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- **Revenue milestone**: 10% YoY growth to $333M, EPS of $0.99, both records.
- **M&A success**: Turned Noble House from $40M loss to profitability; New Classic acquisition to expand brick-and-mortar reach.
- **European growth engine**: +70% YoY revenue in Europe, offsetting U.S. macro challenges.
- **Financial strength**: $367M liquidity, $78M cash flow, and $16M share buybacks executed.
- **Strategic focus**: Integrating New Classic to bridge digital/physical channels, with 4-6 quarters of initiatives.

**【CEO Opening Remarks】**
- Q3 2025 revenue grew 10% YoY to $333 million, with EPS of $0.99, both new records.
- Successful turnaround of Noble House (from $40M loss in 2023 to profitability) and expansion of product line/channels.
- Announced acquisition of New Classic Home Furnishing (Jan 1, 2026 close) to diversify into brick-and-mortar wholesale.
- Emphasized M&A as core growth strategy, with disciplined execution and balance sheet strength.

**【President's Operational Update】**
- Marketplace GMV +21% YoY to $1.5B; active sellers +17% to 1,232; buyers +34% to 11,419.
- Europe revenue +70% YoY to $100M, offsetting U.S. macro challenges.
- Noble House portfolio optimized: +2,300 SKUs, -1,100 underperformers, returning to growth.
- New Classic acquisition will bridge digital/physical channels, with 4-6 quarters of integration.

**【CFO Financial Commentary】**
- Service revenue -2% YoY due to U.S. shipping decline; product revenue +16% YoY driven by Europe.
- Gross margin 23.2% (down 70bps sequentially), product margin +70bps to 29.9%.
- Operating expenses -1.7% to 11% of revenue; net income $37M (+50bps to 11.2% of revenue).
- Cash flow $78M; liquidity $367M (debt-free). Share buybacks: $16M executed under $111M plan.

**【Q&A Highlights】**
- CEO: Focused on closing New Classic deal, but actively evaluating new M&A opportunities.
- CFO: Noble House portfolio profitable and growing; Q4 guidance ($328-344M) reflects Europe strength and core business resilience.
- Management cautious on U.S. housing market but confident in diversification strategy.

GigaCloud Technology Inc. (GCT) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: 4% YoY growth to $323 million, driven by Europe's 59% GMV surge and Noble House portfolio optimization.
- **Margin Expansion**: Product margin up 174bps to 29.2%, Noble House narrowing margin gap to legacy GigaCloud by 3 points.
- **Europe Dominance**: 25% of revenue, 11M sq ft fulfillment network, and 3P seller expansion signaling future parity with U.S. operations.
- **SKU Rationalization Success**: 3,800 SKUs retired, 1,200 new, with Q2 performance exceeding expectations despite industry headwinds.
- **Tariff Mitigation**: 2.5% Q3 margin headwind offset by targeted price increases, reflecting supply chain flexibility.

**【Management Opening Remarks】**
- Delivered 4% year-over-year revenue growth to $323 million, exceeding expectations, with bottom-line performance up 28% YoY.
- Marketplace GMV grew 31% on a trailing 12-month basis, driven by the Supplier Fulfilled Retailing (SFR) model's agility in navigating tariff disruptions.
- Europe GMV surged 59% YoY, supported by a new fulfillment center in Germany, signaling Europe's strategic growth potential.
- Despite SKU rationalization challenges, the Noble House portfolio outperformed, with 3,800 SKUs retired and 1,200 new ones introduced, improving margin profile.

**【Operational Update】**
- Active 3P seller base expanded 25% YoY to 1,162, contributing $758 million in GMV, while active buyers reached 11,000, up 51% YoY.
- Europe's 3P seller activity shifted from U.S.-centric to international expansion, driven by GigaCloud's proven SFR model.
- Noble House portfolio margins narrowed to 3 points behind legacy GigaCloud, with stabilization expected by Q2 2026.
- Europe now represents 25% of global revenue, with Germany as a key fulfillment hub.

**【Financial Review】**
- Product revenue grew 5% YoY to $226 million, with Europe contributing 25% of total revenue.
- Gross margin improved 174 basis points sequentially to 29.2%, driven by Noble House portfolio optimization.
- Service revenue rose 1% YoY to $97 million, offsetting ocean freight declines with 3P GMV growth.
- Net income reached $35 million (10.7% net margin), supported by $300 million liquidity and disciplined capital deployment.
- Q3 2025 outlook: $295-310 million revenue, with 2.5% gross margin headwind from tariffs, partially mitigated by price adjustments.

**【Q&A Highlights】**
- Noble House's Q2 performance exceeded expectations, with new SKUs outperforming during the outdoor peak season.
- SFR model flexibility enabled rapid sourcing adjustments amid tariff volatility.
- Tariff-related cost increases will cycle through Q3 sales, with gradual absorption through pricing strategies.
- Europe's 3P seller expansion validates GigaCloud's 'go first' strategy, creating a scalable framework for partners.


