Gamehaus Q4 2025 Earnings Report

Gamehaus EPS Results

• Actual EPS: $0.03
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Gamehaus Revenue Results

• Actual Revenue: $30.72 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Gamehaus Announcement Details

• Quarter: Q4 2025
• Date: 9/9/2025
• Time: Before Market Opens
• Conference Call Date: Tuesday, September 9, 2025
• Conference Call Time: 8:00AM ET

Gamehaus (NASDAQ:GMHS) is a mobile game developer and publisher. Gamehaus Holdings Inc. is headquartered in Beijing, China.

Gamehaus Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Our dual engine growth strategy combines organic enhancements of mature titles with strategic expansion into new genres, highlighted by the successful launch of our first RPG and a robust pipeline of new games planned through 2026.
• Positive Sentiment: Extensive AI integration across asset generation, multilingual localization, and customer support now resolves up to 50% of tickets and has boosted player spending by 5–10% through personalized content and testing.
• Positive Sentiment: The board approved a $5 million share repurchase program to enhance shareholder returns and signal confidence in the company’s long-term growth trajectory.
• Negative Sentiment: Fiscal 2025 revenue fell to $118 million from $145.2 million year-over-year, and net income declined to $3.8 million from $8.6 million, driven by a strategic pullback in user acquisition spending.
• Neutral Sentiment: Full year 2026 guidance targets revenue of $27 million to $30 million, reflecting a conservative outlook as the company balances near-term headwinds with future pipeline launches.

Presentation

[Operator]

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the GameHouse's Fourth Quarter and Full Year of Fiscal twenty twenty five Earnings Conference Call. Currently, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be followed at that time. As a reminder, we are recording today's call.

[Operator]

If you have any objections, you may disconnect at this time. I will now turn the call over to today's speaker host, Mr. Jack Wang. Jack, please proceed.

[Jack Wang, Managing Director at The Blueshirt Group]

All right. Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss the financial results of GameHouse for the fourth quarter and full year of fiscal twenty twenty five. We released our earnings results earlier today.

[Jack Wang, Managing Director at The Blueshirt Group]

The press release is now available on the company's IR website as well as from Newswire services. On the call with me today are Mr. Brian Siafeng, Chairman of the Board Mr. Carl Cai Yimian, Chief Executive Officer and Mr. Shang Zhang, Head of Capital Markets and Investor Relations.

[Jack Wang, Managing Director at The Blueshirt Group]

Brian will review business operations and company highlights, followed by Shang, who will discuss detailed financial results. They will all be available to answer your questions during the Q and A session. And before we proceed, I would like to remind you that this call may contain forward looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our filings with the SEC. Also, note that unless otherwise stated, all figures mentioned during the conference call are in U.

[Jack Wang, Managing Director at The Blueshirt Group]

S. Dollars. And with that, I would like to introduce our Chairman, Brian. Brian will deliver his remarks in Chinese and I will follow-up with corresponding English translations. Please go ahead, Brian.

[Jack Wang, Managing Director at The Blueshirt Group]

Hello, everyone. Thank you for joining GameHouse's conference call for the fourth quarter and full year of fiscal twenty twenty five. Looking back on the final quarter of fiscal year twenty twenty five and the full year as a whole, we achieved our objectives through disciplined execution. This quarter we formally introduced a dual engine growth strategy that combines organic growth with strategic expansion. On the organic side, we continue to operate and enhance our mature titles that generate stable cash flows.

[Jack Wang, Managing Director at The Blueshirt Group]

At the same time, we're extending our game architect model across our developer network to drive higher quality outcomes. In parallel, we are actively evaluating high quality casual mobile game assets worldwide. By leveraging our long standing data resources and AI capabilities, together with China's deep pool of development and live ops talent, we are confident in our ability to help promising casual titles become more profitable and achieve longer life cycles. Our efforts to diversify into new game genres achieved a significant milestone this quarter. In April, we launched our first RPG title, Adubuncture of the White Cord, which enabled us to fully test and extend our end to end publishing capabilities in this genre, from team selection and theme evaluation to publishing support and art asset management.

