GigaCloud Technology Inc.

Q1 2026 revenue grew 32% to $359 million, and earnings per share grew 53% to $1.04. Total company gross margin improved to 23.9% from 23.4% a year ago, while net income was $38 million, or 10.6% of revenue, up 12% year over year. Product revenue rose 7% to $243 million, including U.S. product revenue of $126 million, up 15%, and Europe product revenue of $103 million, up 80%; service revenue increased 24% to $117 million. On the margin side, product margins were 31.3%, up 3.8 percentage points year over year, while service gross margins declined 7.3% year over year. For Q2, management expects revenue in the $365 million to $390 million range, noting temporary supply chain disruptions from Vietnam flooding.

Larry Wu framed the quarter as evidence that the company’s diversified, long-term strategy is working even with the U.S. furniture market down single digits. He emphasized building a channel-agnostic marketplace across online/offline and domestic/international channels, and pointed to Europe as validation that the model scales outside the U.S. He also said the New Classic acquisition adds a new growth vector and that management remains optimistic while staying disciplined.

Erica Wei focused on the financial mix and operating discipline behind the quarter’s results. She highlighted 32% revenue growth to $359 million, EPS of $1.04, gross margin of 23.9%, operating cash outflow of $22 million due to inventory buildup for the summer selling season, and total liquidity of $364 million. She said the company remains debt-free, has completed 38% of its latest $111 million buyback plan, and still has $68 million of authorization remaining.

Analysts asked about M&A appetite, the impact of rising oil prices, inventory and operating cash flow, service gross margin trends, New Classic integration timing, capital allocation, and Europe’s growth/infrastructure needs. Management said it is looking for deals that expand product lines or technology capability, and that New Classic integration is still on a roughly six-quarter timeline, with some near-term disruption expected before growth resumes. On margins, they said higher logistics and energy costs affect delivery costs on ocean and ground, with service and product revenue lines acting as a partial natural hedge, and they expect more fulfillment capacity in Europe as volume grows.