SHANGHAI, May 19, 2025 /PRNewswire/ -- Gamehaus Holdings Inc. ("Gamehaus" or the "Company") (Nasdaq: GMHS), a technology-driven mobile game publisher, today announced its interim financial results for the first nine months of fiscal year 2025 ended March 31, 2025.
First Nine Months of Fiscal Year 2025 Financial Highlights
-- Total revenue was US$87.4 million, representing a 23.1% decrease from
US$113.6 million in the same period of last fiscal year. In-app purchases
contributed US$78.5 million, while advertising revenue reached US$8.9
million.
-- Total operating costs and expenses were US$85.4 million, representing a
20.6% reduction from US$107.5 million in the same period of last fiscal
year.
-- Net income was US$2.3 million, down from US$6.0 million in the same
period of last fiscal year.
First Nine Months of Fiscal Year 2025 Operating Highlights
In thousands, except
percentages For the Nine Months Ended March 31,
--------------------------------------
2025 2024
------------------- -------------------
Average MAUs(1) 3,887 4,431
Average DAUs(2) 719 879
ARPDAU(3) 0.337 0.359
Average DPUs(4) 15 20
Average Daily Payer
Conversion Rate(5) 2.1 % 2.3 %
Average 7D Retention
Rate(6) 10.1 % 10.9 %
(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 DPU
for a specific period by the Average DAU 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.
-- The year-over-year declines in key operating metrics were primarily due
to the natural lifecycle progression of several legacy titles that have
entered a mature stage. In response, the Company strategically reduced
user acquisition spending for these mature games, which led to a decrease
in both active users and paying users. Monetization efficiency also
declined, leading to lower average revenue per user and reduced payment
conversion rates.
-- The decrease in user retention remained within normal fluctuation ranges
and was mainly attributable to a lower allocation of marketing budget
toward acquiring high-value users.
-- To mitigate these trends, the Company is actively collaborating with
development partners to introduce new monetization initiatives and
enhance operational content aimed at improving monetization performance
across its existing portfolio.
-- In addition, several new titles are undergoing testing and optimization,
with broader promotional efforts planned upon their full launch to help
restore the Company's user scale.
Mr. Feng Xie, the Company's founder, Director and Chairman, commented: "We are pleased to report our earnings results for the first time as a public company and would like to express our sincere gratitude to the investors who have supported us throughout this journey. During the first nine months of fiscal 2025, as our legacy game titles continue to contribute revenue, we have begun to explore multiple business models such as "Game Architecture Model", and are looking for potential in-depth cooperation opportunities. Our results in the first nine months of fiscal 2025 reflect the challenges we faced in the process of seeking long-term, high-quality and sustainable development. Looking ahead, we are confident in our ability to create sustained shareholder value by combining disciplined execution with product-led growth, while broadening our presence in both established and high-growth international markets."
First Nine Months of Fiscal Year 2025 Financial Results
Revenue
Total revenue was US$87.4 million for the first nine months of fiscal year 2025, a decrease of 23.1% from US$113.6 million in the same period of last fiscal year.
-- In-app purchases decreased by 23.8% year over year to US$78.5 million for
the first nine months of fiscal year 2025 from US$103.0 million in the
same period of last fiscal year, mainly driven by a strategic reduction
in user acquisition spending. As the Company adjusted its marketing
approach in response to evolving platform dynamics and competitive market
conditions throughout the first nine months of fiscal year 2025, the
Company's advertising costs decreased by 19.7% year over year during the
period. Additionally, as generative AI and other emerging technologies
reshape the mobile gaming landscape, the Company is working closely with
development partners to integrate these innovations into game design and
monetization strategies. As part of this transition, the Company also
deferred large-scale marketing campaigns for selected titles to better
align with long-term product and profitability goals.
-- Advertising revenue was US$8.9 million for the first nine months of
fiscal year 2025, compared to US$10.6 million in the same period of last
fiscal year. The reduction in the Company's advertising investment during
the period impacted overall traffic and exposure levels, which in turn
affected advertising monetization performance. Despite this, the Company
successfully mitigated the extent of the revenue decline by rolling out
new in-game content and features that helped sustain player engagement
and retention. These efforts supported continued monetization
opportunities within the existing user base and reflect the Company's
focus on operational efficiency and product-driven growth amid shifting
market dynamics.
Operating Costs and Expenses
Total operating costs and expenses totaled US$85.4 million for the first nine months of fiscal year 2025, a reduction of 20.6% from US$107.5 million in the same period of last fiscal year.
