GigaCloud Technology Inc. announced financial results for the second quarter ended June 30, 2025, reporting total revenues of $322.6 million, an increase of 4% year-over-year. Net income surged 28% year-over-year to $34.6 million, achieving a net margin of 10.7%.
The company-wide gross margin for the quarter stood at 23.9%, marking a 50 basis point sequential expansion. Operating expenses were managed at 13% of total revenue, a reduction from 16% in the prior year, primarily due to lower stock-based compensation.
Operational metrics showed strong marketplace expansion, with GigaCloud Marketplace GMV growing 31% year-over-year on a trailing twelve-month basis to $1.44 billion. Active 3P sellers increased 24.9% to 1,162, and active buyers surged 50.9% to 10,951.
Product revenue grew 5% year-over-year to $225.7 million, driven by international momentum, particularly in Europe, where GMV surged 59% year-over-year. Product margin improved 174 basis points sequentially to 29.2%, primarily due to successful SKU rationalization within the Noble House portfolio.
GigaCloud maintains a strong liquidity position with nearly $300 million in cash, cash equivalents, restricted cash, and short-term investments as of June 30, 2025, and operates debt-free. The company generated $48 million in operating cash flows and executed $46 million in share buybacks during 2025.
For the third quarter of 2025, GigaCloud expects total revenue to be between $295 million and $310 million, anticipating a 2.5% gross margin headwind from recent tariff spikes. The company's strategic initiatives, including the successful integration of Noble House and expansion into Europe, position it for long-term growth.
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