GCL Global Holdings (NasdaqGS:GCL) has just posted its H1 2026 scorecard, with H2 2025 revenue at about US$91.2 million and basic EPS of US$0.03, while the trailing twelve months show revenue of roughly US$142.1 million and basic EPS of US$0.05 as the group moved from earlier losses into profit. The company has seen revenue move from US$97.5 million to US$142.1 million over the trailing periods shown, with EPS shifting from small losses to positive figures. In this context, the latest half slots into a story of improving headline profitability and tighter cost control. For investors, the key question now is how durable these margins look as one off items roll out of the numbers.

With the latest figures on the table, it is worth setting them against the prevailing market and community narratives to see which views on GCL hold up and which might need a rethink.

US$4.7m one off gain shapes US$5.6m profit

• Across the last 12 months, GCL reported net income of about US$5.6 million, with US$4.7 million of that coming from a single one off gain. This means most of the reported profit is tied to that one item rather than to the core run rate shown in the recent halves.
• What stands out for a cautious, more bearish view is that H2 2025 net income excluding extra items was US$6.1 million while the trailing 12 month net income excluding extra items was US$5.6 million. This suggests the rest of the period outside that recent half did not contribute much to profit and limits the evidence that earnings power is broad based across the year.
  • Bears point to the reliance on the US$4.7 million gain to explain why trailing EPS sits at US$0.05 even though H1 2025 showed a loss of US$0.5 million on US$50.9 million of revenue.
  • Critics also note that H2 2025 alone delivered US$91.2 million of revenue and US$6.1 million of net income excluding extra items, which is stronger than the full trailing net income figure and highlights how sensitive the trailing result is to timing and one off items.

Trailing P/E of 23x sits above peers

• GCL is currently on a trailing P/E of 23x, compared with a US Entertainment industry average of 21.7x and a peer average of 13.8x, so the shares trade at a higher multiple than both the wider group and closer comparators based on the last 12 months of earnings.
• Supporters of a more bullish angle might argue that the move into profitability over the last year helps justify some premium. However, the mix of one off gains and higher multiples means the numbers give them only limited backup.
  • On the positive side, the trailing 12 month EPS of US$0.05 is a change from the small losses seen in earlier trailing periods, which some bulls might frame as a step forward in the company story.
  • What complicates that bullish line is that the US$4.7 million one off gain is a sizeable share of the US$5.6 million trailing profit, so the 23x P/E is being measured off earnings that are not entirely repeat items.

Revenue base at US$142.1m, profits only just positive

• Over the trailing 12 months, GCL generated about US$142.1 million of revenue, while net income excluding extra items for that period was US$5.6 million. This means the business is currently producing a modest profit level relative to its revenue base.
• For readers looking at the overall story, the numbers suggest a company that has turned from losses to a small profit, but where the quality of that profit still needs monitoring.
  • H1 2025 showed a net loss of US$0.5 million on US$50.9 million of revenue, whereas H2 2025 showed US$6.1 million of net income excluding extra items on US$91.2 million of revenue, which is a sharp contrast within a single year.
  • Earlier in 2024 H2, net income excluding extra items was just US$0.2 million on US$61.4 million of revenue, so the earnings profile across the periods provided is uneven even as revenue steps up across those same snapshots.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on GCL Global Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

GCL’s recent results rely heavily on a US$4.7 million one off gain, with uneven earnings across periods and only modest profit relative to revenue.

If that patchy profit picture makes you uneasy, use our CTA_SCREENER_STABLE_GROWTH to focus on companies with steadier revenue and earnings that can help anchor your portfolio.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.