.5 million in the second quarter of fiscal year 2025. The decline primarily resulted from the Company’s reduction in user acquisition spending, which was a strategic move to optimize resource allocation and redirect investment toward the development of new game categories and upcoming projects, as well as their subsequent launch and promotion, aiming to strengthen the Company’s game portfolio and support sustainable long-term growth.

 

Advertising costs decreased by 18.9% in the second quarter of fiscal year 2026 compared to the second quarter of fiscal year 2025, resulted in reduced traffic and user acquisition, which in turn affected revenue performance. In-app purchase revenue decreased 6.4% to US$23.9 million in the second quarter of fiscal year 2026 from US$25.5 million in the second quarter of fiscal year 2025, while advertising revenue was US$2.4 million in the second quarter of fiscal year 2026, compared to US$3.0 million in the second quarter of fiscal year 2025. These headwinds were partially offset by enhanced in-game content and live-ops features, which continued to drive engagement and monetization among the Company’s existing player base.

 

Additionally, the Company is actively expanding its pipeline of games, with new titles in the Puzzle and RPG genres currently in the development and testing phase. The Company strategically allocated marketing budgets to support these products and intends to launch extensive promotional campaigns upon their commercial release.

 

Operating Costs and Expenses

 

Total operating costs and expenses were US$25.4 million in the second quarter of fiscal year 2026, representing a 10.1% reduction from US$28.3 million in the second quarter of fiscal year 2025.

 

● Cost of revenue decreased by 10.2% to US$12.2 million in the second quarter of fiscal year 2026, from US$13.5 million in the second quarter of fiscal year 2025. The decrease was primarily due to lower platform fees and reduced profit-sharing payments to game developers.
● Research and development expenses increased 7.5% to US$2.1 million in the second quarter of fiscal year 2026, from US$2.0 million in the second quarter of fiscal year 2025. The increase was mainly attributable to the Company’s strategic collaborations with multiple developers throughout the development and testing phases.
● Selling and marketing expenses decreased by 18.4% to US$9.7 million in the second quarter of fiscal year 2026, from US$11.9 million in the second quarter of fiscal year 2025. The reduction was primarily driven by a US$2.1 million decline in advertising costs related to player acquisition and retention, consistent with the Company’s strategy to scale back promotional spending amid volatile ad performance across major platforms and to optimize efficiency for mature titles.
● General and administrative expenses were US$1.4 million in the second quarter of fiscal year 2026, representing an increase of 65.5% from US$0.9 million in the second quarter of fiscal year 2025. The increase was primarily attributable to higher salary expenses primarily associated with the Company’s efforts to improvecorporate governance, financial reporting, and investor relations capabilities as a public company, as well as the strengthening of the management team and key functional roles as part of its strategic workforce planning to support business expansion and long-term growth.

 

Operating Income

 

Operating income was US$0.9 million in the second quarter of fiscal year 2026, compared to US$0.2 million in the second quarter of fiscal year 2025. Operating margin was 3.3% in the second quarter of fiscal year 2026, compared to 0.8% in the second quarter of fiscal year 2025.

 

Other Income, Net

 

Other income, net, which mainly included the Company’s non-operating income and expenses, interest income and expenses, investment income (loss), and other income and expenses, was US$0.1 million in the second quarter of fiscal year 2026, compared to US$0.2 million in the second quarter of fiscal year 2025.

 

 
 

 

Net Income

 

Net income was US$0.9 million for the second quarter of fiscal year 2026, compared to US$0.4 million in the second quarter of fiscal year 2025. Net income attributable to Gamehaus Holdings Inc.’s shareholders per ordinary share was US$0.02 for the second quarter of fiscal year 2026, compared to US$0.01 in the second quarter of fiscal year 2025.

 

Cash and Cash Equivalents

 

Cash and cash equivalents were US$17.4 million as of December 31, 2025, compared to US$15.2 million as of June 30, 2025, which the Company believes is sufficient to meet its current liquidity and working capital needs for the next 12 months.