[Jack Wang, Managing Director at The Blueshirt Group]

Building on that foundation, we plan to launch our second RPG in late September. Beyond that, our pipeline remains very strong with a healthy slate of titles in testing or preparing for launch, many of which are scheduled for release in 2026. As these new games come online, we expect our portfolio mix to become more balanced and resilient with a greater likelihood of generating breakout hits. In short, our organic growth strategy is not about betting on a single title or even a single genre. Instead, we are investing in a proven methodology that lays the foundation for a more sustainable growth trajectory in 2026 and beyond.

[Jack Wang, Managing Director at The Blueshirt Group]

As we expand our pipeline and strengthen our portfolio, we are also enhancing our operating capabilities where AI has become a core part of our operations. We're applying it extensively in areas such as our asset generation, multilingual localization and customer support, while encouraging broader adoption of AI tools to drive meaningful transformation across the company. In customer support, AI currently resolves about 30% to 50% of tickets and our goal is to push that figure above 50% over the next few quarters. On the monetization front, early results from AI driven content generation, personalized recommendations and multi round alpha and beta testing have collectively increased player spending by five to 10%. On the other hand, we continue to focus on direct to consumer or DTC payments as a key driver of margin improvement and increasing our DTC mix has become an important strategic objective.

[Jack Wang, Managing Director at The Blueshirt Group]

Regulatory and platform developments vary across markets. In The United States, where progress has been most advanced, our Tidal Grant Cash slot generated over 10% of its iOS revenue through DTC channels in August. In other regions where regulations and platform policies are evolving more gradually, we are closely tracking developments and send ready to roll out DTC as soon as conditions permit. If regulatory and platform timelines unfold as we expect, our near term goal is to increase the DTC mix of our key titles to 15% to 20% by the end of fiscal twenty twenty six, which we believe will meaningfully enhance our gross margin profile. Beyond expanding our scale and improving profitability, we also remain committed to delivering returns to our long term shareholders.

[Jack Wang, Managing Director at The Blueshirt Group]

Since completing our De SPAC transaction, we believe our stock has for an extended period failed to fully reflect our fundamentals or the long term growth potential of both our business and the broader gaming industry. As such, in late August, our board approved a share repurchase program authorizing the buyback of up to $5,000,000 of our Class A ordinary shares over a one year period. We see this as an important first step as we intend to continue pursuing various shareholder return initiatives to strengthen investor confidence. Finally, based on our current product portfolio and the anticipated launch schedule of our upcoming pipeline titles, we are setting our revenue guidance for the 2026 and being 09/30/2025 in the range of $27,000,000 to $30,000,000 And now I will turn the call over to Shang to walk you through our financial performance.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

Thank you, Brian, and hello, everyone. I will now provide a detailed overview of our financial performance for the fourth quarter and full fiscal year 2025, which ended 06/30/2025. Please note that all figures are in US dollars, and all comparisons are made on a year over year basis, unless otherwise stated. In the 2025, our revenue exceeded the high end of our previous guidance range to reach 30,700,000.0, compared with 31,600,000.0 in the same period last year. The decline primarily reflects our strategic pullback in user acquisition spending and our deliberate adjustments to our marketing approach in response to involving platform dynamics and heightened industry competition.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

Lower marketing expenditures resulted in reduced traffic and user acquisition, which in turn willed on revenue. Breaking down our revenue by segment, our in app purchase revenue was $27,900,000 a modest decrease of 2.4% from 28,600,000.0 a year ago. Advertising revenue was 2,800,000.0, down from 3,000,000 in the same period last year. It's important to note that despite these headwinds, our ongoing enhancement to in game content and features help sustain engagement and retention among our existing players. For the full fiscal year 2025, revenue totaled US118 million dollars compared to US145.2 million dollars in the previous fiscal year.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

The decline mirrors the same trends we observed in the quarter, primarily driven by a reduction in user acquisition spending and the strategic adjustments to our marketing efforts. In app purchase revenue was 106,300,000.0, down 19% from 131,600,000.0 a year ago. Advertising revenue was 11,700,000.0, compared to 13,600,000.0 last year. Turning to expenses, in the fourth quarter, total operating costs and expenses were 29,300,000.0, remaining relatively stable compared with the same period last year. More specifically, cost of revenue declined nearly 6% to 14,500,000.0, primarily driven by lower platform fees, reduced profit sharing payments to game developers and a decline in customized design fees.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

