tiprankstipranks
Trending News
More News >
Global Mofy Metaverse Ltd. (GMM)
NASDAQ:GMM
US Market

Global Mofy Metaverse Ltd. (GMM) AI Stock Analysis

Compare
116 Followers

Top Page

GMM

Global Mofy Metaverse Ltd.

(NASDAQ:GMM)

Select Model
Select Model
Select Model
Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
$1.50
▲(4.90% Upside)
The score is anchored by solid fundamentals (strong growth, healthy balance sheet, and strong recent operating cash flow) but is capped by FY2025 earnings volatility and uneven free cash flow. Technicals remain a headwind with the stock still below key longer-term moving averages, while valuation is supportive due to a low P/E. Earnings-call commentary adds a modest positive tilt due to growth guidance, tempered by near-term margin pressure and limited profitability/cash visibility.
Positive Factors
Revenue Growth
Sustained 35% revenue growth to a record $55.9M demonstrates durable market demand and successful monetization across virtual real estate, gaming and NFTs. This scale supports continued investment in AI production and IP, improving unit economics and enabling structural expansion over the next 2–6 months.
Large 3D Asset & IP Bank
Owning 150k+ high-precision 3D assets and a growing IP portfolio provides a durable competitive moat: it accelerates production, lowers marginal content costs, enables licensing and platform stickiness, and supplies high-quality training data for AI-driven workflows crucial to long-term scale.
Balance Sheet Flexibility
Low leverage and a stronger equity base improve financial flexibility to fund AI investments and geographic expansion without immediate dilution. Increased assets (up 31.9% YoY) and recent private placements bolster runway, supporting multi-year AI-native transition and strategic execution resilience.
Negative Factors
Net Loss Volatility
A sharp swing to net loss erodes earnings reliability and suggests below-the-line volatility (non-cash items, financing costs) that can mask underlying operating performance. Persistent net-loss episodes complicate forecasting, investor confidence, and the firm’s ability to demonstrate consistent profitability over the medium term.
Inconsistent Free Cash Flow
Uneven free cash flow indicates cash-conversion risk from working-capital swings or heavy reinvestment cycles. This inconsistency can force reliance on external financing for growth, raise execution risk for AI projects, and limit predictable funding for content and infrastructure over the coming months.
Elevated R&D Burden on Margins
High R&D and AI infrastructure spending is strategic but compresses margins until scale and automation deliver efficiency. If revenue mix or productivity gains lag, elevated investment intensity could keep margins depressed and delay returns, making near-term margin recovery and cash conversion uncertain.

Global Mofy Metaverse Ltd. (GMM) vs. SPDR S&P 500 ETF (SPY)

Global Mofy Metaverse Ltd. Business Overview & Revenue Model

Company DescriptionGlobal Mofy Metaverse Limited, through its subsidiaries, provides virtual content production, digital marketing, and digital assets development services for the metaverse industry in the People's Republic of China. It offers services for visual effect design, content development, production, and integration based on customers specific needs. The company also provides advertisement production and promotion services to customers with integrated digital marketing services, including content planning, technical, content production assistance, and omni-channel online placement services. In addition, it grants use right of digital assets to customers on specific needs across various applications, such as movies, TV series, AR/VR, animation, advertising, and gaming. Global The company was incorporated in 2021 and is based in Beijing, the People's Republic of China.
How the Company Makes MoneyGlobal Mofy Metaverse Ltd. generates revenue through several key streams. Primarily, the company earns income from the sale of virtual real estate within its metaverse, allowing users and businesses to purchase, develop, and monetize their own virtual spaces. Additionally, GMM capitalizes on in-game purchases and microtransactions within its gaming platforms, where players can buy virtual goods and upgrades. The company also profits from partnerships and collaborations with brands looking to establish a presence in the metaverse, offering advertising and marketing solutions within its virtual environments. Furthermore, GMM generates revenue through the trading of NFTs, which can include unique digital assets, collectibles, and art. These diverse revenue streams, combined with strategic partnerships in the tech and entertainment sectors, contribute significantly to the company's overall earnings.

