Global Mofy Metaverse Bets Big on AI Growth

Global Mofy Metaverse Ltd. ((GMM)) has held its Q4 earnings call. Read on for the main highlights of the call.

Global Mofy Metaverse’s latest earnings call painted a generally upbeat picture, underscored by record revenue growth, expanding assets, and a clear pivot toward AI-native production infrastructure. Management acknowledged that heavy R&D and platform investments are weighing on near-term margins and profitability disclosures were limited, but the tone of the call suggested strong confidence that today’s spending will translate into scalable, higher-margin growth over the coming years.

Record Revenue Growth Underpins the Story

Global Mofy Metaverse reported FY2025 revenue of $55.9 million, up 35.3% from $41.4 million a year earlier, marking the highest annual revenue in the company’s history. This pace of expansion signals robust demand for its digital content and technology services, particularly as clients in media, entertainment, and related sectors step up adoption of 3D and AI-enabled content solutions. For investors, the topline trajectory is a central proof point that the company’s strategy is gaining commercial traction despite a more volatile broader market for tech and media names.

Asset Base Expansion Highlights Capacity Build-Out

Total assets rose 31.9% year-over-year to $78.0 million as of September 30, 2025, from $59.2 million. Management attributed this primarily to increases in intangible assets and 3D digital assets, reflecting ongoing investment in the company’s content and technology base rather than traditional fixed assets. This balance-sheet expansion suggests Global Mofy is building a larger engine for future production and monetization, though investors will be watching closely to see how efficiently these assets translate into revenue and profit over time.

Solid Gross Profit and Margin Amid Scaling

The company delivered gross profit of $22.5 million for FY2025, up from $20.8 million, an increase of roughly 8.2% year over year. Gross margin came in at 40.2%, a healthy level considering the elevated spending to scale AI-native production capabilities. While revenue growth significantly outpaced gross profit growth, the company managed to maintain a solid margin profile during a period of infrastructure build-out, signaling that its core operations remain fundamentally profitable even as it invests heavily in new technology and workflows.

R&D Spend Supports a Growing IP Portfolio

Global Mofy invested approximately $7.9 million in R&D during FY2025, representing about 14.1% of revenue and up 6.7% from the prior year. Management framed this as a deliberate push into deeper technology development, not just content creation. The company now holds 45 independent IPs and adds more than 10 new IPs each year, building a library that can be reused, licensed, and integrated into AI-native production pipelines. While this level of R&D spending weighs on current earnings, it potentially lays the groundwork for higher-margin, IP-driven revenue streams over the long term.

Large 3D Digital Asset Bank Creates Competitive Moat

The company highlighted its status as one of China’s leading digital asset banks, with more than 150,000 high-precision 4K 3D digital assets. This extensive library acts as both a production accelerator and a key training resource for its AI systems. With such a large asset base, Global Mofy can shorten project timelines, automate more of the production process, and scale content output without linearly increasing costs. For investors, this asset bank represents a potential structural advantage versus smaller competitors who lack similar content depth and quality.

Strategic Financings and Gauss AI Lab Fuel Innovation

To fund its AI push, Global Mofy completed $10.3 million in strategic private placement financings. Management is channeling this capital into initiatives such as the newly established Gauss AI Lab, which is focused on advancing AI-native production tools and accelerating R&D. This lab is intended to integrate advanced AI algorithms directly into content workflows, enhancing automation and efficiency. The financing and lab structure underscore management’s determination to move beyond incremental tool adoption and toward building core AI infrastructure at the heart of its operations.

Global AI Infrastructure Expansion via Eaglepoint and Wetruck

The company is also extending its AI footprint globally. It formed Eaglepoint AI, Inc. in Delaware as a majority-owned U.S. AI infrastructure arm, positioning itself closer to key technology ecosystems and international customers. In Africa, Global Mofy invested in Wetruck AI in Ethiopia, broadening its reach into new geographies and application areas beyond pure digital content. These moves signal an ambition to become a global AI infrastructure player rather than a regionally focused content studio, though they also introduce execution and integration risk across diverse markets.

