Gamehaus Holdings Inc. Announces Interim Financial Results for the First Nine Months of Fiscal 2025 Ended March 31, 2025

Rhea-AI Summary

Gamehaus Holdings (NASDAQ: GMHS) reported declining financial results for the first nine months of fiscal 2025. Total revenue decreased 23.1% to US$87.4 million, with in-app purchases contributing US$78.5 million and advertising revenue reaching US$8.9 million. Net income fell to US$2.3 million from US$6.0 million year-over-year.

Key operating metrics showed declines across the board: Average Monthly Active Users (MAUs) dropped to 3,887K from 4,431K, while Average Daily Active Users (DAUs) decreased to 719K from 879K. The company attributes these declines to mature legacy titles and reduced marketing spend. Operating margin contracted to 2.3% from 5.4%. For Q4 FY2025, Gamehaus projects revenue between US$27.5-30 million.

The company maintains US$15.7 million in cash and is exploring new initiatives including "Game Architecture Model" and AI integration to improve performance.

Positive

• Strategic reduction in operating costs by 20.6% to US$85.4 million
• Maintained profitability with US$2.3 million net income despite revenue decline
• Healthy cash position of US$15.7 million
• New initiatives in development including AI integration and Game Architecture Model

Negative

• Revenue declined 23.1% year-over-year to US$87.4 million
• Net income dropped 61.7% from US$6.0 million to US$2.3 million
• Operating margin contracted from 5.4% to 2.3%
• Declining user metrics: MAUs (-12.3%), DAUs (-18.2%), and user retention
• Lower monetization with decreased ARPDAU and payer conversion rates

Insights

Financial Analyst

Gamehaus shows concerning 23% revenue decline and 62% profit drop amid mature game portfolio challenges, despite cost-cutting efforts.

Gamehaus Holdings' latest financial results reveal a $87.4 million revenue for the first nine months of FY2025, representing a substantial 23.1% year-over-year decline. This performance deterioration stems primarily from the natural aging of their legacy game portfolio, which has entered maturity phases requiring less marketing investment. While the company managed to reduce operating expenses by 20.6%, cutting them to $85.4 million, this wasn't enough to maintain profitability levels, with net income plummeting 61.7% to just $2.3 million from $6.0 million in the comparable period.

The operational metrics paint an equally concerning picture. Monthly active users (MAUs) dropped 12.3% to 3.89 million, while daily active users (DAUs) fell more steeply by 18.2%. Revenue efficiency also weakened with ARPDAU (Average Revenue Per Daily Active User) declining 6.1% to $0.337. Most alarmingly, daily paying users decreased by 25% from 20,000 to 15,000, indicating deterioration in the company's ability to convert users into paying customers.

The company's strategic decision to reduce marketing spend appears somewhat defensive rather than growth-oriented. While this protected short-term margins from deteriorating further, it accelerated user acquisition declines. With operating margin compressed to 2.3% from 5.4% and cash reserves dropping to $15.7 million from $18.8 million, Gamehaus faces significant pressure to successfully launch new titles. Their Q4 guidance of $27.5-30 million suggests continued year-over-year declines, making their nascent 'Game Architecture Model' and upcoming game launches critical for stabilizing the business trajectory.

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 MAUs1			3,887				4,431
Average DAUs2			719				879
ARPDAU3			0.337				0.359
Average DPUs4			15				20
Average Daily Payer Conversion Rate5			2.1 %				2.3 %
Average 7D Retention Rate6			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.

FAQ

What were Gamehaus Holdings (GMHS) key financial results for the first 9 months of fiscal 2025?

Gamehaus reported revenue of US$87.4 million (down 23.1% YoY), net income of US$2.3 million (down from US$6.0 million), and operating margin of 2.3% (down from 5.4%).

Why did GMHS revenue decline in the first 9 months of fiscal 2025?

The decline was primarily due to mature legacy titles and strategic reduction in user acquisition spending, leading to decreased active users and paying users.

What is Gamehaus Holdings (GMHS) revenue guidance for Q4 fiscal 2025?

Gamehaus expects Q4 FY2025 revenue to be between US$27.5 million and US$30 million.

How much cash does GMHS have as of March 31, 2025?

Gamehaus reported cash and cash equivalents of US$15.7 million as of March 31, 2025, down from US$18.8 million as of June 30, 2024.

What strategic initiatives is Gamehaus (GMHS) implementing to improve performance?

The company is exploring the Game Architecture Model, integrating AI technologies into game design, and developing new monetization initiatives with development partners.