GigaMedia Announces First-Quarter 2026 Financial Results

Published: 2026-05-04 09:02:16 ET GIGM

Published on 05/04/2026 at 09:02 am EDT

TAIPEI, May 4, 2026 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its first quarter 2026 unaudited financial results.

Comments from Management

For the first quarter of 2026, GigaMedia reported revenues of $0.75 million with a gross profit of $0.42 million, an operating loss of $0.95 million and the net loss of $0.88 million. In spite of an 9.4% decrease in revenues during this quarter, gross profit maintained at approximately $0.42 million, comparable to the previous quarter.

For the following quarters, we plan to continue our exploration of digital entertainment to further develop and promote our own products and services.

First Quarter Overview

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 First Quarter

GIGAMEDIA 1Q26 UNAUDITED CONSOLIDATED FINANCIAL RESULTS

(unaudited, all figures in US$ thousands, except per share amounts)

1Q26

4Q25

Change(%)

1Q26

1Q25

Change(%)

Revenues

753

831

(9.4)

753

859

(12.3)

Gross Profit

417

426

(2.1)

417

460

(9.3)

Loss from Operations

(945)

(712)

(945)

(970)

Net Loss Attributable to GigaMedia

(876)

(749)

(876)

(677)

Loss Per Share Attributable to GigaMedia, Diluted

(0.08)

(0.07)

(0.08)

(0.06)

EBITDA (A)

(1,216)

(1,137)

(1,216)

(1,086)

Cash, Cash Equivalents and Restricted Cash

27,973

29,053

(3.7)

27,973

31,400

(10.9)

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.)

First-Quarter Financial Results

Financial Position

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $27.97 million, or approximately $2.53 per share as of March 31, 2026.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of May 4, 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 following quarters, 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," stated GigaMedia CEO James Huang.

Meanwhile, besides our investments in Aeolus Robotics, our management continues exploring possibilities of expanding our business through strategic investments to create greater shareholder value.

Use of Non-GAAP Measures

To supplement GigaMedia's consolidated financial statements presented in accordance with U.S. 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 first quarter 2026 performance upon the release, investors may send the questions via email to [email protected], 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. GigaMedia's digital entertainment service business develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on browser/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.

GIGAMEDIA LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands of US dollars, except for earnings per share amounts)

Three months ended

3/31/2026

12/31/2025

3/31/2025

unaudited

Operating revenues

Digital entertainment service revenues

753

831

859

753

831

859

Operating costs

Cost of digital entertainment service revenues

336

405

399

336

405

399

Gross profit

417

426

460

Operating expenses

Product development and engineering expenses

145

195

Selling and marketing expenses

380

506

394

General and administrative expenses

837

487

840

Provision for expected credit losses

—

1,362

1,138

1,430

Loss from operations

(945)

(712)

(970)

Non-operating income (expense)

Interest income

353

404

423

Foreign exchange (loss) gain - net

(285)

(414)

(133)

Changes in the fair value of an instrument recognized at fair value

(34)

Other - net

—

(37)

293

Loss from continuing operations before income taxes

(876)

(749)

(677)

Income tax expense

—

Net loss attributable to shareholders of GigaMedia

(876)

(749)

(677)

Loss per share attributable to GigaMedia:

Basic and diluted:

(0.08)

(0.07)

(0.06)

Weighted average shares outstanding:

Basic

11,052

Diluted

11,052

GIGAMEDIA LIMITED

CONSOLIDATED BALANCE SHEETS

(in thousands of US dollars)

3/31/2026

12/31/2025

3/31/2025

unaudited

audited

unaudited

Assets

Current assets

Cash and cash equivalents

27,660

28,740

31,087

Accounts receivable - net

105

108

145

Investment in securities - current

4,652

4,638

—

Prepaid expenses

392

103

376

Restricted cash

313

Other receivables

227

672

268

Other current assets

134

139

130

Total current assets

33,483

34,713

32,319

Investment in securities - noncurrent

3,521

3,535

8,094

Property, plant & equipment - net

Intangible assets - net

Prepaid licensing and royalty fees

217

118

Other assets

2,163

835

1,210

Total assets

39,467

39,204

41,846

Liabilities and equity

Accounts payable

Accrued expenses

754

1,110

888

Unearned revenue

547

558

575

Other current liabilities

562

341

525

Total current liabilities

1,893

2,066

2,025

Other liabilities

1,164

Total liabilities

3,057

2,159

2,060

Total equity

36,410

37,045

39,786

Total liabilities and equity

39,467

39,204

41,846

GIGAMEDIA LIMITED

Reconciliations of Non-GAAP Results of Operations

(in thousands of US dollars)

Three months ended

3/31/2026

12/31/2025

3/31/2025

unaudited

Reconciliation of Net Loss to EBITDA

Net loss attributable to GigaMedia

(876)

(749)

(677)

Depreciation

Amortization

Interest income

(353)

(404)

(423)

Interest expense

—

Income tax expense

—

EBITDA

(1,216)

(1,137)

(1,086)

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SOURCE GigaMedia Limited