TAIPEI, Oct. 30, 2026 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its third-quarter 2026 unaudited financial results.
Comments from Management
In the third quarter of 2026, GigaMedia reported revenues of $3.16 million, with a gross profit of $2.00 million, an operating income of $0.68 million and the net income of $1.93 million.
Our operational performance in the second and third quarters 2026 was highlighted by a successful IP collaboration for a licensed game we operated in Hong Kong, driving substantial revenue growth. Total revenues reached $3.16 million in this quarter, a 48.8% increase from $2.13 million last quarter, and a 245.4% year-over-year growth compared to $0.92 million in the same period last year.
As the event has concluded, revenue is expected to moderate in the upcoming quarter. Nonetheless, we are actively leveraging this expanded player base to build a stronger foundation for long-term growth.
Additionally, in the previous quarter, we converted and settled our corporate notes in Aeolus Robotics Corporation ("Aeolus") into preferred shares at advantageous terms, securing a 33.35% voting stake and applying equity-method accounting moving forward. The preferential pricing was executed pursuant to a pre-existing note conversion clause that provided a discount compared to other Aeolus investors, with full disclosure provided to all relevant stakeholders. Consequently, and pursuant to applicable accounting guidelines, we recorded a deemed disposal gain of approximately $1.70 million for the conversion in the current quarter. Investors should note that the recognition of this gain resulted in a corresponding upward adjustment to the carrying value of our equity-method investment in Aeolus, which remains subject to periodic impairment evaluations.
Although we highlight these one-time and non-recurring items that impact our current period results for investors' clarity, our overall financial position continues to be sound. As of September 30, 2026, we maintained a highly liquid balance sheet, with $30.23 million in total cash, cash equivalents and restricted cash, representing $2.74 per share.
Third Quarter Overview
- Revenues increased by 48.8% quarter-on-quarter to approximately $3.16 million from $2.13 million last quarter.
- Consolidated income (loss) from operations for the third quarter of 2026 amounted to income of $0.68 million compared to a loss of $0.10 million last quarter.
- Investment in Aeolus was reclassified in the prior quarter from available-for-sale to equity-method investment upon the conversion and settlement, when previous adjustments recorded in other comprehensive loss were reversed. A deemed disposal gain of approximately $1.70 million for the conversion, along with the equity-method investment loss of $0.71 million, were recognized in the current quarter. As a result, the book value of the investment increased to $13.65 million at the end of this quarter, from $12.67 million at the end of June 2026.
- The net asset value was around $3.86 per share.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital entertainment services. GigaMedia's digital entertainment service business FunTown develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Third Quarter
GIGAMEDIA 3Q26 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
(unaudited, all figures in US$ thousands, except per share 3Q26 2Q26 Change 3Q26 3Q25 Change
(%) (%)
amounts)
Revenues 3,164 2,126 48.8 3,164 916 245.4
% %
Gross Profit 2,000 1,239 61.4 2,000 458 336.7
% %
Income (Loss) from Operations 682 (103) NM 682 (998) NM
Net Income (Loss) Attributable to GigaMedia 1,925 551 249.4
% 1,925 (971) NM
Earnings (Loss) Per Share Attributable to 0.17 0.05 249.4
% 0.17 (0.09) NM
GigaMedia, Diluted
EBITDA
(A) 1,681 322 422.0
% 1,681 (1,371) NM
Cash, Cash Equivalents and Restricted Cash 30,228 29,018 4.2 30,228 29,386 2.9
% %
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.)
- Consolidated revenues for the third quarter of 2026 were $3.16 million, representing an increase of 48.8% compared to $2.13 million in the prior quarter, and 245.4% year-over-year from $0.92 million the same quarter last year.
- Consolidated gross profit increased by 61.4% quarter-on-quarter to $2.00 million from $1.24 million last quarter, and by 336.7% year-over-year from $0.46 million in the third quarter last year.
- Consolidated income (loss) from operation of the third quarter of 2026 was income of $0.68 million, compared to a loss of $0.10 million from last quarter.
- Consolidated net income of the third quarter of 2026 was $1.93 million compared to $0.55 million in last quarter.
- Cash, cash equivalents and restricted cash at the end of the third quarter of 2026 was $30.23 million.
Financial Position
GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $30.23 million as of September 30, 2026, or $2.74 per share.
