How does GigaCloud view Amazon's new Supply Chain as a Service, and why is GigaCloud better situated to succeed?

Iman Schrock explained that GigaCloud's strength lies in its B2B marketplace and integrated logistics solutions purpose-built for large parcel products. He emphasized that GigaCloud is channel agnostic and enables fulfillment across multiple sales channels through a neutral platform, differentiating it from Amazon's broader transportation focus. “Our strength lies in the combination of our B2B marketplace and integrated logistics solutions that we provide for large parcel products. And we are purpose-built for large parcel and are completely channel agnostic, enabling customers to fulfill orders across multiple sales channels through a neutral platform.”

As GigaCloud grows, what is its appetite for larger-scale acquisitions?

Erica Wei stated that the appetite for larger acquisitions is target-specific and depends on strategic fit rather than a fixed size. She indicated that there is appetite for something bigger once the initial stages of New Classic integration are complete. “So I think there is appetite for perhaps something a little bigger as we grow once we are past the initial stages of integrating New Classic. Now when it comes to a topic of specific size, it really depends on who the target is and how well they fit in with GigaCloud's long-term objectives strategic-wise rather than a fixed specific range we are trying to hit.”

Could management elaborate on the drivers of improvement at New Classic and the integration process?

Erica Wei explained that the first two quarters focused on integrating teams, processes, and operations to ensure smooth functioning as one organization. She noted that new product introductions have begun on a small scale and will pick up significantly over the next several quarters, similar to the timeline observed with Noble House. “The first 2 quarters of our integration efforts have mostly surrounded integrating the teams, the processes, the operations. So what that means exactly. As you know, we -- when we make an acquisition, we tend to integrate the 2 teams together right away with the intention of running just one big organization, one big team rather than having the acquired targets operate as a stand-alone company.”

GCT

GigaCloud (GCT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 6, 2026

Source: earnings call transcript

Executive summary

GigaCloud Q2 FY26 — Strong Revenue Growth and Record EPS Driven by Marketplace Expansion and Strategic Acquisitions

GigaCloud delivered strong Q2 FY26 results, demonstrating resilience with significant revenue growth and record EPS, driven by marketplace expansion and strategic acquisitions like New Classic. The company is focused on global replication of its model and leveraging its balance sheet for long-term growth, while navigating market volatility and integration efforts. Management also authorized a new $120 million share buyback plan.

Highlights

Revenue increased 28% year-over-year to $412 million, including 23% organic growth.
Diluted GAAP EPS increased 28% to a record $1.16 per share.
Trailing 12-month GMV grew 21% year-over-year to $1.7 billion as of June 30, 2026.
Europe GMV increased 66% year-over-year, with product revenue up 54% to $109 million.
New Classic revenue decline improved from 20% in Q1 to 8% in Q2, reflecting stabilization.

Concerns

Sales and marketing expense increased to 9% of total revenue (from 8% a year ago) due to higher channel commissions and European expansion.
General and administrative expense increased to 5% of revenue (from 4% in prior year quarter) due to higher share-based compensation.
Share-based compensation was $11 million in Q2 FY26 compared to $3 million in Q2 FY25 due to higher share price on grant date.
New Classic portfolio saw an 8% year-over-year decline in Q2 (improved from 20% in Q1) due to industry challenges and initial post-acquisition disruptions.

Guidance & targets

Category	Target	Timeline	Confidence
Revenue	$375 million to $400 million high materiality	Q3 · FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
U.S. Marketplace Domestic GMV significantly outperformed the broader U.S. furniture market, reflecting market share gains and the strength of the supplier-fulfilled retailing model. Domestic GMV: 9% increase	—	9%	—	—
Europe Europe is a meaningful growth vector and source of diversification, with strong marketplace expansion, increasing buyer and seller participation, and a growing flywheel effect from 1P seeding to 3P adoption. Product revenue increased 54% YoY to $109 million. GMV: 66% increase YoY3P sellers: >400% increase YoY3P Europe marketplace GMV: >15% (vs 6% a year ago)	$109 million	54%	—	—
New Classic Revenue declined 8% year-over-year, but this was a significant improvement from the 20% decline in Q1, reflecting stabilization and early progress in integration efforts. The acquisition brings a strong brand, established customer relationships, and brick-and-mortar distribution.	$16.3 million	-8%	—	—

Deals & partnerships

New Classic Acquisition of a traditional wholesaler/distributor to extend reach and broaden offerings.

Integration remains on track for completion by mid-next year, focusing on aligning systems, processes, and operations. The acquisition brings a strong brand, established customer relationships, and brick-and-mortar distribution.

Noble House Acquisition that provided capabilities to deliver product revenue in the U.S.

