Gamehaus Holdings Inc. — FY2026 Form 20-F
Reporting period: Fiscal year ended June 30, 2026. Filed September 29, 2026. The company is a Cayman Islands holding company whose operations are conducted through subsidiaries, principally in China. Its Class A shares trade on Nasdaq as GMHS. Financial statements are prepared under U.S. GAAP and received an unqualified audit opinion; the auditor did not audit internal control over financial reporting.
Business context
Gamehaus publishes free-to-play mobile games developed with third-party partners, earning revenue primarily from in-app purchases (IAP) and, to a lesser extent, in-app advertising. It reported approximately 110 published games and over 200 million cumulative downloads. More than 75% of revenue came from Europe and North America; the U.S. alone accounted for 62.2% of FY2026 revenue.
Key financial metrics
| Metric (US$ unless noted) | FY2026 | FY2025 | Change |
|---|---|---|---|
| Revenue | $104.7m | $118.0m | Down 11.3% |
| Gross profit / margin | $55.2m / 52.7% | $62.2m / 52.7% | Gross profit down 11.3% |
| Operating income / margin | $1.4m / 1.3% | $3.4m / 2.9% | Down 59.4% |
| Net income | $3.9m | $3.8m | Up 0.8% |
| Net income attributable to Gamehaus shareholders | $4.3m | $4.0m | Up |
| Net income per share | $0.08 | $0.08 | Unchanged |
| Operating cash flow | $6.0m | $2.2m | Up $3.8m |
| Cash and cash equivalents at year-end | $17.6m | $15.2m | Up $2.3m |
| Current assets / current liabilities | $42.4m / $15.0m | $39.6m / $14.0m | Current ratio about 2.8x |
| Short-term loans | $0.76m | None reported | New borrowing |
FY2026 investing cash outflow was $4.7m, mainly for $3.7m net purchases of trading securities, $0.8m of equipment and leasehold improvements, and $0.5m of long-term investments, partly offset by a return of investment capital. Financing cash flow was positive $0.1m, including $0.7m of short-term loan proceeds and $0.6m of share repurchases. Total lease liabilities were $1.8m. The company reported $2.0m of capital expenditure commitments and $0.86m of contractual lease obligations disclosed in the operating review.
Changes versus comparable periods
- Revenue declined for a second consecutive year: FY2025 revenue fell 18.7% from FY2024, and FY2026 fell a further 11.3%. IAP revenue was down 11.2% in FY2026 and advertising revenue down 12.6%.
- Management attributed the FY2026 revenue decline chiefly to reduced user-acquisition spending and lower acquisition volumes. Advertising costs fell 15.8% to $38.8m, while selling and marketing expenses declined 15.2% to $41.0m.
- Operating income weakened despite lower costs: total operating costs and expenses declined 9.9%, less than the revenue decline. R&D expense rose 11.4% to $6.3m and G&A rose 36.5% to $6.4m; G&A growth reflected public-company infrastructure and staffing costs.
- Net income was broadly flat because net other income increased to $2.5m, including approximately $1.9m of investment income on short-term securities. Operating income itself fell substantially.
- Average DAUs fell 26.6% to 509,000 and average MAUs fell 20.2% to 3.008m. Average daily and monthly paying users fell 20.0% and 19.3%, respectively. Average RPDAU rose to $0.547 from $0.463, while seven-day retention fell to 8.7% from 10.1%.
Outlook, risks and unusual items
- Strategy: In August 2026, after fiscal year-end, Gamehaus announced a shift toward AI-generated content (AIGC), progressively optimizing third-party casual-game publishing and directing resources toward AIGC development and distribution. Management said it is managing existing casual and social-casino titles for cash generation and profitability, with spending guided by expected return on investment. No quantified revenue or earnings guidance is provided.
- Execution and monetization: The strategic shift follows declining user engagement and challenging user-acquisition economics. Management cautions that AIGC demand, adoption, commercial returns, development costs and intellectual-property exposure are uncertain. More active monetization improved payer conversion and RPDAU but contributed to weaker free-user experience and retention.
- Nasdaq listing: On July 10, 2026, the company received notice that its share price had been below $1 for 30 consecutive business days. The initial compliance period runs through January 6, 2027; the company said it may consider a reverse split. The notice had no immediate effect on trading.
- Control and dilution: A July 2026 shareholder vote increased Class B shares from 15 to 50 votes each. The chairman holds all 7.8m Class B shares, giving him roughly 90% of voting power as disclosed in the filing. The company repurchased 518,063 Class A shares for about $0.6m and extended its $5m repurchase program through August 28, 2027. Its equity plan also permits future awards and reserve increases.
- Liquidity and cash mobility: Management believes available cash is sufficient for at least 12 months. However, cash and assets are held across multiple jurisdictions, and PRC rules restrict distributions and cross-border transfers. About $9.3m of PRC subsidiary net assets was restricted from distribution at year-end. A $30m revolving facility had $0.76m outstanding at June 30, 2026 and was due to expire July 13, 2026; the filing says the subsidiaries were discussing an extension, without clearly stating the final status.
- Controls and compliance: Management concluded disclosure controls were not effective at June 30, 2026. Two material weaknesses remain: insufficient U.S. GAAP/SEC reporting expertise and formal procedures, and no internal-audit function or formal risk-assessment framework. The filing also reports inadequate PRC social-insurance and housing-fund contributions, with no accrual for potential shortfalls, late charges or fines, and unregistered PRC property leases.
- Concentration and contingencies: Apple, Google and Appcharge represented approximately 50.2%, 21.2% and 10.6% of receivables, respectively. Two suppliers represented 17.9% and 13.5% of accounts payable. The company says it was not aware of material litigation or material cybersecurity incidents during the year, and reports no cyber insurance.
Most important facts for investors to verify
- Whether the revenue and user declines stabilize, and whether higher monetization can be sustained without further weakening retention.
- Progress, funding needs and measurable commercial milestones for the AIGC pivot, including the economics and intellectual-property safeguards for AI-generated content.
- Nasdaq bid-price compliance actions and the status and terms of the revolving credit facility after its July 2026 maturity.
- Remediation of the two material weaknesses, and the potential financial exposure from employee benefit contribution shortfalls and lease-registration issues.
- Recoverability and use of supplier advances: current advances were $7.4m, and $4.3m was classified as other non-current assets; the filing separately states that only about $0.7m, or 18.2%, of receivables collected by other third parties at year-end had been collected by the financial-statement issuance date.
- Exact share counts and voting-control disclosures. The filing gives slightly different estimates of the chairman’s voting power (approximately 90.51% and 90.61% in different sections) and reports 49.0m Class A shares excluding treasury shares versus 49.5m issued shares on the balance sheet.