GiG Software reported a 12% year-on-year fall in revenue during the third quarter of 2026, alongside a widening net loss, despite implementing aggressive cost-saving measures across its operations. For the three months leading up to September 30, 2026, total revenue reached €8.5m, declining from €9.7m during the same period in the previous year. The group also revealed a 33% drop in adjusted EBITDA to €0.8m and a 50% increase in net loss.
The revenue contraction was primarily attributed to client exits, including the recent insolvency of Richmond Atlantic, alongside the impact of reduced set-up fees. However, recurring revenue for the quarter remained resilient, edging up slightly to €7.1m compared to €7.0m in Q3 of last year. On a year-to-date basis, revenue for the first nine months of 2026 dipped 6% to €26.3m.
Operating expense reductions and cost discipline
To counteract top-line pressures, GiG Software successfully lowered its operating expenses during the quarter by €1.0m year-on-year. The principal savings stemmed from personnel costs, which were reduced by €1m following tech staff layoffs executed earlier in the year. These actions form part of a broader cost-reduction program projected to yield more than €10m in total savings across the current financial year.
Despite reduced operational expenditures, the savings were insufficient to offset the top-line revenue decline. Adjusted EBITDA dropped 33% to €0.8m, while unadjusted EBITDA fell 64% year-on-year to €0.4m. Earnings before interest and tax (EBIT) came in at negative €4.3m, compared to a €3.5m loss in Q3 2025.
After accounting for €0.1m in tax and €0.1m in finance expenses, GiG Software posted a net loss of €4.5m, approximately 50% wider than the loss recorded in the prior-year period. For the nine-month period, EBIT stood at negative €16.2m, with net losses widening from €11.6m to €16.9m.
Strategic boost from 888Africa acquisition
Despite near-term financial headwinds, GiG Software maintains an optimistic long-term outlook anchored by the completion of its €16.4m acquisition of an 80% stake in 888Africa in August.
GiG CEO Richard Carter emphasized the transformative nature of the deal:
“This quarter marked an important step forward for the group, with the transformational acquisition of an 80% stake in 888AFRICA, a cash-generative and fast-growing African B2C operator. The acquisition has strengthened our financial position, with Group cash and cash equivalents increasing to €8.0 million, creating a solid foundation for future growth.”
Driven by the integration of 888Africa, GiG Software reiterated its full-year 2026 guidance for revenue between €45m and €48m, with adjusted EBITDA expected between €5.5m and €7m. Looking ahead to 2027, the company anticipates annual revenue to surge to between €85m and €90m, potentially doubling current figures, while adjusted EBITDA is projected to reach €17m to €19m.
Carter concluded:
“I am confident that the actions we have taken this year, both to reset our cost base and to complete this transformational acquisition, leave GiG structurally stronger, better capitalised and well positioned to deliver long-term value for our shareholders, our customers and our people.”
