GigaCloud Technology NASDAQ: GCT executives highlighted record revenue and earnings in 2025, pointing to continued marketplace expansion, rapid growth in Europe, and progress integrating recent acquisitions during the company’s fourth-quarter and full-year 2025 earnings call.
Management frames 2025 as a “defining chapter”
Founder and CEO Larry Wu said 2025 delivered “record revenue” and “record EPS” despite an unpredictable macro environment. Wu emphasized the company’s focus on building “new growth vectors” through geographic expansion, scaling the marketplace, and targeted acquisitions.
Wu cited the Noble House acquisition as an example of the company’s integration approach, saying the company took the business “from bankrupt … to a profitable and growing portfolio” in under two years. He added that GigaCloud is now applying the same integration “playbook” to its new acquisition, New Classic Home Furnishing, which he said expands the company’s capabilities across the industry.
Wu also highlighted capital allocation priorities, including investing for growth while continuing share repurchases, describing ongoing buybacks as part of the company’s strategy to create “durable value.”
Marketplace growth and Europe expansion
President Iman Schrock said the marketplace posted “another period of substantial growth.” Over the trailing 12 months ended Dec. 31, 2025, marketplace gross merchandise value (GMV) increased about 18% to a record of nearly $1.6 billion.
Schrock noted continued expansion in the company’s third-party seller base, which grew 17% year over year to 1,299 sellers as of Dec. 31, 2025. GMV from third-party sellers increased 23% to $851 million. On the demand side, the company added nearly 2,800 net new buyers in 2025, bringing the buyer base to 12,089.
Europe was a focal point throughout the call. Schrock said the company shifted resources to Europe amid softness in the U.S. market, resulting in 68% revenue growth in Europe from 2024 to 2025. To support the region, he said GigaCloud expanded its European infrastructure to seven facilities, calling the region proof that the company’s model “travels” and that long-term investments are now paying off.
Noble House turnaround and New Classic acquisition
Schrock provided an update on Noble House, which GigaCloud acquired out of bankruptcy in the fourth quarter of 2023. He said the business had been losing close to $40 million per year at the time of the acquisition and that GigaCloud used its marketplace model and operational experience to streamline operations and rationalize SKUs.
According to Schrock, the Noble House portfolio turned profitable in the first half of 2025 and returned to growth in the third quarter. He added that the portfolio was stabilized as of the fourth quarter of 2025, “slightly ahead” of the company’s original goal of the second quarter of 2026. With integration now complete, he said the company does not plan to provide portfolio-specific Noble House updates in future calls.
On New Classic, Schrock said GigaCloud completed the acquisition on Jan. 1 using $18 million of cash on hand. He described the deal as broadening product offerings and deepening the company’s presence in brick-and-mortar distribution. New Classic will be integrated directly into GigaCloud, with a targeted integration period of six quarters. Schrock outlined two near-term revenue opportunities:
- Expanding New Classic’s geographic reach by leveraging GigaCloud’s nationwide fulfillment network beyond New Classic’s existing two-facility footprint.
- Widening New Classic’s assortment using GigaCloud’s supply chain and product development capabilities to drive more volume through brick-and-mortar channels.
Financial results: revenue up 23% in Q4, EPS up 37%
CFO Erica Wei reported fourth-quarter revenue of $363 million, up 23% year over year, and full-year revenue of $1.3 billion, up 11%.
Quarterly diluted EPS rose 37% to $1.04, while full-year diluted EPS increased 18% to $3.59, Wei said.
Service revenue increased 21% to $129 million in the fourth quarter, driven by higher last-mile activity, higher packaging services revenue, and commissions tied to larger transaction volumes and greater use of fulfillment services. Wei said these gains were partly offset by lower ocean service revenue, attributing the decline to meaningfully lower ocean spot rates in the fourth quarter of 2025 versus the prior-year period amid softer overall demand for ocean shipping “after Liberation Day across the broader economy.”
Service margin declined three percentage points sequentially to 6%, which Wei said was primarily due to peak-season ground fulfillment surcharges during the holiday season and modest pressure from lower ocean spot rates.
Product revenue rose 24% to $234 million in the fourth quarter, with growth across all operating regions. U.S. product revenue was $121 million, up 3% year over year. Wei said the company remained focused on “profitable revenue,” noting it had intentionally paced Noble House top-line earlier in the year during SKU rationalization. She said the Noble House portfolio delivered more than 40% year-over-year quarterly growth in Q4, driven by new product introductions.
Europe product revenue increased 64% year over year to $98 million. Product margin expanded 220 basis points sequentially to 32.1%, driven by pricing actions, growth in off-platform sales (which Wei said typically carry higher gross margins to offset higher selling expenses), and benefits from lower ocean shipping costs. Total gross margin for the quarter was 22.9%.
On expenses, sales and marketing was $29 million, or 8% of revenue, up from 6% a year earlier due to higher advertising and staffing tied to European expansion. General and administrative expense was $11 million, or 3% of revenue, down from 6% a year earlier, which Wei attributed to higher warehouse utilization and lower stock-based and administrative compensation. Net income margin was 10.6%, and net income increased 24% to $38.5 million.
Cash, buybacks, and Q1 outlook
Wei said GigaCloud generated $64 million in operating cash flow during the fourth quarter and ended the period with total liquidity of $417 million, including cash equivalents, restricted cash, and short-term investments. She added that the company remains debt-free.
On capital returns, Wei said that since announcing a $111 million share repurchase program in August 2025, the company has repurchased $33 million of shares at a weighted average price of $31.60, representing 30% of the approved plan.
For the first quarter, management guided revenue to a range of $330 million to $355 million. In the Q&A, Wei said Q4 growth outperformed prior expectations primarily due to Europe and the Noble House portfolio, while noting Europe’s growth rate is not expected to remain near 70% indefinitely and that Noble House growth may taper as the portfolio stabilizes.
Regarding New Classic, Wei said the company’s Q1 guidance includes the acquisition and that revenue from the portfolio is expected to be “in the probably mid-teens” in the first quarter. She also said service gross margin should recover sequentially as holiday surcharges roll off around mid-January and as the company implements pricing increases in Q1, while adding she could not predict ocean spot rates and described current rates as stable but “fairly low” compared with the past two years.
About GigaCloud Technology NASDAQ: GCT
GigaCloud Technology Inc NASDAQ: GCT is a China-based provider of software-as-a-service (SaaS) and cloud computing solutions tailored for cross-border e-commerce. The company’s core offering, its Supply Chain Embedded E-commerce as a Service (SCEaaS) platform, integrates procurement, order management, warehousing, logistics and payment services into a unified cloud-based system. This end-to-end digital supply chain solution is designed to help small and medium-sized Chinese exporters efficiently connect with global buyers without the need to build and maintain their own infrastructure.
Through its modular, subscription-based SaaS model, GigaCloud enables merchants to scale operations on demand and minimize upfront capital expenditures.
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