[Management View]
Total revenue reached $333 million for Q3 2025, setting a new quarterly record. Quarterly EPS was $0.99 per share, supported by focused execution and share repurchases. Gross margin was 23.2%, with a 70 basis point sequential decline due to higher last-mile U.S. delivery costs and service margin compression. Product revenue grew 16% year-over-year, driven by 69% growth in Europe, offset by a 5% decline in the U.S. Service revenue decreased 2% year-over-year, primarily due to lower U.S. ocean shipping and drayage demand. The active 3P seller base rose 17% year-over-year, with GMV up over 24% to exceed $790 million. Buyer growth increased 34% to 11,419 buyers. European market revenue was up 70% year-over-year to a record $100 million. Product margin expanded 70 basis points sequentially to 29.9%. Operating expenses were 11% of revenue, with reduced general and administrative expenses and flat selling and marketing costs at 8% of sales. Net income was $37 million, representing 11.2% of revenue. Operating cash flow was $78 million, with total liquidity of $367 million. The company remains debt-free. Share repurchase totaled $16 million since August 2025 under a $111 million plan. The pending acquisition of New Classic Home Furnishing is expected to close on January 1, 2026.

[Outlook]
Revenue for Q4 2025 is forecasted to be between $328 million and $344 million. The company emphasized diversification and a balanced portfolio as core tenets of its strategy, with Europe remaining a primary growth driver. The New Classic acquisition is expected to further diversify revenue and distribution mix, positioning the company for multichannel evolution.

[Financial Performance]
- Total Revenue: $333 million (Q3 2025), 10% YoY growth
- Quarterly EPS: $0.99 per share, company high
- Gross Margin: 23.2%, 70 basis point sequential decline
- Product Revenue Growth: 16% YoY
- Service Revenue: Decreased 2% YoY
- Net Income: $37 million, 11.2% of revenue
- Operating Cash Flow: $78 million
- Total Liquidity: $367 million

[Q&A Highlights]
Question 1: Can you talk about your thoughts on additional M&A acquisitions? Recently, you have talked about looking for opportunities to expand in Europe and add technology on the software side. (Line breaks here)
Answer: We are focusing on concluding the closing of New Classic. Our team is concurrently looking for new opportunities, but it is unlikely that this can happen in the coming few months as we focus on New Classic.

Question 2: Do you think recent rate cuts are starting to translate into greater interest in home merchandise and the possibility for some sort of sales catalyst over the next twelve months? (Line breaks here)
Answer: We are hopeful about the housing market bouncing back but are focusing on execution on a micro level. We have diversified revenue avenues to avoid reliance on macroeconomic factors, aiming to deliver growth regardless of the macro environment.

Question 3: Can you unpack the drivers for Noble House's growth in Q3? (Line breaks here)
Answer: Q3 went well, with Noble House outperforming in the U.S. and Europe continuing to perform strongly.

Question 4: Can you discuss the drivers for your core business excluding Noble House, and your confidence in Q4 guidance? (Line breaks here)
Answer: Q4 is going well as expected, reflected in our guidance. This includes strong performance in Europe, Noble House, and our original acquired parts of the business.

[Sentiment Analysis]
The tone of the management was confident and focused on strategic execution and diversification. Analysts were positive, congratulating the company on its performance and seeking insights into future growth drivers and M&A strategy.

[Quarterly Comparison]
| Key Metrics | Q3 2025 | Q2 2025 | Q3 2024 |
|------------------------|---------------|---------------|---------------|
| Total Revenue | $333 million | $303 million | $303 million |
| Quarterly EPS | $0.99 | $0.89 | $0.89 |
| Gross Margin | 23.2% | 23.9% | 23.9% |
| Product Revenue Growth | 16% YoY | 14% YoY | 14% YoY |
| Service Revenue | -2% YoY | -1% YoY | -1% YoY |
| Net Income | $37 million | $34 million | $34 million |
| Operating Cash Flow | $78 million | $70 million | $70 million |
| Total Liquidity | $367 million | $350 million | $350 million |

[Risks and Concerns]
- Higher last-mile U.S. delivery costs and service margin compression.
- Lower U.S. ocean shipping and drayage demand.
- Macroeconomic pressures in the U.S. affecting product revenue.

[Final Takeaway]
GigaCloud Technology Inc. delivered a record-breaking Q3 2025 with strong revenue and EPS growth, driven by strategic diversification and disciplined execution. The company remains focused on expanding its product and distribution channels, with the pending acquisition of New Classic Home Furnishing set to enhance its brick-and-mortar presence. Despite macroeconomic challenges, GigaCloud's diversified revenue streams and strong balance sheet position it well for sustained growth. The management's confidence in their strategy and ongoing M&A activities underscores their commitment to long-term value creation for shareholders.