GigaMedia Announces Third-Quarter 2026 Financial Results

A one-time investment gain contributed to quarterly profit, while the company expects revenue to moderate after its game collaboration ended.

Rhea-AI Summary

GigaMedia (NASDAQ: GIGM) reported third-quarter 2026 revenue of $3.164 million, supported by a licensed-game collaboration in Hong Kong. Revenue rose 48.8% sequentially and 245.4% year over year. Operating income reached $682,000, versus losses in both comparison quarters. Net income was $1.925 million, or $0.17 per diluted share, versus $551,000 last quarter and a $971,000 loss a year earlier.

Results included a $1.702 million deemed disposal gain from the prior-quarter conversion of Aeolus Robotics notes into preferred shares, alongside a $713,000 investment loss. The conversion secured a 33.35% voting stake; the investment's carrying value reached $13.647 million. Cash, cash equivalents and restricted cash totaled $30.228 million at September 30. GigaMedia expects revenue to moderate next quarter because the collaboration event has ended. The results are unaudited.

16 points · 0 major

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0 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue reached $3.164 million, up 48.8% sequentially and 245.4% year over year.
• Moderate pointThird-quarter gross profit reached $2.000 million, up 61.4% sequentially and 336.7% year over year.
• Moderate pointThird-quarter operating income of $682,000 reversed losses of $103,000 sequentially and $998,000 a year earlier.
• Moderate pointThird-quarter net income reached $1.925 million, versus $551,000 sequentially and a $971,000 year-earlier loss.
• Moderate pointAeolus note conversion secured a 33.35% voting stake through preferred shares in the prior quarter.
• Moderate pointAeolus conversion generated a $1.702 million one-time deemed disposal gain in the third quarter.
• Moderate pointCash, cash equivalents and restricted cash reached $30.228 million, up 4.2% sequentially and 2.9% year over year.
• Moderate pointNine-month revenue rose to $6.043 million, from $2.642 million a year earlier.
• Moderate pointNine-month gross profit increased to $3.656 million, from $1.394 million a year earlier.
• Moderate pointNine-month operating loss narrowed to $366,000, from $2.886 million a year earlier.
• Moderate pointNine-month net income reached $1.600 million, versus a $804,000 year-earlier loss.

5 minor points

• Minor pointThird-quarter diluted earnings reached $0.17 per share, versus $0.05 sequentially and a $0.09 year-earlier loss.
• Minor pointThird-quarter operating expenses fell to $1.318 million, from $1.342 million sequentially and $1.456 million a year earlier.
• Minor pointNine-month operating expenses declined to $4.022 million, from $4.280 million a year earlier.
• Minor pointNine-month diluted earnings reached $0.14 per share, versus a $0.07 year-earlier loss.
• Minor point. Forward-looking: it has not happened yet and may not happen.GigaMedia plans customer-base expansion and improved productivity of existing games next quarter.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Next-quarter revenue is expected to moderate because the Hong Kong game collaboration event has concluded.
• Moderate pointAeolus equity-method investment generated a $713,000 loss in the third quarter.
• Minor pointAeolus remains in research and development, with nominal current revenue contribution.
• Minor pointThird-quarter interest income was $260,000, versus $242,000 sequentially but $420,000 a year earlier.
• Minor pointNine-month interest income declined to $856,000, from $1.279 million a year earlier.

2 minor points

• Minor pointThird-quarter foreign-exchange loss was $4,000, versus a $42,000 sequential gain and $381,000 year-earlier loss.
• Minor pointNine-month foreign-exchange results swung to a $248,000 loss, from an $816,000 year-earlier gain.

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Key Figures

Revenue: $3.16 million; +48.8% quarter-on-quarter; +245.4% year-over-year Gross profit: $2.00 million; +61.4% quarter-on-quarter; +336.7% year-over-year Operating income: $0.68 million, versus a $0.10 million loss +4 more

Revenue

$3.16 million; +48.8% quarter-on-quarter; +245.4% year-over-year

Third quarter 2026

Gross profit

$2.00 million; +61.4% quarter-on-quarter; +336.7% year-over-year

Third quarter 2026

Operating income

$0.68 million, versus a $0.10 million loss

Third quarter 2026 versus second quarter 2026

Net income

$1.93 million, versus $0.55 million

Third quarter 2026 versus second quarter 2026

Gain on disposal of investments

$1.702 million

Recognized in the third quarter 2026

Investment loss

$0.713 million

Recognized in the third quarter 2026

Cash, cash equivalents and restricted cash

$30.23 million ($2.74 per share)

As of September 30, 2026

Previous Earnings Reports

3 past events · Latest: Jul 31

Same Type 3 events

1. Jul 31

   Quarterly earnings

   24h Move

   +8.4%

   Revenue and earnings improved; the Aeolus conversion also generated a deemed disposal gain.

2. May 04

   Quarterly earnings

   24h Move

   -4.8%

   Revenue declined, with operating and net losses reported for the quarter.

3. Oct 30

   Quarterly earnings

   24h Move

   -3.0%

   Operating and net losses persisted despite year-over-year revenue growth.

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

Key Terms

ebitda, non-gaap, gaap, equity-method accounting, +1 more

5 terms

ebitda financial

"the Company uses the following measure defined as non-GAAP by the SEC: EBITDA"

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

"the Company uses the following measure defined as non-GAAP by the SEC"

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

gaap financial

"EBITDA is not a recognized earnings measure under GAAP"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

equity-method accounting financial

"securing a 33.35% voting stake and applying equity-method accounting moving forward"

An accounting method used when an investor has significant influence over, but does not control, another company (typically through a 20–50% ownership stake). Under this method the investor records its proportionate share of the investee’s profits or losses in its own income statement and adjusts the carrying value of the investment on the balance sheet, rather than consolidating all line-by-line items. It matters because this treatment changes reported earnings and asset values, revealing the economic link between the two firms.

impairment financial

"which remains subject to periodic impairment evaluations"

Impairment occurs when the value of an asset, such as property, equipment, or investments, drops below its recorded worth on the books. This situation signals that the asset may be less valuable than originally thought, similar to discovering that an item you own is worth less than what you paid for it. For investors, recognizing impairment is important because it can affect the overall financial health and future prospects of a business.

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

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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 amounts)		3Q26				2Q26				Change (%)				3Q26				3Q25				Change (%)
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 GigaMedia, Diluted			0.17				0.05				249.4	%			0.17				(0.09)			NM
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 securities recognized at fair value			(2)				—				2				(1)				(4)
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 GigaMedia			1,925				551				(971)				1,600				(804)
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)

 

View original content:https://www.prnewswire.com/news-releases/gigamedia-announces-third-quarter-2026-financial-results-302924919.html

SOURCE GigaMedia

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were GigaMedia's third-quarter 2026 revenue and earnings?

GigaMedia reported $3.164 million in revenue and $1.925 million in net income, with diluted earnings of $0.17 per share. Revenue increased 48.8% from the prior quarter and 245.4% from a year earlier. The results are unaudited.

Why does GigaMedia expect revenue to moderate after the third quarter of 2026?

GigaMedia expects revenue to moderate because the Hong Kong licensed-game collaboration event has concluded. That collaboration supported revenue growth in the second and third quarters of 2026.

How did GigaMedia obtain preferential pricing on its Aeolus note conversion?

The Aeolus notes had a pre-existing conversion clause providing a discount compared with other Aeolus investors. The notes were converted and settled into preferred shares in the prior quarter, after which GigaMedia began applying equity-method accounting.