Press Release: Cheer Holding Announces Fiscal Year 2025 Financial Results

Dow Jones03-23

BEIJING, March 23, 2026 (GLOBE NEWSWIRE) -- Cheer Holding, Inc. $(CHR)$ ("Cheer Holding" or the "Company"), a leading provider of advanced mobile internet infrastructure and platform services, today announced its financial results for the fiscal year ended December 31, 2025. The Company's Annual Report on Form 20-F was filed with the U.S. Securities and Exchange Commission on March 20, 2026.

Management Commentary

"We are pleased to report another year of solid financial performance, driven by continued momentum across our CHEERS ecosystem," said Mr. Bing Zhang, Chairman and Chief Executive Officer of Cheer Holding. "Revenue growth was supported by new customer contributions, while we continued to advance our strategic focus on artificial intelligence and have begun laying the groundwork for overseas expansion. With a strong balance sheet, we remain well-positioned to execute our long-term vision of becoming a global leader in AI-powered digital ecosystems."

Financial Highlights For The Year Ended December 31, 2025

   -- Total revenues increased by 1.1% to $148.8 million, compared to $147.2 
      million in 2024. 
 
   -- Income from operations increased by 2.7% to $26.3 million, compared to 
      $25.6 million in 2024. 
 
   -- Net income attributable to Cheer Holding's shareholders was $25.6 million, 
      compared to $26.0 million in the prior year. 
 
   -- Cash and cash equivalents stood at $242.1 million as of December 31, 
      2025, up from $197.7 million at the end of 2024. 

Operational Highlights

   -- As of December 31, 2025, cumulative app downloads across the Company's 
      platforms reached 550 million, representing a 5.0% increase from 523.3 
      million as of December 31, 2024. 
 
   -- The Company has initiated a strategic pivot toward global markets, with a 
      dedicated AI portrait and video product line anticipated to begin beta 
      testing in the second quarter of 2026. 

About Cheer Holding, Inc.

Cheer Holding is a leading provider of next-generation mobile internet infrastructure and platform services in China. The Company operates a comprehensive digital ecosystem integrating platforms, applications, technology, and industry, with a focus on AI-driven content creation, e-commerce, and metaverse development. For more information, please visit ir.gsmg.co.

Safe Harbor Statement

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential, " "continue," "is/are likely to" or other similar expressions. These forward-looking statements include, but are not limited to, our success in our artificial intelligence initiatives, changes or other circumstances that could affect the Company's ability to continue successful development and launch of global expansion, artificial intelligence initiatives and technology infrastructure; the possibility that the Company may not succeed in developing its new lines of businesses due to, among other things, changes in the business environment and technological developments, competition, changes in regulation, or other economic and policy factors; the possibility that the Company's new lines of business may be adversely affected by other economic, business, and/or competitive factors, or that the Company will be able to continue to have its Class A ordinary shares listed on The Nasdaq Capital Market. In addition, the Company is subject to a number of risks and uncertainties set forth in documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company's latest Annual Report on Form 20-F filed with the SEC on March 20, 2026. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.

For investor and media inquiries, please contact:

James Li

Email: ir@gsmg.co

Tel: +86 10 6778 2900 $(CN)$

 
                         CHEER HOLDING, INC. 
                      CONSOLIDATED BALANCE SHEETS 
          (In U.S. dollars in thousands, except share and per 
                              share data) 
 
                                               As of December 31, 
                                             ---------------------- 
                                                2025         2024 
                                             -----------   -------- 
Assets 
Current assets: 
     Cash and cash equivalents                $  242,082   $197,660 
     Accounts receivable, net                     79,681     77,074 
     Prepayment and other current assets, 
      net                                         44,822     30,834 
                                                 -------    ------- 
Total current assets                             366,585    305,568 
                                                 -------    ------- 
 
     Property, plant and equipment, net               17         33 
     Intangible assets, net                       34,734     40,531 
     Deferred tax assets                               -         72 
     Unamortized produced content, net                17         16 
     Right-of-use assets                             261        371 
     Other non-current assets                         77          - 
                                                 -------    ------- 
Total non-current assets                          35,106     41,023 
                                                 -------    ------- 
TOTAL ASSETS                                  $  401,691   $346,591 
                                                 =======    ======= 
 
Liabilities and Shareholders'Equity 
Current liabilities: 
     Short-term bank loans                    $    6,435   $  9,590 
     Accounts payable                              2,744      2,039 
     Contract liabilities                              1         27 
     Accrued liabilities and other payables          444      1,941 
     Due to related parties                        2,753      1,100 
     Other taxes payable                          19,285     25,095 
     Lease liabilities current                       127        109 
                                                 -------    ------- 
Total current liabilities                         31,789     39,901 
                                                 -------    ------- 
 
     Long-term bank loan                               -      1,370 
     Lease liabilities non-current                   134        250 
                                                 -------    ------- 
Total non-current liabilities                        134      1,620 
                                                 -------    ------- 
TOTAL LIABILITIES                             $   31,923   $ 41,521 
                                                 -------    ------- 
 
Shareholders' Equity 
     Preferred shares (par value of 
     $0.0001 per share; 2,000,000 shares 
     authorized as of December 31, 2025 
     and 2024; nil and nil shares issued 
     and outstanding as of December 31, 
     2025 and 2024, respectively)             $        -   $      - 
     Class A Ordinary shares (par value of 
      $0.05 per share; 500,000,000 shares 
      and 200,000,000 authorized as of 
      December 31, 2025 and 2024, 
      respectively; 4,686,248 and 205,711 
      shares issued and outstanding as of 
      December 31, 2025 and 2024, 
      respectively)*                                 234         10 
     Class B Ordinary shares (par value of 
     $0.001 per share; 500,000 shares 
     authorized as of December 31, 2025 
     and 2024; 500,000 and 500,000 shares 
     issued and outstanding as of December 
     31, 2025 and 2024, respectively)                  -          - 
     Additional paid-in capital                  137,734    113,485 
     Statutory reserve                             1,411      1,411 
     Retained earnings                           232,745    207,128 
     Accumulated other comprehensive loss         (2,441)   (17,041) 
                                                 -------    ------- 
TOTAL CHEER HOLDING, INC SHAREHOLDERS' 
 EQUITY                                          369,683    304,993 
     Non-controlling interest                         85         77 
                                                 -------    ------- 
TOTAL SHAREHOLDERS' EQUITY                       369,768    305,070 
                                                 -------    ------- 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $  401,691   $346,591 
                                                 =======    ======= 
 
 
  *  The shares and per share information are presented 
      on a retroactive basis to reflect the share consolidation 
      of Class A at a ratio of one-for-fiftieth (50) effective 
      on December 22, 2025. 
 
 
                      CHEER HOLDING, INC. 
       CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE 
                             INCOME 
       (In U.S. dollars in thousands, except share and per 
                           share data) 
 
                          For the Years Ended December 31, 
                       -------------------------------------- 
                            2025          2024        2023 
                       --------------   ---------   --------- 
 
Revenues                $     148,835   $ 147,196   $ 152,327 
 
Operating expenses: 
     Cost of revenues         (43,209)    (39,388)    (39,549) 
     Selling and 

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