Global Mofy Metaverse Ltd. Earnings Call Summary

Earnings Call Date:Jan 09, 2026
(Q4-2025)
|
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and strategic narrative: record revenue (+35.3% YoY), strong asset growth (+31.9% YoY), a sizable asset bank (150,000+ 3D assets) and clear moves to build AI-native infrastructure (Gauss AI Lab, Eaglepoint AI). Management acknowledges near-term margin pressure due to elevated R&D and strategic investments and describes the short-form drama effort as early-stage. Although certain bottom-line metrics (net income/EPS/cash flow) were not disclosed and investments increase near-term cost, the company's execution on growth, IP accumulation and infrastructure expansion suggest confidence in sustained, margin-accretive growth over time.
Q4-2025 Updates
Positive Updates
Record Revenue Growth
Total revenue of $55.9 million for FY2025, a 35.3% year-over-year increase from $41.4 million, marking a company record.
Asset Base Expansion
Total assets increased to $78.0 million as of September 30, 2025, a 31.9% year-over-year increase from $59.2 million, driven by investments in intangible assets and 3D digital assets.
Strong Gross Profit and Margin
Gross profit of $22.5 million (up from $20.8 million, ~8.2% YoY increase) with a gross margin of 40.2% for FY2025, despite investments to scale AI-native production.
Significant R&D Investment and IP Portfolio
R&D spending of approximately $7.9 million in FY2025 (around 14.1% of revenue), a 6.7% increase year-over-year; company holds 45 independent IPs and adds over 10 new IPs annually.
Large 3D Digital Asset Bank
Recognized as one of China's leading digital asset banks with more than 150,000 high-precision 3D digital assets (4K), supporting faster production cycles and scalable AI training/inference.
Strategic Financings and Lab Establishment
Completed $10.3 million in strategic private placement financings and established Gauss AI Lab to accelerate AI-native production tools and R&D.
Global AI Infrastructure Expansion
Established Eaglepoint AI, Inc. (Delaware) as a US-based majority-owned AI infrastructure arm and invested in Wetruck AI (Ethiopia) to expand into African markets and diversify application areas beyond digital content.
Clear Strategic Transition to AI-Native Workflows
Management emphasized a deliberate multiyear transition from AI-driven tools to AI-native production workflows (Gausspeed platform built on NVIDIA Omniverse, Mofy Lab integration), positioning the company for scalable, margin-accretive growth.
Negative Updates
Near-Term Margin Pressure from Investments
Management noted intentional investments in AI-native infrastructure, expanded R&D and AI agent-based workflows that modestly weighed on near-term margins despite long-term expected benefits.
R&D Spending Increases Impact Near-Term Profitability
R&D increased ~6.7% YoY to around $7.9 million (14.1% of revenue), reflecting deep technology investment that may constrain short-term profitability as scale and automation ramp.
Short-Form Drama Business Still Early Stage
The company's move into short-form drama investments and production is at a very early stage; management expects diversification benefits over time but near-term contribution and ROI remain uncertain.
Limited Quantitative Profitability and Cash Metrics Disclosed
The call did not provide detailed net income, EPS, or cash flow / liquidity metrics, limiting investor visibility into bottom-line profitability and cash runway.
Operational/Presentation Issues During Call
Multiple instances of technical difficulty and reliance on translated answers were noted, which may introduce communication friction and temporary investor uncertainty.
Company Guidance
Management guided that the company expects to maintain strong growth momentum into FY2026 as it completes a multi‑year shift to AI‑native production to drive long‑term, margin‑accretive scale; to support that outlook they cited FY2025 results of $55.9M revenue (up 35.3% YoY from $41.4M), $22.5M gross profit with a 40.2% gross margin, total assets of $78M (up 31.9% YoY from $59.2M), R&D investment of roughly $7.5–7.9M (~14% of revenue, up ~6.7% YoY), 150,000+ high‑precision 3D assets, 45 IPs (adding >10 annually), $10.3M in strategic private placements, and strategic moves including Gauss AI Lab, the Gausspeed platform, a June 2025 investment in Wetruck AI and the January 2026 formation of Eaglepoint AI — management noted these investments may modestly pressure near‑term margins but are intended to unlock structural margin expansion and broader market penetration.

