Cheer Holding Announces First Half 2026 Financial Results
Rhea-AI Summary
Cheer Holding (NASDAQ: CHR) reported first half 2026 revenues of $60.5 million, down 14.7% from $71.0 million a year earlier, as customers reduced orders amid a weaker macro environment. Approximately 100% of revenue came from advertising services.
Despite lower sales, gross margin rose to 76.7% from 70.7% and operating margin increased to 17.3% from 11.7%. Income from operations grew 26.1% to $10.5 million, while net income attributable to shareholders increased 4.0% to $8.1 million. Total operating expenses fell 20.2% to $50.0 million, including sharp reductions in cost of revenues and general and administrative expenses, offset by higher R&D spending.
As of June 30, 2026, Cheer Holding held $213.8 million in cash and cash equivalents, working capital of $346.7 million, total assets of $419.6 million, and shareholders’ equity of $389.3 million. Net cash used in operating activities was $30.2 million. The company advanced its AI strategy with the release of CHEERS Telepathy 3.1.0 and the unveiling of Klon AI.
Positive
- Income from operations +26.1% to $10.5 million, margin 17.3%
- Net income attributable to shareholders +4.0% to $8.1 million
- Gross margin improved to 76.7% from 70.7%
- Total operating expenses decreased 20.2% to $50.0 million
- Cash and cash equivalents $213.8 million; shareholders’ equity $389.3 million
- AI product launches CHEERS Telepathy 3.1.0 and Klon AI in 2026
Negative
- Total revenues declined 14.7% to $60.5 million
- Cash and cash equivalents fell from $242.1 million to $213.8 million
- Net cash used in operating activities $30.2 million vs $3.9 million provided prior period
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 23 | Fiscal year earnings | Positive | +2.4% | Revenue and operating income increased, while cash rose despite slightly lower net income. |
| Mar 10 | Full-year earnings | Negative | -2.8% | Revenue and net income declined amid reduced advertising orders. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings reactions aligned with the reported direction of the fundamental results, with one positive and one negative response.
Key Terms
multimodal ai translation technical
amortization of intangible assets financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
BEIJING, July 28, 2026 (GLOBE NEWSWIRE) -- Cheer Holding, Inc. (NASDAQ: CHR) (“Cheer Holding” or the “Company”), a leading provider of advanced mobile internet infrastructure and platform services, today announced its financial results for the six months ended June 30, 2026.
Management Commentary
“We are pleased to report a solid first half of 2026, highlighted by a
“Strategically, we have continued to advance our artificial intelligence initiatives. In April 2026, we released CHEERS Telepathy version 3.1.0, featuring new multimodal AI translation capabilities and a global AI assistant system. In July 2026, we officially unveiled Klon AI, our proprietary platform dedicated to AI-driven portraiture and digital identity, which has established itself as a standout consumer-grade application following successful closed beta testing across multiple regions. With a strong balance sheet and cash position of
Financial Highlights For The Six Months Ended June 30, 2026
- Total revenues were
$60.5 million , compared to$71.0 million in the same period of 2025. - Gross margin improved to
76.7% , compared to70.7% in the prior-year period. - Operating margin improved to
17.3% , compared to11.7% in the prior-year period. - Income from operations increased by
26.1% to$10.5 million , compared to$8.3 million in the same period of 2025. - Net income attributable to Cheer Holding’s shareholders increased by
4.0% to$8.1 million , compared to$7.8 million in the prior-year period. - Cash and cash equivalents stood at
$213.8 million as of June 30, 2026.
Operational Highlights
- The Company released CHEERS Telepathy version 3.1.0 in April 2026, featuring new multimodal AI translation capabilities and a global AI assistant system, further strengthening CHEERS Telepathy’s position in the AI agent space.
- In July 2026, the Company officially unveiled Klon AI, its proprietary platform dedicated to AI-driven portraiture and digital identity, following successful closed beta testing across North America, Latin America, Japan, South Korea, and Southeast Asia.
Financial Results for the Six Months Ended June 30, 2026
Revenues
Revenues for the six months ended June 30, 2026 were approximately
Operating Expenses
Total operating expenses decreased by
- Cost of revenues decreased by
32.0% to approximately$14.1 million , compared to$20.8 million in the prior-year period, primarily in line with the decrease in revenues. Gross margin improved to76.7% from70.7% in the prior-year period. - Selling and marketing expenses decreased by
11.4% to approximately$31.3 million , compared to$35.3 million in the prior-year period, mainly due to reduced promotion campaign expenses. - General and administrative expenses decreased by
66.8% to approximately$1.4 million , compared to$4.2 million in the prior-year period, primarily due to recognition of share-based compensation expenses of$3.4 million in prior-year period, partially offset by an increase of amortization of intangible assets with addition of intangible assets during the six months ended June 30, 2026. - Research and development expenses increased by
37.8% to approximately$3.2 million , compared to$2.3 million in the prior-year period, reflecting continued investments in AI and IT infrastructure.
Income from Operations
Income from operations increased by
Net Income
Net income attributable to Cheer Holding’s shareholders was approximately
Balance Sheet and Cash Flow
As of June 30, 2026, the Company had cash and cash equivalents of approximately
Net cash used in operating activities was approximately
About Cheer Holding, Inc.
Cheer Holding is a leading provider of next-generation mobile internet infrastructure and platform services in China. The Company operates a comprehensive digital ecosystem integrating platforms, applications, technology, and industry, with a focus on AI-driven content creation, e-commerce, and metaverse development. For more information, please visit ir.gsmg.co.
Safe Harbor Statement
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. These forward-looking statements include, but are not limited to, our success in our artificial intelligence initiatives, changes or other circumstances that could affect the Company’s ability to continue successful development and launch of global expansion, artificial intelligence initiatives and technology infrastructure; the possibility that the Company may not succeed in developing its new lines of businesses due to, among other things, changes in the business environment and technological developments, competition, changes in regulation, or other economic and policy factors; the possibility that the Company’s new lines of business may be adversely affected by other economic, business, and/or competitive factors, or that the Company will be able to continue to have its Class A ordinary shares listed on The Nasdaq Capital Market. In addition, the Company is subject to a number of risks and uncertainties set forth in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.
For investor and media inquiries, please contact:
James Li
Email: ir@gsmg.co
Tel: +86 10 6778 2900 (CN)
