Gamehaus Holdings Inc. reported its unaudited financial results for the second quarter of fiscal year 2026, ending December 31 2025. Revenue fell 7.8% to $26.3 million from $28.5 million a year earlier, while operating income rose to $0.9 million from $0.2 million, expanding the operating margin to 3.3% from 0.8%.
The revenue decline reflects an 18.9% reduction in advertising spend as the company shifts toward a more efficient user‑acquisition model. Compared with the prior quarter, Q1 FY2026, revenue was $27.7 million and net income $1.8 million, indicating a sequential decline in top line but a stronger profitability trajectory.
Net income increased 151% to $0.9 million, and earnings per share climbed to $0.02 from $0.01. The jump is largely attributable to disciplined cost management, particularly the lower advertising expense, which offset the revenue contraction and allowed operating leverage to improve.
Management guided third‑quarter revenue to $24–$26 million, a range that remains near the upper end of the company’s own forecast for the period. The guidance signals confidence in maintaining profitability while acknowledging continued pressure on revenue growth.
Founder and chairman Feng Xie said, "We are pleased with our second quarter results, which demonstrate continued progress in our transition toward a more efficient and sustainable operating model. Revenue of $26.3 million came in near the upper end of our revenue forecast for the second quarter, and more importantly, net income grew approximately 151% period-over-period." He added, "Looking ahead, we are advancing a diversified product pipeline across both RPG and Puzzle genres, with multiple titles moving into active development and scheduled launches. We remain focused on strengthening our platform capabilities and leveraging AI-driven efficiencies to position us for our next phase of growth."
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