| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
Key Financial Statement Metrics: | (In thousands, except for per share data) |
| Total revenues | $ | 411,643 | | | $ | 322,606 | | | $ | 771,131 | | | $ | 594,512 | |
| Gross profit | 105,556 | | | 76,944 | | | 191,402 | | | 140,670 | |
| Operating income | 47,511 | | | 35,843 | | | 89,990 | | | 64,166 | |
| Net income | 42,335 | | | 34,552 | | | 80,459 | | | 61,698 | |
| Net income per ordinary share | | | | | | | |
| —Basic | $ | 1.16 | | | $ | 0.91 | | | $ | 2.20 | | | $ | 1.58 | |
| —Diluted | $ | 1.16 | | | $ | 0.91 | | | $ | 2.19 | | | $ | 1.58 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
Non-GAAP Financial Metrics(1): | (In thousands, except for per share data) |
| Adjusted EBITDA | $ | 60,407 | | | $ | 43,338 | | | $ | 106,031 | | | $ | 76,521 | |
Adjusted EPS – diluted | $ | 1.65 | | | $ | 1.14 | | | $ | 2.89 | | | $ | 1.96 | |
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(1) See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation——Non-GAAP Financial Measures” for information regarding our use of Adjusted EBITDA and Adjusted EPS – diluted and a reconciliation of net income to Adjusted EBITDA and net income per ordinary share – diluted to Adjusted EPS – diluted.
| | | | | | | | | | | |
| 12 Months Ended June 30, |
Key Operating Metrics: | 2026 | | 2025 |
| GigaCloud Marketplace GMV (in $ thousands) | $ | 1,744,809 | | | $ | 1,438,512 | |
| Active 3P sellers | 1,465 | | 1,162 |
3P seller GigaCloud Marketplace GMV (in $ thousands) | $ | 962,340 | | | $ | 757,508 | |
| Active buyers | 12,823 | | 10,951 |
| Spend per active buyer (in $) | $ | 136,069 | | | $ | 131,359 | |
GigaCloud Marketplace GMV
The growth in GigaCloud Marketplace GMV, including GMV from both GigaCloud 3P and GigaCloud 1P, reflects our ability to attract and retain sellers and buyers in the GigaCloud Marketplace. The revenues we generate in our marketplace are highly correlated to the amount of GMV transacted in the GigaCloud Marketplace:
Revenues from GigaCloud 3P: Before a transaction takes place in our marketplace and before GMV is recognized, sellers anticipate future marketplace sales and position inventory by utilizing our integrated supply chain solutions for sellers. This generates (i) revenues from warehousing services for the storage of merchandise in its fulfillment centers, (ii) revenues from ocean transportation services for moving goods from origin countries to destination ports such as the U.S. and Europe, and (iii) revenues from drayage services for transporting containers from ports to its fulfillment centers. These revenues are driven by sellers’ expectations of future sales in our marketplace rather than completed transactions, and the revenue amounts depend on service pricing, cargo volumes, storage duration, and utilization rates, which may vary independently of actual GMV realized. When marketplace transactions occur between sellers and buyers, GMV is recognized and additional service revenues are generated, including revenues from platform commission services, packaging services, and last-mile delivery services for transporting goods from our fulfillment centers to end consumers.
Revenues from GigaCloud 1P: Our 1P business generates product revenues when we sell our own inventory through the marketplace. In this model, we act as both the seller and platform operator. Increases in our 1P product sales directly contribute to both higher GMV as such sales are included in total marketplace GMV and higher product revenues.
GigaCloud Marketplace GMV increased to $1,744.8 million in the 12 months ended June 30, 2026 from $1,438.5 million in the 12 months ended June 30, 2025, representing a growth of 21.3% period-over-period, primarily due to the continued increase in the numbers of sellers and buyers transacting in our marketplace as our marketplace continued to gain scale and market position.
Active 3P Sellers
The number of active 3P sellers in the GigaCloud Marketplace increased to 1,465 in the 12 months ended June 30, 2026 from 1,162 in the 12 months ended June 30, 2025, representing an increase of 26.1% period-over-period. We view active 3P sellers as a key driver of the product catalog in our marketplace, which helps attract and retain buyers. The GigaCloud Marketplace offers SKUs across furniture, home appliances, fitness equipment and other large parcel categories from our active 3P sellers. The number of SKUs from active 3P sellers was over 50,000 as of June 30, 2026. We expect to grow the number of active 3P sellers through geographic expansion, suppliers outreach, marketing initiatives, referrals and word-of-mouth. We also leverage our 1P inventory sales to establish new markets, reducing the risk in geographic expansion for new sellers, and increasing the appeal for new sellers to join our marketplace.
