-- Achieves Record Quarterly Revenue and EPS Despite Challenging Environment --
EL MONTE, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- GigaCloud Technology Inc (Nasdaq: GCT) ("GigaCloud" or the "Company"), a pioneer of global end-to-end B2B technology solutions for large parcel merchandise, today announced financial results for the third quarter and nine months ended September 30, 2025.
Third Quarter 2025 Financial Highlights
-- Total revenues of $332.6 million, increased 9.7% year-over-year.
-- Gross profit of $77.0 million, decreased 0.4% year-over-year.Gross margin
was 23.2%, compared to 25.5% in the third quarter of 2024.
-- Net income of $37.2 million, decreased 8.6% year-over-year.Net income
margin was 11.2%, compared to 13.4% in the third quarter of 2024.Diluted
EPS increased 1.0% year-over-year to $0.99.
-- Adjusted EBITDA1 of $43.4 million, decreased 11.1%
year-over-year.Adjusted EPS -- diluted2 increased 0.8% year-over-year to
$1.16.
-- Cash and cash equivalents, Restricted Cash, and Investments totaled
$366.6 million as of September 30, 2025, compared with $303.1 million as
of December 31, 2024.
Year-to-Date 2025 Financial Highlights
-- Total revenues of $927.2 million, increased 7.2% year-over-year. -- Gross profit of $217.7 million, decreased 1.1% year-over-year.
Gross margin was 23.5%, compared to 25.5% for the same period of 2024.
-- Net income of $98.9 million, increased 4.3% year-over-year.
Net income margin was 10.7%, compared to 11.0% for the same period of 2024.
Diluted EPS increased 11.3% year-over-year to $2.56.
-- Adjusted EBITDA of $120.0 million, decreased 4.8% year-over-year.
Adjusted EPS -- diluted of $3.11, increased 1.6% year-over-year.
Operational Highlights
-- GigaCloud Marketplace GMV3 increased 20.7% year-over-year to
$1,488.5 million for the 12 months ended September 30, 2025.
-- 3P seller GigaCloud Marketplace GMV4 increased 24.4% year-over-year to
$790.4 million for the 12 months ended September 30, 2025. 3P seller
GigaCloud Marketplace GMV represented 53.1% of total GigaCloud
Marketplace GMV for the 12 months ended September 30, 2025.
-- Active 3P sellers5 increased 17.2% year-over-year to 1,232 for the 12
months ended September 30, 2025.
-- Active buyers6 increased 33.8% year-over-year to 11,419 for the 12 months
ended September 30, 2025.
-- Spend per active buyer7 was $130,349 for the 12 months ended
September 30, 2025.
"This quarter reaffirmed the resilience of our diversified business," said Larry Wu, Founder and Chief Executive Officer. "The return to top-line growth in Noble House reflects the impact of focused optimization, and our planned acquisition of New Classic advances our vision of a truly channel-agnostic B2B marketplace that connects suppliers and retailers with greater reach and efficiency. Through disciplined execution and a robust, debt-free balance sheet that supports our growth initiatives, we continued to scale in a difficult environment and strengthen the foundation for long-term value creation. The macro environment is beyond our control, but how we execute and adapt is not. Resilience is what keeps us moving forward."
"Our disciplined execution generated $78 million in operating cash flow this quarter, providing the fuel to execute our long-term capital allocation strategy with precision," said Erica Wei, Chief Financial Officer. "This allows us to consistently return capital to shareholders through buybacks -- a highly effective tool for enhancing earnings per share -- while simultaneously investing in strategic acquisitions to secure our future growth pipeline."
Planned Acquisition
On October 24, 2025, GigaCloud announced that it has entered into a binding term sheet to acquire 100% of New Classic Home Furnishings, Inc. ("New Classic") for $18 million in cash. At closing, New Classic will become a wholly owned subsidiary of GigaCloud, further expanding the Company's channel-agnostic B2B marketplace and enhancing its domestic distribution capabilities.
Business Outlook
The Company expects its total revenues to be between $328 million and $344 million in the fourth quarter of 2025. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.
Share Repurchase Program
On August 13, 2025, the Company's Board of Directors approved a $111.0 million share repurchase program. The program became effective on August 17, 2025 and will remain in effect for a period of three years. The previously authorized share repurchase program was terminated effective August 16, 2025. As of November 6, 2025, the Company has repurchased approximately 4.9 million of its Class A ordinary shares for $87 million under its share repurchase programs since its IPO in 2022.
Under the share repurchase program, the Company may purchase its ordinary shares through various means, including open market transactions, privately negotiated transactions, block trades, any combination thereof or other legally permissible means. The Company may effect repurchase transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The number of shares repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with the Company's working capital requirements, general business conditions and other factors.
