Gamehaus Holdings Inc. Q2 FY2025 earnings call

• Brian mentioned the company successfully navigated development cycle and transition to sustainable growth model. - Achieved strong profitability with net income up 151% and operating margin expansion. - Focused on cost structure optimization, with sales and marketing costs reduced. - FDAU reached $0.566, daily payer conversion rate increased from 2.1% to 2.5%. - Breakthrough in DTC channel with contribution reaching about 10%, core product GCS over 30%. - Pipeline advancing in RPG and puzzle categories, RPG signed new title with $10 million scope, puzzle aiming to launch 4-5 new titles by end of 2026. - Fully invested in internal AI creative platform, calls for custom team reached nearly 30,000 in three months, expected to exceed 60,000 by end of third quarter. - Initiated share repurchase program with $5 million authorization, repurchased approximately 370,000 Class A ordinary shares by December 31st

Total revenue for the second quarter was approximately $26.3 million. Net profit was about $900,000, a 151% year-over-year increase. Operating profit rate rose from 0.8% last year to 3.3%. Sales and marketing costs fell by about 18.4%, with advertising investment reducing by about $2.1 million. In-app purchase revenue was $23.9 million (down 6.4% year-over-year), advertising revenue was $2.4 million (down from $3.0 million). DTC input contribution reached about 10% by the end of December, core head product GCS broke through 30%. Research and development expenses increased 7.5% to $2.1 million. General and administrative expenses were $1.4 million (up 65.5% year-over-year)

Set revenue guidance for third quarter of fiscal year 2026, ending March 31, 2026, at a range of $24 million to $26 million

Forward-looking statements subject to risks and uncertainties, actual results may differ from expectations. Detailed discussions of risks and uncertainties in filings with the SEC

• Q: Tina Wong asked about revenue growth recovery and OB margin trend.

A: Shawn and Carl answered about revenue decline due to strategic cost adjustments, product pipeline contribution to future growth, and OB margin improvement due to operational refinement and DTC efforts. - Q: Zhenghui Chen asked about D2C goal and share repurchase.

A: Shawn answered D2C target to reach over 15% by end of fiscal year, and Carl answered share repurchase due to compliance and market liquidity constraints