GigaMedia Announces Third-Quarter 2025 Financial Results

GigaMedia Limited (NASDAQ: GIGM) today announced its third-quarter 2025 unaudited financial results.

Comments from Management

In the third quarter of 2025, GigaMedia reported revenues of $0.92 million, with a gross profit of $0.46 million, an operating loss of $1.00 million and the net loss of $0.97 million.

The total revenues increased by 5.5% from $0.87 million last quarter, and increased 19.1% year-over-year from $0.77 million the same quarter last year, mainly due to effectively executed marketing strategies.

In the following quarter, we will be dedicating ourselves to developing products and services to address customers' needs and preferences more closely.

Third Quarter Overview

— Revenues increased by 5.5% quarter-on-quarter to approximately $0.92 million from $0.87 million last quarter.

— Consolidated loss from operations for the third quarter of 2025 amounted to $1.00 million, slightly increased from a loss of $0.92 million last quarter.

— The net asset value was around $3.51 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 3Q25 UNAUDITED CONSOLIDATED FINANCIAL RESULTS(unaudited, all figures in US$ thousands, except per share 3Q25 2Q25 Change 3Q25 3Q24 Changeamounts) (%) (%)Revenues 916 868 5.5 % 916 769 19.1 %Gross Profit 458 477 (4.0) % 458 372 23.1 %Loss from Operations (998) (918) NM (998) (1,008) NMNet Income (Loss) Attributable to GigaMedia (971) 844 NM (971) (320) NMEarnings (Loss) Per Share Attributable to (0.09) 0.08 NM (0.09) (0.03) NMGigaMedia, DilutedEBITDA (A) (1,371) 423 NM (1,371) (810) NMCash, Cash Equivalents and Restricted Cash 29,386 31,186 (5.8) % 29,386 35,328 (16.8) %

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 2025 were $0.92 million, representing an increase of 5.5% compared to $0.87 million in the prior quarter, and 19.1% year-over-year from $0.77 million the same quarter last year.

— Consolidated gross profit decreased by 4.0% quarter-on-quarter to $0.46 million from $0.48 million last quarter, but increased by 23.1% year-over-year from $0.37 million in the third quarter last year.

— Consolidated loss from operation of the third quarter of 2025 was $1.00 million, representing a slight increase in loss from $0.92 million from last quarter.

— Consolidated net loss of the third quarter of 2025 was $0.97 million compared to net income of $0.84 million in last quarter.

— Cash, cash equivalents and restricted cash at the end of the third quarter of 2025 was $29.4 million.

Financial Position

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $29.4 million as of September 30, 2025, or $2.66 per share.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of October 30, 2025. 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 2024 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.

In the meantime, we will continue reviewing suitable prospects for strategic investment and acquisition targets to increase corporate growth and maximize 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 third 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 Nine months ended 9/30/2025 6/30/2025 9/30/2024 9/30/2025 9/30/2024(in US$ thousands) unaudited unaudited unaudited unaudited unauditedOperating revenuesDigital entertainment service revenues 916 868 769 2,642 2,214 916 868 769 2,642 2,214Operating costsCost of digital entertainment service revenues 458 391 397 1,248 1,137 458 391 397 1,248 1,137Gross profit 458 477 372 1,394 1,077Operating expensesProduct development and engineering expenses 165 157 170 518 530Selling and marketing expenses 413 360 375 1,166 1,101General and administrative expenses 878 877 835 2,595 2,615Other – 1 – 1 1 1,456 1,395 1,380 4,280 4,247Loss from operations (998) (918) (1,008) (2,886) (3,170)Non-operating income (expense)Interest income 420 436 504 1,279 1,492Foreign exchange gain (loss) – net (381) 1,330 182 816 (180)Changes in the fair value of an instrument recognized at 2 (9) (6) (4) 7fair valueOther-net (14) 5 8 (9) 18 27 1,762 688 2,082 1,337Income (loss) from continuing operations before income (971) 844 (320) (804) (1,833)taxesIncome tax expense – – – – -Net income (loss) attributable to shareholders of (971) 844 (320) (804) (1,833)GigaMediaEarnings (loss) per share attributable to GigaMedia:Basic (0.09) 0.08 (0.03) (0.07) (0.17)Diluted (0.09) 0.08 (0.03) (0.07) (0.17)Weighted average shares outstanding:Basic 11,052 11,052 11,052 11,052 11,052Diluted 11,052 11,052 11,052 11,052 11,052

GIGAMEDIA LIMITED CONSOLIDATED BALANCE SHEETS

9/30/2025 6/30/2025 9/30/2024(in US$ thousands) unaudited unaudited unauditedAssetsCurrent assetsCash and cash equivalents 29,073 30,873 35,015Accounts receivable – net 140 167 157Prepaid expenses 148 235 123Restricted cash 313 313 313Other receivables 241 259 392Other current assets 142 140 144Total current assets 30,057 31,987 36,144Investment in securities – noncurrent 9,620 8,120 6,840Property, plant & equipment – net 97 98 102Intangible assets – net 2 4 5Prepaid licensing and royalty fees 56 86 179Other assets 1,401 1,403 1,244Total assets 41,233 41,698 44,514Liabilities and equityAccounts payable 44 30 27Accrued compensation 419 314 350Accrued expenses 873 702 912Unearned revenue 570 614 608Other current liabilities 323 332 691Total current liabilities 2,229 1,992 2,588Other liabilities 182 286 154Total liabilities 2,411 2,278 2,742Total equity 38,822 39,420 41,772Total liabilities and equity 41,233 41,698 44,514

GIGAMEDIA LIMITED RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS

Three months ended Nine months ended 9/30/2025 6/30/2025 9/30/2024 9/30/2025 9/30/2024(In US$ thousands) unaudited unaudited unaudited unaudited unauditedReconciliation of Net Income (Loss) to EBITDANet income (loss) attributable to GigaMedia (971) 844 (320) (804) (1,833)Depreciation 18 13 12 44 36Amortization 2 2 2 7 7Interest income (420) (436) (504) (1,279) (1,492)Interest expense – – – – -Income tax expense – – – – -EBITDA (1,371) 423 (810) (2,032) (3,282)

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SOURCE GigaMedia

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