Nasdaq-listed AI content provider posted a $50.7 million GAAP net loss as R&D spending jumped to $14.4 million and costs rose with new digital asset sales expansion.
Global Mofy AI Limited reported financial results for the six months ended March 31, 2026, with revenue rising 49.4% to $39.9 million from $26.7 million a year earlier as demand increased for virtual technology services, generative AI solutions and its newly launched digital asset sales business for large model developers. The company said higher outsourced production expenses and the carrying cost of digital assets pushed cost of revenue up 110.5% to $31.4 million, reducing gross profit to $8.5 million from $11.8 million, although gross margin for virtual technology services remained 28.8%. Operating loss was $50.7 million versus operating income of $1.7 million a year earlier, while GAAP net loss was $50.7 million compared with net income of $5.0 million. After adjustments including asset impairment, stock-based compensation and warrant fair value changes, non-GAAP net income was $1.1 million. R&D spending increased to $14.4 million from $5.8 million as the company expanded Gauss AI Lab, upgraded its Gausspeed generative 3D platform and deepened cooperation with NVIDIA Omniverse. Cash and restricted cash stood at $2.8 million as of March 31, 2026, supported by private placement proceeds raised at the end of fiscal 2025. Management highlighted continued cooperation with China Literature under the Mofy Clips brand and progress on its strategic investment in African logistics platform Wetruck AI, framing the spending as necessary to strengthen its AI content creation position and upstream AIGC (AI-generated content) training data supply.