Conference Call
The Company will host a conference call to discuss its financial results at 6:30 pm U.S. Eastern Time on November 6, 2025. Participants who wish to join the call should pre-register here at https://dpregister.com/sreg/10204254/10043517936. Upon registration, participants will receive the dial-in number and a unique PIN, which can be used to join the conference call. If participants register and forget their PIN or lose their registration confirmation email, they may re-register to receive a new PIN. All participants are encouraged to dial in 15 minutes prior to the start time. A live and archived webcast of the conference call will be accessible on the Company's investor relations website at: https://investors.gigacloudtech.com/.
About GigaCloud Technology Inc
GigaCloud Technology Inc is a pioneer of global end-to-end B2B technology solutions for large parcel merchandise. The Company's B2B ecommerce platform, which it refers to as the "GigaCloud Marketplace," integrates everything from discovery, payments and logistics tools into one easy-to-use platform. The Company's global marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia and Europe, to execute cross-border transactions with confidence, speed and efficiency. The Company offers a truly comprehensive solution that transports products from the manufacturer's warehouse to the end customer's doorstep, all at one fixed price. The Company first launched its marketplace in January 2019 by focusing on the global furniture market and has since expanded into additional categories such as home appliances and fitness equipment. For more information, please visit the Company's website: https://investors.gigacloudtech.com/.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EPS -- diluted, to understand and evaluate its core operating performance. Adjusted EBITDA is net income excluding interest, income taxes and depreciation, further adjusted to exclude share-based compensation expense. Adjusted EPS -- diluted is a financial measure defined as our Adjusted EBITDA divided by our diluted weighted-average shares outstanding, respectively. Management uses Adjusted EBITDA and Adjusted EPS -- diluted as measures of operating performance, for planning purposes, to allocate resources to enhance the financial performance of our business, to evaluate the effectiveness of our business strategies and in communications with our Board of Directors and investors concerning our financial performance. Non-GAAP financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.
For more information on the non-GAAP financial measures, please see the tables captioned "Unaudited Reconciliation of Adjusted EBITDA" and "Unaudited Reconciliation of Adjusted EPS -- diluted" set forth at the end of this press release.
Forward-Looking Statements
This press release contains "forward-looking statements". Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual
results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
For investor and media inquiries, please contact:
GigaCloud Technology Inc
Investor Relations
Email: ir@gigacloudtech.com
PondelWilkinson, Inc.
Laurie Berman (Investors) -- lberman@pondel.com
George Medici (Media) -- gmedici@pondel.com
Todd Kehrli (Investors) -- tkehrli@pondel.com
GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except for share data and per share data)
September 30, 2025 December 31, 2024
-------------------- -------------------
ASSETS
Current assets
Cash and cash equivalents $ 334,851 $ 259,759
Restricted cash 703 685
Investments 31,011 42,674
Accounts receivable, net 59,818 57,313
Inventories 176,361 172,489
Prepayments and other
current assets 19,245 14,672
---------------- ---------------
Total current assets 621,989 547,592
---------------- ---------------
Non-current assets
Operating lease
right-of-use assets 425,536 451,930
Property and equipment, net 33,311 29,498
Intangible assets, net 5,283 6,198
Goodwill 12,586 12,586
Deferred tax assets 11,021 10,026
Other non-current assets 14,385 12,645
---------------- ---------------
Total non-current assets 502,122 522,883
---------------- ---------------
Total assets $ 1,124,111 $ 1,070,475
================ ===============
GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(In thousands except for share data and per share data)
September 30, 2025 December 31, 2024
-------------------- -------------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 79,460 $ 78,163
Contract liabilities 5,233 4,486
Current operating lease
liabilities 99,887 88,521
Income tax payable 11,589 13,615
Accrued expenses and other
current liabilities 103,458 79,594
--- --------------- --- --------------
Total current liabilities 299,627 264,379
--- --------------- --- --------------
Non-current liabilities
Operating lease liabilities,
non-current 361,122 395,235
Deferred tax liabilities 732 941
Finance lease obligations,
non-current 662 382
Non-current income tax
payable 4,653 4,321
--- --------------- --- --------------
Total non-current liabilities 367,169 400,879
--- --------------- --- --------------
Total liabilities $ 666,796 $ 665,258