Strategic Shift to AI-Native Workflows

Management repeatedly stressed a multi-year transition from using AI as a set of tools to operating AI-native production workflows. Central to this is the Gausspeed platform, built on NVIDIA Omniverse, and integration through Mofy Lab, which together aim to automate and virtualize large portions of the production pipeline. By embedding AI agents and simulation capabilities into its workflow, Global Mofy expects to achieve scalable output with less incremental labor, targeting structurally higher margins over time. This strategic pivot is core to the investment thesis: the company is trying to transform from a service-heavy model into a technology- and platform-driven business.

Near-Term Margin Pressure from Heavy Investment

Management acknowledged that these aggressive investments in AI-native infrastructure, R&D, and AI agent-based workflows are pressuring near-term margins. While gross margins remain solid, the incremental operating costs associated with technology build-out are likely weighing on operating income and net profit, even though detailed bottom-line figures were not disclosed. The company framed this as a temporary and intentional trade-off, arguing that the infrastructure spend should unlock margin expansion as automation, reuse of assets, and platform scale kick in.

R&D Intensity Temporarily Constrains Profitability

With R&D spending rising to around $7.9 million, or roughly 14.1% of revenue, Global Mofy’s commitment to technology development is clear. This R&D intensity inevitably constrains current profitability, especially in the absence of detailed earnings metrics to show how quickly returns are materializing. Management’s stance is that this is a necessary phase to secure technological leadership and defensible IP in AI-native production, effectively front-loading costs for anticipated future economies of scale and higher-margin products.

Short-Form Drama Venture Still in Early Days

Beyond its core technology initiatives, the company is experimenting with short-form drama investments and production. Management characterized this effort as very early stage, with limited immediate contribution to revenue or profit and uncertain near-term return on investment. The strategic rationale is diversification: building additional content formats and monetization channels that could benefit from the company’s 3D asset bank and AI production capabilities. For now, investors should view this segment as a speculative upside option rather than a core earnings driver.

Limited Profitability and Cash Detail Leaves Gaps

One notable weakness of the call was the lack of detailed disclosure on net income, earnings per share, cash flow, and liquidity metrics. Without these figures, it is harder for investors to assess the company’s true bottom-line health, cash runway, and capacity to sustain its elevated investment pace. While the top-line and asset growth stories are compelling, the absence of granular profitability and cash data introduces uncertainty and may temper investor enthusiasm until further financial detail is provided in filings or future updates.

Operational and Presentation Issues Cloud the Message

The call itself was affected by technical difficulties and a reliance on translated answers, creating occasional communication friction. These issues do not change the underlying numbers or strategy but can undermine confidence in management’s investor-relations execution. For market participants, it adds a layer of communication risk: the story is complex and ambitious, and clarity in presentation is essential to building trust, particularly for a company that is still proving out its AI-native transformation.

Guidance: Strong Growth Momentum with Margin Upside Ahead

Looking ahead to FY2026, management guided for continued strong growth momentum as the company completes its multi-year shift to AI-native production. They pointed to FY2025 milestones—35.3% revenue growth to $55.9 million, a 40.2% gross margin, a 31.9% rise in total assets to $78 million, R&D investment of roughly $7.5–7.9 million, a 150,000-plus 3D asset library, 45 IPs with more than 10 added each year, $10.3 million in strategic private placements, and strategic steps like Gauss AI Lab, the Gausspeed platform, the Wetruck AI investment, and the formation of Eaglepoint AI—as the foundation for future scale. Management reiterated that these initiatives may continue to exert modest pressure on near-term margins but are explicitly designed to unlock structural margin expansion and deeper market penetration over time.

In summary, Global Mofy Metaverse’s earnings call showcased a company in aggressive build-out mode: delivering record revenue and expanding its asset base while pouring capital into AI-native infrastructure, IP, and global platforms. The overall tone was confident and growth-focused, but tempered by limited visibility into bottom-line metrics and near-term margin pressure. For investors, the key question is execution—whether this substantial investment cycle will successfully convert a strong top-line and rich asset library into sustainable, higher-margin earnings growth in the years ahead.