TAIPEI, July 31, 2026 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its second-quarter 2026 unaudited financial results.
Comments from Management
In the second quarter of 2026, GigaMedia reported revenues of $2.13 million, with a gross profit $1.24 million, an operating loss of $0.10 million, but a net income of $0.55 million.
In this quarter, we successfully carried out an IP collaboration for a licensed game we operated in Hong Kong. With this success, we have achieved a significant increase in revenues. As a result, our operating loss reduced from $0.95 million to $0.10 million quarter-on-quarter.
Currently we focused on cultivating the customer base brought by this successful IP collaboration to build a solid groundwork for our future growth.
Meanwhile, in this quarter, we also successfully converted and settled our holdings of the corporate bonds of Aeolus Robotics Corporation ("Aeolus") into its preferred shares at advantageous prices. As a result of the conversion and settlement, we currently hold 33.35% of its ownership voting rights, and thereby account for it under the equity-method.
Aeolus is an R&D company engaged in developing AI-enabled service robots, specifically in elderly-care, night shift patrol and disinfection. We believe the strategic investment in this robotics company will position our company for a broader industry outlook, and open up vast business opportunities.
Second Quarter Overview
- Operating revenues increased significantly by approximately 182.3% quarter-on-quarter, from $0.75 million in last quarter, and by 144.9% year-over-year from $0.87 million the same period last year.
- Gross profit increased by 197.1% to $1.24 million from $0.42 million in last quarter, and increased by 159.7% compared to $0.48 million in the same period last year.
- Investments in Aeolus were reclassified from available-for-sale to equity-method investment upon the conversion and settlement mentioned above. Considering the advantageous conversion and settlement prices, previous adjustments recorded in other comprehensive loss were reversed. As a result, the book value of the investment increased from $8.17 million to $12.67 million at the end of this quarter, and a deemed disposal gain of $0.37 million was recognized.
- The net asset value was $3.69 per share.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital entertainment services. GigaMedia's digital entertainment service business FunTown develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on browser/mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Second Quarter
GIGAMEDIA 2Q26 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
(unaudited, all figures in US$ thousands, except 2Q26 1Q26 Change 2Q26 2Q25 Change
per share amounts) (%) (%)
Revenues 2,126 753 182.3 2,126 868 144.9
% %
Gross Profit 1,239 417 197.1 1,239 477 159.7
% %
Loss from Operations (103) (945) NM (103) (918) NM
Net Income (Loss) Attributable to 551 (876) NM 551 844 NM
GigaMedia
Earnings (Loss) Per Share Attributable 0.05 (0.08) NM 0.05 0.08 NM
to GigaMedia, Diluted
EBITDA
(A) 322 (1,216) NM 322 423 NM
Cash, Cash Equivalents and Restricted 29,018 27,973 3.7 29,018 31,186 (7.0)
% %
Cash
NM= Not Meaningful
(A) EBITDA (earnings before interest, taxes, depreciation, and amortization) is provided as a supplement to results provided in accordance
with U.S. generally accepted accounting principles ("GAAP"). (See, "Use of Non-GAAP Measures," for more details.)
Second-Quarter Financial Results
- Consolidated revenues for the second quarter of 2026 increased significantly by 182.3% quarter-on-quarter from $0.75 million in last quarter, and by 144.9% year-over-year from $0.87 million the same period last year.
- Consolidated gross profit was $1.24 million, increased by 197.1% quarter-on-quarter and by 159.7% year-over-year.
- Consolidated loss from operation of the second quarter of 2026 was $0.10 million, improved from $0.95 million in the first quarter.
- Non-operating income from operation of the second quarter of 2026 was $0.65 million, improved from $0.07 million in the first quarter, mainly due to a deemed disposal gain of $0.37 million upon the reclassification of Aeolus investments from available-for-sale to equity-method investment.
- Net income in the second quarter of 2026 was $0.55 million, improved from a net loss of $0.88 million in the first quarter.
- Cash, cash equivalents and restricted cash at the end of the second quarter of 2026 amounted to $29.0 million, increased by 3.7% from $28.0 million as of the end of the first quarter.
Financial Position
GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounted to $29.0 million, or $2.63 per share, as of June 30, 2026.
Business Outlook
The following forward-looking statements reflect GigaMedia's expectations as of July 31, 2026. Given potential changes in economic conditions and consumer spending, the evolving nature of digital entertainments, and various other risk factors, including those discussed in the Company's 2025 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.
"In the second half of 2026, we will dedicate ourselves to sustaining the momentum from this quarter's success and deepening engagement with the customer base to fuel our future growth," stated GigaMedia CEO James Huang.
As for new business, our management continues evaluating and pursuing prospects of strategic investment targets that are with potential to expand our business and create greater shareholder value.
Use of Non-GAAP Measures
To supplement GigaMedia's consolidated financial statements presented in accordance with US GAAP, the Company uses the following measure defined as non-GAAP by the SEC: EBITDA. Management believes that EBITDA (earnings before interest, taxes, depreciation, and amortization) is a useful supplemental measure of performance because it excludes certain non-cash items such as depreciation and amortization and that EBITDA is a measure of performance used by some investors, equity analysts and others to make informed investment decisions. EBITDA is not a recognized earnings measure under GAAP and does not have a standardized meaning. Non-GAAP measures such as EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, other financial measures prepared in accordance with GAAP. A limitation of using EBITDA is that it does not include all items that impact the company's net income for the period. Reconciliations to the GAAP equivalents of the non-GAAP financial measures are provided on the attached unaudited financial statements.
