Global Mofy Reports 49.4% YoY Revenue Increase for the Six Months Ended March 31, 2026, Driven by Virtual Tech Growth and New AI Digital Asset Business
Rhea-AI Summary
Global Mofy (Nasdaq: GMM) reported revenue of $39.9 million for the six months ended March 31, 2026, a 49.4% increase from $26.7 million, driven by higher demand for virtual technology services and the launch of an AI digital asset sales business.
Cost of revenues rose 110.5% to $31.4 million, reducing gross profit to $8.5 million, down 27.9% year over year, though virtual technology service margin was 28.8%. Heavy R&D spending reached $14.4 million versus $5.8 million, supporting the Gauss AI Lab and Gausspeed 3D platform.
Global Mofy recorded a GAAP operating and net loss of $50.7 million versus prior-year profit, mainly from asset write-downs and higher R&D and share-based compensation. On a non-GAAP basis, net income was $1.1 million. Cash and restricted cash totaled $2.8 million at March 31, 2026.
Positive
- Revenue up 49.4% to $39.9 million in H1 2026
- Non-GAAP net income of $1.1 million despite heavy investments
- New 3D digital asset sales segment launched for AI and large model clients
- R&D investments increased to $14.4 million to expand Gauss AI Lab and Gausspeed
- Virtual technology services margin maintained at 28.8% in H1 2026
Negative
- GAAP net loss of $50.7 million vs. $5.0 million income last year
- Operating income swung from $1.7 million profit to $50.7 million loss
- Gross profit fell 27.9% to $8.5 million despite revenue growth
- Cost of revenues rose 110.5% to $31.4 million, pressuring margins
- Cash and restricted cash relatively low at $2.8 million as of March 31, 2026
Key Figures
Previous AI Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 08 | AI micro-drama partnership | Positive | +11.2% | Co-investment and production of two AI-powered micro-drama series with Hongguo |
| Jun 01 | AI network application | Neutral | +0.1% | Applied to join Snowflake Partner Network and expand digital content data capabilities |
| May 26 | AI production standard | Positive | -32.5% | CEO co-drafted China's first AI video production personnel group standard |
| May 22 | AI platform milestone | Positive | -72.1% | Gausspeed connected with proprietary library of over 150,000 3D digital assets |
| May 13 | AI financing participation | Positive | +8.3% | Strategically participated in Moonshot AI financing round to advance generative AI strategy |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AI-tagged news produced three aligned and two divergent reactions, with an average move of -16.99%.
Key Terms
gaap financial
non-gaap financial
asset impairment financial
aigc technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Revenue achieved
$39.9 million , up49.4% from$26.7 million . - R&D investments totaled
$14.4 million , up from$5.8 million in the same period last year. - GAAP Net Loss was
$50.7 million , while Non-GAAP net income stood at$1.1 million .
BEIJING, July 28, 2026 (GLOBE NEWSWIRE) -- Global Mofy AI Limited (the “Company” or “Global Mofy”) (Nasdaq: GMM), a generative AI-driven technology solutions provider focused on virtual production services and AIGC 3D digital asset supply for global content and large model enterprises, today reported its financial results for the six months ended March 31, 2026, showing robust
“The revenue growth in the first half of 2026 clearly demonstrates the outstanding execution of the Global Mofy team and the remarkable market recognition of our AI-powered virtual content and training assets. It also reflects the surging industry demand for high-quality 3D digital resources and full-stack virtual production services, solidifying our leading position in the generative AI content track. We have maintained our Beijing “Specialized and New” SME certification, kept deep cooperation on short drama projects under the Mofy Clips brand with China Literature, and continuously upgraded our integrated AI infrastructure at Gauss AI Lab established in prior periods, alongside steady progress on our strategic investment in African logistics platform Wetruck AI. Although we recorded GAAP losses due to asset impairment and heavy technical investment, our core operating business provides a solid foundation for sustained long-term growth,” said Haogang Yang, founder and CEO of Global Mofy. “Generative AI is thoroughly reshaping the whole content industry value chain, and we will keep taking the lead in this industry transformation.”
