GigaCloud Technology (GCT) Q1 2025 earnings summary

Executive summary

• Achieved total revenues of $271.9 million to $272 million, up 8–8.3% year-over-year for Q1 2025, driven by disciplined operations, marketplace expansion, and increased GMV.

• Net income was $27–$27.1 million, nearly flat year-over-year, with a net margin of 10%.

• GigaCloud Marketplace GMV rose 56–56.1% year-over-year to $1.4–$1.42 billion, with strong international and 3P seller growth.

• Active buyers increased 81–81.4% to 9,966, while active 3P sellers grew 33.4%, though spend per buyer declined to $142,156.

• Integration of Noble House continued, focusing on SKU refresh and inventory efficiency.

Financial highlights

• Gross profit was $63.7–$64 million, down 4–4.2% year-over-year, with gross margin at 23–23.4%.

• Adjusted EBITDA was $33–$33.2 million, down 3.8–4% year-over-year, with a margin of 12–12.2%.

• Service revenue grew 22.8–23% to $94–$94.1 million; product revenue up 2–3.3% to $178 million globally.

• Cash, equivalents, and investments totaled $251.7–$288 million as of March 31, 2025.

• Operating cash flow for Q1 2025 was $9.4–$20 million.

Outlook and guidance

• Q2 2025 revenue guidance is $275–$305 million, with growth expected to decelerate due to integration and U.S. softness.

• Continued strength anticipated in Europe and ongoing SKU refresh in the U.S., with margin impact from new SKUs expected in 3–6 months.

• Management expects ongoing GMV and user growth, supported by geographic expansion and new services.

• Impact from U.S.-China tariff pause expected mainly in Q3, not Q2.

• Cash position deemed sufficient for at least the next 12 months, with resources for investments or acquisitions.