Gamehaus Holdings Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year Ended June 30, 2025

, /PRNewswire/ -- Gamehaus Holdings Inc. ("Gamehaus" or the "Company") (Nasdaq: GMHS), a technology-driven mobile game publisher, today announced its unaudited financial results for the fourth quarter and the full fiscal year ended June 30, 2025. Fourth Quarter of Fiscal Year 2025 Financial Highlights Total revenue was US$30.7 million, representing a 2.9% decrease from US$31.6 million in the fourth quarter of fiscal year 2024. In-app purchases contributed US$27.9 million, while advertising revenue reached US$2.8 million. Total operating costs and expenses were US$29.3 million, representing a 0.3% reduction from US$29.4 million in the fourth quarter of fiscal year 2024. Net income was US$1.5 million, down from US$2.5 million in the fourth quarter of fiscal year 2024. Fourth Quarter of Fiscal Year 2025 Operating Highlights in thousands, except percentages For the Three Months Ended June 30, 2025 2024 Average MAUs[1] 3,404 4,052 Average DAUs[2] 613 793 ARPDAU[3] 0.517 0.440 Average DPUs[4] 14 17 Average Daily Payer Conversion Rate[5] 2.3 % 2.1 % Average 7D Retention Rate[6] 9.7 % 11.0 % Fiscal Year 2025 Financial Highlights Total revenue was US$118.0 million, representing an 18.7% decrease from US$145.2 million in fiscal year 2024. In-app purchases contributed US$106.3 million, while advertising revenue reached US$11.7 million. Total operating costs and expenses were US$114.7 million, representing a 16.2% reduction from US$136.9 million in fiscal year 2024. Net income was US$3.8 million, down from US$8.6 million in fiscal year 2024. Fiscal Year 2025 Operating Highlights in thousands, except percentages For the Fiscal Years Ended June 30, 2025 2024 Average MAUs[1] 3,771 4,465 Average DAUs[2] 693 878 ARPDAU[3] 0.463 0.459 Average DPUs[4] 15 19 Average Daily Payer Conversion Rate[5] 2.2 % 2.2 % Average 7D Retention Rate[6] 10.1 % 10.9 % [1] Average Monthly Active Users, or Average MAUs, is defined as the number of individual users who play a game during a particular month. [2] Average Daily Active Users, or Average DAUs, is defined as the number of individual users who play a game on a particular day. [3] Average Revenue Per Daily Active User, or ARPDAU, is calculated by dividing revenue generated during a specific period by the Average DAU for that period, then further dividing by the number of days in the period. [4] Average Daily Paying Users, or Average DPUs, is defined as the number of individuals who made a purchase in a game during a particular day. [5] Average Daily Payer Conversion Rate is calculated by dividing Average DPUs for a specific period by the Average DAUs for that period. [6] Average Day Seven Retention Rate is calculated by dividing the number of new users who continue using the app on the seventh day after installation for a specific period by the total number of new users for that period. Mr. Feng Xie, founder and chairman of Gamehaus, commented: "Fiscal 2025 was a year of transition in which we balanced disciplined execution with strategic investment for the future. Despite a challenging environment during the year, we remained profitable and strengthened monetization efficiency, while advancing key initiatives such as our direct-to-consumer rollout, expansion into RPG and puzzle categories, and deeper integration of AI across our operations. As we enter fiscal 2026, we are confident that these initiatives, supported by our improving profile margins and expanding player base, will position Gamehaus to unlock meaningful growth and deliver long-term value for our shareholders." Fourth Quarter of Fiscal Year 2025 Unaudited Financial Results Revenue Total revenue was US$30.7 million in the fourth quarter of fiscal year 2025, decreasing 2.9% from US$31.6 million in the fourth quarter of fiscal year 2024. The decline primarily reflected a strategic reduction in user acquisition spending and the Company's deliberate adjustment to its marketing approach in response to evolving platform dynamics and heightened market competition. Lower marketing expenditures, including a 3.2% quarter-over-quarter decrease in advertising costs, resulted in reduced traffic and user acquisition, which in turn affected revenue performance. In-app purchase revenue decreased 2.4% to US$27.9 million in the fourth quarter of fiscal year 2025 from US$28.6 million in the prior-year period, while advertising revenue was US$2.8 million in the fourth quarter of fiscal year 2025, compared to US$3.0 million in the fourth quarter of fiscal year 2024. These headwinds were partially offset by enhanced in-game content and features, which continued to drive engagement and retention among the Company's existing player base. Additionally, the Company is actively expanding its content pipeline, with new titles in the Puzzle and RPG genres currently in the testing phase. The Company allocated meaningful marketing