=== =============== === ==============
Commitments and contingencies $ -- $ --
GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(In thousands except for share data and per share data)
September 30, 2025 December 31, 2024
-------------------- ---------------------
Shareholders' equity
Treasury shares, at cost
(835,661 and 609,390
shares held as of
September 30, 2025 and
December 31, 2024,
respectively) $ (18,639) $ (11,816)
Class A ordinary shares
($0.05 par value,
50,673,268 shares
authorized, 30,136,429
and 32,878,735 shares
issued as of September
30, 2025 and December
31, 2024, respectively,
29,163,245 and
32,269,345 shares
outstanding as of
September 30, 2025 and
December 31, 2024,
respectively) 1,501 1,643
Class B ordinary shares
($0.05 par value,
9,326,732 shares
authorized, 8,076,732
and 8,076,732 shares
issued and outstanding
as of September 30, 2025
and December 31, 2024,
respectively) 403 403
Additional paid-in
capital 94,674 120,262
Accumulated other
comprehensive income
(loss) 1,859 (4,136)
Retained earnings 377,517 298,861
--------------- --------------
Total shareholders'
equity 457,315 405,217
--------------- --------------
Total liabilities and
shareholders' equity $ 1,124,111 $ 1,070,475
=============== ==============
GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands except for share data and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- ----------------------------
2025 2024 2025 2024
---------- ----------
Revenues
Service revenues $ 108,370 $ 110,340 $ 299,362 $ 282,750
Product revenues 224,268 192,976 627,788 582,510
---------- ---------- ---------- ----------
Total revenues 332,638 303,316 927,150 865,260
---------- ---------- ---------- ----------
Cost of revenues
Services 98,473 86,422 263,485 231,948
Products 157,116 139,643 445,946 413,066
---------- ---------- ---------- ----------
Total cost of
revenues 255,589 226,065 709,431 645,014
---------- ---------- ---------- ----------
Gross profit 77,049 77,251 217,719 220,246
Operating expenses
Selling and
marketing
expenses 25,477 18,605 68,813 52,645
General and
administrative
expenses 8,511 15,296 35,882 56,965
Research and
development
expenses 2,534 2,582 8,211 7,435
Losses on disposal
of property and
equipment 7 45 127 213
---------- ---------- ---------- ----------
Total operating
expenses 36,529 36,528 113,033 117,258
---------- ---------- ---------- ----------
Operating income 40,520 40,723 104,686 102,988
Interest expense (71) (87) (126) (227)
Interest income 3,120 2,703 8,555 6,556
Foreign currency
exchange gains
(losses), net (557) 3,337 882 (479)
Government grants 40 21 258 29
Others, net 980 1,177 3,236 1,361
---------- ---------- ---------- ----------
Income before
income taxes 44,032 47,874 117,491 110,228
Income tax expense (6,857) (7,189) (18,618) (15,379)
---------- ---------- ---------- ----------
Net income $ 37,175 $ 40,685 $ 98,873 $ 94,849
========== ========== ========== ==========
Foreign currency
translation
adjustment, net of
nil income taxes 101 (173) 1,391 (551)
Net unrealized gain
on
available-for-sale
investments 10 17 3 19
Intra-entity
foreign currency
transactions gain
(loss) (420) -- 4,602 --
Release of foreign
currency
translation
reserve related to
liquidation of
subsidiaries -- -- (1) --
---------- ---------- ---------- ----------
Total other
comprehensive
income (loss) (309) (156) 5,995 (532)
---------- ---------- ---------- ----------
Comprehensive
Income $ 36,866 $ 40,529 $ 104,868 $ 94,317
========== ========== ========== ==========
Net income per
ordinary share
--Basic $ 0.99 $ 0.98 $ 2.57 $ 2.30
========== ========== ========== ==========
--Diluted $ 0.99 $ 0.98 $ 2.56 $ 2.30
========== ========== ========== ==========
Weighted average
number of ordinary
shares outstanding
used in computing
net income per
ordinary share
--Basic 37,539,214 41,364,886 38,535,151 41,150,372
========== ========== ========== ==========
--Diluted 37,605,032 41,395,001 38,607,748 41,258,416
========== ========== ========== ==========
GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Nine Months Ended
September 30,
----------------------
2025 2024
-------
Cash flows from operating activities:
Net income $ 98,873 $ 94,849
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 6,304 6,253
Share-based compensation 4,602 15,580
Operating lease 3,583 25,196
Changes in accounts receivables (21) (3,836)
Changes in inventories 759 (52,645)
Changes in prepayments and other assets (5,002) (5,229)
Changes in accounts payable, accrued
expenses and other current liabilities 18,223 10,982
Changes in contract liabilities 575 (104)
Changes in income tax payable (2,151) 5,921
Changes in deferred income taxes (1,137) (7,957)
Other operating activities 1,684 650
------- -------
Net cash provided by operating activities $126,292 $ 89,660
------- -------
Cash flows from investing activities:
Purchases of property and equipment (5,162) (14,038)
Disposals of property and equipment 131 1,700
Purchases of investments (84,694) (53,547)
Sales and maturities of investments 93,287 11,843
------- -------
Net cash provided by (used in) investing
