GigaCloud Technology (GCT) Q1 2026 earnings summary

Executive summary

• Achieved over 32% year-over-year revenue growth and more than 50% EPS growth in Q1 2026, with net income rising to $38.1 million and diluted EPS at $1.04.

• Marketplace GMV for the last twelve months reached $1.66 billion, up 17.5% year-over-year, with active 3P sellers and buyers growing 19% and 25% respectively.

• Diversification and disciplined execution across markets and channels drove results, with Europe emerging as a key growth engine.

• Integration of the New Classic acquisition is underway, expanding product offerings and offline sales channels.

• Focus remains on profitable, margin-accretive growth, with a willingness to exit lower-margin categories when necessary.

Financial highlights

• Q1 2026 revenue grew 32% year-over-year to $359–$360 million; EPS increased 53% to $1.04.

• Gross profit reached $85.8 million, with gross margin improving to 23.9%.

• Net income margin reached 10.6%, with net income of $38 million.

• Service revenue rose 24% to $117 million; product revenue increased 7% to $243 million.

• Operating cash flow was negative $22 million in Q1 due to inventory build and acquisition-related spend.

Outlook and guidance

• Q2 2026 revenue expected between $365 million and $390 million, despite temporary supply chain disruptions from Vietnam flooding.

• Management expects continued investment in inventory, warehouses, and logistics to support growth.

• Confident in managing through short-term disruptions and maintaining long-term growth trajectory.