GigaCloud(GCT) - 2025 Q2 - Quarterly Results

Financial and Operational Overview Financial Highlights GigaCloud achieved record Q2 2025 revenue with strong growth in revenue and net income, despite a slight gross margin decline Second Quarter 2025 Financial Highlights Q2 2025 total revenues increased 3.8% to $322.6 million, with net income rising 28.1% to $34.6 million Q2 2025 Financial Performance vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $322.6 million | $310.9 million (calculated) | +3.8% | | Gross Profit | $76.9 million | $76.4 million (calculated) | +0.7% | | Gross Margin | 23.9% | 24.6% | -70 bps | | Net Income | $34.6 million | $27.0 million (calculated) | +28.1% | | Net Income Margin | 10.7% | 8.7% | +200 bps | | Diluted EPS | $0.91 | $0.65 | +40.0% | | Adjusted EBITDA | $43.3 million | $42.7 million (calculated) | +1.4% | | Adjusted EPS - diluted | $1.14 | $1.03 | +10.7% | Year-to-Date 2025 Financial Highlights H1 2025 total revenues increased 5.8% to $594.5 million, with net income up 13.8% to $61.7 million H1 2025 Financial Performance vs. H1 2024 | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $594.5 million | $561.9 million (calculated) | +5.8% | | Gross Profit | $140.7 million | $143.0 million (calculated) | -1.6% | | Gross Margin | 23.7% | 25.4% | -170 bps | | Net Income | $61.7 million | $54.2 million (calculated) | +13.8% | | Net Income Margin | 10.4% | 9.6% | +80 bps | | Diluted EPS | $1.58 | $1.32 | +19.7% | | Adjusted EBITDA | $76.5 million | $77.2 million (calculated) | -0.9% | | Adjusted EPS - diluted | $1.96 | $1.88 | +4.3% | Operational Highlights The company achieved strong marketplace growth, with GigaCloud Marketplace GMV increasing 31.0% year-over-year Marketplace Metrics (12 Months Ended June 30, 2025) | Metric | Value | YoY Change | | :--- | :--- | :--- | | GigaCloud Marketplace GMV | $1,438.5 million | +31.0% | | 3P Seller GMV | $757.5 million | +32.5% | | Active 3P Sellers | 1,162 | +24.9% | | Active Buyers | 10,951 | +50.9% | | Spend per Active Buyer | $131,359 | N/A | - 3P seller GMV constituted 52.7% of the total GigaCloud Marketplace GMV for the 12 months ended June 30, 2025[12] Management Commentary Management highlighted record quarterly revenue driven by the Noble House portfolio and strategic market expansion - CEO Larry Wu emphasized that record revenue was powered by the accelerating performance of the Noble House portfolio, which is becoming a significant margin contributor[8] - Strategic priorities include attracting new marketplace participants and expanding the European footprint to match the scale of the U.S. market[8] - CFO Erica Wei noted the company has repurchased approximately 4.3 million shares for $71 million and invested around $87 million in acquisitions, highlighting a solid, debt-free balance sheet and strong operating cash flow[8] Business Outlook The company forecasts Q3 2025 total revenues to be between $295 million and $310 million, based on current conditions - The Company expects total revenues for the third quarter of 2025 to be in the range of $295 million to $310 million[9] Share Repurchase Program The Board authorized a $78 million share repurchase program, with $71 million already executed as of August 7, 2025 - Total authorization for the share repurchase program is $78 million[10] - As of August 7, 2025, the company has repurchased approximately 4.3 million Class A ordinary shares for a total of $71 million[10] - The program is set to run through August 28, 2025[10] Financial Statements Unaudited Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $1.08 billion, with liabilities decreasing and equity rising Balance Sheet Summary (in thousands of US dollars) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $577,260 | $547,592 | | Cash and cash equivalents | $240,119 | $259,759 | | Inventories | $186,842 | $172,489 | | Total Assets | $1,082,775 | $1,070,475 | | Total Current Liabilities | $273,891 | $264,379 | | Total Liabilities | $651,331 | $665,258 | | Total Shareholders' Equity | $431,444 | $405,217 | Unaudited Condensed Consolidated Statements of Comprehensive Income H1 2025 total revenues grew 5.8% to $594.5 million, with net income rising 13.8% to $61.7 million Income Statement Summary - Six Months Ended June 30 (in thousands of US dollars) | Account | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $594,512 | $561,944 | +5.8% | | Gross Profit | $140,670 | $142,995 | -1.6% | | Total Operating Expenses | $76,504 | $80,730 | -5.2% | | Operating Income | $64,166 | $62,265 | +3.1% | | Net Income | $61,698 | $54,164 | +13.8% | | Diluted EPS | $1.58 | $1.32 | +19.7% | Unaudited Condensed Consolidated Statements of Cash Flows H1 2025 operating cash flow increased to $48.0 million, with share repurchases leading to a net cash decrease Cash Flow Summary - Six Months Ended June 30 (in thousands of US dollars) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $48,042 | $34,417 | | Net cash used in investing activities | ($24,178) | ($30,403) | | Net cash used in financing activities | ($46,207) | ($1,149) | | Net decrease in cash | ($19,634) | $2,360 | | Cash at end of period | $240,810 | $186,528 | - The primary use of cash in financing activities was $46.0 million for repurchases of ordinary shares, compared to none in the same period of 2024[27] Non-GAAP Financial Measures and Reconciliations Reconciliation of Adjusted EBITDA Adjusted EBITDA for H1 2025 was $76.5 million, a slight decrease from the prior year, after key adjustments Adjusted EBITDA Reconciliation - Six Months Ended June 30 (in thousands of US dollars) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Income | $61,698 | $54,164 | | Add: Income tax expense | $11,761 | $8,190 | | Add: Depreciation and amortization | $4,189 | $4,145 | | Add: Share-based compensation | $4,253 | $14,147 | | Other adjustments | ($5,380) | ($3,405) | | Adjusted EBITDA | $76,521 | $77,241 | Reconciliation of Adjusted EPS – Diluted Adjusted EPS for H1 2025 increased to $1.96, reconciled from diluted EPS by adding back per-share adjustments Adjusted EPS Reconciliation - Six Months Ended June 30 (in US dollars) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net income per ordinary share – diluted | $1.58 | $1.32 | | Add: Per share adjustments | $0.38 | $0.56 | | Adjusted EPS – diluted | $1.96 | $1.88 | Other Information About GigaCloud Technology Inc GigaCloud Technology Inc operates a global B2B e-commerce platform specializing in large parcel merchandise - The company's B2B platform integrates discovery, payments, and logistics for large parcel merchandise[16] - It connects manufacturers in Asia with resellers in the U.S., Asia, and Europe, offering a comprehensive solution from the manufacturer's warehouse to the end customer's doorstep[16] Conference Call The company will host a conference call on August 7, 2025, at 6:30 pm U.S. ET to discuss financial results - A conference call is scheduled for 6:30 pm U.S. Eastern Time on August 7, 2025[12] - A live and archived webcast will be accessible on the GigaCloud investor relations website[15]