Gamehaus (GMHS) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 was $27.7 million, down 7.5% year-over-year, mainly due to reduced user acquisition spending and lower ad revenue, but in line with guidance.

• Net income rose 18% year-over-year to $1.8 million, with net margin improving to 6.7% from 5% sequentially, reflecting improved operational efficiency and cost controls.

• Deliberate cost controls and a focus on operational efficiency led to higher margins and a more sustainable business model.

• The company is advancing its AI-powered publishing strategy and expanding its product pipeline, including a new RPG title launched late in the quarter and several more in development, especially in Puzzle and RPG genres.

Financial highlights

• In-app purchase revenue was $25.3 million (down from $26.9 million YoY); advertising revenue was $2.4 million (down from $3.0 million YoY).

• Operating income was $1.0 million (3.6% margin), down from $1.5 million (5.0% margin) year-over-year.

• Average revenue per daily active user (ARPDAU) increased 24.4% year-over-year to $0.536.

• Cash and cash equivalents at quarter-end were $15.3 million as of September 30, 2025.

• Operating costs and expenses fell 6.2% to $26.7 million, with notable reductions in selling and marketing expenses.

Outlook and guidance

• Q2 FY2026 revenue guidance is $24–27 million, reflecting seasonal holiday dynamics, ongoing market conditions, and disciplined marketing spend.

• Multiple new titles in RPG and puzzle genres are in development or testing, with a major RPG launch expected before March 2026.

• DTC (direct-to-consumer) revenue mix is expected to exceed 15% by the first half of calendar 2026, supporting further margin improvement.