Global Mofy Metaverse Ltd. Financial Statement Overview

Summary
Global Mofy Metaverse Ltd. shows strong revenue growth and profitability, with healthy profit margins and a solid equity position. However, cash flow management needs attention due to negative free cash flow from high capital expenditures.
Income Statement
52
Neutral
Global Mofy Metaverse Ltd. demonstrates strong revenue growth and profitability. The revenue growth rate has been impressive, particularly from 2023 to 2024, showing a significant increase. The gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. The EBIT and EBITDA margins are robust, further reflecting operational efficiency and profitability. However, the slight decline in EBIT from 2022 to 2023 is a minor concern, though the overall trajectory remains positive.
Balance Sheet
78
Positive
The balance sheet of Global Mofy Metaverse Ltd. shows a solid equity position with a healthy equity ratio, indicating strong financial stability. The debt-to-equity ratio is relatively low, suggesting prudent financial leverage. The return on equity is strong, demonstrating effective utilization of shareholder funds to generate profits. The increase in stockholders' equity over the years highlights strong financial growth. However, the company should monitor its rising liabilities to maintain its solid financial standing.
Cash Flow
64
Positive
Cash flow analysis reveals steady improvement in operating cash flow, indicating enhanced cash generation from core operations. However, free cash flow remains negative due to significant capital expenditures, which could impact liquidity if not managed properly. The operating cash flow to net income ratio is positive, reflecting good conversion of income into cash. The free cash flow to net income ratio is negative, highlighting potential challenges in cash management despite profitability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue55.94M55.94M41.36M26.89M17.19M14.27M
Gross Profit22.51M22.51M20.80M14.53M4.12M3.28M
EBITDA-6.18M-6.18M18.90M8.83M-10.64K1.47M
Net Income-19.30M-19.30M12.14M6.55M-267.22K1.42M
Balance Sheet
Total Assets78.05M78.05M59.19M27.12M8.53M9.04M
Cash, Cash Equivalents and Short-Term Investments4.21M4.21M8.07M11.22M1.14M1.09M
Total Debt3.69M3.69M6.00M3.31M1.87M2.66M
Total Liabilities16.07M16.07M13.69M6.30M4.78M6.82M
Stockholders Equity62.12M62.12M45.65M20.96M3.89M2.36M
Cash Flow
Free Cash Flow22.10M22.10M-18.46M-1.39M-1.17M-1.52M
Operating Cash Flow22.11M22.11M18.11M5.78M-1.14M-1.47M
Investing Cash Flow-33.43M-33.43M-34.70M-7.73M-166.18K-81.19K
Financing Cash Flow4.57M4.57M16.92M11.64M1.47M2.62M

Global Mofy Metaverse Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.43
Price Trends
50DMA
1.45
Negative
100DMA
1.73
Negative
200DMA
2.18
Negative
Market Momentum
MACD
0.05
Negative
RSI
49.72
Neutral
STOCH
59.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMM, the sentiment is Negative. The current price of 1.43 is above the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.45, and below the 200-day MA of 2.18, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 49.72 is Neutral, neither overbought nor oversold. The STOCH value of 59.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GMM.

Global Mofy Metaverse Ltd. Risk Analysis

Global Mofy Metaverse Ltd. disclosed 74 risk factors in its most recent earnings report. Global Mofy Metaverse Ltd. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The dual class structure of our Class A Ordinary Shares and Class B Ordinary Shares has the effect of concentrating voting control with our CEO and Chairman of the Board and his affiliates. Q3, 2024
2.
The market price of our Class A Ordinary Shares has recently declined significantly, and our Class A Ordinary Shares could be delisted from Nasdaq or trading could be suspended. Q3, 2024
3.
In the event that our Class A Ordinary Shares are delisted from Nasdaq, U.S. broker-dealers may be discouraged from effecting transactions in our Class A Ordinary Shares because they may be considered penny stocks and thus be subject to the penny stock rules. Q3, 2024

Global Mofy Metaverse Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$37.14M-90.67-2.06%3.24%-115.15%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$70.88M3.8615.52%41.74%-75.97%
56
Neutral
$33.52M-29.16-0.97%-20.20%-799.54%
46
Neutral
$431.56M-0.56-165.73%181.48%98.25%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GMM
Global Mofy Metaverse Ltd.
1.43
-2.47
-63.33%
USIO
Usio
1.36
-1.23
-47.49%
DVLT
Datavault AI
0.74
-0.65
-46.62%
DTST
Data Storage
4.47
0.14
3.23%
VEEA
Veea
0.51
-3.03
-85.54%

