GigaMedia Announces Second-Quarter 2025 Financial Results

Rhea-AI Summary

GigaMedia (NASDAQ: GIGM) reported its Q2 2025 financial results, showing mixed performance. The company recorded revenues of $0.87 million, up 20.4% year-over-year, with a gross profit of $0.48 million, representing a 32.5% increase from Q2 2024.

Despite an operating loss of $0.92 million, the company achieved a net income of $0.84 million, primarily due to foreign exchange gains, improving from a net loss of $0.68 million in Q1 2025. GigaMedia maintains a strong financial position with $31.2 million in cash and equivalents, equivalent to $2.82 per share, and reports a net asset value of $3.57 per share.

The company plans to focus on enhancing product productivity while pursuing strategic expansion opportunities in the second half of 2025.

Positive

• Revenue increased 20.4% year-over-year to $0.87 million
• Gross profit grew 32.5% year-over-year to $0.48 million
• Net income improved to $0.84 million from a loss of $0.68 million in Q1
• Strong cash position of $31.2 million ($2.82 per share)
• Operating loss improved to $0.92 million from $0.97 million in Q1

Negative

• Operating loss continues at $0.92 million despite improvements
• Cash position decreased 14.2% year-over-year from $36.34 million
• Revenue growth quarter-over-quarter was minimal at 1.0%
• Cash decreased 0.7% from previous quarter

TAIPEI, July 31, 2025 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its second-quarter 2025 unaudited financial results.

Comments from Management

In the second quarter of 2025, GigaMedia reported revenues of $0.87 million, with a gross profit $0.48 million, an operating loss of $0.92 million, but a net income of $0.84 million.

While the operating results were improved slightly from those in the first quarter 2025, the bottom line was turned into net income from a net loss of $0.68 million last quarter, mainly because of foreign exchange gains.

Currently we focused on fine-tuning the operation of our casual games and customer platform for upcoming summer vacation.

Second Quarter Overview

• Operating revenues slightly increased by approximately 1.0% quarter-on-quarter, from $0.86 million in last quarter, and increased by 20.4% year-over-year from $0.72 million the same period last year.
• Gross profit increased by 3.7% to $0.48 million from $0.46 million in last quarter, and increased by 32.5% compared to $0.36 million in the same period last year.
• The net asset value was $3.57 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 2Q25 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
(unaudited, all figures in US$ thousands, except per share amounts)		2Q25				1Q25				Change (%)				2Q25				2Q24				Change (%)
Revenues			868				859				1.0 %				868				721				20.4 %
Gross Profit			477				460				3.7 %				477				360				32.5 %
Loss from Operations			(918)				(970)			NM					(918)				(1,048)			NM
Net Income (Loss) Attributable to GigaMedia			844				(677)			NM					844				(612)			NM
Earnings (Loss) Per Share Attributable to GigaMedia, Diluted			0.08				(0.06)			NM					0.08				(0.06)			NM
EBITDA (A)			423				(1,086)			NM					423				(1,116)			NM
Cash, Cash Equivalents and Restricted Cash			31,186				31,400				(0.7) %				31,186				36,343				(14.2) %

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 2025 slightly increased by 1.0% quarter-on-quarter from $0.86 million in last quarter, and increased by 20.4% year-over-year from $0.72 million the same period last year.
• Consolidated gross profit was $0.48 million, increased by 3.7% quarter-on-quarter and by 32.5% year-over-year.
• Consolidated loss from operation of the second quarter of 2025 was a loss of $0.92 million, improved from $0.97 million in the first quarter.
• Net income in the second quarter of 2025 was $0.84 million, improved from a net loss of $0.68 million in the first quarter, mainly due to foreign exchange gains in this quarter.
• Cash, cash equivalents and restricted cash at the end of the second quarter of 2025 amounted to $31.2 million, decreased by 0.7% from $31.4 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 $31.2 million, or $2.82 per share, as of June 30, 2025.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of July 31, 2025. 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 2024 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 2025, we will dedicate ourselves to boosting the productivity of our products and services. GigaMedia will stick to the strategy of pursuing healthy growth with a lean operation while seeking for strategic expansion and new business," 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 2025 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 2025 and its other filings with the United States Securities and Exchange Commission.

GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS

		Three months ended												Six months ended
		6/30/2025				3/31/2025				6/30/2024				6/30/2025				6/30/2024
		unaudited				unaudited				unaudited				unaudited				unaudited
		USD				USD				USD				USD				USD
Operating revenues
Digital entertainment service revenues			868				859				721				1,726				1,445
			868				859				721				1,726				1,445
Operating costs
Cost of digital entertainment service revenues			391				399				361				790				741
			391				399				361				790				741
Gross profit			477				460				360				936				704
Operating expenses
Product development and engineering expenses			157				195				175				352				360
Selling and marketing expenses			360				394				348				754				726
General and administrative expenses			877				840				885				1,717				1,781
Other			1				1				—				1				1
			1,395				1,430				1,408				2,824				2,868
Loss from operations			(918)				(970)				(1,048)				(1,888)				(2,164)
Non-operating income (expense)
Interest income			436				423				518				859				989
Foreign exchange gains (loss) - net			1,330				(133)				(87)				1,197				(362)
Changes in the fair value of an instrument recognized at fair value			(9)				3				3				(6)				13
Other-net			5				—				2				5				10
			1,762				293				436				2,055				650
Income (loss) before income taxes			844				(677)				(612)				167				(1,514)
Income tax expense			—				—				—				—				—
Net income (loss) attributable to shareholders of GigaMedia			844				(677)				(612)				167				(1,514)
Earnings (loss) per share attributable to GigaMedia:
Basic			0.08				(0.06)				(0.06)				0.02				(0.14)
Diluted			0.08				(0.06)				(0.06)				0.02				(0.14)
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

		6/30/2025				3/31/2025				6/30/2024
		unaudited				unaudited				unaudited
		USD				USD				USD
Assets
Current assets
Cash and cash equivalents			30,873				31,087				36,030
Investment in securities-current			—				—				—
Accounts receivable - net			167				145				198
Prepaid expenses			235				376				226
Restricted cash			313				313				313
Other receivables			259				268				496
Other current assets			140				130				142
Total current assets			31,987				32,319				37,405
Investment in securities - noncurrent			8,120				8,094				5,819
Property, plant & equipment - net			98				99				109
Intangible assets - net			4				6				8
Prepaid licensing and royalty fees			86				118				215
Other assets			1,403				1,210				1,264
Total assets			41,698				41,846				44,820
Liabilities and equity
Accounts payable			30				37				24
Accrued compensation			314				179				250
Accrued expenses			702				709				778
Unearned revenue			614				575				565
Other current liabilities			332				525				686
Total current liabilities			1,992				2,025				2,303
Other liabilities			286				35				253
Total liabilities			2,278				2,060				2,556
Total equity			39,420				39,786				42,264
Total liabilities and equity			41,698				41,846				44,820

 

GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS

		Three months ended												Six months ended
		6/30/2025				3/31/2025				6/30/2024				6/30/2025				6/30/2024
		unaudited				unaudited				unaudited				unaudited				unaudited
		USD				USD				USD				USD				USD
Reconciliation of Net Income (Loss) to EBITDA
Net income (loss) attributable to GigaMedia			844				(677)				(612)				167				(1,514)
Depreciation			13				12				12				26				24
Amortization			2				2				2				4				5
Interest income			(436)				(423)				(518)				(859)				(989)
Interest expense			—				—				—				—				—
Income tax expense			—				—				—				—				—
EBITDA			423				(1,086)				(1,116)				(662)				(2,474)

 

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SOURCE GigaMedia

FAQ

What were GigaMedia's (GIGM) Q2 2025 earnings results?

GigaMedia reported Q2 2025 revenues of $0.87 million with a gross profit of $0.48 million. Despite an operating loss of $0.92 million, the company achieved a net income of $0.84 million.

How much cash does GigaMedia (GIGM) have as of Q2 2025?

As of June 30, 2025, GigaMedia had $31.2 million in cash, cash equivalents and restricted cash, representing $2.82 per share.

What was GigaMedia's (GIGM) year-over-year revenue growth in Q2 2025?

GigaMedia's revenue grew by 20.4% year-over-year, increasing from $0.72 million in Q2 2024 to $0.87 million in Q2 2025.

What is GigaMedia's (GIGM) business outlook for the second half of 2025?

GigaMedia plans to focus on boosting product and service productivity while maintaining lean operations and seeking strategic expansion opportunities and new business investments.

What caused GigaMedia's (GIGM) profit improvement in Q2 2025?

GigaMedia's net income improvement to $0.84 million from a loss of $0.68 million in Q1 2025 was primarily due to foreign exchange gains during the quarter.