CHR (Cheer Holding) Operating Income: $26.3 Mil (TTM As of Dec. 2025)

What is Cheer Holding Operating Income?

Cheer Holding CHR +11.60% 58 Operating Income is $26.3 Mil as of Dec. 2025. GuruFocus rates CHR with a GF Score™ of 58/100 and a GF Value™ of $57.75 (Possible Value Trap). The stock has 6 warning signs investors should review.

Cheer Holding's Operating Income for the six months ended in Dec. 2025 was $18.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $26.3 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Cheer Holding's Operating Income for the six months ended in Dec. 2025 was $18.0 Mil. Cheer Holding's Revenue for the six months ended in Dec. 2025 was $77.8 Mil. Therefore, Cheer Holding's Operating Margin % for the quarter that ended in Dec. 2025 was 23.08%.

Warning Sign:

Cheer Holding Inc operating margin has been in a 5-year decline. The average rate of decline per year is -6.9%.

Cheer Holding's 5-Year average Growth Rate for Operating Margin % was -6.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Cheer Holding's annualized ROC % for the quarter that ended in Dec. 2025 was 27.24%. Cheer Holding's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 37.59%.

Cheer Holding (NAS:CHR) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Cheer Holding's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

	ROC % (Q: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2025 )	+	Invested Capital (Q: Dec. 2025 ))	/ count )
=	35.928 * ( 1 - 0.43% )	/	( (128.295	+	134.383)	/ 2 )
=	35.7735096	/	131.339
=	27.24 %

where

	Invested Capital		(Q: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	362.749	-	31.226	-	( 203.228	-	max(0, 39.042	-	323.538	+	203.228	))
=	128.295

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	401.691	-	25.226	-	( 242.082	-	max(0, 31.789	-	366.585	+	242.082	))
=	134.383

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Cheer Holding's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2025 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2025		Q: Dec. 2025
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	35.928	/	( ( (0.334 + max(91.29, 0))	+	(0.278 + max(99.276, 0)) )	/	2 )
=	35.928	/	( ( 91.624	+	99.554 )	/	2 )
=	35.928	/	95.589
=	37.59 %

where Working Capital is:

	Working Capital		(Q: Jun. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(86.238	+	0	+	36.309)	-	(31.226	+	0.031	+	7.105427357601E-15)
=	91.29

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(79.681	+	0	+	44.822)	-	(25.226	+	0.001	+	0)
=	99.276

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Cheer Holding's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2025 )	/	Revenue (Q: Dec. 2025 )
	=	17.964	/	77.842
	=	23.08 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Cheer Holding Operating Income Related Terms

Cheer Holding Operating Income Historical Data

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The historical data trend for Cheer Holding's Operating Income can be seen below:

Cheer Holding Operating Income Chart

Cheer Holding Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Operating Income

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36.29

26.73

29.29

25.59

26.29

Cheer Holding Semi-Annual Data
	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
Operating Income	Get a 7-Day Free Trial												20.57	11.64	13.95	8.32	17.96

58GF Score

Cheer Holding Inc CHR

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

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Cheer Holding Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was $26.3 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $26.3 Mil mean?

Cheer Holding (CHR) has a Operating Income of $26.3 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Cheer Holding and its competitors.

Is Cheer Holding's Operating Income too high?

Cheer Holding's current Operating Income is $26.3 Mil. Overall, Cheer Holding has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.

How does Cheer Holding's Operating Income compare to CNET and BAOS?

Cheer Holding's Operating Income of $26.3 Mil can be compared against companies in the Media - Diversified industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for a Media - Diversified company?

A good Operating Income depends on the Media - Diversified industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Cheer Holding and its competitors. Cheer Holding's current Operating Income is $26.3 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Cheer Holding stock overvalued right now?

Based on GuruFocus' analysis, Cheer Holding (CHR) is currently considered Possible Value Trap. The stock's GF Value™ is $57.75, compared to a current price of $2.02 — trading 96.5% below its estimated fair value. The current Operating Income is $26.3 Mil. Cheer Holding's overall GF Score™ is 58/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For Cheer Holding (CHR), the current Operating Income is $26.3 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Cheer Holding (CHR) Overvalued in 2026?

Based on GuruFocus' analysis, Cheer Holding stock appears to be undervalued. The current stock price of $2.02 is trading 96.5% below its estimated GF Value™ of $57.75. GuruFocus considers Cheer Holding to be Possible Value Trap.

Key valuation signals for CHR:

Operating Income: $26.3 Mil
GF Value™: $57.75 vs. price of $2.02 (96.5% below fair value)
GF Score™: 58/100 with 6 warning signs

No single metric tells the full story. See the CHR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Cheer Holding Business Description

Industry Communication Services Media - Diversified

Comparable Companies CNET BAOS YDKG VSME TGNT HAO CNFN DRCT SPTY KRKR APP XPAR:PUB OMC SZSE:002027 TTD SZSE:300058 TSE:4324 SZSE:002131 XPAR:DEC LFTO

Address No. 8 Tuofangying South Road, 22nd Floor, Block B, Xinhua Technology Building, Jiuxianqiao, Chaoyang District, Beijing, CHN, 100016

Website http://ir.gsmg.co

Cheer Holding Inc is a provider of next generation mobile internet infrastructure and platform services in China. It is engaged in building a digital ecosystem that integrates platforms, applications, technology, and industry into a cohesive system, thereby creating a new, open business environment that leverages AI technology. Its portfolio includes various products and services, such as Polaris Intelligent Cloud, CHEERS Telepathy, CHEERS Open Platform, CHEERS Video, CHEERS e-Mall, CheerCar, CheerChat, CHEERS Fresh Group-Buying E-commerce Platform, Digital Innovation Research Institute, CHEERS Livestreaming, variety show series, IP short video matrix, and more.

58GF Score

Get the complete analysis for CHR

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.02

Price

$57.75

GF Value

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