Revenue growth remains tepid at 5.4% year-over-year in 2024Q2, while rising SG&A costs have constrained operating margins to 16.4%.
| Sales/Revenue | 310.53M | 148.84M | 147.2M | 152.33M | 157.08M | 153.01M | 123.76M | 65.78M | 57.8M | 33.24M |
| Revenue Growth % | 999.18% | 1.11% | -3.37% | -3.03% | 2.66% | 23.63% | 88.16% | 13.8% | 73.91% | - |
| Cost of Goods Sold | 84.43M | 43.21M | 39.39M | 39.55M | 40.58M | 34.94M | 38.48M | 31.9M | 37.35M | 19.44M |
| COGS % of Revenue | - | 29.03% | 26.76% | 25.96% | 25.83% | 22.84% | 31.09% | 48.5% | 64.62% | 58.5% |
| Gross Profit | 226.09M | 105.63M | 107.81M | 112.78M | 116.5M | 118.07M | 85.28M | 33.88M | 20.45M | 13.79M |
| Gross Margin % | 72.81% | 70.97% | 73.24% | 74.04% | 74.17% | 77.16% | 68.91% | 51.5% | 35.38% | 41.5% |
| Gross Profit Growth % | - | -2.02% | -4.41% | -3.19% | -1.33% | 38.44% | 151.75% | 65.66% | 48.25% | - |
| Operating Expenses | 168.95M | 79.34M | 82.22M | 83.49M | 89.77M | 81.78M | 54.61M | 7.04M | 6.97M | 3.52M |
| OpEx % of Revenue | - | 53.31% | 55.85% | 54.81% | 57.15% | 53.45% | 44.13% | 10.7% | 12.05% | 10.59% |
| Selling, General & Admin | 165.15M | 74.17M | 78.79M | 81.86M | 88.44M | 80.86M | 53.92M | 6.29M | 6.46M | 3.35M |
| SG&A % of Revenue | - | 49.83% | 53.53% | 53.74% | 56.3% | 52.85% | 43.57% | 9.56% | 11.18% | 10.09% |
| Research & Development | 3.79M | 5.17M | 3.43M | 1.64M | 1.33M | 920K | 691K | 749K | 502K | 166K |
| R&D % of Revenue | - | 3.48% | 2.33% | 1.07% | 0.85% | 0.6% | 0.56% | 1.14% | 0.87% | 0.5% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 57.15M | 26.29M | 25.59M | 29.29M | 26.73M | 36.29M | 30.67M | 26.84M | -276.97K | 10.27M |
| Operating Margin % | 18.4% | 17.66% | 17.39% | 19.23% | 17.01% | 23.72% | 24.78% | 40.8% | -0.48% | 30.91% |
| Operating Income Growth % | - | 2.72% | -12.61% | 9.57% | -26.35% | 18.32% | 14.27% | 9790.22% | -102.7% | - |
| EBITDA | 62.67M | 33.29M | 29.41M | 33.06M | 30.06M | 38.8M | 34.03M | 27.89M | 1.61M | 10.43M |
| EBITDA Margin % | 20.18% | 22.37% | 19.98% | 21.71% | 19.14% | 25.36% | 27.49% | 42.4% | 2.78% | 31.38% |
| EBITDA Growth % | 339.59% | 13.18% | -11.04% | 9.98% | -22.52% | 14.04% | 21.99% | 1633.35% | -84.57% | - |
| D&A (Non-Cash Add-back) | 5.52M | 7M | 3.82M | 3.78M | 3.34M | 2.52M | 3.36M | 1.05M | 0 | 156K |
| EBIT | 58.43M | 26.29M | 25.59M | 29.29M | 26.73M | 36.84M | 50.91M | 26.89M | 1.61M | 10.27M |
| Net Interest Income | 193K | 69K | 262K | 3K | -93K | -513K | -282K | -295K | -497K | -45K |
| Interest Income | 255K | 69K | 262K | 3K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 62K | 0 | 0 | 0 | 93K | 513K | 282K | 295K | 497K | 45K |
| Other Income/Expense | 1.77M | -594K | 342K | 1.3M | 127K | 41K | 19.96M | -245K | 1.89M | -45K |
| Pretax Income | 58.92M | 25.69M | 25.93M | 30.59M | 26.85M | 36.33M | 50.63M | 26.59M | 1.61M | 10.23M |
| Pretax Margin % | 18.97% | 17.26% | 17.62% | 20.08% | 17.1% | 23.74% | 40.91% | 40.43% | 2.78% | 30.78% |
| Income Tax | -58K | 73K | -34K | 61K | 413K | 976K | 1.67M | 191K | 241K | -789K |
| Effective Tax Rate % | -0.1% | 0.28% | -0.13% | 0.2% | 1.54% | 2.69% | 3.3% | 0.72% | 14.98% | -7.71% |
| Net Income | 58.98M | 25.62M | 25.97M | 30.48M | 26.89M | 35.29M | 48.99M | 26.32M | 12.9M | 11.02M |
| Net Margin % | 18.99% | 17.21% | 17.64% | 20.01% | 17.12% | 23.06% | 39.58% | 40.02% | 22.32% | 33.15% |
| Net Income Growth % | 468.75% | -1.34% | -14.8% | 13.34% | -23.8% | -27.97% | 86.11% | 104.01% | 17.11% | - |
| Net Income (Continuing) | 58.98M | 25.62M | 25.97M | 30.53M | 26.44M | 35.35M | 48.96M | 26.4M | 13.05M | 11.02M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 77K | 85K | 77K | 78K | 75K | 553K | 471K | 475K | 0 | 0 |
| EPS (Diluted) | 293.15 | 24.07 | 125.50 | 176.50 | 197.50 | 270.00 | 414.50 | 283.00 | 26.00 | 110.50 |
| EPS Growth % | 467.54% | -80.82% | -28.9% | -10.63% | -26.85% | -34.86% | 46.47% | 988.46% | -76.47% | - |
