Leading mobile internet infrastructure and platform service provider Cheer Holding, Inc. (CHR.US) released its financial results for the first half of the 2026 fiscal year, covering the period ended June 30, 2026.

During the reporting period, the company achieved total revenue of RMB 415 million (approximately USD 60.53 million). Operating profit increased by 26.1% year-over-year, demonstrating a significant improvement in profitability. The operating margin expanded from 11.7% to 17.3%.

Key Financial Performance Indicators

Total revenue reached RMB 415 million (USD 60.53 million). Net profit stood at RMB 55.32 million (USD 8.06 million). Operating profit rose by 26.1% compared to the same period last year. The net profit margin increased by 2.4% year-over-year. Research and development investment grew by 37.8% year-over-year, reflecting continued commitment to AI technology innovation. Operating expenses decreased by 20.2% year-over-year, highlighting effective cost control measures.

Revenue Composition

Platform and digital business generated USD 57.73 million, accounting for 95.38% of total revenue. Media content services contributed USD 2.8 million, representing 4.62% of total revenue.

Operational Highlights

User base continued to expand steadily. As of June 30, 2026, total installed users across all platforms reached 559 million, a 3.0% increase year-over-year. The number of paying users, both domestically and internationally, grew at an accelerated pace, with the commercial value of the user base being increasingly realized.

Deepening AI Product Portfolio

In the domestic market, the Yue Lingxi AI maintained a high iteration frequency. The launch of the Huanju AI set a new industry benchmark for home AI applications with its comprehensive real-life scenario capabilities, driving China's home furnishing industry from experience-driven to data-intelligent transformation. In the overseas market, global products Klon AI and Homeglow AI were introduced, marking a substantive phase in the company's international strategy. Klon AI has already become a mainstream consumer application in overseas markets.

Expanding Cultural and Entertainment IP Ecosystem

The company continued to leverage its proprietary AI technology to produce AI-animated series based on classic literary works such as "Water Margin" and "Strange Tales from a Chinese Studio." In the first half of 2026, the company innovatively launched the "National Treasures in Time" and "Let the Artifacts Come Alive" series of AI animations, which have become top-tier cultural IPs on platforms like Douyin and Xiaohongshu.

Business Outlook

In the first half of 2026, the company's underlying technological capabilities continued to break through, driving rapid iteration of products across vertical sectors and consistently strengthening its competitive advantages. Cheer Holding, Inc. will adhere to its established strategic direction, continue to increase AI research and development investment and application innovation, and use technology and products as core drivers. The company aims to promote steady growth in tool-based and service-based revenue while deepening its global business layout.