GigaMedia Announces Second-Quarter 2026 Financial Results

Rhea-AI Summary

GigaMedia (NASDAQ: GIGM) reported unaudited second-quarter 2026 revenues of $2.13 million, up 182.3% quarter-on-quarter and 144.9% year-over-year. Gross profit rose to $1.24 million, a 197.1% QoQ and 159.7% YoY increase, while loss from operations narrowed to $0.10 million from $0.95 million in the prior quarter.

Net income attributable to shareholders reached $0.55 million, compared with a net loss of $0.88 million in Q1 2026. EBITDA improved to $0.32 million from negative $1.22 million in Q1. Cash, cash equivalents and restricted cash were $29.0 million, or $2.63 per share, and net asset value was $3.69 per share as of June 30, 2026.

During the quarter, GigaMedia converted its corporate bonds of Aeolus Robotics into preferred shares, gaining 33.35% ownership voting rights. The reclassification to equity-method investment increased Aeolus’ book value from $8.17 million to $12.67 million, generating a $0.37 million deemed disposal gain and contributing to non-operating income.

Positive

• Revenue $2.13m, up 182.3% QoQ and 144.9% YoY
• Gross profit $1.24m, up 197.1% QoQ and 159.7% YoY
• Operating loss reduced to $0.10m from $0.95m QoQ
• Net income $0.55m versus $0.88m loss in prior quarter
• EBITDA $0.32m versus negative $1.22m in Q1 2026
• Aeolus investment book value increased to $12.67m, $0.37m gain recognized

Negative

• Core operations still generated a $0.10m operating loss in Q2
• EPS $0.05 declined versus $0.08 in Q2 2025
• Q2 EBITDA $0.32m below $0.42m in Q2 2025
• Cash and restricted cash $29.0m, down 7.0% year-over-year
• Non-operating items, including $0.37m gain, drove profitability

Market Context

The tag-specific earnings record averaged -0.55% across five events. It adds historical dispersion t...

Analysis

The tag-specific earnings record averaged -0.55% across five events. It adds historical dispersion to this announcement, while the operating loss and reliance on investment-related income remain the main platform-relevant risks to monitor.

Key Figures

Revenue: $2.13 million Gross Profit: $1.24 million Operating Loss: $0.10 million +5 more

8 metrics

Revenue $2.13 million 2Q26

Gross Profit $1.24 million 2Q26

Operating Loss $0.10 million 2Q26

Net Income $0.55 million 2Q26

Diluted EPS $0.05 2Q26

Quarterly Revenue Growth 182.3% 2Q26 versus 1Q26

Deemed Disposal Gain $0.37 million Aeolus investment reclassification

Aeolus Voting Rights 33.35% Ownership after conversion and settlement

Previous Earnings Reports

5 past events · Latest: May 04 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 04	Q1 earnings	Negative	-4.8%	Revenue declined while operating and net losses widened during the quarter.
Mar 26	FY2025 earnings	Positive	+1.7%	Annual revenue and gross profit increased while the net loss narrowed.
Oct 30	Q3 earnings	Negative	-3.0%	The company remained loss-making despite year-over-year revenue and gross-profit growth.
Jul 31	Q2 earnings	Positive	+5.0%	Quarterly net income and revenue growth contrasted with a continuing operating loss.
May 05	Q1 earnings	Negative	-1.6%	The company reported a net loss and declining cash despite revenue growth.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-specific earnings reactions aligned with the reported event direction in four of five prior events, with one positive earnings release followed by a negative reaction.

Key Terms

equity-method investment, deemed disposal gain, ebitda, non-gaap

4 terms

equity-method investment financial

"Equity-method investment | | 12,674 | | | | —"

An equity-method investment is an accounting treatment used when a company owns a large minority stake in another company and can influence its decisions but does not fully control it. Like owning a meaningful slice of a bakery and recording your share of its daily profits or losses on your own books, the investor reports its proportionate share of the investee’s earnings rather than only the dividends received, which affects reported income, balance sheet size, and how investors view profitability and risk.

deemed disposal gain financial

"a deemed disposal gain of $0.37 million was recognized."

A deemed disposal gain is an accounting or tax result where an asset or investment is treated as if it were sold, even though no actual sale took place, producing a calculated profit. It matters to investors because it can change reported earnings and trigger tax bills or adjustments to a company’s book value, similar to being told your house was sold on paper and you must record the profit and pay any related taxes.

ebitda financial

"EBITDA (earnings before interest, taxes, depreciation, and amortization)"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

non-gaap financial

"To supplement GigaMedia's consolidated financial statements presented in accordance with US GAAP"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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 per share amounts)		2Q26				1Q26				Change (%)				2Q26				2Q25				Change (%)
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 GigaMedia			551				(876)			NM					551				844			NM
Earnings (Loss) Per Share Attributable to GigaMedia, Diluted			0.05				(0.08)			NM					0.05				0.08			NM
EBITDA (A)			322				(1,216)			NM					322				423			NM
Cash, Cash Equivalents and Restricted Cash			29,018				27,973				3.7	%			29,018				31,186				(7.0)	%
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 recognized at fair value			—				1				(9)				1				(6)
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 of GigaMedia			551				(876)				844				(325)				167
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)

 

View original content:https://www.prnewswire.com/news-releases/gigamedia-announces-second-quarter-2026-financial-results-302839970.html

SOURCE GigaMedia

FAQ

What were GigaMedia (NASDAQ: GIGM) revenues and growth in Q2 2026?

GigaMedia reported Q2 2026 revenues of $2.13 million, rising 182.3% quarter-on-quarter and 144.9% year-over-year. According to GigaMedia, the increase was driven by digital entertainment services, including a successful IP collaboration for a licensed game in Hong Kong.

Did GigaMedia (GIGM) post a profit or loss in Q2 2026?

GigaMedia recorded net income of $0.55 million in Q2 2026, versus a net loss of $0.88 million in Q1 2026. According to GigaMedia, improved operating performance and non-operating income, including a disposal gain, supported the return to profitability.

How did GigaMedia’s cash position change by the end of Q2 2026?

GigaMedia ended Q2 2026 with $29.0 million in cash, cash equivalents and restricted cash, up 3.7% from Q1 2026. According to GigaMedia, this balance equates to approximately $2.63 per share and was 7.0% lower than at June 30, 2025.

What is GigaMedia’s investment in Aeolus Robotics after Q2 2026?

GigaMedia now holds 33.35% ownership voting rights in Aeolus Robotics after converting bonds into preferred shares. According to GigaMedia, the investment was reclassified to equity-method, increasing book value from $8.17 million to $12.67 million and generating a $0.37 million deemed disposal gain.

What were GigaMedia’s Q2 2026 EPS and EBITDA results?

GigaMedia reported diluted EPS of $0.05 and EBITDA of $0.32 million in Q2 2026. According to GigaMedia, both metrics improved versus Q1 2026, when EPS was negative $0.08 and EBITDA was negative $1.22 million.

What was GigaMedia’s net asset value per share after Q2 2026?

GigaMedia’s net asset value was $3.69 per share as of June 30, 2026. According to GigaMedia, cash, cash equivalents and restricted cash totaled $29.0 million, or about $2.63 per share, supporting what the company describes as a solid financial position.

How did GigaMedia’s operating performance change in Q2 2026 compared with Q1 2026?

GigaMedia’s loss from operations narrowed to $0.10 million in Q2 2026 from $0.95 million in Q1 2026. According to GigaMedia, higher revenues and gross profit from digital entertainment services helped reduce the operating loss and improve overall profitability metrics.