About the Numbers in This Release
Quarterly results
All quarterly results referred to in the text, tables and attachments to this release are unaudited. The financial statements from which the financial results reported in this press release are derived have been prepared in accordance with U.S. GAAP, unless otherwise noted as "non-GAAP," and are presented in U.S. dollars.
Q&A
For Q&A regarding the second quarter 2026 performance upon the release, investors may send the questions via email to IR@gigamedia.com.tw, and the responses will be replied individually.
About GigaMedia
Headquartered in Taipei, Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is a diversified provider of digital entertainment services in Taiwan and Hong Kong. GigaMedia's digital entertainment service business is an innovative leader in Asia with growing capabilities of development, distribution and operation of digital entertainments, as well as platform services for games with a focus on mobile games and casual games. More information on GigaMedia can be obtained from www.gigamedia.com.
The statements included above and elsewhere in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding expected financial performance (as described without limitation in the "Business Outlook" section and in quotations from management in this press release) and GigaMedia's strategic and operational plans. These statements are based on management's current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, including but not limited to, our ability to license, develop or acquire additional online games that are appealing to users, our ability to retain existing online game players and attract new players, and our ability to launch online games in a timely manner and pursuant to our anticipated schedule. Further information on risks or other factors that could cause results to differ is detailed in GigaMedia's Annual Report on Form 20-F filed in April 2026 and its other filings with the United States Securities and Exchange Commission.
(Tables to follow)
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of US dollars, except for earnings per share amounts)
Three months ended Six months ended
6/30/2026 3/31/2026 6/30/2025 6/30/2026 6/30/2025
unaudited unaudited unaudited unaudited unaudited
Operating revenues
Digital entertainment service revenues 2,126 753 868 2,879 1,726
2,126 753 868 2,879 1,726
Operating costs
Cost of digital entertainment service revenues 887 336 391 1,223 790
887 336 391 1,223 790
Gross profit 1,239 417 477 1,656 936
Operating expenses
Product development and engineering expenses 148 145 157 293 352
Selling and marketing expenses 376 380 360 756 754
General and administrative expenses 817 837 877 1,654 1,717
Other 1 1 1 1
1,342 1,362 1,395 2,704 2,824
Loss from operations (103) (945) (918) (1,048) (1,888)
Non-operating income (expense)
Interest income 242 353 436 595 859
Foreign exchange gains (loss) - net 42 (285) 1,330 (243) 1,197
Gain on disposal of investment in securities 370 370
Changes in the fair value of an instrument 1 (9) 1 (6)
recognized at fair value
Other - net 5 5
654 69 1,762 723 2,055
Income (loss) before income taxes 551 (876) 844 (325) 167
Income tax expense
Net income (loss) attributable to shareholders 551 (876) 844 (325) 167
of GigaMedia
Earnings (loss) per share attributable to
GigaMedia:
Basic 0.05 (0.08) 0.08 (0.03) 0.02
Diluted 0.05 (0.08) 0.08 (0.03) 0.02
Weighted average shares outstanding:
Basic 11,052 11,052 11,052 11,052 11,052
Diluted 11,052 11,052 11,052 11,052 11,052
GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEET
(in thousands of US dollars)
6/30/2026 3/31/2026 6/30/2025
unaudited unaudited unaudited
Assets
Current assets
Cash and cash equivalents 28,705 27,660 30,873
Investment in securities-current 4,652
Accounts receivable - net 182 105 167
Prepaid expenses 248 392 235
Restricted cash 313 313 313
Other receivables 202 227 259
Other current assets 140 134 140
Total current assets 29,790 33,483 31,987
Investment in securities - noncurrent 3,521 8,120
Equity-method investment 12,674
Property, plant & equipment - net 68 79 98
Intangible assets - net 3 4 4
Prepaid licensing and royalty fees 214 217 86
Other assets 1,833 2,163 1,403
Total assets 44,582 39,467 41,698
Liabilities and equity
Accounts payable 69 30 30
Accrued expenses 1,358 754 1,016
Unearned revenue 735 547 614
Other current liabilities 562 562 332
Total current liabilities 2,724 1,893 1,992
Other liabilities 1,092 1,164 286
Total liabilities 3,816 3,057 2,278
Total equity 40,766 36,410 39,420
Total liabilities and equity 44,582 39,467 41,698
GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS
(in thousands of US dollars)
Three months ended Six months ended
6/30/2026 3/31/2026 6/30/2025 6/30/2026 6/30/2025
unaudited unaudited unaudited unaudited unaudited
Reconciliation of Net Income (Loss) to
EBITDA
Net income (loss) attributable to GigaMedia 551 (876) 844 (325) 167
Depreciation 12 12 13 24 26
Amortization 1 1 2 2 4
Interest income (242) (353) (436) (595) (859)
Interest expense
Income tax expense
EBITDA 322 (1,216) 423 (894) (662)
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SOURCE GigaMedia
For further information contact: Investor Relations Department, Country/City Code 8862, Tel: 2656-8000, IR@gigamedia.com.tw