GigaCloud Technology turned a turbulent spring into its best quarter yet in Q2, as surging marketplace activity and a leaner product portfolio more than offset tariff-driven supply chain hiccups.
The Walnut, Calif.-company operates an online marketplace for oversized goods. GigaCloud posted Q2 revenue of $323 million, up 4% from a year earlier, and net income of $35 million, a 28% gain. For the first half of 2025, GigaCloud revenue rose 5% to $637 million. Meanwhile, profit climbed 32% to $70 million.
CEO Lei Wu called the period “a proving ground” for the company’s supplier fulfilled retailing model, which allows manufacturers and resellers to pivot quickly in volatile markets.
How GigaCloud grew revenue in Q2 despite tariffs’ impacts
After U.S. tariffs on goods from Vietnam, China, and Malaysia spurred some third-party partners to pause shipments, GigaCloud still delivered 31% gross merchandise volume (GMV) growth over the past year to $1.44 billion. Third-party sales made up more than half of that total, with active buyers up 51% and active sellers rising 25%.
Europe remains the company’s fastest-growing market, with GMV up 59% in Q2 and a sixth German fulfillment center opening in July. Wu said the region could eventually match the scale of GigaCloud’s U.S. operations.
The integration and SKU overhaul of its Noble House furniture brand continued to lift margins, with product sales up 5% to $226 million despite an 11% decline in U.S. domestic sales. Service revenue grew 1% to $97 million, held back by weaker ocean freight rates.
Gross margin improved to 23.9%, and operating expenses fell to 13% of revenue from 16% a year earlier. The company ended the quarter with $300 million in liquidity, has repurchased $71 million in stock since its IPO, and invested $87 million in acquisitions.
GigaCloud Q3 outlook
For Q3, GigaCloud forecasts revenue of $295 million to $310 million, but warned that higher costs from April’s tariff spike could trim gross margin by about 2.5 percentage points before easing.
“We will be coming up on our three-year anniversary as a public company soon on August 18. I would like to take this as an opportunity to reflect on how we have deployed capital over the last 3 years,” chief financial officer Erica Wei told analysts on an earnings call. “We received gross proceeds of $41 million from our IPO in 2022. Since then, we have executed $71 million in share buybacks and $87 million in strategic acquisitions to create value.”
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s update on the GigaCloud B2B marketplace’s revenue and GMV.
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