GigaCloud(GCT) - 2025 Q4 - Annual Results

Financial Performance - Total revenues for Q4 2025 reached $362.7 million, a 22.7% increase year-over-year[6] - Gross profit for Q4 2025 was $82.9 million, reflecting a 27.5% year-over-year growth, with a gross margin of 22.9%[6] - Net income for Q4 2025 was $38.5 million, up 24.2% year-over-year, resulting in a net income margin of 10.6%[6] - Diluted EPS for Q4 2025 increased by 36.8% year-over-year to $1.04[6] - Total revenues for the year ended December 31, 2025, increased to $1,289,897, representing a 11.0% growth from $1,161,042 in 2024[29] - Net income for the year ended December 31, 2025, rose to $137,372, up 9.9% from $125,808 in 2024[29] - Gross profit for the year ended December 31, 2025, was $300,666, compared to $285,236 in 2024, reflecting a 5.4% increase[29] - Operating income for the year ended December 31, 2025, reached $144,976, a 10.9% increase from $130,622 in 2024[29] - Adjusted EBITDA for the year ended December 31, 2025, was $162,944, up from $156,942 in 2024[34] - Adjusted diluted EPS for the year ended December 31, 2025, was $4.26, compared to $3.81 in 2024, reflecting a 11.8% growth[36] Market Activity - GigaCloud Marketplace GMV for the 12 months ended December 31, 2025, increased 17.5% year-over-year to $1,576.8 million[6] - Active buyers in the GigaCloud Marketplace rose by 29.9% year-over-year to 12,089[11] Cash and Assets - Cash, cash equivalents, restricted cash, and investments totaled $416.9 million as of December 31, 2025, a 37.5% increase year-over-year[6] - Total assets as of December 31, 2025, were $1,202.5 million, compared to $1,070.5 million in 2024[22] - Total liabilities as of December 31, 2025, were $716,660, an increase from $665,258 in 2024[26] - Total shareholders' equity as of December 31, 2025, increased to $485,799 from $405,217 in 2024[26] Shareholder Actions - The company has executed approximately $33 million in share buybacks under a $111 million repurchase program announced in August 2025[7] - The company repurchased ordinary shares amounting to $67,403 during the year ended December 31, 2025[31] Expenses and Adjustments - Research and development expenses for the year ended December 31, 2025, were $10,832, compared to $9,791 in 2024, indicating a 10.6% increase[29] - Income tax expense adjustments contributed $0.14 to diluted EPS in Q4 2025, compared to a negative adjustment of $0.01 in Q4 2024[36] - Depreciation and amortization added $0.05 to diluted EPS in Q4 2025, consistent with Q4 2024[36] - Share-based compensation expenses contributed $0.01 to diluted EPS in Q4 2025, down from $0.02 in Q4 2024[36] - Interest income reduced diluted EPS by $0.08 in Q4 2025, compared to a reduction of $0.07 in Q4 2024[36] Incident Impact - The company recognized losses of $2.0 million due to a fire at a fulfillment center in Japan, with insurance proceeds of $1.9 million mitigating the impact[36] - The company does not expect the losses from the fire incident to be recurring or frequent in nature[36] Future Outlook - The company expects total revenues for Q1 2026 to be between $330 million and $355 million[8]