Shanghai – September 10, 2026 -- Gamehaus Holdings Inc. (Nasdaq: GMHS) reported fiscal year 2026 revenue of US$104.7 million, an 11.4% decline from US$118.0 million in fiscal year 2025, as the mobile game publisher scaled back user acquisition spending amid what it called structural shifts in casual-game economics.
Fourth-quarter revenue drops 20.8% as advertising spend is cut
Total revenue for the quarter ended June 30, 2026 fell to US$24.3 million from US$30.7 million a year earlier. In-app purchases contributed US$21.7 million, down 22.2% from US$27.9 million, while advertising revenue slipped to US$2.6 million from US$2.8 million. Advertising costs were cut 13.5% in the quarter, reducing traffic and new player acquisition.
Net income declines to US$0.9 million in the fourth quarter
Fourth-quarter net income fell 38.2% year-over-year to US$0.9 million from US$1.5 million, with earnings per ordinary share at US$0.02 versus US$0.03. The company posted an operating loss of US$0.8 million, compared with a US$1.4 million operating loss in the prior-year quarter, while other income, net, rose to US$1.6 million from US$0.1 million.
Full-year net income edges up 0.8% despite lower revenue
For fiscal 2026, net income reached US$3.9 million, up slightly from US$3.8 million in fiscal 2025. Total operating costs and expenses fell 9.9% to US$103.3 million from US$114.7 million, outpacing the revenue decline. In-app purchase revenue dropped 11.2% to US$94.5 million, while advertising revenue fell to US$10.2 million from US$11.7 million.
Cost discipline offsets a 36.5% jump in administrative expenses
Selling and marketing expenses fell 15.2% to US$41.0 million for the year, driven by a US$7.3 million cut in player acquisition and retention spend across Apple App Store and Google Play. Cost of revenue declined 11.4% to US$49.5 million on lower platform commissions. General and administrative expenses rose 36.5% to US$6.4 million on public-company infrastructure build-out, partially offset in the fourth quarter by headcount reductions tied to AI-enabled administrative tools. Research and development spending increased 11.4% to US$6.3 million.
Chairman signals shift toward AI-generated content starting fiscal 2027
Founder and chairman Feng Xie said fiscal 2026 was "the last full year prior to the implementation of the strategic initiatives" announced last month, with the company beginning in fiscal 2027 to redirect resources toward development and distribution of AI-generated content. Xie said the company will manage its legacy game portfolio for cash flow and return rather than scale, citing structural change in casual-category user acquisition economics. The board extended the company's share repurchase program for an additional year.