-- Cost of revenue decreased by 25.1% year over year to US$41.4 million
during the first nine months of fiscal year 2025 from US$55.2 million in
the same period of last fiscal year, reflecting lower platform fees,
reduced profit-sharing payments to game developers, and a decline in
customized design fees.
-- Research and development expenses were US$4.3 million in the first nine
months of fiscal year 2025, an increase of 13.8% year over year from
US$3.7 million in the same period of last fiscal year. The increase was
mainly attributable to the Company's strategic collaboration with several
game developers during the early stages of game development.
-- Selling and marketing expenses decreased by 19.7% year over year to
US$36.6 million during the first nine months of fiscal year 2025 from
US$45.6 million in the same period of last fiscal year, primarily due to
a US$8.6 million reduction in advertising costs related to player
acquisition and retention. This decrease reflects the Company's strategic
decision to scale back promotional spending in response to volatile ad
placement performance across major platforms, as well as to optimize
marketing efficiency for mature titles.
-- General and administrative expenses were US$3.1 million for the first
nine months of fiscal year 2025, an increase of 7.0% year over year from
US$2.9 million in the same period of last fiscal year, primarily driven
by higher salary expenses, professional service fees, and travel costs.
These increases were largely associated with activities supporting the
Company's public listing preparation, including enhancements to corporate
governance, financial reporting, and investor relations functions.
Operating Income
Operating income was US$2.0 million for the first nine months of fiscal year 2025, compared to US$6.1 million in the same period of last fiscal year. Operating margin was 2.3% during the first nine months of fiscal year 2025, compared to 5.4% in the same period of last fiscal year.
Other Income (Expenses), Net
Other income (expenses), net, which mainly included the Company's non-operating income and expenses, interest income and expenses, investment income, and other income and expenses, was US$0.5 million for the first nine months of fiscal year 2025, compared to US$0.2 million in the same period of last fiscal year.
Net Income
Net income was US$2.3 million for the first nine months of fiscal year 2025, compared to US$6.0 million in the same period of last fiscal year. Net income per ordinary share was US$0.04 for the first nine months of fiscal year 2025, compared to US$0.11 in the same period of last fiscal year.
Cash and Cash Equivalents
Cash and cash equivalents were US$15.7 million as of March 31, 2025, compared to US$18.8 million as of June 30, 2024, which the Company believes is sufficient to meet its current liquidity and working capital needs.
Net Cash Generated From Operating Activities
Net cash provided by operating activities was US$0.8 million for the first nine months of fiscal year 2025, compared with US$3.7 million in the same period of last fiscal year.
Business Outlook
For the fourth quarter of fiscal year 2025 ending June 30, 2025, the Company expects its total revenue to be in the range of approximately US$27.5 million to US$30 million. This forecast reflects the Company's current and preliminary view of its expected financial performance for the fourth quarter of fiscal year 2025 and is subject to change.
Conference Call Information
The management team of Gamehaus will host a conference call at 08:00 A.M. Eastern Time on Monday, May 19, 2025 (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/10199786/ff24367338
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 mobile game publisher dedicated to nurturing partnerships with small- and medium-sized game developers to amplify their success. "You make successful games. We make games successful" is the company's mantra, encapsulating its commitment to transforming potential into prosperity through data-driven monetization support and optimizing game publishing solutions. 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 most recent filings 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
CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN U.S. DOLLARS)
As of
---------------------------------
March 31, 2025 June 30, 2024
---------------- ---------------
(Unaudited) (Audited)
---------------- ---------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 15,703,740 $ 18,816,535
Restricted cash 4,815 3,605
Accounts receivable 11,346,858 11,024,450
Advanced to suppliers 12,136,967 9,708,899
Prepaid expenses and other
current assets 2,703,660 2,041,112
------------ -----------
