GigaCloud Technology (GCT) Q1 2026 earnings summary

Executive summary

• Achieved 32% year-over-year revenue growth in Q1 2026, with total revenues reaching $359.5–$360 million and net income up 40.5% to $38.1 million, despite a challenging U.S. furniture market.

• Diluted EPS rose 53% to $1.04, with adjusted EPS at $1.24, and gross profit increased 34.7% to $85.8 million.

• Marketplace GMV for the trailing 12 months reached $1.66–$1.7 billion, up 17.5–18% year-over-year, with 3P GMV representing over half of total volume.

• Active 3P sellers grew 19% to 1,377 and active buyers increased 25% to 12,473, with average spend per buyer at $133,457.

• Integration of New Classic acquisition is underway, expanding product offerings and brick-and-mortar reach.

Financial highlights

• Q1 2026 revenue was $359.5–$360 million, up 32% year-over-year; gross margin improved to 23.9–24%.

• Net income margin reached 10.6–11%, with net income up to $38.1 million.

• Service revenue increased 23.8–24% to $116.5–$117 million; product revenue rose 7–36.6% to $242.9–$243 million.

• Adjusted EBITDA was $45.6 million, up from $33.2 million year-over-year.

• Operating expenses increased 22.5% to $43.4 million, mainly from higher selling and marketing costs.

Outlook and guidance

• Q2 2026 revenue expected between $365 million and $390 million, with continued investment in inventory, warehouses, and logistics.

• Integration of New Classic expected to follow a six-quarter timeline, mirroring previous acquisitions.

• Management expects ongoing growth in active buyers and sellers, supported by expanded service offerings.