 

Business Outlook

 

For the third quarter of fiscal year 2026 ending March 31, 2026, the Company expects its total revenue to be in the range of approximately US$24 million to US$26 million. This forecast reflects the Company’s current and preliminary view of its expected financial performance, business situation and market condition, which is subject to change.

 

Recent Development

 

Share Repurchase Plan Update

 

In August 2025, the board of directors of the Company approved a share repurchase plan, pursuant to which the aggregate value of Class A ordinary shares authorized for repurchase under the plan through August 28, 2026 shall not exceed US$5 million. Repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades, and/or through other legally permissible means, including through the use of trading plans, intended to qualify under Rule 10b-18 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions and subject to market conditions and in accordance with applicable federal securities laws. The timing and actual amount of repurchases will be determined at the discretion of the Company’s management, based on factors including share price, trading volume, market conditions, business outlook, and capital allocation priorities.

 

As of December 31, 2025, the Company had repurchased approximately 370,000 of its Class A ordinary shares for approximately US$459,000.

 

Conference Call Information

 

The management team of Gamehaus will host a conference call at 08:00 A.M. Eastern Time on Monday, March 23, 2026 (08:00 P.M. Beijing/Hong Kong time on the same day) to discuss the financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this conference including a conference passcode, a unique PIN number (personal access code), dial-in numbers, and an e-mail with detailed instructions to join the conference call.

 

Participant Online Registration: https://dpregister.com/sreg/10207119/10368ff0a4d

 

A live and archived webcast of the conference call will be available on the Company’s Investor Relations website at https://ir.gamehaus.com/.

 

 
 

 

About Gamehaus

 

Gamehaus Holdings Inc. is a technology-driven global mobile game publisher dedicated to bridging creative studios and players worldwide. With a portfolio spanning mid-core and casual games, Gamehaus delivers full-stack publishing support across market insights, user growth, live-ops, data analytics and monetization optimization. With a vision to be the go-to partner for creative teams, the company specializes in combining global publishing reach with AI- and data-powered solutions to help partners build lasting success. For more information, please visit https://ir.gamehaus.com.

 

Forward-Looking Statements

 

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company’s business plan and outlook. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may”, or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results due to various risks and uncertainties, including but not limited to those described under the “Risk Factors” section in the Company’s annual report on Form 20-F filed with the U.S. Securities and Exchange Commission.

 

Investor Relations Contact

 

Gamehaus Holdings Inc.

Investor Relations Team

Email: IR@Gamehaus.com

 

The Blueshirt Group

Mr. Jack Wang

Email: Gamehaus@TheBlueshirtGroup.co

 

 
 

 

GAMEHAUS HOLDINGS INC. AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amount in USD dollars, except for number of shares or otherwise noted)

 

   As of 
  

December 31,

2025

  

June 30,

2025

 
   (Unaudited)   (Audited) 
ASSETS          
CURRENT ASSETS:          
Cash and cash equivalents  $17,355,214   $15,234,745 
Short-term investments   2,609,549    1,345,154 
Accounts receivable   9,876,025    10,423,418 
Advanced to suppliers   9,737,823    9,442,382 
Prepaid expenses and other current assets   3,599,492    3,128,788 
TOTAL CURRENT ASSETS   43,178,103    39,574,487 
           
NON-CURRENT ASSETS:          
Plant and equipment, net   142,139    124,503 
Intangible assets, net   4,619,603    5,001,523 
Right-of-use assets, net   332,610    512,647 
Equity investments   1,951,542    1,995,021 
TOTAL NON-CURRENT ASSETS   7,045,894    7,633,694 
TOTAL ASSETS  $50,223,997   $47,208,181 
           
LIABILITIES          
CURRENT LIABILITIES:          
Short-term borrowing  $286,000   $- 
Accounts payable   10,112,213    10,752,234 
Contract liabilities   1,711,540    1,871,120 
Accrued expenses and other current liabilities   1,473,620    903,252 
Lease liabilities   262,856    463,064 
Taxes payable   75,570    51,599 
TOTAL CURRENT LIABILITIES   13,921,799    14,041,269 
           