budgets to support these products and intends to launch extensive promotional campaigns upon their commercial release. Operating Costs and Expenses Total operating costs and expenses were US$29.3 million in the fourth quarter of fiscal year 2025, remaining relatively stable compared to the fourth quarter of fiscal year 2024. Cost of revenue decreased by 5.8% to US$14.5 million in the fourth quarter of fiscal year 2025, from US$15.4 million in the fourth quarter of fiscal year 2024. The decrease was primarily due to lower platform fees, reduced profit-sharing payments to game developers, and a decline in customized design fees. Research and development expenses increased 37.3% to US$1.4 million in the fourth quarter of fiscal year 2025, from US$1.1 million in the fourth quarter of fiscal year 2024. The increase was mainly attributable to the Company's strategic collaborations with multiple developers during the early stages of game development. Selling and marketing expenses decreased by 2.5% to US$11.8 million in the fourth quarter of fiscal year 2025, from US$12.1 million in the fourth quarter of fiscal year 2024. The reduction was primarily driven by a US$0.4 million decline in advertising costs related to player acquisition and retention, consistent with the Company's strategy to scale back promotional spending amid volatile ad performance across major platforms and to optimize efficiency for mature titles. General and administrative expenses were US$1.5 million in the fourth quarter of fiscal year 2025, representing an increase of 87.0% from US$0.8 million in the fourth quarter of fiscal year 2024. The increase was mainly attributable to higher salary expenses and professional service fees, largely associated with activities related to the Company's public listing, including enhancements to corporate governance, financial reporting, and investor relations functions. Operating Income Operating income was US$1.4 million in the fourth quarter of fiscal year 2025, compared to US$2.3 million in the fourth quarter of fiscal year 2024. Operating margin was 4.6% in the fourth quarter of fiscal year 2025, compared to 7.1% in the fourth quarter of fiscal year 2024. Other Income (Expenses), Net Other income (expenses), net, which mainly included the Company's non-operating income and expenses, interest income and expenses, investment income, and other income and expenses, was US$0.1 million in the fourth quarter of fiscal year 2025, compared to US$0.2 million in the fourth quarter of fiscal year 2024. Net Income Net income was US$1.5 million for the fourth quarter of fiscal year 2025, compared to US$2.5 million in the fourth quarter of fiscal year ended June 30, 2024. Net income per ordinary share was US$0.03 for the fourth quarter of fiscal year 2025, compared to US$0.05 in the fourth quarter of fiscal year 2024. Fiscal Year 2025 Unaudited Financial Results Revenue Total revenue was US$118.0 million for the fiscal year 2025, a decrease of 18.7% from US$145.2 million in the prior fiscal year. The decline was primarily attributable to a strategic reduction in user acquisition spending and a deliberate adjustment to our marketing approach in response to evolving platform dynamics and intensifying market competition. Marketing expenditures decreased 16.3% year-over-year, including a significant reduction in advertising costs, which led to lower traffic and user acquisition volumes and impacted both revenue streams. In-app purchase revenue declined 19.2% to US$106.3 million in the fiscal year 2025 from US$131.6 million in fiscal year 2024, while advertising revenue was US$11.7 million for the fiscal year 2025, compared to US$13.6 million in the prior fiscal year. These declines were partially offset by enhanced in-game content and features, which contributed to sustained engagement and retention among the Company's existing user base. As part of its key initiatives to further diversify its content portfolio, the Company is actively working with selected developer partners to build a strong pipeline in the RPG and puzzle categories. These initiatives reflect the Company's commitment to broadening its product offerings and capturing new market segments. Substantial marketing budgets have been allocated to support these upcoming titles, and the Company plans to roll out extensive promotional campaigns upon their commercial launch. Operating Costs and Expenses Total operating costs and expenses were US$114.7 million for the fiscal year 2025, decreasing by 16.2% from US$136.9 million in the prior fiscal year. Cost of revenue decreased by 20.9% to US$55.9 million in the fiscal year 2025 from US$70.7 million in the prior fiscal year, reflecting lower platform fees, reduced profit-sharing payments to game developers, and a decline in customized design fees. Research and development expenses were US$5.7 million in the fiscal year 2025, an increase of 18.9% year over year from US$4.8 million