Business Outlook
The following forward-looking statements reflect GigaMedia's expectations as of October 30, 2026. Given potential changes in economic conditions and consumer spending, the evolving nature of online games, 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.
"For the following quarter, GigaMedia will continue the strategies of internally-driven growth by improving productivity of the existing games, executing effective marketing, and pursuing a steady expansion of customer base," stated GigaMedia CEO James Huang.
Regarding our strategic investment in Aeolus Robotics Corporation, the company is currently in its R&D phase and its current revenue contribution remains nominal. Nonetheless, given the promising industry outlook and the company's unique market position, we expect this partnership to generate valuable strategic synergies and enhance our future growth profile.
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 third 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.tw.
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
Three months ended Nine months ended
9/30/2026 6/30/2026 9/30/2025 9/30/2026 9/30/2025
(in US$ thousands, except for earnings per share amounts) unaudited unaudited unaudited unaudited unaudited
Operating revenues
Digital entertainment service revenues 3,164 2,126 916 6,043 2,642
3,164 2,126 916 6,043 2,642
Operating costs
Cost of digital entertainment service revenues 1,164 887 458 2,387 1,248
1,164 887 458 2,387 1,248
Gross profit 2,000 1,239 458 3,656 1,394
Operating expenses
Product development and engineering expenses 142 148 165 435 518
Selling and marketing expenses 395 376 413 1,152 1,166
General and administrative expenses 782 817 878 2,435 2,595
Provision for expected credit losses (1) 1 1
1,318 1,342 1,456 4,022 4,280
Income (loss) from operations 682 (103) (998) (366) (2,886)
Non-operating income (expense)
Interest income 260 242 420 856 1,279
Foreign exchange gain (loss) - net (4) 42 (381) (248) 816
Investment loss (713) (713)
Gain on disposal of investments 1,702 370 2,072
Changes in the fair value of investment in equity (2) 2 (1) (4)
securities recognized at fair value
Other-net (14) (9)
1,243 654 27 1,966 2,082
Income (loss) before income taxes 1,925 551 (971) 1,600 (804)
Income tax expense
Net income (loss) attributable to shareholders of 1,925 551 (971) 1,600 (804)
GigaMedia
Earnings (loss) per share attributable to GigaMedia:
Basic 0.17 0.05 (0.09) 0.14 (0.07)
Diluted 0.17 0.05 (0.09) 0.14 (0.07)
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 SHEETS
9/30/2026 6/30/2026 9/30/2025
(in US$ thousands) unaudited unaudited unaudited
Assets
Current assets
Cash and cash equivalents 29,915 28,705 29,073
Accounts receivable - net 141 182 140
Prepaid expenses 134 248 148
Restricted cash 313 313 313
Other receivables 162 202 241
Other current assets 136 140 142
Total current assets 30,801 29,790 30,057
Investment in securities - noncurrent 9,620
Equity method investment 13,647 12,674
Property, plant & equipment - net 80 68 97
Intangible assets - net 17 3 2
Prepaid licensing and royalty fees 170 214 56
Other assets 1,711 1,833 1,401
Total assets 46,426 44,582 41,233
Liabilities and equity
Accounts payable 41 69 44
Accrued expenses 1,346 1,358 1,292
Unearned revenue 738 735 570
Other current liabilities 599 562 323
Total current liabilities 2,724 2,724 2,229
Other liabilities 1,029 1,092 182
Total liabilities 3,753 3,816 2,411
Total equity 42,673 40,766 38,822
Total liabilities and equity 46,426 44,582 41,233
GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS
Three months ended Nine months ended
9/30/2026 6/30/2026 9/30/2025 9/30/2026 9/30/2025
(In US$ thousands) unaudited unaudited unaudited unaudited unaudited
Reconciliation of Net Income (Loss) to EBITDA
Net income (loss) attributable to GigaMedia 1,925 551 (971) 1,600 (804)
Depreciation 12 12 18 35 44
Amortization 4 1 2 7 7
Interest income (260) (242) (420) (856) (1,279)
Interest expense
Income tax expense
EBITDA 1,681 322 (1,371) 786 (2,032)
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SOURCE GigaMedia
For further information contact: Investor Relations Department, Country/City Code 8862 Tel: 2656-8000, IR@gigamedia.com.tw