NON-CURRENT LIABILITY:          
Lease liabilities   33,090    58,517 
TOTAL NON-CURRENT LIABILITY   33,090    58,517 
TOTAL LIABILITIES  $13,954,889   $14,099,786 
           
SHAREHOLDERS’ EQUITY:          
Class A ordinary shares (par value of $0.0001 per share; 900,000,000 shares authorized, 49,520,156 and 37,971,245 shares issued and outstanding as of December 31, 2025 and June 30, 2025, respectively)   4,952    3,797 
Class B ordinary shares (par value of $0.0001 per share; 100,000,000 shares authorized, 7,799,057 and 15,598,113 shares issued and outstanding as of December 31, 2025 and June 30, 2025, respectively)   780    1,560 
Additional paid-in capital   10,953,826    10,954,201 
Treasury Stock   (458,738)   - 
Retained earnings   26,435,808    23,543,001 
Accumulated other comprehensive loss   (423,266)   (1,276,222)
TOTAL GAMEHAUS HOLDING INC’S SHAREHOLDERS’ EQUITY   36,513,362    33,226,337 
Non-controlling interests   (244,254)   (117,942)
TOTAL SHAREHOLDERS’ EQUITY   36,269,108    33,108,395 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $50,223,997   $47,208,181 

 

 
 

 

GAMEHAUS HOLDINGS INC. AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

(Amount in USD dollars, except for number of shares or otherwise noted)

 

  

For the Three Months Ended

December 31,

  

For the Six Months Ended

December 31,

 
   2025   2024   2025   2024 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
REVENUE  $26,295,028    28,518,928   $54,033,904   $58,488,446 
OPERATING COST AND EXPENSES                    
Cost of revenue   (12,155,827)   (13,542,268)   (25,438,752)   (27,565,976)
Research and development expenses   (2,131,820)   (1,983,658)   (3,311,498)   (2,985,550)
Selling and marketing expenses   (9,728,443)   (11,914,898)   (20,570,983)   (24,450,883)
General and administrative expenses   (1,408,092)   (850,824)   (2,841,247)   (1,763,336)
OPERATING INCOME  $870,846   $227,280   $1,871,424   $1,722,701 
                     
OTHER INCOME (EXPENSES):                    
Investment income (loss), net   (122,761)   24,668    557,325    5,225 
Interest income   160,652    124,896    335,284    279,386 
Other income, net   32,755    65,102    40,399    52,161 
Total other income, net   70,646    214,666    933,008    336,772 
                     
INCOME BEFORE INCOME TAXES   941,492    441,946    2,804,432    2,059,473 
                     
INCOME TAXES EXPENSES   (25,792)   (77,406)   (38,270)   (128,236)
NET INCOME   915,700    364,540    2,766,162    1,931,237 
Less: net loss attributable to non-controlling interests   (63,206)   (38,950)   (126,645)   (29,502)
NET INCOME ATTRIBUTABLE TO GAMEHAUS HOLDINGS INC’S SHAREHOLDERS   978,906    403,490    2,892,807    1,960,739 
                     
OTHER COMPREHENSIVE INCOME                    
Net income   915,700    364,540    2,766,162    1,931,237 
Foreign currency translation adjustment, net of tax   1,172,520    1,428,152    853,289    (180,335)
TOTAL COMPREHENSIVE INCOME  $2,088,220   $1,792,692   $3,619,451   $1,750,902 
Less: total comprehensive loss attributable to non-controlling interests   (62,927)   (38,304)   (126,312)   (28,495)
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO GAMEHAUS HOLDINGS INC’S SHAREHOLDERS   2,151,147    1,830,996    3,745,763    1,779,397 
                     
BASIC AND DILUTED EARNINGS PER SHARE:                    
Net income attributable to Gamehaus Holdings Inc’s shareholders per share                    
Basic and diluted  $0.02   $0.01   $0.05   $0.04 
                     
Weighted average shares outstanding used in calculating basic and diluted income per share                    
Basic and diluted  $53,310,709   $50,000,000   $53,437,778   $50,000,000 

 

* Presented on a retroactive basis to reflect the reverse recapitalization.