| EPS (Basic) | - | 24.07 | 125.50 | 176.50 | 197.50 | 270.00 | 455.00 | 319.50 | 26.00 | 110.50 |
| Diluted Shares Outstanding | 201.18K | 1.06M | 206.54K | 172.75K | 136.25K | 130.76K | 118.25K | 92.97K | 62.29K | 99.54K |
| Basic Shares Outstanding | 201.18K | 1.06M | 206.54K | 172.75K | 136.25K | 130.76K | 107.69K | 82.41K | 62.29K | 99.54K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Regulatory and Competitive Headwinds
As reported in recent financial filings, Cheer Holding's revenue growth remains tepid, with the 5.4% year-over-year increase in 2024Q2 failing to signal a meaningful breakout from the company's historical performance plateau, suggesting that the transition toward a digital ecosystem has yet to capture significant market share.
The company's revenue trajectory appears to be struggling to gain momentum despite the strategic rebranding and pivot toward integrated e-commerce. Investors should monitor whether this lack of growth reflects a saturation of the company's core content-to-commerce model or an inability to compete effectively against larger, more established digital platforms.
Based on the latest income statement data, Cheer Holding maintains a robust gross margin of 73.4%, which suggests that the company's content-first production model retains inherent pricing power despite the broader competitive pressures currently impacting the Chinese advertising and media landscape.
The consistency in gross margins indicates that the cost of content production is well-managed relative to the revenue generated from advertising and e-commerce. However, the gap between these high gross margins and lower operating margins warrants further investigation into the efficiency of the company's user acquisition and marketing expenditures.
According to the provided quarterly figures, operating income has failed to scale proportionally with gross profit, as evidenced by the 16.4% operating margin in 2024Q2, which suggests that rising SG&A costs are currently offsetting the benefits of the company's high-margin content production activities.
The inability to expand operating margins significantly implies that the company is forced to reinvest heavily in marketing to maintain its visibility within the CHEERS app ecosystem. This trend suggests that the business model may require higher levels of variable spending than initially anticipated to sustain its current revenue base.
While the company holds a substantial cash position, the lack of meaningful revenue growth and the potential for capital-intensive digital experiments suggest that Cheer Holding may be facing a structural challenge in converting its legacy assets into a sustainable, high-growth digital media platform.
Short-term observers may focus on the risk that the company's large cash reserves are being deployed into speculative ventures like NFT-linked collections, which may not yield a positive return on investment. The market appears to be discounting the core business, potentially reflecting skepticism regarding the long-term viability of the company's pivot in a highly regulated and competitive environment.
Quick answers to the most common questions about buying CHR stock.
For fiscal year 2025, Cheer Holding, Inc. (CHR) reported total revenue of $148.8M. This represents a 347.8% increase compared to $33.2M in 2017.
Cheer Holding, Inc. (CHR) is profitable, generating $25.6M in net income for the fiscal year ending 2025 with a net profit margin of 17.2%.
Cheer Holding, Inc. (CHR) reported an operating income of $26.3M, resulting in an operating profit margin of 17.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Cheer Holding, Inc. (CHR) generated $105.6M in gross profit for the year, representing a gross profit margin of 71.0%. This demonstrates the company's core pricing power and production efficiency.