3P Seller GigaCloud Marketplace GMV
3P Seller GigaCloud Marketplace GMV represents the GMV our 3P Sellers transact in the GigaCloud Marketplace. 3P Seller GigaCloud Marketplace GMV increased to $962.3 million in 12 months ended June 30, 2026 from $757.5 million in the 12 months ended June 30, 2025, representing an increase of 27.0% period-over-period as our marketplace continued to gain scale and market position. 3P Seller GigaCloud Marketplace GMV represented 55.2% and 52.7% of total GigaCloud Marketplace GMV in the 12 months ended June 30, 2026 and June 30, 2025, respectively.
Active Buyers
The number of active buyers in the GigaCloud Marketplace increased to 12,823 in the 12 months ended June 30, 2026 from 10,951 in the 12 months ended June 30, 2025, representing an increase of 17.1% period-over-period as our marketplace continued to gain scale and market position. We view the number of active buyers as a key driver of GMV and revenue for our GigaCloud Marketplace. We plan to expand our active buyers by enhancing our marketplace product offerings and leveraging referrals from existing users.
Spend Per Active Buyer
The spend per active buyer in our GigaCloud Marketplace was $136,069 in the 12 months ended June 30, 2026 and $131,359 in the 12 months ended June 30, 2025, representing an increase of 3.6% period-over-period. Spend per active buyer is a key driver of GMV and revenue for our GigaCloud Marketplace. We generally grow our spend per active buyer by expanding our product offerings, increasing buyer’s purchase frequency and raising the average price per purchase. Spend per active buyer for the 12 months ended June 30, 2026 increased compared to the previous period, primarily due to increased GMV and a greater spending by both new and existing buyers. As our GigaCloud Marketplace continued to gain scale and market position with newly onboarded buyers, we expect an upward trajectory in spend per active buyer, subject to any fluctuation from period to period depending on buyer mix, promotional activity, and broader market conditions.
Key Factors Affecting Our Results of Operations
Key factors affecting our results of operations include the following:
Our Ability to Attract and Retain Sellers
Sellers in our marketplace are typically manufacturers operating in Asia who utilize our supply chain capabilities to establish overseas sales channels without having to invest in their own logistics or fulfillment centers overseas. We are focused on growing and retaining the number of sellers who choose to list their large parcel merchandise in our marketplace and utilize our fulfillment and logistics network for the shipping and handling of their products.
Our number of active 3P sellers was 1,465 in the 12 months ended June 30, 2026, compared to 1,162 in the 12 months ended June 30, 2025, representing an increase of 26.1% compared to the previous period. We believe this increasing trend will continue because of the growing recognition of our marketplace, our seller-friendly comprehensive fulfillment and logistics network which enables hassle-free delivery of large parcel merchandise and our expansion into new markets.
Using our marketplace, sellers are able to quickly gain access to key global markets in which we operate, including the U.S., the U.K., Germany, Japan and Canada. We provide a flat rate program for shipping and handling, and sellers are able to utilize the storage space in our fulfillment centers. We also create sales analytics which provide valuable information as sellers determine which products to bring to market.
We attract new sellers predominantly through organic channels such as geographic expansion, suppliers outreach, marketing initiatives, referrals and word-of-mouth. In the past, we have completed acquisitions that supplemented our supply chain, fulfillment and logistics capabilities, which attracted more sellers and buyers onto our GigaCloud Marketplace after these strategic acquisitions. In January 2026, we completed the acquisition of New Classic. We may consider future acquisitions to increase the number of sellers and buyers. We also plan to augment organic customer acquisition by adding additional sales and marketing employees to enhance seller and buyer growth.
Our Ability to Attract and Retain Buyers
Buyers in our marketplace are typically resellers operating in the U.S., Europe and Japan who procure large parcel merchandise to resell to other retailers or to end customers. Our marketplace is attractive to buyers because we minimize inventory risk from our buyers’ business operations. As of June 30, 2026, the number of SKUs from GigaCloud 1P was over 40,000. Combined with the SKUs offered by active 3P sellers, buyers had access to more than 90,000 SKUs in total. Our buyers can browse a product in our marketplace and list the product on their preferred ecommerce websites such as Wayfair, Amazon, Home Depot, Walmart, Target and Overstock, or their own store prior to procuring and storing the product in a warehouse or shop. Once a sale to a retailer or end customer takes place, buyers can order the product in our marketplace and we will handle the fulfillment directly to the retailer or end customer.
In the 12 months ended June 30, 2026, we had 12,823 active buyers in our marketplace with an average $136,069 spend per active buyer, representing a 17.1% increase in active buyers and a 3.6% increase in spend per active buyer compared to the 10,951 active buyers in our marketplace with an average $131,359 spend per active buyer in the 12 months ended June 30, 2025, primarily attributable to a higher number of new buyers onboarded during the period and increased GMV.