R and D expenses increased 37.3% to 1,400,000.0 as we advanced early stage collaborations with multiple developers to build out our future content pipeline. Selling and marketing expenses were 11,800,000.0, slightly lower than 12,100,000.0 in the same period last year, consistent with our strategy to scope back advertising spending for mature titles. G and A expenses were 1,500,000.0, compared to 800,000.0 a year ago, mainly due to higher salary expenses and professional service fees tied to our public listing and associated governance enhancements. For the full fiscal year 2025, total operating costs and expenses were 114,700,000.0, representing a 16.2 reduction from 136,900,000.0 in the previous fiscal year. This reflects our disciplined cost management in a challenging environment.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

Cost of revenue declined 20.9% to 55,900,000.0, driven by similar factors as in the quarter, including lower platform fees, reduced profit sharing payments to game developers and a decline in customized design fees. R and D expenses were 5,700,000, up 18.9% from 4,800,000.0 in the prior fiscal year, underscoring our commitment to content innovation through investment in early stage partnerships with developers. Selling and marketing expenses were 48,400,000.0, down 16.1% from 57,700,000.0 in the previous fiscal year, in line with our strategy of scaling back advertising spending for mature titles. G and A expenses were 4,700,000.0, up 25.4% from 3,800,000.0 in the prior fiscal year, primarily due to the same factors that led to the quarterly increase. Shifting to profitability, in the fourth quarter, operating income was 1,400,000.0, down from 2,300,000.0 a year ago.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

Operating margin was 4.6% versus 7.1% in the same period last year. For the full fiscal year 2025, operating income was $3,400,000 down from $8,300,000 in the previous fiscal year. Operating margin was 2.9% compared with 5.7% last year. Net income for the fourth quarter was 1,500,000.0, down from 2,500,000.0 in the same period last year, and earnings per ordinary share was 3¢, compared with 5¢ a year ago. Net income for the full fiscal year 2025 was 3,800,000.0, down from 8,600,000.0 in the previous fiscal year.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

This translated into earnings per ordinary shares of $08 compared with $0.16 last year. We ended fiscal year 2025 with $15,200,000 in cash and cash equivalents, compared to 18,800,000.0 as of 06/30/2024. We believe this is sufficient to meet our liquidity and working capital needs for the next twelve months. In addition, I want to highlight an important capital market development. On 08/29/2025, our board authorized a share repurchase program of up to 5,000,000 US dollars over the next twelve months through 08/28/2026.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

This underscores both our confidence in the company's long term growth trajectory and our commitment to delivering shareholder value. Looking ahead to the 2026, we expect total revenue to be in the range of approximately 27,000,000 to 30,000,000, based on current progress and market demand. Overall, we see fiscal twenty twenty five as a year of strategic recalibration, one where we strategically balance short term headwinds against the need to invest in our future. While the external environment remains challenging, we believe the actions we have taken, including tightening marketing spending, refining cost structure, investing in innovative game content, and deepening partnership with developers are laying the foundation for sustainable growth. As we enter fiscal year twenty twenty six, we remain focused on disciplined execution and unlocking growth from our strengthened content pipeline and enhanced operating efficiency.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

We are confident in our ability to capture new opportunities and deliver sustainable value for our shareholders. With that, we can now open our call for questions. Our CEO, Mr. Carl Tsai and I will answer your questions. Operator, please proceed.

[Operator]

We will now begin the question and answer session. Additionally, when asking a question, please state your question in Chinese first, The first question today comes from Tina Wang with Ciddix International. Please go ahead.

[Analyst]

I'll translate myself. Thanks management for taking my question. I have two questions. The first one is during fiscal year twenty twenty five net profit declined much more than revenue change. Could management share more color with us regarding the reasons behind And how should we think about this further margin trend?

