GigaCloud Technology (GCT) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 grew 4% year-over-year to $323 million, with net income up 28% to $35 million and net margin improving to 10.7%.

• Marketplace GMV rose 31% year-over-year to $1.44 billion, with active buyers up 51% to 10,951 and active 3P sellers up 25% to 1,162.

• Adjusted EBITDA for Q2 2025 was $43.3 million, with a margin of 13%.

• Europe emerged as a key growth region, with GMV up 59% year-over-year and now representing about a quarter of global revenue.

• Spend per active buyer was $131,359 for the 12 months ended June 30, 2025, reflecting onboarding of new buyers.

Financial highlights

• Gross profit for Q2 2025 was $77 million, with a gross margin of 23.9%, down from 24.6% a year ago.

• Product revenue grew 5% year-over-year to $226 million; service revenue increased 1% to $97 million.

• Operating income for Q2 2025 was $35.8 million, up 30.6% year-over-year.

• Liquidity stood at $304 million at quarter-end, with $48 million in operating cash flow generated year-to-date.

• Adjusted EPS (diluted) for Q2 2025 was $1.14, up 10.7% year-over-year.

Outlook and guidance

• Q3 2025 revenue is expected between $295 million and $310 million, with a 2.5% gross margin headwind anticipated due to tariff-related cost increases.

• Management expects continued growth in sellers and buyers through geographic expansion and marketing.

• Cash on hand is expected to be sufficient for at least the next 12 months for general corporate purposes.