Recent and Future Acquisitions
In addition to organic growth, we have grown through acquisitions that have deepened and expanded our presence in current markets and facilitated entry into attractive new markets.
In the past, we have completed strategic acquisitions to broaden our product offerings, supplement our supply chain, fulfillment and logistics capabilities. In January 2026, we completed the acquisition of New Classic. We may consider future acquisitions of assets, companies, technologies or businesses that are complementary to our business and the costs of identifying and consummating acquisitions may be significant. Acquisitions could result in the use of substantial amounts of cash, the occurrence of significant goodwill impairment charges, amortization expenses for other intangible assets and exposure to potential unknown liabilities of the acquired business.
Following any new acquisitions, our results of operations may be affected by the newly acquired businesses or operations, the purchase accounting for the acquisition, any liabilities incurred in connection with the acquisitions and expenditures made to integrate the newly acquired businesses or operations. As a result of our acquisitions and the consolidation of our operating subsidiaries’ financial results into our consolidated financial results, the periods presented in our historical financial statements may not be comparable to one another and our future results of operations and financial results may also differ.
Overall Economic Trends and Trade Policies
The overall economic environment and related changes in customer behavior have a significant impact on our business. Customer spending, which is discretionary, ultimately impacts platform users’ spending on our products and services, and therefore positive economic conditions generally drive stronger business performance.
Recent global economic uncertainties, inflation, fluctuating interest rates, lower consumer confidence and demand for discretionary goods, and geopolitical events such as recent international trade disputes and the ongoing conflicts in the Middle East, along with other global tensions, could further impact the demand of products and freight rates. Other macroeconomic factors that can affect customer spending patterns include employment rates, availability of customer and commercial credit, interest rates, tax rates and energy costs.
Furthermore, in 2025, the U.S. government utilized the International Emergency Economic Powers Act, or IEEPA, to impose additional tariffs on a broad range of imports, including home furnishings products. On February 20, 2026, the U.S. Supreme Court rendered a decision invalidating tariffs imposed under the IEEPA. During April 2026, the U.S. Customs and Border Protection, or CBP, launched the Consolidated Administration and Processing of Entries process, or CAPE, which allows entities to submit refund claims for paid IEEPA tariffs. We have submitted claims seeking refunds of previously paid IEEPA tariffs through CAPE and received a portion of the refunds that we have submitted. The timing of any remaining refunds and the total amount ultimately received or recorded remains uncertain, and we cannot provide any assurance that we will receive the full amount expected.
Following this Supreme Court decision, the U.S. administration invoked Section 122 of the Trade Act of 1974 to impose new tariffs on imports, effective February 24, 2026, which a U.S. court later found unlawful in May 2026. The ruling is currently stayed pending appeal. If the Section 122 proclamation is ultimately held invalid, we may be eligible to recover some or all of the Section 122 duties paid. However, the outcome of the appeal and the availability, timing and amount of any potential refunds remain uncertain and are subject to further judicial and administrative proceedings. Furthermore, on July 23, 2026, following a Section 301 investigation, the U.S. administration announced new tariffs ranging from 10% to 12.5% on imports from 60 trading partners. We are closely monitoring this development and evaluating the actions we have taken and additional actions we may take in the future, including sourcing diversification, cost mitigation measures and price adjustments. Any further tariff-related actions may increase product costs, affect products availability, and impact our operational results.
In addition, during the second quarter, we noticed a generally heightened enforcement environment in customs clearance, in which we and our suppliers have experienced longer customs clearance times and other disruptions at certain U.S. ports and associated incremental costs, which have not been material to date. Furthermore, on June 3, 2026, the U.S. administration issued Executive Order 14411, “Strengthening Customs Enforcement,” directing CBP and the Department of Homeland Security to implement a series of enhanced customs enforcement measure. Due to the uncertainty surrounding any new and future changes in customs compliance requirements and enforcement under Executive Order 14411, our logistics costs, product availability, compliance cost and results of operations could be adversely affected.
Our Ability to Broaden Service Offerings
Our results of operations are also affected by our ability to introduce new service offerings. We have a history of expanding our service offering to enhance our customer experience and to increase revenues. We started our business by primarily selling our own self-procured large parcel merchandise directly to end customers. We expanded our service offerings and launched our GigaCloud Marketplace in 2019, and the revenues generated by GigaCloud Marketplace grew quickly, representing 55.2% and 61.7% of our total revenues in the six months ended June 30, 2026 and 2025, respectively. We continue to evaluate opportunities to launch additional services.
