GigaCloud(GCT) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 reached $271.9 million, a 8.3$251.1 million in Q1 2024[38] - Service revenues increased to $94.1 million, up 22.7$76.6 million year-over-year[38] - Product revenues were $177.8 million, slightly up from$174.5 million in the same period last year[38] - Gross profit for Q1 2025 was $63.7 million, compared to$66.5 million in Q1 2024, reflecting a decrease of 4.0%[38] - Operating income decreased to $28.3 million, down 18.7$34.8 million in Q1 2024[38] - Net income for Q1 2025 was $27.1 million, a slight decrease from$27.2 million in Q1 2024[38] - Adjusted EBITDA for the three months ended March 31, 2025, was $33.2 million, a decrease from$34.5 million in the same period of 2024[116] - Net income for the three months ended March 31, 2025, was $27,146, compared to$27,195 for the same period in 2024, reflecting a slight decrease of 0.2%[49] Assets and Liabilities - Total assets increased to $1,091.0 million as of March 31, 2025, compared to$1,070.5 million at the end of 2024[34] - Total liabilities rose to $678.1 million, up from$665.3 million at the end of 2024[31] - Shareholders' equity increased to $412.9 million, compared to$405.2 million at the end of 2024[33] - Accounts receivable, net, increased to $67,000 thousand as of March 31, 2025, from$57,313 thousand at the end of 2024, reflecting a growth of 16.5%[87] - Total inventories rose to $204,854 thousand as of March 31, 2025, compared to$172,489 thousand at the end of 2024, indicating an increase of 18.7%[88] Cash Flow - Net cash provided by operating activities decreased to $9,433 from$15,309, a decline of 38.1% year-over-year[49] - Cash, cash equivalents, and restricted cash at the end of the period were $252,408, down from$260,444 at the beginning of the period, a decrease of 3.9%[52] - Net cash provided by operating activities for the three months ended March 31, 2025, was $9.4 million, down from$15.3 million in the same period of 2024[194] - Net cash used in financing activities for the three months ended March 31, 2025, was $22.8 million, mainly from the repurchase of ordinary shares totaling$22.7 million[199] Share Repurchase and Equity - The company repurchased 1,400,986 shares, resulting in a treasury share cost of $34.6 million[42] - The company executed share repurchase transactions totaling approximately$15.9 million as of May 12, 2025[109] - The board of directors approved a new share repurchase program allowing for the purchase of up to $62 million of Class A ordinary shares, with the program running through August 28, 2025[200] Revenue Breakdown - GigaCloud Marketplace GMV increased to$1.42 billion for the 12 months ended March 31, 2025, representing a growth of 56.1% from $907.7 million in the prior year[119] - The number of active 3P sellers rose to 1,154, a 33.4$142,156, down 14.0% from $165,239 in the previous year[124] - GigaCloud Marketplace revenues grew to 64.5$208.2 million in Q1 2025, representing 76.6% of total revenues, compared to 73.5% in Q1 2024[148] - Operating expenses rose to $35.4 million in Q1 2025, accounting for 13.0$18.6 million in Q1 2025, primarily due to a 27.3% increase in platform service fees to $8.4 million[173] - General and administrative expenses totaled$14.3 million in Q1 2025, down from $15.4 million in Q1 2024[157] - Research and development expenses increased by 42.0$2.5 million in Q1 2025 from $1.8 million in Q1 2024[168] Tax and Interest - The provision for income taxes for the three months ended March 31, 2025, was$5,359 thousand, with an effective tax rate of 16.5%, down from $6,125 thousand and 18.4$2.6 million in Q1 2025 from $1.6 million in Q1 2024[168] - The company reported foreign currency exchange gains of$0.8 million in Q1 2025, compared to losses of $2.7 million in Q1 2024[168] Future Outlook - The company plans to continue evaluating opportunities for future acquisitions to enhance its service offerings and operational capabilities[132] - The company plans to fund future capital expenditures with existing cash balances and anticipated cash flows from operations[203] - The company is subject to trade restrictions that could materially affect its business, particularly with proposed tariff increases between the U.S. and China[223]