activities $ 3,562 $(54,042)
------- -------
Cash flows from financing activities:
Repayment of finance lease obligations $ (284) $ (1,589)
Repurchases of ordinary shares (57,373) --
------- -------
Net cash used in financing activities $(57,657) $ (1,589)
------- -------
Effect of foreign currency exchange rate
changes on cash, cash equivalents and
restricted cash 2,913 130
------- -------
Net increase in cash, cash equivalents and
restricted cash $ 75,110 $ 34,159
------- -------
Cash, cash equivalents and restricted cash at
the beginning of the period 260,444 184,168
------- -------
Cash, cash equivalents and restricted cash at
the end of the period $335,554 $218,327
------- -------
Supplemental disclosure of cash flow
information
Cash paid for interest expense $ 126 $ 227
Cash paid for income taxes $ 22,061 $ 18,889
GigaCloud Technology Inc
UNAUDITED RECONCILIATION OF ADJUSTED EBITDA
(In thousands, except for per share data)
Three Months Ended Nine Months Ended
September 30, September30
------------------ ----------------------
2025 2024 2025 2024
------ -------
(In thousands) (In thousands)
Net Income $37,175 $40,685 $ 98,873 $ 94,849
Add: Income
tax expense 6,857 7,189 18,618 15,379
Add: Interest
expense 71 87 126 227
Less: Interest
income (3,120) (2,703) (8,555) (6,556)
Add:
Depreciation
and
amortization 2,115 2,108 6,304 6,253
Add:
Share-based
compensation
expenses 349 1,433 4,602 15,580
Add:
Non-recurring
items((1) -- -- -- 308
------ ------ ------- -------
Adjusted
EBITDA $43,447 $48,799 $119,968 $126,040
====== ====== ======= =======
_____________________
(1) One of our fulfillment centers in Japan experienced a fire in March 2024. We recognized losses as a result of the fire. Based on the provisions of our insurance policy, the gross losses have been reduced by the estimated insurance proceeds expected to be received from our insurance carrier. We have determined that partial recovery of the incurred losses is probable and therefore recorded net losses of $308 thousand in the nine months ended September 30, 2024. We do not believe such losses to be recurring or frequent in nature.
UNAUDITED RECONCILIATION OF ADJUSTED EPS -- DILUTED
Three Months Ended Nine Months Ended
September 30, September30
-------------------------- ----------------------------
2025 2024 2025 2024
---------- ----------
Net income per
ordinary
share --
diluted $ 0.99 $ 0.98 $ 2.56 $ 2.30
Adjustments,
per ordinary
share:
Add: Income
tax expense 0.18 0.17 0.48 0.37
Add: Interest
expense -- -- -- 0.01
Less: Interest
income (0.08) (0.07) (0.22) (0.16)
Add:
Depreciation
and
amortization 0.06 0.05 0.16 0.15
Add:
Share-based
compensation
expenses 0.01 0.02 0.12 0.38
Add:
Non-recurring
items((1) -- -- -- 0.01
---------- ---------- ---------- ----------
Adjusted EPS
-- diluted $ 1.16 $ 1.15 $ 3.11 $ 3.06
========== ========== ========== ==========
Weighted
average
number of
ordinary
shares
outstanding -
diluted 37,605,032 41,395,001 38,607,748 41,258,416
_____________________
(1) One of our fulfillment centers in Japan experienced a fire in March 2024. We recognized losses as a result of the fire. Based on the provisions of our insurance policy, the gross losses have been reduced by the estimated insurance proceeds expected to be received from our insurance carrier. We have determined that partial recovery of the incurred losses is probable and therefore recorded net losses of $308 thousand in the nine months ended September 30, 2024. We do not believe such losses to be recurring or frequent in nature.
(1) Adjusted EBITDA is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of "Non-GAAP Financial Measure" and the table captioned "Unaudited Reconciliation of Adjusted EBITDA" set forth at the end of this press release.
(2) Adjusted EPS -- diluted is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of "Non-GAAP Financial Measure" and the table captioned "Unaudited Reconciliation of Adjusted EPS -- diluted" set forth at the end of this press release.
(3) GigaCloud Marketplace GMV means the total gross merchandise value of transactions ordered through our GigaCloud Marketplace including GigaCloud 3P and GigaCloud 1P, before any deductions of value added tax, goods and services tax, shipping charges paid by buyers to sellers and any refunds.
(4) 3P seller GigaCloud Marketplace GMV means the total gross merchandise value of transactions sold through our GigaCloud Marketplace by 3P sellers, before any deductions of value added tax, goods and services tax, shipping charges paid by buyers to sellers and any refunds.
(5) Active 3P sellers means sellers who have sold a product in GigaCloud Marketplace within the last 12-month period, irrespective of cancellations or returns.
(6) Active buyers means buyers who have purchased a product in the GigaCloud Marketplace within the last 12-month period, irrespective of cancellations or returns.
(7) Spend per active buyer is calculated by dividing the total GigaCloud Marketplace GMV within the last 12-month period by the number of active buyers as of such date.
(END) Dow Jones Newswires
November 06, 2025 16:01 ET (21:01 GMT)