Cheer Holding revenue falls 14.7% to $60.5m

• Cheer Holding reported first-half 2026 revenue of $60.5 million, down 14.7% from the prior-year period.
• Net income attributable to shareholders increased 4% to $8.1 million as margins improved and operating expenses declined.
• The company continued advancing its artificial intelligence strategy through CHEERS Telepathy 3.1.0 and Klon AI.

Cheer Holding (NASDAQ:CHR) reported first-half 2026 revenue of $60.5 million, down 14.7% from $71 million a year earlier as customers reduced advertising orders amid a weaker macroeconomic environment.

Advertising services accounted for approximately 100% of revenue, while gross margin increased to 76.7% from 70.7% and operating margin rose to 17.3% from 11.7%.

Cheer Holding said its focus on cost control, operational efficiency and artificial intelligence development helped offset the impact of lower customer demand.

Income from operations increased 26.1% to $10.5 million and net income attributable to shareholders rose 4% to $8.1 million, while total operating expenses declined 20.2% to $50 million.

The company held $213.8 million in cash and cash equivalents and reported net cash used in operating activities of $30.2 million.

Cheer Holding provides digital advertising, content, technology and artificial intelligence services through its media and platform businesses.

The company ended the period with working capital of $346.7 million, total assets of $419.6 million and shareholders’ equity of $389.3 million as it continued developing CHEERS Telepathy 3.1.0 and Klon AI.