GCL Global (GCL) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of FY2025 reached $50.9 million, a 41% increase year-over-year, driven by strong console game and game code sales.

• Net loss narrowed to $0.8 million from $1.9 million in the prior year period, reflecting improved operational efficiency.

• Adjusted EBITDA rose to $1.5 million from $1.4 million year-over-year.

• Completed a business combination with RFAC Acquisition Corp., with shares commencing Nasdaq trading on February 14, 2025.

• Acquired 20% of NEKCOM Inc. and secured global publishing rights for "Showa American Story."

Financial highlights

• Gross margin declined to 13.8% from 16.2% year-over-year due to higher cost of revenues.

• Cost of revenues increased 45.4% to $43.9 million, reflecting higher sales volume in console games.

• Selling and marketing expenses decreased to $1.2 million, while general and administrative expenses rose 4.5% to $6.9 million.

• Total operating expenses increased 2.5% to $8.1 million.

• Loss per share improved to $0.02 from $0.06 year-over-year.

Capital allocation and financing

• Cash and restricted cash totaled $10.3 million as of September 30, 2024, up from $4.3 million at March 31, 2024.

• Net cash provided by financing activities was $8.5 million, primarily from bank loans and convertible notes.

• Net cash used in operating activities was $2.2 million.