The success with Noble House provides a proven playbook for integrating New Classic, demonstrating how operational improvements and disciplined execution unlock value.

Wondersign Acquisition of a technology company to better serve retailer clients.

Acquired in 2023, Wondersign provides tools and capabilities to better serve brick-and-mortar retailers, serving as an example of a technology add-on acquisition.

Risks & headwinds

Ongoing pressure in the broader furniture landscape ongoing

Domestic GMV increased 9% despite declines in the U.S. furniture industry; New Classic portfolio saw an 8% YoY decline in Q2.

Mitigation:Disciplined execution, operational efficiency, dynamic pricing, and market share gains through marketplace strength.

Continued market uncertainty ongoing

Not quantified, but cited as a general headwind.

Mitigation:Focus on profitable growth, adaptability, and leveraging the platform's operating model.

Volatility in ocean freight market pricing past few months and potentially future

Ocean spot rates have been quite volatile.

Mitigation:Visibility into cost through long-term contracts; natural hedge between service and product margins.

Limited material benefit from tariff refunds to date and long-term

Amounts received are not terribly material to date; economic benefits may not be fully retained.

Mitigation:Not explicitly stated, but implies the company does not rely on these for significant financial impact.

What to watch in Q3 FY26

New Classic Integration Progress

next several quarters

Current 8% YoY decline in Q2 (improved from 20% in Q1)

Target continued stabilization and acceleration of new product introductions

Why it matters

Successful integration and new product rollout are key to unlocking long-term value from the acquisition.

We have already began introducing a little bit of new products, just not at a very significant scale. And I think over the next several quarters, we should be seeing more of a pickup.

Find out whether GCT delivers this. Inve re-checks your case every morning.

Q&A highlights

Are tariff refunds a material opportunity for GigaCloud, similar to other companies this quarter?

Erica Wei stated that GigaCloud has applied for and received some tariff refunds, but the amounts are not material to date. She noted that given the New Classic acquisition and prior price increases, the net economic benefits may not be fully retained by GigaCloud in the long run.

“So far, the amounts received are not terribly material to date. In the grand scheme of things, given the acquisition situation with New Classic and customers that had previously received price increases because of purchasing containers, I think we -- in the net of things, I don't think it will be a meaningful effect for GigaCloud as a whole in the long run since we may not be able to retain all of the economic benefits.”

asked by Thomas Forte · answered by Erica Wei

2 min read 6 chapters

Detailed narrative

Marketplace Performance and Growth

GigaCloud's marketplace remains a core engine, with trailing 12-month GMV growing 21% year-over-year to $1.7 billion as of June 30, 2026. Active third-party sellers increased 26% to 1,465, and active buyers grew 17% to 12,823. Despite declines in the U.S. furniture industry, domestic GMV increased 9% during the quarter, significantly outperforming the broader market and reflecting market share gains.

European Expansion

Europe is highlighted as a significant growth opportunity, with quarterly GMV increasing 66% year-over-year and product revenue rising 54% to $109 million. The region is seeing meaningful 3P participation, with 3P sellers increasing over 400% year-over-year and now representing over 15% of Europe marketplace GMV, up from 6% a year ago. This validates the scalability of GigaCloud's model outside the U.S. and provides diversification.

New Classic Integration

The integration of New Classic is on track for completion by mid-next year, focusing on aligning systems, processes, and operations. The New Classic portfolio's year-over-year decline improved from 20% in Q1 to 8% in Q2, reflecting stabilization and early integration progress.

Management expects to introduce new product offerings and leverage the GigaCloud platform's scale to unlock further value, following a similar path to the successful Noble House integration.

Financial Highlights and Profitability

The company delivered record revenue of $412 million (up 28% YoY) and record diluted GAAP EPS of $1.16 (up 28% YoY). Organic growth contributed 23% to revenue, with New Classic adding 5%. Net income was $42 million, representing 10.3% of revenue, up 22% year-over-year. Total company gross margin was 25.6%, a sequential increase of 1.7%.

Capital Allocation and M&A Strategy

GigaCloud remains debt-free with $379 million in total liquidity. The Board approved a new $120 million share buyback plan with a 3-year duration, replacing the existing plan. This follows $30 million in buybacks executed in Q2 at $39.55 per share and an additional $18 million post-quarter end at $36 per share.

Future M&A will focus on product distribution, technology add-ons, or European logistics boosts, once New Classic integration is further along.

Service Margin Dynamics

Service gross margin improved 3.2% sequentially to 11.7%, driven by carrier optimization, responsive pricing, and favorable ocean freight dynamics. The company benefits from long-term ocean freight contracts when spot rates move higher. Management noted that service and product businesses act as a natural hedge, with ocean freight costs impacting product margins but supporting service margins.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.