Stock Markets August 27, 2026 01:06 AM

MiniMax Shares Climb After H1 Revenue Jump and Margin Improvement

Enterprise platform growth and higher API usage help lift revenue despite ongoing heavy AI investment

By Derek Hwang
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MiniMax shares climbed after the company posted a 283.1% increase in first-half revenue to $116.6 million and reported a stronger gross margin. Rapid expansion of its Open Platform and higher monetization of AI-native products supported the top-line gain, while continued investment in model development widened adjusted losses.

MiniMax Shares Climb After H1 Revenue Jump and Margin Improvement
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Key Points

  • MiniMax reported first-half revenue of $116.6 million, up 283.1% year-on-year, slightly below the $120 million consensus.
  • Open Platform and other AI-based enterprise services generated $73.9 million, up 703.1% and representing 63.4% of total revenue; AI-native product revenue doubled to $42.6 million.
  • R&D spending rose 138.8% to $296.9 million driven by higher cloud costs for training and upgrading foundation models; cash on hand increased to $1.32 billion from $1.05 billion at the end of 2025.

MiniMax's stock advanced on Thursday following the release of its first-half results, which showed a large increase in revenue alongside an improvement in gross margin amid continued heavy spending on AI development.

In early trading the shares rose 4.95% to HK$318.00, outpacing the Hang Seng Index, which gained 0.5%.


Financial results and revenue mix

For the first half, MiniMax reported revenue of $116.6 million, an increase of 283.1% compared with the prior year. That figure fell slightly short of the $120 million consensus compiled by S&P Global Visible Alpha.

The company said revenue from its Open Platform and other AI-based enterprise services surged 703.1% to $73.9 million, accounting for 63.4% of total revenue versus 30.3% a year earlier. Revenue from AI-native products rose to $42.6 million, doubling year-on-year, which the company attributed to stronger user engagement and improved monetization of products including Hailuo AI.

MiniMax highlighted the rapid adoption of its Token Plan and elevated API call volumes as major contributors to the Open Platform business expansion.


Profitability, costs and cash position

On a net basis, MiniMax recorded a loss attributable of $358 million, compared with a $402.2 million loss a year earlier. The company reported that its adjusted net loss widened to $293.0 million from $138.7 million, reflecting sustained spending on AI development and related costs.

Research and development expenses climbed 138.8% to $296.9 million, driven largely by higher cloud costs associated with training and upgrading the company’s foundation models and multimodal capabilities.

MiniMax ended June with $1.32 billion in cash, up from $1.05 billion at the end of 2025, which the company said provides capacity to continue investing in models, infrastructure and commercialization.


Interpretation

The results point to a material shift in the company’s revenue base toward enterprise usage of its models and API-driven monetization, alongside persistent investment in model development and cloud infrastructure. The combination of rapid Open Platform growth and higher AI-native product revenue supported the top-line surge, even as adjusted losses expanded due to elevated operating spending.

Risks

  • Adjusted net loss widened to $293.0 million from $138.7 million, reflecting continued heavy spending on AI development which could pressure profitability - this affects company-level financial stability and investor returns.
  • Research and development costs increased materially (138.8%) due to higher cloud expenses for model training and multimodal upgrades, posing execution and cost risks for the technology and cloud infrastructure sectors.
  • Revenue fell slightly short of consensus ($116.6 million vs. $120 million), indicating sensitivity to market expectations that can influence capital markets sentiment and equity performance.

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