Gamehaus (GMHS) Q2 2026 earnings summary

Executive summary

• Achieved $26.3 million in Q2 FY26 revenue, near the upper end of guidance, with a 151% year-over-year increase in net income to $0.9 million and operating margin expansion to 3.3% from 0.8% last year.

• Strategic focus on efficiency, profitability, and disciplined cost management, including an 18.4% year-over-year reduction in selling and marketing expenses.

• DTC channel breakthroughs contributed 10% of total revenue and over 30% for the flagship title, improving margin profile and reducing platform dependency.

• Product pipeline advancing in RPG and Puzzle genres, with new RPG titles and four to five new puzzle games targeted for launch by end of 2026.

• AI-driven production platform deployed, significantly reducing asset production cycles and laying groundwork for scalable expansion.

Financial highlights

• Total revenue declined 7.8% year-over-year to $26.3 million, with in-app purchase revenue at $23.9 million and advertising revenue at $2.4 million.

• Operating costs and expenses fell 10.1% to $25.4 million, driven by lower platform fees and reduced profit-sharing.

• Operating income rose to $0.9 million from $0.2 million, and net income doubled to $0.9 million.

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

• In-app purchases contributed $23.9 million; advertising revenue was $2.4 million, both declining year-over-year.

Outlook and guidance

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

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

• Margin stability expected before new product launches, with short-term pressure anticipated during major marketing campaigns, followed by recovery.

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