BEIJING, July 30, 2025 (GLOBE NEWSWIRE) -- Cheer Holding, Inc. (NASDAQ: CHR) (“Cheer Holding” or the “Company”), a leading provider of advanced mobile internet infrastructure and platform services, today announced its financial results for the six months ended June 30, 2025.

Financial Highlights for the Six Months Ended June 30, 2025

Key Financial Metrics

• Revenues reached $71.0 million.

• Net Income reached $11.2 million.

• Net cash provided by operating activities was approximately $3.9 million.
  
  

Segment Revenues

• Revenue from CHEERS App Internet Business reached $65.5 million, accounting for 92.26% of total revenues.

• Revenue from Cheers Traditional Media Business reached $5.5 million, accounting for 7.74% of total revenues.
  
  

Operating Highlights for the Six Months Ended June 30, 2025

CHEERS Video

• Accumulated downloads of CHEERS Video grew by 1.85% YoY to approximately 440 million as of June 30, 2025.

• Monthly Active Users of CHEERS Video increased by 0.02% YoY to approximately 51.1 million.

• Daily Time Spent on CHEERS Video was approximately 54.3 minutes.
  
  

CHEERS e-Mall

• Accumulated downloads of CHEERS e-Mall grew by 16.07% YoY to 70.4 million as of June 30, 2025.

• Monthly Active Users of CHEERS e-Mall increased by 0.44% YoY to approximately 6.9 million.

• Repurchase Rate on CHEERS e-Mall was 38.8%.
  
  

CHEERS Telepathy

• Accumulated downloads of CHEERS Telepathy were approximately 14.1 million as of June 30, 2025.

• Monthly Active Users of CHEERS Telepathy increased by 263.33% YoY to approximately 3.3 million.

• Monthly Visits increased by 14.25% YoY to approximately 3.8 million.
  
  

CHEERS API

• Number of API increased by 9.8% YoY to 101 for the six months ended June 30, 2025.

• Daily Active Integrations increased by 46.9% YoY to more than 470,000.
  
  

Selected Financial Results

Revenues

Revenues remained stable at approximately $71.0 million and $71.1 million, respectively for the six months ended June 30, 2025 and 2024. Advertising services were the Company’s primary revenue driver, accounting for 99.9% and 99.7% of total revenue in these periods. This marginal change was primarily due to: (i) a decrease of approximately $0.1 million in CHEERS e-Mall market service revenue, influenced by the rise of diversified online shopping models like livestream shopping; and (ii) a decrease of approximately $0.1 million in other revenues from customized content production, stemming from increased competition. These reductions were largely offset by an approximately $0.1 million increase in advertising revenues, driven by a higher volume of advertising orders. The Company expects to further expand its customer base by enhancing brand recognition and user traffic, aiming for increased exposure and popularity of its Apps.

Operating Expenses

Operating expenses consist of cost of revenues, selling and marketing, general and administrative, and research and development expenses.

• Cost of Revenues increased by approximately $1.9 million, or 9.99%, to $20.8 million for the six months ended June 30, 2025, from approximately $18.9 million in the prior year. This increase was attributable to higher advertising revenues. However, the Company's gross margin decreased primarily due to a reduction in service fees charged to advertising customers. The Company anticipates further increases in advertising revenues through continuous investment in its advertising business.

• Sales and Marketing Expenses decreased by approximately $2.3 million to $35.3 million for the six months ended June 30, 2025, from approximately $37.6 million in the prior year. This decline was mainly due to reduced promotion service charges, as the Company has scaled back marketing and promotion costs, believing it has gained a strong reputation among its target customers.

• General and Administrative Expenses decreased from approximately $1.6 million for the six months ended June 30, 2024, to approximately $0.8 million for the six months ended June 30, 2025. This reduction was primarily attributable to an approximately $0.6 million decrease in share-based compensation expenses, as the Company incurred higher expenses in the comparable 2024 period from a restricted share grant in June 2024.

• Research and Development Expenses were approximately $2.3 million and $1.4 million for the six months ended June 30, 2025 and 2024, respectively. This increase primarily reflects continued investment in IT infrastructure, user-friendliness upgrades, and the ongoing implementation of content-driven strategies.
  
  

Net Income

As a result, the Company reported a net income of $11.2 million for the six months ended June 30, 2025, compared to $12.4 million for the six months ended June 30, 2024.

Cash, cash equivalents and working capital

The Company’s principal sources of liquidity were cash and cash equivalents of approximately $203.2 million and $197.7 million, respectively, as of June 30, 2025 and December 31, 2024. Working capital as of June 30, 2025 was approximately $284.5 million.