Cheer Holding, Inc. (CHR) AI Stock Analysis
CHR AI stock analysis summary
AI ResearchCheer Holding, Inc. (CHR) is a Beijing-based provider of mobile advertising, content production, and digital entertainment apps. Over the trailing twelve months, the company generated $138.4M in revenue with an operating margin of 17.3%, but quarterly revenue fell 14.7% year-over-year as of June 30, 2026. The stock has experienced severe price declines, dropping 93.0% over the past year to a market capitalization of $3.4M.
- Market cap
- $3.4M
- Revenue (TTM)
- $138.4M
- P/E
- —
- 1Y return
- -93.0% S&P 500 16.8%
- Avg. target
- —
Bull case
- Cheer Holding closed its June 30, 2026 quarter with $209.4M in net cash and only $4.4M in total debt.
- The business generated $17.2M in free cash flow and $17.9M in operating cash flow during FY2025.
- Cheer Holding beat earnings per share estimates in 4 of its last 4 reported quarters.
Bear case
- Quarterly revenue dropped 14.7% year-over-year while quarterly earnings fell 95.1% in the period ended June 30, 2026.
- The company's share count expanded 1362.9% over the past five years, creating substantial dilution.
- The stock price plunged 93.0% over the past year and trades 40.2% below its 200-day moving average.
What Cheer does
Cheer Holding, Inc., founded in 2016 and formerly known as Glory Star New Media Group Holdings Limited, operates through subsidiaries in mobile and online advertising as well as media and entertainment. Headquartered in Beijing, China, the company's core platform is the CHEERS app, which delivers live streaming, TV series, e-commerce, short videos, dramas, variety shows, and online games. Cheer Holding is also developing digital ecosystem applications, including the CheerCar App for interactive entertainment, CheerReal for digital NFT collections, and the CheerChat App for social audio interactions.
Growth and profitability
Cheer Holding's annual revenue rose from $153.0M in FY2021 to $157.1M in FY2022 before retreating to $152.3M in FY2023 and $147.2M in FY2024. Revenue reached $148.8M in FY2025, representing a 1.1% increase and a 5-year revenue CAGR of 3.8% from FY2020. Gross margin compressed from 77.2% in FY2021 to 71.0% in FY2025, while net income declined from $35.3M in FY2021 to $25.6M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue fell 14.7% year-over-year and quarterly earnings decreased 95.1%, bringing trailing twelve month revenue to $138.4M.
Balance sheet and cash flow
As of June 30, 2026, Cheer Holding held $213.8M in cash and short-term investments against total debt of $4.4M, resulting in net cash of $209.4M. The company maintains a current ratio of 12.48 and a debt-to-equity ratio of 0.01, with shareholders' equity of $389.2M. In FY2025, operating cash flow stood at $17.9M and free cash flow reached $17.2M, with capital expenditures of $709,000. Over the past five years, the company's share count increased 1362.9%.
Valuation and performance
Cheer Holding closed at $1.47 on October 16, 2026, representing a market capitalization of $3.4M and an enterprise value of -$208.5M. The stock trades at a price-to-sales ratio of 0.0x and an enterprise value to revenue multiple of 1.4x, compared to a median price-to-sales ratio of 0.8x for the median of its US-listed Communication Services peers. The stock has fallen 93.0% over the trailing one-year period and 99.9% over five years, significantly trailing the S&P 500 (SPY), which gained 16.8% over one year and 83.0% over five years.
What analysts expect
Cheer Holding holds an earnings track record of 4 EPS beats over the last 4 quarters. Over the trailing twelve months, diluted earnings per share were -$78.87, down from positive annual EPS figures of $1.28 in FY2024, $0.55 in FY2022, and $0.81 in FY2021. Insiders hold 11.4% of the shares, while institutional investors own 2.7%, and short interest stands at 4.0% of the float.
Key risks and what to watch
- Trailing twelve month diluted earnings per share were -$78.87 despite trailing twelve month net profit margins of 18.7%.
- Gross margins narrowed from 77.2% in FY2021 to 71.0% in FY2025, signaling persistent cost pressure.
- Severe share dilution of 1362.9% over 5 years poses continued risk to per-share equity value.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CHR AI stock analysis
This page is an AI-written research summary of Cheer Holding, Inc. (CHR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CHR income statement, CHR balance sheet, CHR key metrics, CHR chart. See the CHR stock overview for the latest quote and news.
CHR AI stock analysis FAQ
What is Cheer Holding's ticker and what exchange does it trade on?
Cheer Holding trades under the ticker CHR on the NASDAQ exchange.
How much cash does Cheer Holding have?
As of June 30, 2026, Cheer Holding had $213.8M in cash and short-term investments and $4.4M in total debt, yielding $209.4M in net cash.
Does Cheer Holding pay a dividend?
Cheer Holding does not currently pay a dividend to shareholders.
What were Cheer Holding's recent quarterly growth rates?
In the quarter ended June 30, 2026, revenue declined 14.7% year-over-year and quarterly earnings declined 95.1% year-over-year.