GigaCloud Technology, Inc. Class A ((GCT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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GigaCloud Technology, Inc. Class A recently held its earnings call, which conveyed a generally positive sentiment despite some challenges. The company reported robust revenue growth and successful strategic acquisitions, particularly in the European market. However, it also acknowledged hurdles such as declining U.S. market revenues and increased delivery costs. Nonetheless, the company’s strong balance sheet and liquidity position provide a positive outlook.
Record Quarterly Revenue and EPS
GigaCloud Technology achieved a remarkable 10% year-over-year growth in revenue, reaching a record $333 million. The company also set a new quarterly EPS record of $0.99, demonstrating its strong financial performance and operational efficiency.
Noble House Turnaround
The company successfully turned around Noble House from a nearly $40 million loss in 2023 to a profitable and growing asset. This turnaround was marked by an expanded product line and increased channel outreach, contributing significantly to the company’s overall growth.
Significant Growth in Europe
The European market proved to be a major growth driver, with revenues increasing by 70% year-over-year to a record $100 million. This success underscores GigaCloud’s effective global expansion strategy.
Marketplace GMV Growth
Marketplace GMV rose approximately 21%, reaching nearly $1.5 billion. The active 3P seller base expanded by 17% year-over-year, highlighting the platform’s growing appeal and market penetration.
Strong Balance Sheet and Liquidity
GigaCloud maintained a strong balance sheet with $367 million in total liquidity and remains debt-free. The company continues to pursue strategic acquisitions and share repurchases, reinforcing its financial stability.
Decline in U.S. Market
The company faced a 2% decline in service revenues year-over-year, primarily due to reduced U.S. ocean shipping and drayage revenues, alongside a 5% decline in U.S. product revenue.
Increased Last-Mile Delivery Costs
Service margin decreased by 2.3% sequentially, attributed to higher last-mile delivery costs in the U.S. following pricing adjustments by ground transportation partners.
Gross Margin Decline
The gross margin for the third quarter was 23.2%, representing a 70 basis point sequential decline from the second quarter of 2025, reflecting increased operational costs.
Forward-Looking Guidance
Looking ahead, GigaCloud Technology remains optimistic about its future prospects. The company anticipates closing its acquisition of New Classic Home Furnishing in early 2026, aiming to diversify and expand its market reach beyond e-commerce. Despite the challenges in the U.S. market, the company is confident in its strategic agility and resilience.
In conclusion, GigaCloud Technology’s earnings call highlighted a positive outlook driven by strong revenue growth and strategic acquisitions, particularly in Europe. While challenges in the U.S. market and increased delivery costs were noted, the company’s robust balance sheet and liquidity position provide a solid foundation for future growth.