“In terms of research and development, we have ramped up R&D spending on technology in an all-round way this half-year. Following the founding of Gauss AI Lab, we have continuously expanded our R&D team and upgraded the Gausspeed generative 3D platform. Massive R&D investment is vital for us to consolidate our technological moat, expand proprietary high-precision digital asset library and develop our new asset sales business. As we deepen our layout in upstream AI training data supply, continuous investment in cutting-edge AIGC technology will power our multi-line growth and keep us ahead of peers in the AI digital content sector.”
Financial Results for the Six Months Ended March 31, 2026
- Revenue for the six months ended March 31, 2026 increased by
49.4% to$39.9 million , from$26.7 million in the same period last year. This revenue increase reflects the strong market uptake of generative AI solutions, robust growth in virtual technology services and the newly launched digital asset sales business catering to large model developers, all benefiting from the fast development of the AI industry. - Cost of revenues increased by
110.5% to$31.4 million , compared to$14.9 million in the same period last year. The increase is primarily due to higher outsourced production expenses and the carrying cost of digital assets delivered to AI enterprise clients, which were allocated to this period. Gross profit was$8.5 million , a decrease of27.9% compared to$11.8 million in the previous year. The strong revenue growth was tempered by increased costs associated with expanded virtual project production and the early-stage scaling of our new AI asset sales business. Nonetheless, gross margin for virtual technology services remained solid at28.8% , supported by a steady pipeline of film and drama projects delivered in the first half of 2026. - Operating loss was
$50.7 million , compared to operating income of$1.7 million in the same period last year. The decrease is primarily due to the asset write-down and substantial increases in R&D investment and share-based compensation costs. However, the Company continues to maintain a viable core business model. - GAAP net loss was
$50.7 million , compared to net income of$5.0 million in the same period last year. After adjusting for items including asset impairment, stock-based compensation and warrant fair value changes, Non-GAAP net income stood at$1.1 million in the first half of 2026. R&D investments were$14.4 million , up from$5.8 million in the same period last year. This increase is driven by the expansion of the Gauss AI Lab, deepened technical cooperation with NVIDIA Omniverse and expanded equity incentive plans for core technical teams. The Company is positioning itself as a leader in generative AI content creation, and these investments are essential to ensure its continued technological edge. - Total cash and restricted cash as of March 31, 2026 stood at
$2.8 million , backed by private placement proceeds raised at the end of fiscal 2025. This provides a liquidity position to support Global Mofy’s ongoing growth initiatives in the first half of 2026 and beyond.
Operational and Strategic Highlights
Global Mofy achieved significant progress across core business and technology development areas since releasing its prior full-year financial results:
- Commercialized New Digital Asset Sales Business for AI Large Model Clients: The Company officially launched a brand-new revenue segment selling standardized 3D digital assets to generative AI and large language enterprises in the first half of 2026. This new business forms a complete upstream supply chain layout for AIGC training data and opening a second major growth curve outside traditional virtual production services.
- Deepened short drama cooperation via Mofy Clips: The Company continues to advance joint production projects with China Literature under the Mofy Clips brand, capturing more market share in the booming short drama track.
- Continuous iteration of Gauss AI Lab: We keep upgrading the Gausspeed generative 3D platform built in partnership with NVIDIA Omniverse and enlarge our proprietary high-precision digital asset library.
- Deepened Global AI Industrial Layout: The Company advanced its strategic investment in African digital logistics platform Wetruck AI. This overseas layout remains the Group’s cross-industry AI deployment in Africa, exploring diversified scenarios for 3D digital asset and AI technology output outside the entertainment content industry.
About Global Mofy AI Limited
Global Mofy AI Limited (Nasdaq: GMM) is a generative AI-driven technology solutions provider engaged in virtual content production, and the development of digital assets for the digital content industry. Utilizing its proprietary “Mofy Lab” technology platform, which consists of interactive 3D and artificial intelligence (“AI”) technology, the Company creates high-definition virtual versions of a wide range of physical world objects in 3D ranging from characters, objects to scenes and more. The digital assets can be used in different applications, including movies, TV series, AR/VR, animation, advertising, gaming, and more. Global Mofy Metaverse is one of the leading digital asset banks in China, which consists of more than 150,000 high-precision 3D digital assets. For more information, please visit www.globalmofy.ai or ir.globalmofy.cn.
Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, our ability to keep pace with new technology and changing market needs, and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Global Mofy AI Limited
Investor Relations Department
ir@mof-vfx.com