[Analyst]

And my second question is regarding B2C payments. To my understanding, both Ample and Google have historically taken a hotline on B2C payments. And there also have been several restructuring cases. So my question is if Apple and Google take further restrictive action, what is the impact to us and how do we mitigate this impact? Thanks.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

I will give English translation for myself. So for fiscal year twenty twenty five, our overall net margin was roughly 3.2%. So taken in isolation, this is not a very high level, but I think net margin is not an ideal year stick for you know, a industry standard comparison. There there's gonna be two reasons. So firstly, the bottom line of our p and l is very sensitive to certain one offs and also the scale of the company.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

From the top line to the bottom line, there are many items that could move the outcome. So some of them are non recurring and could meaningfully screw up our net income, especially for the companies that are not yet at a very large scale. So as we noted last quarter, our net income in the early nine months of the fiscal year still reflected some one time items related to our listing preparation. So if you could take a look at our Q4 on a standalone basis, the net income was about 1,500,000.0 on 30,700,000.0 of our revenue. That is roughly already, I mean, 5%, which shows a very clear improvement.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

But we also want to mention that apples to apples is very hard to make the comparison across our mobile gaming sector. So our industry actually includes both public companies just like us, and also probably private companies operating under different environments and accounting practices. So I think a simple comparison of net margins often fails to capture operational progress. So internally, we therefore track a more operation focused metrics. We take the revenue subtract cost of revenue, and sales and marketing expense, then use the result to divide that result by revenue.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

So on this basis, the rate for the whole fiscal year of 2025 was about 11.7%. And for the fourth quarter, it was about 14.3%. So personally speaking, I would say a level around 15% is relatively satisfying for us. But also, I would like to mention that it is a non GAAP measurement. So we only use it as supplemental context for your information.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

I will give the second question to our CEO, Mr. Cao Cai. Please proceed.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

Okay, I will translate myself. Your question is crucial as it touches the of our DTT. So on the current strategy share, we are in strong growth space, albeit from a starting point. As you noticed, the overall proportion of DTC revenue company wide is currently relatively low. This is primarily because our full fledged DTC strategy was officially launched only after Apple's policy change, a low third party payments in The US around mid year.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

This makes strategic starting point with a clear timeline. Despite the recent start, the growth trend is highly positive. To date, in our product with the most advanced DTC implementation, DTC payments share has exceeded 10% in The United States Apple Store, and is contributing significantly higher margins. Our other product lines are actively following suit. And we expect the overall share to show rapid step like growth in the coming quarters.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

And on platform policy risks, our model is compliant and aligned with irreversible regulatory trend. We are fully aware of Apple's and Google's firm stance on protecting their ecosystems. However, we believe the global wave of anti monopoly legislation and court rulings, particularly in The United States, Europe, and Korea, is creating an inrevertible trend, forcing app stores to open up to third party payment systems. The Epic versus Apple case is a key indicator. Thus, while platform policies are strict, we must operate within an involving legal framework, which provides us a sustainable space for compliant operation.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

More importantly, our DTC solution was designed from the ground up with paramount focus on compliance. We are not trying to procurement rules, but by operating within the allowed framework. We use compliant methods like user communication, official website guidance, and community management to intelligently inform users about and guide them towards our direct payment options. We are building a direct trust and service relationship with our users, not a technical workaround, which fundamentally avoid the risk of violation and punitive measures. Regarding our plan B, we have a multi layered and flexible contingency structure.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

Management has clear understanding and preparation for this. So firstly, compliance is our top priority. Even if policy tighten, our foremost principle remains strict, adhere to the current rules. We would immediately adapt our tactics to ensure all operations stay within the platform's guideline, safeguarding our core business. And secondly, we have already technically integrated and evaluated several mature third party payment solution providers.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

Should platform policies change, we could swiftly switch to or integrate these alternative channels to ensure DTC revenue continuity. The ultimate value of user assets, the core asset of the DTC strategy is not the saved commission, but the direct user community and the private traffic we build. Even in the most extreme scenario where DTC payment functionality is temporarily restricted, we retain direct communication channels with our core users. This means we can still conduct marketing, releasing updates, and organize events. The moment the policy allows, we can reactivate payments instantly.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

Once established, user relations and reach are permanently assets. In summary, our DTC strategy is right in the way, first and backed by a robust risk mitigation framework. It is a key investment in the company's long term competitiveness and profitability, not a fragile all or nothing gamble. Thank you.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

Thank you, Tina. That will be the answer of us.

