Globaltech Corporation (OTCQB: GLTK) reported second-quarter FY26 net revenue of $11.1 million, up 98% year-over-year, driven by the inclusion of its footwear subsidiary. The company posted a consolidated net income of $0.5 million, reversing a prior-year loss of $1.1 million.

The results include 123 Investments Limited, which operates the Moda in Pelle footwear business. Globaltech acquired a 51% interest in the entity in December 2025, meaning its financials were not part of the comparable 2025 periods.

Financial Performance

Net revenue for the first half of FY26 rose 116% to $21.5 million from $10.0 million in the prior-year period. While top-line growth was significant, the company recorded an operating loss of $3.8 million in Q2FY26, widening from an operating loss of $1.0 million in Q2FY25.

For the six months ended June 30, 2026, consolidated net loss stood at approximately $3.5 million, compared to a $2.2 million loss in the same period last year.

What the Numbers Show

The shift from a net loss to net income in Q2FY26 was driven entirely by non-operating items rather than core business performance. Consolidated net income of $0.5 million included $5.2 million in other income. This other income exceeds the operating loss of $3.8 million, effectively masking the underlying operational deficit for the quarter. The other income comprised a $2.9 million gain from the disposal of two subsidiaries and $1.8 million in dividend income.

Operational Updates

123 Investments Limited contributed approximately $5.2 million in retail footwear revenue in Q2FY26 and $10.4 million in the first half. The subsidiary recorded a temporary seasonal loss of $0.6 million for the first six months of 2026.

First-half results also included a non-cash share-based consultancy expense of $2.8 million related to advisory services for a planned Nasdaq uplisting. This expense was a primary driver of the increased net loss for the first half compared to the prior year.

Balance Sheet and Liquidity

As of June 30, 2026, Globaltech held approximately $0.8 million in cash and cash equivalents and $2.8 million in restricted cash. The company reported principal debt of $8.7 million, including $4.15 million in Term Finance Certificates that are currently in default. Management is in discussions with holders regarding rescheduling. Approximately $4.74 million in debt repayments are due within the next 12 months.

Capital Markets

The company’s 1-for-3 reverse stock split has taken effect. Shares are temporarily trading under the symbol GLTKD and are expected to revert to GLTK after 20 trading days. This action is part of efforts toward a planned Nasdaq Capital Market listing.

Globaltech Corporation (OTCQB: GLTK) announced that its previously approved 1-for-3 reverse stock split of outstanding common stock will become effective at market open on August 27, 2026.

The corporate action was published to the applicable daily list on August 26, 2026. This move forms part of the company’s broader capital markets strategy as it advances growth initiatives and previously disclosed efforts toward a potential listing on the Nasdaq Capital Market.

Trading Mechanics

In connection with the reverse stock split, Globaltech’s common stock will temporarily trade under the ticker symbol "GLTKD" for a period of 20 trading days, including the effective date. After this period, the ticker symbol will revert to "GLTK".

Strategic Context

The company described the reverse stock split as part of its strategy to potentially uplist to the Nasdaq Capital Market. However, the filing notes that Globaltech does not currently meet Nasdaq’s initial listing requirements and may not meet them in the future or have its application approved on a timely basis.

Risk Factors

The press release highlights significant risks associated with the company’s financial condition and operations:

• Substantially all of the company’s debt is in default.
• There is a need for additional capital, which may cause dilution to stockholders through share issuance or convertible note conversions.
• The reverse stock split may not achieve intended results, including compliance with listing requirements, and may reduce liquidity.
• Operating subsidiaries are located in Pakistan and the United Kingdom, introducing geopolitical and regulatory risks.