Shares of GigaCloud Technology Inc (NASDAQ: GCT) surged 9.90% in after-hours trading on Thursday following the release of its impressive third-quarter financial results that exceeded analyst expectations. The company, a pioneer of global end-to-end B2B technology solutions for large parcel merchandise, demonstrated robust growth and profitability despite challenging market conditions.
GigaCloud reported quarterly earnings of $1.16 per share, significantly beating the analyst consensus estimate of $0.75 by 54.67%. This represents an 18.37% increase from the same period last year. The company's revenue for Q3 came in at $332.6 million, surpassing the analyst expectations of $300.962 million by 10.52% and marking a 9.67% year-over-year growth. The strong performance was driven by increased service and product revenues, with total revenues up 9.7% compared to the previous year.
Investors were particularly encouraged by GigaCloud's operational highlights, including a 20.7% year-over-year increase in GigaCloud Marketplace GMV to $1,488.5 million for the 12 months ended September 30, 2025. The company also saw significant growth in its 3P seller base and active buyers, with the number of active 3P sellers rising 17.2% to 1,232 and active buyers increasing 33.8% to 11,419. These metrics indicate strong momentum in GigaCloud's core business model and suggest potential for sustained growth.
Additionally, GigaCloud announced plans to acquire New Classic Home Furnishings, Inc. for $18 million in cash, a strategic move aimed at expanding its B2B marketplace and enhancing its domestic distribution capabilities. This acquisition aligns with the company's vision of creating a channel-agnostic B2B marketplace that connects suppliers and retailers more efficiently.
While the company's gross margin slightly decreased to 23.2% from 25.5% in the same quarter last year, the overall financial health remains strong. GigaCloud's cash position improved, with cash and cash equivalents, restricted cash, and investments totaling $366.6 million as of September 30, 2025, up from $303.1 million at the end of 2024.
The after-hours stock surge reflects investor confidence in GigaCloud's ability to execute its growth strategy and capitalize on the expanding B2B e-commerce market for large parcel merchandise. As the company continues to invest in its platform and expand its reach, market participants appear optimistic about its future prospects in the evolving global e-commerce landscape.