GigaMedia Limited (NASDAQ:GIGM) released its unaudited third-quarter 2026 financial results on October 30, 2026, reporting revenues of $3.16 million and net income of $1.93 million for the quarter ended September 30, 2026.

Key Highlights

  • Revenue up 245.4% year-over-year: Consolidated revenues reached $3,164 thousand in Q3 2026, compared to $916 thousand in Q3 2025, and $2,126 thousand last quarter, a 48.8% sequential increase.
  • Net income of $1.93 million: Net income attributable to GigaMedia was $1,925 thousand in Q3 2026, compared to $551 thousand in Q2 2026 and a loss of $971 thousand in Q3 2025.
  • Deemed disposal gain of approximately $1.70 million: The company recorded this gain related to the conversion and settlement of corporate notes in Aeolus Robotics Corporation into preferred shares.
  • Cash position of $30.23 million: Cash, cash equivalents, and restricted cash stood at $30,228 thousand as of September 30, 2026, or $2.74 per share.
  • Diluted EPS of $0.17: Earnings per share attributable to GigaMedia on a diluted basis were $0.17 in Q3 2026, versus $0.05 in Q2 2026 and a loss of $0.09 in Q3 2025.
  • EBITDA of $1,681 thousand: Non-GAAP EBITDA rose 422.0% quarter-on-quarter from $322 thousand in Q2 2026.

GigaMedia Q3 2026 Results: IP Collaboration and Aeolus Conversion Drive Quarter

According to the filing, GigaMedia's third-quarter 2026 revenues were driven in part by "a successful IP collaboration for a licensed game we operated in Hong Kong," which the company disclosed drove substantial revenue growth. Consolidated gross profit increased 61.4% sequentially to $2,000 thousand from $1,239 thousand last quarter, and 336.7% year-over-year from $458 thousand in Q3 2025. Operating income for the quarter was $682 thousand, compared to an operating loss of $103 thousand in Q2 2026 and an operating loss of $998 thousand in Q3 2025.

The filing also disclosed that in the prior quarter, GigaMedia converted and settled corporate notes in Aeolus Robotics Corporation into preferred shares, securing a 33.35% voting stake and transitioning to equity-method accounting. The company stated that the preferential pricing was executed pursuant to "a pre-existing note conversion clause that provided a discount compared to other Aeolus investors." As a result, a deemed disposal gain of approximately $1.70 million was recognized in Q3 2026. The filing noted that this gain resulted in "a corresponding upward adjustment to the carrying value of our equity-method investment in Aeolus," with the book value of that investment rising to $13.65 million at quarter end from $12.67 million at the end of June 2026. An equity-method investment loss of $0.71 million was also recognized in the quarter.

The company disclosed that the net asset value was approximately $3.86 per share as of September 30, 2026. Regarding its business outlook, the filing stated that, as the IP collaboration event has concluded, "revenue is expected to moderate in the upcoming quarter." The filing contains forward-looking statements that, according to the company's cautionary language, are subject to risks and uncertainties, and actual results may differ materially.

What Was Disclosed

GigaMedia filed unaudited Q3 2026 financial results showing revenues of $3.16 million, net income of $1.93 million, and a $1.70 million deemed disposal gain from converting Aeolus Robotics notes into preferred shares, with $30.23 million in cash as of September 30, 2026.