Global Mofy Reports YoY 34.2% Increase in Revenue for the Six Months Ended March 31, 2025, Driven by Continued Efforts in R&D

Core Viewpoint - Global Mofy AI Limited reported a strong revenue growth of 34.2% for the first half of 2025, driven by its virtual technology services and digital asset development, reflecting the increasing market demand for AI-driven solutions [1][5]. Financial Performance - Revenue for the six months ended March 31, 2025, reached $26.7 million, up from $19.9 million in the same period last year, marking a 34.2% increase [4][5]. - Research and development (R&D) investments surged to $5.8 million, a significant rise from $0.8 million in the previous year, indicating a strong commitment to innovation [4][5]. - Net income was reported at $5.0 million, or $1.19 per share, down from $10.3 million, or $5.56 per share, in the same period last year [4][5]. Cost and Profitability - Cost of revenues increased by 84.3% to $14.9 million, primarily due to higher amortization costs of digital assets [5]. - Gross profit slightly decreased by 0.1% to $11.8 million, with a gross margin for virtual technology services improving to 36.9% from 28.5% in the previous year [5]. - Operating expenses rose to $10.1 million from $5.1 million, largely driven by increased R&D expenses [5]. Strategic Initiatives - The establishment of the Gauss AI Lab aims to enhance R&D efforts and position the company as a leader in generative AI content creation [2][8]. - The launch of the "Mofy Clips" brand signifies the company's entry into the short drama market, co-producing content with China Literature [8]. - A strategic investment in Ethiopian digital freight platform Wetruck AI marks the company's first direct market entry into Africa, supporting its global AI strategy [8]. Operational Highlights - Total current assets as of March 31, 2025, were $14.0 million, including $6.0 million in cash and short-term investments, indicating a solid liquidity position [4][9]. - The company maintains a strong operational model despite increased costs, with expectations for long-term growth from its investments in innovation and technology [5][6].