PART I FINANCIAL INFORMATION Financial Statements Presents GigaCloud Technology Inc.'s unaudited condensed consolidated financial statements as of June 30, 2025, with a retrospectively applied accounting change - In Q1 2025, the company voluntarily changed its accounting for last-mile fulfillment, reclassifying costs between service and product revenues for greater transparency8384 Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $1.083 billion, liabilities decreased to $651.3 million, and shareholders' equity rose to $431.4 million Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $240,119 | $259,759 | | Inventories | $186,842 | $172,489 | | Total current assets | $577,260 | $547,592 | | Total assets | $1,082,775 | $1,070,475 | | Liabilities & Equity | | | | Total current liabilities | $273,891 | $264,379 | | Total liabilities | $651,331 | $665,258 | | Total shareholders' equity | $431,444 | $405,217 | Condensed Consolidated Statements of Comprehensive Income In Q2 2025, total revenues grew 3.8% to $322.6 million and net income rose 28.1% to $34.6 million, with similar growth trends for the six-month period Financial Performance Summary (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $322,606 | $310,867 | +3.8% | $594,512 | $561,944 | +5.8% | | Gross Profit | $76,944 | $76,447 | +0.6% | $140,670 | $142,995 | -1.6% | | Operating Income | $35,843 | $27,448 | +30.6% | $64,166 | $62,265 | +3.1% | | Net Income | $34,552 | $26,969 | +28.1% | $61,698 | $54,164 | +13.9% | | Diluted EPS | $0.91 | $0.65 | +40.0% | $1.58 | $1.32 | +19.7% | Condensed Consolidated Statements of Cash Flows H1 2025 operating cash flow increased to $48.0 million, while investing and financing activities resulted in a $19.6 million net cash decrease Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 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) increase in cash | ($19,634) | $2,360 | - The significant use of cash in financing activities in H1 2025 was driven by $46.0 million in ordinary share repurchases, compared to none in the same period of 202460 Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes H1 2025 revenue growth to GigaCloud Marketplace expansion, with GMV up 31.0% and active buyers up 50.9%, while reduced G&A expenses boosted profitability Key Financial and Operating Metrics For the 12 months ended June 30, 2025, GigaCloud Marketplace GMV grew 31.0% to $1.44 billion, driven by increased active sellers and buyers despite decreased spend per buyer Key Operating Metrics for 12 Months Ended June 30 (in millions, except for counts) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | GigaCloud Marketplace GMV | $1,438.5M | $1,097.8M | +31.0% | | Active 3P sellers | 1,162 | 930 | +24.9% | | 3P seller GigaCloud Marketplace GMV | $757.5M | $571.9M | +32.5% | | Active buyers | 10,951 | 7,257 | +50.9% | | Spend per active buyer | $131,359 | $151,276 | -13.2% | Results of Operations Q2 2025 revenues grew 3.8% to $322.6 million, with a 50.6% G&A expense reduction boosting operating income by 30.6% and net income by 28.1% Revenue Breakdown for Q2 (in thousands) | Revenue Stream | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Service revenues (3P) | $96,924 | $95,787 | +1.1% | | Product revenues (1P) | $94,209 | $92,033 | +2.4% | | Product revenues (Off-platform) | $131,176 | $122,825 | +6.8% | | Total Revenues | $322,606 | $310,867 | +3.8% | - General and Administrative expenses for Q2 2025 decreased by 50.6% YoY to $13.0 million, driven by lower staff and rental costs from operational fulfillment centers190 - Selling and Marketing expenses increased by 27.2% YoY in Q2 2025, due to higher platform service fees and increased sales staff costs188189 Liquidity and Capital Resources As of June 30, 2025, the company held $240.1 million in cash, maintained sufficient liquidity, and used $46.0 million for H1 2025 share repurchases - The company's share repurchase program is authorized up to $78 million through August 28, 2025, with $8.7 million remaining available as of June 30, 2025106231258 - The company renewed its two-year, $30 million credit facility with Wells Fargo in July 2024, maturing June 30, 2026, with no funds drawn222 Quantitative and Qualitative Disclosures About Market Risk There have been no material changes in the company's market risk exposures since December 31, 2024 - There have been no material changes in the company's market risk exposures since December 31, 2024247 Controls and Procedures Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective249 - No material changes occurred to the company's internal control over financial reporting during the quarter ended June 30, 2025250 PART II OTHER INFORMATION Legal Proceedings The company reached a preliminary settlement in a securities class action lawsuit on June 20, 2025, with immaterial financial impact due to insurance - The company reached a settlement agreement in the securities class action lawsuit (In Re GigaCloud Technology Inc Securities Litigation, No. 1:23-cv-10645-JMF)253254 - The court granted preliminary approval of the settlement on June 20, 2025, with a final hearing on October 9, 2025, and the cost is not expected to materially impact finances254 Risk Factors The company's business faces significant risks from trade restrictions, including tariffs, which could disrupt cross-border logistics and materially harm results - The company identifies trade restrictions, including U.S. tariffs on China, as a significant risk that could materially and adversely affect its business by increasing costs and disrupting cross-border logistics256 Unregistered Sales of Equity Securities and Use of Proceeds This section details the company's ongoing share repurchase program, which authorized $78 million and saw $23.2 million in Q2 2025 repurchases Share Repurchases for Quarter Ended June 30, 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 1,261,657 | $12.68 | | May 2025 | 133,939 | $17.86 | | June 2025 | 272,987 | $17.96 | | Total | 1,668,583 | - | - The total authorized amount for the share repurchase program is $78 million, with approximately $8.7 million remaining available as of June 30, 2025258261 Other Information On June 24, 2025, COO Mr. Xinyan Hao adopted a Rule 10b5-1 trading plan to sell up to 450,000 Class A ordinary shares - Mr. Xinyan Hao, Chief Operating Officer, adopted a Rule 10b5-1 trading plan on June 24, 2025, for the sale of up to 450,000 Class A ordinary shares264 Exhibits This section lists exhibits filed with the quarterly report, including articles of association, CEO/CFO certifications, and Inline XBRL data
GigaCloud(GCT) - 2025 Q2 - Quarterly Report