GigaCloud Technology Inc. (GCT) Q2 2025 Earnings Call Transcript

- **Marketplace momentum**: 56% GMV growth to $1.4B, 80% Europe GMV expansion, and 33% active seller base growth.
- **Profitability improvement**: 23.4% gross margin (up 1.4% QoQ) from cost control and lower freight costs.
- **Strategic initiatives**: Noble House SKU refresh, Wonder App beta launch, and Scott Living BaaS partnership.
- **Q2 outlook**: $275M-$305M revenue guided, with U.S. headwinds offset by European growth and tariff impacts delayed to Q3.

**【CEO Summary Section】**
- Q1 2025 revenue grew 8% YoY to $272M, driven by 56% GMV growth in the trailing 12 months to $1.4B.
- Marketplace expansion in Europe saw 80% YoY GMV growth, with a new fulfillment center in Bremen, Germany.
- Integration of Noble House Phase 3: retired 400 SKUs, launched 300 new ones, with 600 more in development.
- Wonder App launch in closed beta phase, with early positive feedback from retail partners.
- BaaS partnership with Scott Living to expand branded product offerings.

**【CFO Financial Commentary】**
- Service revenue grew 23% YoY to $94M, while product revenue increased 2% YoY to $178M (70% growth in Europe offset 17% decline in U.S.).
- Gross margin improved sequentially to 23.4%, driven by lower ocean freight costs and reduced holiday surcharges.
- Operating expenses remained stable at 13% of revenue, with G&A efficiency gains (5.3% vs. 6% prior quarter).
- Net income of $27M (10% margin) reflects strong cash flow management and $61.8M share buyback.
- Q2 2025 guidance: $275M-$305M, with headwinds from Noble House SKU transition and U.S. market softness.

**【Q&A Key Takeaways】**
- Europe growth and BaaS partnerships are key strategic priorities.
- Tariff impacts expected in Q3, with limited Q2 effect due to inventory lead times.
- Auto parts and fitness equipment are expanding non-furniture categories.
- M&A focus on European infrastructure and bricks-and-mortar tech solutions.
- Service/product revenue reclassification provides clearer financial transparency.

GigaCloud Technology (GCT)-12 May 25-2025 Q1 Earnings call transcript

- **Record Growth**: 2024 GMV up 70% to $1.3B, total revenue surpasses $1B for first time.\n- **Noble House Turnaround**: Breakeven achieved in 2024 after $35M annual losses pre-acquisition.\n- **Europe Expansion**: 150% YoY GMV growth, new Germany fulfillment center.\n- **Financial Health**: $303M liquidity, 0 debt, $126M net income (+34% YoY).\n- **Strategic Focus**: Wonder app adoption, AI-driven margin improvement, and disciplined M&A in Europe and brick-and-mortar.\n- **Q1-Q2 Challenges**: Revenue softness due to macro headwinds, Noble House SKU rationalization, and channel partner underperformance.

**【CEO Opening Remarks】**
- **Landmark Year Achievements**: 2024 GMV grew 70% to $1.3B, surpassing $1B in total revenue for the first time.\n- **Noble House Turnaround**: Achieved breakeven in 2024 after $35M annual losses pre-acquisition.\n- **Balance Sheet Strength**: $303M liquidity (up 65% YoY), 0 debt, and $29M executed under $46M share repurchase program.\n- **Strategic Initiatives**: Wonder app rebranding for brick-and-mortar sales enablement, new Germany fulfillment center, and AI-driven gross margin improvement in H2 2025.

**【President Iman Schrock - Operations Update】**
- **Marketplace Growth**: 3P GMV at 52% of total, active buyers up to 9,300, and 3P sellers reaching 1,100.\n- **Europe Expansion**: GMV grew 150% YoY organically, with new Germany fulfillment center.\n- **Noble House Integration**: Phase 3 focuses on scaling 300 new SKUs, targeting 2025H2 volume pickup.\n- **Wonder Platform**: Mobile-first app adoption by leading furniture suppliers, driving in-store engagement and sales.

**【CFO Erica Wei - Financial Highlights】**
- **Q4 2024 Results**:\n  - Total revenue: $296M (+21% YoY)\n  - Service revenue: $97M (+40% YoY)\n  - Product revenue: $811M (+61% YoY)\n  - Net income: $31M (-13% YoY)\n  - Full year net income: $126M (+34% YoY)\n- **Key Trends**:\n  - Service margin: 19.5% (Q4), 18.6% (FY24)\n  - Product margin pressured by holiday fulfillment costs and ocean freight inventory\n  - FY25Q1 guidance: $250-265M revenue, with Q2 softness due to SKU rationalization.

**【Q&A Key Takeaways】**
- **Growth Deceleration**: FY25Q1-Q2 softness driven by macro headwinds, Noble House SKU retirement, and channel partner underperformance.\n- **Tariff Impact**: Minimal direct impact on 1P business; 3P sellers may seek alternative sourcing via GigaCloud.\n- **M&A Strategy**: Prioritize European infrastructure, brick-and-mortar penetration, and SaaS platforms like Wonder.\n- **Margin Outlook**: Q1 margin pressure from high-capitalization inventory; fixed-rate contracts to stabilize costs post-Q1.

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