TOTAL CURRENT ASSETS 41,896,040 41,594,601
------------ -----------
NON-CURRENT ASSETS:
Plant and equipment, net 109,955 133,558
Intangible assets, net 4,808,447 5,293,126
Operating lease right-of-use
assets, net 433,281 695,571
Deferred offering costs - 1,571,328
Equity investments 1,987,358 1,992,206
------------ -----------
TOTAL NON-CURRENT ASSETS 7,339,041 9,685,789
------------ -----------
TOTAL ASSETS $ 49,235,081 $ 51,280,390
============ ===========
LIABILITIES
CURRENT LIABILITIES:
Accounts payable $ 13,672,062 $ 13,034,836
Contract liabilities 3,342,088 2,830,068
Accrued expenses and other
current liabilities 620,649 555,714
Operating lease liabilities 345,932 336,046
Due to related party - 107,361
Taxes payable 50,089 19,466
------------ -----------
TOTAL CURRENT LIABILITIES 18,030,820 16,883,491
------------ -----------
NON-CURRENT LIABILITY:
Operating lease liabilities 9,189 351,856
------------ -----------
TOTAL NON-CURRENT LIABILITY 9,189 351,856
------------ -----------
TOTAL LIABILITIES $ 18,040,009 $ 17,235,347
============ ===========
SHAREHOLDERS' EQUITY:
Class A ordinary shares* (par value
of $0.0001 per share; 900,000,000
Class A ordinary shares authorized
as of March 31, 2025 and June 30,
2024, respectively; 37,971,245 and
34,401,887 Class A ordinary shares
issued and outstanding as of March
31, 2025 and June 30, 2024,
respectively) 3,797 3,440
Class B ordinary shares* (par value
of $0.0001 per share; 100,000,000
Class B ordinary shares authorized
as of March 31, 2025 and June 30,
2024, respectively; 15,598,113 and
15,598,113 Class B ordinary shares
issued and outstanding as of March
31, 2025 and June 30, 2024,
respectively) 1,560 1,560
Additional paid-in capital 10,856,609 16,203,206
Retained earnings 21,958,617 19,581,470
Accumulated other comprehensive
loss (1,591,078) (1,772,669)
------------ -----------
TOTAL GAMEHAUS HOLDINGS INC'S
SHAREHOLDERS' EQUITY 31,229,505 34,017,007
Non-controlling interests (34,433) 28,036
------------ -----------
TOTAL SHAREHOLDERS' EQUITY 31,195,072 34,045,043
------------ -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 49,235,081 $ 51,280,390
============ ===========
* Presented on a retroactive basis to reflect the reverse
recapitalization that is discussed in detail in Note 1 to the Company's
Unaudited Condensed Consolidated Financial Statements.
GAMEHAUS HOLDINGS INC. AND ITS SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
(EXPRESSED IN U.S. DOLLARS)
For the
Nine Months Ended
March 31,
----------------------------
2025 2024
------------- -------------
REVENUE $ 87,390,942 $ 113,604,670
OPERATING COST AND EXPENSES
Cost of revenue (41,358,663) (55,247,296)
Research and development expenses (4,250,977) (3,735,477)
Selling and marketing expenses (36,628,917) (45,599,043)
General and administrative
expenses (3,137,638) (2,931,499)
------------ ------------
INCOME FROM OPERATIONS $ 2,014,747 $ 6,091,355
------------ ------------
OTHER INCOME (EXPENSES):
Share of net loss from equity
investees (7,800) (29,321)
Interest income 428,060 203,087
Other income, net 48,904 29,826
------------ ------------
Total other income, net 469,164 203,592
------------ ------------
INCOME BEFORE PROVISION FOR INCOME
TAXES 2,483,911 6,294,947
INCOME TAXES EXPENSES (169,171) (254,553)
------------ ------------
NET INCOME 2,314,740 6,040,394
Less: net (loss) income attributable
to non-controlling interests (62,407) 346,503
------------ ------------
NET INCOME ATTRIBUTABLE TO GAMEHAUS
HOLDINGS INC'S SHAREHOLDERS 2,377,147 5,693,891
OTHER COMPREHENSIVE INCOME
Net income 2,314,740 6,040,394
Foreign currency translation
adjustment, net of tax 181,529 110,042
------------ ------------
TOTAL COMPREHENSIVE INCOME $ 2,496,269 $ 6,150,436
Less: total comprehensive (loss)
income attributable to non-
controlling interests (62,469) 346,532
------------ ------------
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO GAMEHAUS HOLDINGS
INC'S SHAREHOLDERS 2,558,738 5,803,904
============ ============
BASIC AND DILUTED EARNINGS PER
SHARE:
Net income attributable to Gamehaus
Holdings Inc's shareholders per
share
Basic and diluted $ 0.04 $ 0.11
============ ============
Weighted average shares
outstanding used in calculating
basic and diluted income per
share
Basic and diluted 53,569,358 50,000,000
============ ============
* Presented on a retroactive basis to reflect the reverse
recapitalization that is discussed in detail in Note 1 to the
Company's Unaudited Condensed Consolidated Financial Statements.
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SOURCE Gamehaus Holdings Inc.
(END) Dow Jones Newswires
May 19, 2025 06:15 ET (10:15 GMT)
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