Global Mofy shares surge 15.38% intraday on record $56M revenue and 19% rise in non-GAAP operating income.

Global Mofy AI surged 15.38% intraday following its Q1 2026 earnings report, which highlighted record $56 million in revenue (35% year-over-year growth) driven by strong demand for virtual content and 3D digital assets in cinematic, gaming, and digital tourism sectors. Despite a 10% gross margin contraction to 40% due to AI infrastructure costs, non-GAAP operating income rose 19% to $11 million, signaling core operational strength. The company also announced strategic shifts toward high-margin AI Agent workflows and the Mofy Clip short-form drama platform, though liquidity challenges—$1.2 million cash against $16 million in liabilities—remain. Investors appeared to focus on revenue momentum and strategic AI expansion, outweighing concerns over margin pressures and warrant-related losses that contributed to a GAAP net loss. The move reflects optimism about long-term growth potential in AI-driven media production despite near-term financial hurdles.