Gamehaus (GMHS) Q2 2026 earnings summary

Executive summary

• Achieved $26.3 million in Q2 FY26 revenue, down 7.8% year-over-year, mainly due to reduced user acquisition and lower advertising revenue.

• Net income grew 151% year-over-year to $0.9 million, with operating margin expanding from 0.8% to 3.3% due to cost optimization and improved monetization.

• Strategic focus on efficiency, profitability, and a dual-track product pipeline in RPG and Puzzle genres, leveraging AI-driven production enhancements.

Financial highlights

• In-app purchase revenue was $23.9 million (down 6.4% year-over-year); advertising revenue was $2.4 million (down from $3.0 million).

• Total operating costs and expenses fell 10.1% to $25.4 million, driven by lower platform fees and reduced marketing spend.

• Operating income was $0.9 million, up from $0.2 million year-over-year.

• Selling and marketing expenses decreased 18.4% to $9.7 million, mainly from a $2.1 million reduction in advertising.

• Ended the quarter with $17.4 million in cash and cash equivalents, up from $15.2 million at June 30, 2025.

Outlook and guidance

• Q3 FY26 revenue guidance set at $24 million–$26 million, reflecting prudent assessment of product launches and market conditions.

• Multiple new titles in RPG and Puzzle genres are in development, with launches and promotional campaigns planned.

• Management expects DTC revenue to exceed 15% of total by fiscal year-end, with further penetration potential.

• Margin stability expected before new product launches; short-term margin pressure anticipated during major releases due to increased marketing.