Global Mofy Metaverse Ltd. Corporate Events

Global Mofy AI Posts Record 2025 Revenue but Swings to Loss as It Accelerates AI Expansion
Jan 12, 2026

On January 9, 2026, Global Mofy AI Limited reported fiscal year 2025 results for the year ended September 30, 2025, posting record revenue of $55.9 million, up 35.3% year over year, and gross profit of $22.5 million, while non-GAAP operating income rose 17.9% to $10.8 million as the company accelerated its shift toward AI-native production and AI Agent–based workflows. Despite stronger core operations and a 31.9% increase in total assets to $78.0 million driven by investment in 3D digital assets and AI technologies, the company swung to a net loss of $19.3 million and a basic and diluted loss per share of $1.19, largely due to non-cash warrant-related items, even as it expanded R&D (including the launch of Gauss AI Lab), secured industry recognition, delivered high-profile VFX work such as for the TV series “Guardians of the Dafeng” in January 2025, moved into short-form drama under its Mofy Clip brand, raised $8.8 million via private placements, made a strategic investment in East African digital freight platform Wetruck AI in June 2025, and, in January 2026, established U.S.-based Eaglepoint AI Inc. to bolster global AI data engineering and model training capabilities—steps that collectively deepen its technology stack, diversify revenue drivers, and extend its AI footprint into new markets and sectors.

The most recent analyst rating on (GMM) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Global Mofy Metaverse Ltd. stock, see the GMM Stock Forecast page.

Global Mofy AI Shareholders Approve Governance Overhaul and Capital Restructuring at January 5 AGM
Jan 9, 2026

At its annual general meeting held on January 5, 2026 in Beijing, Global Mofy AI Limited’s shareholders approved all seven proposals on the agenda, with 78.38% of total voting power represented. Resolutions passed included confirming Golden Ocean FAC PAC as the independent registered public accounting firm for the fiscal year ending September 30, 2025 and re-electing directors Haogang Yang, Chen Chen, Jie Zhang, Rui Dong and Xiaohong Qi, ensuring continuity in the company’s leadership. Shareholders also adopted a fourth amended and restated memorandum and articles of association, introducing governance changes such as eliminating the need for unanimous written resolutions for ordinary matters, allowing directors to handle fractional shares, shortening notice for general meetings to five clear days, granting a casting vote to the meeting chairman, clarifying directors’ interests and remuneration, and formally changing the financial year-end to September 30. In addition, investors authorized the board, over a three-year window, to implement one or more share consolidations within a broad ratio range of 2-for-1 to 500-for-1, with rounding up of fractional entitlements, and to make related adjustments to authorized share capital, as well as to increase the company’s authorized capital up to US$100 million split between Class A and Class B shares at a fixed ratio. Taken together, these measures give the board substantial flexibility to adjust capital structure, meet listing or financing needs, and streamline corporate governance, potentially strengthening Global Mofy AI’s strategic and financial options for stakeholders.

The most recent analyst rating on (GMM) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Global Mofy Metaverse Ltd. stock, see the GMM Stock Forecast page.

Global Mofy AI Takes 51% Stake in New U.S. Subsidiary Eaglepoint AI to Build Global Data and Training Hub
Jan 6, 2026

On December 8, 2025, Global Mofy AI Limited, through its wholly owned U.S. subsidiary GMM Discovery LLC, agreed to acquire a 51% controlling stake in Delaware-based Eaglepoint AI Inc. for $100,000, half of which was paid on December 11, 2025, with the remainder due within three months, and on January 2, 2026 the company announced the establishment of Eaglepoint AI as part of a strategic expansion of its global AI infrastructure. Eaglepoint AI is set up as a data labeling, data governance and AI model-training support specialist, built around a proprietary workflow tool called Aquila that manages end-to-end AI lifecycle tasks and automates validation across leading models including Claude, GPT, Google Gemini and ByteDance Seed 1.6; by combining U.S.-based data governance and compliance standards with engineering execution and data production teams in Ethiopia, Global Mofy aims to build a scalable, cost-effective data supply chain, strengthen its position in enterprise AI services and tap into emerging African tech talent to support global machine-learning and large language model developers.