in the prior fiscal year, mainly attributable to the Company's strategic collaboration with several game developers during the early stages of game development. Selling and marketing expenses decreased by 16.1% to US$48.4 million in the fiscal year 2025 from US$57.7 million in the prior fiscal year. The decrease was primarily attributable to a US$9.0 million reduction in advertising costs related to player acquisition and retention, consistent with the Company's strategic decision to scale back promotional spending amid volatile ad placement performance across major platforms and to optimize marketing efficiency for mature titles. General and administrative expenses were US$4.7 million in the fiscal year 2025, an increase of 25.4% from US$3.8 million in the prior fiscal year, primarily driven by higher salary expenses and professional service fees. These increases were largely associated with activities supporting the Company's public listing preparation and ongoing maintenance, including enhancements to corporate governance, financial reporting, and investor relations functions. Operating Income Operating income was US$3.4 million in the fiscal year 2025, compared to US$8.3 million in the prior fiscal year. Operating margin was 2.9% in the fiscal year 2025, compared to 5.7% in the prior fiscal year. Other Income (Expenses), Net Other income (expenses), net, which mainly included the Company's non-operating income and expenses, interest income and expenses, investment income, and other income and expenses, was US$0.6 million in the fiscal year 2025, compared to US$0.4 million in the prior fiscal year. Net Income Net income was US$3.8 million in the fiscal year 2025, compared to US$8.6 million in the prior fiscal year. Net income per ordinary share was US$0.08 in the fiscal year 2025, compared to US$0.16 in the prior fiscal year. Cash and Cash Equivalents Cash and cash equivalents were US$15.2 million as of June 30, 2025, compared to US$18.8 million as of June 30, 2024, which the Company believes is sufficient to meet its current liquidity and working capital needs for the next 12 months. Business Outlook For the first quarter of fiscal year 2026 ending September 30, 2025, the Company expects its total revenue to be in the range of approximately US$27 million to US$30 million. This forecast reflects the Company's current and preliminary view of its expected financial performance, business situation and market condition, which is subject to change. Recent Development On August 29, 2025, the Company announced that its Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$5 million of its Class A ordinary shares over the next 12 months, through August 28, 2026. Repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades, and/or through other legally permissible means, including through the use of trading plans, intended to qualify under Rule 10b-18 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions and subject to market conditions and in accordance with applicable federal securities laws. The timing and actual amount of repurchases will be determined at the discretion of the Company's management, based on factors including share price, trading volume, market conditions, business outlook, and capital allocation priorities. The Company expects to fund repurchases under this program with its existing cash balance and cash generated from operations. Conference Call Information The management team of Gamehaus will host a conference call at 08:00 A.M. Eastern Time on Tuesday, September 9, 2025 (08:00 P.M. Beijing/Hong Kong time on the same day) to discuss the financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this conference including a conference passcode, a unique PIN number (personal access code), dial-in numbers, and an e-mail with detailed instructions to join the conference call. Participant Online Registration: https://dpregister.com/sreg/10202338/ffc8eed540 A live and archived webcast of the conference call will be available on the Company's Investor Relations website at https://ir.gamehaus.com/. About Gamehaus Gamehaus Holdings Inc. is a technology-driven global mobile game publisher dedicated to bridging creative studios and players worldwide. With a portfolio spanning mid-core and casual games, Gamehaus delivers full-stack publishing support across market insights, user growth, live-ops, data analytics and monetization optimization. With a vision to be the go-to partner for creative teams, the company specializes in combining global publishing reach with AI- and data-powered solutions to help partners build lasting success. For more information, please visit https://ir.gamehaus.com. Forward-Looking Statements Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company's business plan and outlook. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may", or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results due to various risks and uncertainties, including but not limited to those described under the 'Risk Factors' section in the Company's most recent filings with the U.S. Securities and Exchange Commission. Investor Relations Contact Gamehaus Holdings Inc.Investor Relations TeamEmail: [email protected] The Blueshirt GroupMr. Jack WangEmail: [email protected] GAMEHAUS HOLDINGS INC. AND ITS SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (EXPRESSED IN U.S. DOLLARS) As of June 30, 2025 June 30, 2024 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 15,234,745 $ 18,816,535 Restricted cash - 3,605 Short-term investments 1,345,154 - Accounts receivable 10,423,418 11,024,450 Advanced to suppliers, net 9,442,382 9,708,899 Prepaid expenses and other current assets 3,128,788 2,041,112 TOTAL CURRENT ASSETS 39,574,487 41,594,601 NON-CURRENT ASSETS: Plant and equipment, net 124,503 133,558 Intangible assets, net 5,001,523 5,293,126 Operating lease right-of-use assets, net 512,647 695,571 Deferred offering costs - 1,571,328 Equity investments 1,995,021 1,992,206 TOTAL NON-CURRENT ASSETS 7,633,694 9,685,789 TOTAL ASSETS $ 47,208,181 $ 51,280,390 LIABILITIES CURRENT LIABILITIES: Accounts payable $ 10,752,234 $ 13,034,836 Contract liabilities 1,871,120 2,830,068 Accrued expenses and other current liabilities 903,252 555,714 Operating lease liabilities 463,064 336,046 Due to a related party - 107,361 Taxes payable 51,599 19,466 TOTAL CURRENT LIABILITIES 14,041,269 16,883,491 NON-CURRENT LIABILITY: Operating lease liabilities 58,517 351,856 TOTAL NON-CURRENT LIABILITY 58,517 351,856 TOTAL LIABILITIES $ 14,099,786 $ 17,235,347 SHAREHOLDERS' EQUITY: Class A ordinary shares* (par value of $0.0001 per share; 900,000,000 shares authorized, 37,971,245 and 34,401,887 shares issued and outstanding as of June 30, 2025 and, 2024, respectively) 3,797 3,440 Class B ordinary shares* (par value of $0.0001 per share; 100,000,000 shares authorized, 15,598,113 and 15,598,113 shares issued and outstanding as of June 30, 2025 and 2024, respectively) 1,560 1,560 Additional paid-in capital 10,954,201 16,203,206 Retained earnings 23,543,001 19,581,470 Accumulated other comprehensive loss (1,276,222) (1,772,669) TOTAL GAMEHAUS HOLDINGS INC'S SHAREHOLDERS' EQUITY 33,226,337 34,017,007 Non-controlling interests (117,942) 28,036 TOTAL SHAREHOLDERS' EQUITY 33,108,395 34,045,043 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 47,208,181 $ 51,280,390 * Presented on a retroactive basis to reflect the reverse recapitalization. GAMEHAUS HOLDINGS INC. AND ITS SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (EXPRESSED IN U.S. DOLLARS) For the Three months Ended June 30, For theFiscal Years Ended June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) (Unaudited) （Audited） REVENUE $ 30,717,232 $ 31,645,359 $ 118,048,882 $ 145,236,749 OPERATING COST AND EXPENSES Cost of revenue (14,530,125) (15,417,127) (55,860,712) (70,658,025) Research and development expenses (1,446,021) (1,053,398) (5,694,010) (4,788,467) Selling and marketing expenses (11,791,798) (12,093,131) (48,393,515) (57,685,521) General and administrative expenses (1,544,058) (825,503) (4,710,537) (3,756,679) OPERATING INCOME $ 1,405,230 $ 2,256,200 $ 3,390,108 $ 8,348,057 OTHER INCOME (EXPENSES): Investment income (loss), net 33,469 24,653 25,752 (4,594) Interest income 102,109 154,348 529,773 357,623 Other (expenses) income, net (9,042) (9,800) 39,770 19,982 Total other income, net 126,536 169,201 595,295 373,011 INCOME BEFORE PROVISION FOR INCOME TAXES 1,531,766 2,425,401 3,985,403 8,721,068 INCOME TAXES (EXPENSES) BENEFITS (3,330) 123,794 (165,590) (130,307) NET INCOME 1,535,096 2,549,195 3,819,813 8,590,761 Less: net (loss) income attributable to non-controlling interests (79,226) (3,906) (141,718) 342,339 NET INCOME ATTRIBUTABLE TO GAMEHAUS HOLDINGS INC'S SHAREHOLDERS 1,614,322 2,553,101 3,961,531 8,248,422 OTHER COMPREHENSIVE INCOME Net income 1,535,096 2,549,195 3,819,813 8,590,761 Foreign currency translation adjustment, net of tax 280,529 (215,268) 492,187 (106,429) TOTAL COMPREHENSIVE INCOME $ 1,815,625 $ 2,333,927 $ 4,312,000 $ 8,484,332 Less: total comprehensive (loss) income attributable to non-controlling interests (79,094) (3,937) (145,978) 342,613 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO GAMEHAUS HOLDINGS INC'S SHAREHOLDERS 1,894,719 2,337,864 4,457,978 8,141,719 BASIC AND DILUTED EARNINGS PER SHARE: Net income attributable to Gamehaus Holdings Inc's shareholders per share Basic and diluted $ 0.03 $ 0.05 $ 0.08 $ 0.16 Weighted average shares outstanding used in calculating basic and diluted income per share Basic and diluted $ 53,569,358 $ 50,000,000 $ 51,539,531 $ 50,000,000 * Presented on a retroactive basis to reflect the reverse recapitalization. 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Gamehaus Holdings Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year Ended June 30, 2025

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