Global Mofy AI (GMM) reported a net loss of $50.7 million for the six months ending March 31, 2026. This result reverses a $5.0 million profit recorded in the prior-year period. A $38.4 million non-cash impairment charge on licensed digital assets primarily caused the loss. Rapid technological advancements in the AI industry reduced the recoverable value of these assets.
Revenue increased 49.4% year-over-year. Total revenue reached $39.9 million, driven by virtual technology services. Gross margins fell to 21.3% from 44.2% following the impairment and rising operating expenses. The company reported an adjusted non-GAAP net income of $1.1 million.