The most recent analyst rating on (GMM) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Global Mofy Metaverse Ltd. stock, see the GMM Stock Forecast page.

Global Mofy AI Raises US$4.8 Million in Private Placement to Expand AI Content Platforms
Dec 19, 2025

On December 18, 2025, Global Mofy AI Limited closed a private placement of 15 million Class A ordinary shares at US$0.31875 per share, raising approximately US$4.8 million in gross proceeds from non-U.S. investors under an exemption from U.S. registration rules. The company plans to deploy the new capital for general corporate purposes, including working capital, product development and further expansion of its AI-powered technology platforms and infrastructure, bolstering its financial resources to support growth in its virtual content and 3D digital asset businesses.

The most recent analyst rating on (GMM) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Global Mofy Metaverse Ltd. stock, see the GMM Stock Forecast page.

Global Mofy AI Announces January 2026 Shareholder Meeting to Address Governance Changes
Dec 17, 2025

Global Mofy AI Limited has announced an upcoming annual general meeting of shareholders, scheduled for January 5, 2026, to discuss and vote on several key proposals. These include appointing a registered public accounting firm, re-electing directors, and amendments to the company’s memorandum and articles of association. The meeting also aims to address matters related to potential share consolidations, share capital increases, and related modifications to company policies. This meeting could significantly impact the company’s governance structure and operational flexibility, potentially enhancing its long-term strategic growth.

The most recent analyst rating on (GMM) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Global Mofy Metaverse Ltd. stock, see the GMM Stock Forecast page.

Global Mofy AI Secures $4.8 Million in Private Placement to Boost Operations
Dec 5, 2025

On December 5, 2025, Global Mofy AI Limited announced it entered into a Securities Purchase Agreement with investors for a private placement of 15,000,000 Class A ordinary shares, raising approximately $4.8 million. The proceeds will be used for working capital and general corporate purposes, including product development and expansion of its AI-powered technology platforms. The securities were sold under an exemption from registration requirements, and the company plans to file a registration statement with the SEC for the resale of the shares. This move is expected to bolster Global Mofy’s operational capabilities and enhance its position in the digital content industry.

The most recent analyst rating on (GMM) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Global Mofy Metaverse Ltd. stock, see the GMM Stock Forecast page.

Global Mofy AI Issues Shares Under Incentive Plan
Nov 10, 2025

On November 7, 2025, Global Mofy AI Limited issued 4,200,000 Class A ordinary shares to certain employees as part of its October 2025 Share Incentive Plan. This move is likely aimed at enhancing employee motivation and retention, potentially strengthening the company’s internal operations and aligning employee interests with shareholder value.

The most recent analyst rating on (GMM) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Global Mofy Metaverse Ltd. stock, see the GMM Stock Forecast page.

Global Mofy AI Limited Launches October 2025 Equity Incentive Plan
Oct 29, 2025

On October 29, 2025, Global Mofy AI Limited, a company involved in the AI sector, announced the approval and adoption of its October 2025 Equity Incentive Plan. This plan aims to attract and retain key personnel by providing them with equity interests in the company, thereby aligning their interests with those of the shareholders. The introduction of this incentive plan could potentially enhance the company’s ability to maintain a strong workforce and improve its competitive positioning in the industry.

The most recent analyst rating on (GMM) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Global Mofy Metaverse Ltd. stock, see the GMM Stock Forecast page.

Global Mofy AI Limited Appoints New Accounting Firm Amid Internal Control Improvements
Oct 27, 2025

On October 20, 2025, Global Mofy AI Limited announced the termination of YCM CPA INC. as its independent registered public accounting firm, citing no disagreements over accounting principles or practices. The decision was approved by the company’s Board of Directors, and the reports from YCM CPA INC. for the fiscal year ending September 30, 2024, were unqualified. Subsequently, on October 24, 2025, the company appointed Golden Ocean FAC PAC as its new independent registered public accounting firm, effective October 20, 2025, to audit its financial statements. This change aims to address the material weaknesses in the company’s internal control over financial reporting, including the need for more comprehensive accounting policies and better IT controls.

The most recent analyst rating on (GMM) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Global Mofy Metaverse Ltd. stock, see the GMM Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 12, 2026