[Operator]

The next question comes from Hua Rong with Jin Yu Asset. Please go ahead.

[Analyst]

Thanks management. I have two questions. The first one, I noticed that you have said the revenue guidance of Q1 as $27,000,000 to $30,000,000 which appears relatively flat versus the prior quarter's guidance. I also noticed that last quarter's actual revenue ultimately slightly exceeded the prior guidance range. Should I build a new outlook as deliberately conservative at this stage?

[Analyst]

And could you share how you are thinking about potential updates to guidance as the quarter's progress? Thank you. And the second question is, it appears 2025 probability was driven largely by cost and expense reductions. We have seen cutbacks in R and D, user acquisition and marketing. How will management ensure this choice would not undermine the company's long term product competitiveness? Thank you.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

I will give the English translation for myself. So you're right, our fourth quarter revenue ultimately came in slightly above the high end of our previous guidance. That outperformance was largely driven by some one time factors. And overall, the quarter was still consistent with our former expectations. When we set the revenue guidance, we anchor it with the in quarter gross revenue generated by our mobile game portfolio.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

So as Brian just mentioned before, we are executing on several fronts. Firstly, operating and nurturing our mature titles that generate a stable cash flow. Secondly, broadening into new genres. So in April, we just launched our first RPG game, which is the small controlled experiment that give us valuable publishing experience. So at the September, we will roll out our second RPG game.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

And into the next year, we expect a number of our pipeline projects to come to market in stages. So in parallel, we are closely monitoring high quality mobile gaming assets globally. If attractive opportunities arise, you will say the progress on any of these fronts could influence our future guidance. Also, of course, we will, as always, refine our quarterly guidance when appropriate to reflect the underlying business. So that we will let the market and also our investors to have a timely and accurate view of our progress.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

I will give the second question to our CEO, Carl Cai. Please proceed.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

Okay, I will translate myself. Thank you for your question. It's a very good one. While we have improved profitability through efficiency measures, please rest assured that our cost saving is strategic and selective operational refinement, not simply across the board cut. We ensure our long term product strength is not compromised through two core strategies.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

Firstly, for existing live games, we focus on precision and efficiency, not blind reduction. Our strategy for mature and live games has shifted from extensive scaling to deep operation and efficiency enhancement. We optimized user acquisition spending and team structures to eliminate broad non targeted investments. Instead, we focused our resources on direct to consumer and VIP user management. This approach has not shortened the product lifecycle, but has strengthened and extended it by boosting user loyalty and payment conversion rates.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

This secures a stable profit foundation and provides reliable cash flow for funding new game projects. Secondly, for future projects, we maintain revenue opening alongside cost saving, investing wisely in the future. Cost optimization has not reduced our investment in cost strategic initiatives. In fact, we continue to attract top tier game design and production talent from the industry to bolster our innovative capabilities. Our core game architect mode is actively underway.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

The reason is not fully reflected in the current cost structure is due to our phased success oriented development path. Each new project undergoes rigorous internal testing and validation at the concept and prototype stages. Only projects that hit key performance metrics proceed to receive full scale development. This approach ensures controllable upfront investment and significantly mitigates the R and D risks. It's a smarter and more responsible way to invest.

[Yimin Cai, CEO & Director at Gamehaus Holdings Inc]

As these validated projects progress into full development, you will see a continued and healthy increase in our product side investments in the near future. In summary, our cost saving optimizes existing engines, while our revenue opening cultivates new ones. Together, they safeguard both our short term profitability and long term product competitiveness. Thank you.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

Thank you, Huo. That will be answer first.

[Operator]

There are no additional questions at this time. I will now hand the call back to management for any closing remarks.

[Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets at Gamehaus Holdings Inc]

Thank you, operator. And thank you all for participating on today's call. And thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress.

[Operator]

The call has now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Shawn Zhiyuan Zhang, Senior Director - IR & Capital Markets
• Yimin Cai, CEO & Director

Analysts

• Jack Wang, Managing Director at The Blueshirt Group
• Analyst