Our Ability to Effectively Invest in our Infrastructure and Technology Platform
Our results of operations depend in part on our ability to invest in our infrastructure and technology platform to cost-effectively meet the demands of our anticipated growth. Our global fulfillment and logistics network is a key part of our infrastructure, which consists of fulfillment centers and other facilities that are strategically located, designed and equipped to efficiently manage inventory and to fulfill customers orders and other needs. As of June 30, 2026, we leased 38 fulfillment centers with an aggregate gross floor area of approximately 12.4 million square feet in five countries, and two other facilities with storage and showroom functions with an aggregate gross floor area of approximately 107,716 square feet in the U.S. Additionally, we maintain partnerships with several major shipping, trucking and freight service providers to supplement our transportation network and shipping requirements.
Our ability to improve our operational efficiency depends on our ability to invest in our infrastructure and technology platform, including our warehousing and fulfillment solutions and AI technology. We also invest in our research and development personnel for the design, development, and testing of our platform, and incur software development costs for the internal-use software and our group’s websites. We have successfully improved our infrastructure and technology solutions over the past years.
Seasonality
Our business is subject to seasonality. We expect the last quarter of the year to be the most active because of the November and December holiday sales period. Our GigaCloud Marketplace GMV is usually the largest in the fourth quarter of a year. It is uncertain whether this is an indicator of industry trends going forward.
Key Components of Results of Operations
Revenues
We generate service revenues from our GigaCloud 3P business, and product revenues from our GigaCloud 1P, off-platform businesses and others. Service revenues from GigaCloud 3P, including revenues from platform commission, ocean transportation service, drayage service, warehousing service, packaging service, last-mile delivery service and others are generated by facilitating transactions between sellers and buyers in our GigaCloud Marketplace. Product revenues from GigaCloud 1P are generated through the product sales of our inventory through our GigaCloud Marketplace, and product revenues from off-platform are generated from product sales of our inventory to and through third-party ecommerce websites, and to brick-and-mortar retailers.
The following table sets forth the breakdown of our revenues, both in absolute amount and as a percentage of our total revenues, for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| $ | | % | | $ | | % | | $ | | % | | $ | | % |
| (In thousands, except for percentages) |
| (unaudited) |
| Revenues | | | | | | | | | | | | | | | |
| Service revenues | | | | | | | | | | | | | | | |
| Platform commission | $ | 6,245 | | | 1.5 | | | $ | 4,806 | | | 1.5 | | | $ | 11,750 | | | 1.5 | | | $ | 9,141 | | | 1.5 | |
| Ocean transportation service | 10,679 | | | 2.6 | | | 8,312 | | | 2.6 | | | 18,528 | | | 2.4 | | | 19,670 | | | 3.3 | |
| Drayage service | 3,138 | | | 0.8 | | | 3,242 | | | 1.0 | | | 6,288 | | | 0.8 | | | 6,014 | | | 1.0 | |
| Warehousing service | 16,043 | | | 3.9 | | | 13,480 | | | 4.2 | | | 32,110 | | | 4.2 | | | 27,558 | | | 4.6 | |
| Packaging service | 9,282 | | | 2.3 | | | 8,267 | | | 2.6 | | | 18,808 | | | 2.4 | | | 15,517 | | | 2.6 | |
| Last-mile delivery service | 70,039 | | | 17.0 | | | 53,949 | | | 16.7 | | | 139,032 | | | 18.0 | | | 103,193 | | | 17.4 | |
| Others | 5,400 | | | 1.3 | | | 4,868 | | | 1.5 | | | 10,850 | | | 1.4 | | | 9,899 | | | 1.7 | |
| Subtotal | 120,826 | | | 29.4 | | | 96,924 | | | 30.0 | | | 237,366 | | | 30.8 | | | 190,992 | | | 32.1 | |
| Product revenues | | | | | | | | | | | | | | | |
| Off-platform | 192,618 | | | 46.8 | | | 131,176 | | | 40.7 | | | 345,482 | | | 44.8 | | | 227,526 | | | 38.3 | |
| GigaCloud 1P | 98,114 | | | 23.8 | | | 94,209 | | | 29.2 | | | 188,127 | | | 24.4 | | | 175,594 | | | 29.5 | |
| Others | 85 | | | — | | | 297 | | | 0.1 | | | 156 | | | — | | | 400 | | | 0.1 | |
| Subtotal | 290,817 | | | 70.6 | | | 225,682 | | | 70.0 | | | 533,765 | | | 69.2 | | | 403,520 | | | 67.9 | |
| Total | $ | 411,643 | | | 100.0 | | | $ | 322,606 | | | 100.0 | | | $ | 771,131 | | | 100.0 | | | $ | 594,512 | | | 100.0 | |
Revenues reported are attributed to geographic areas based on locations of our fulfillment centers, except for platform commission revenues which are attributed to Hong Kong, where the server of the GigaCloud Marketplace is located. The following table sets forth the breakdown of our revenues by geographic regions for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| (In thousands) |
Revenues by geographic regions: | (unaudited) |
| Hong Kong | $ | 6,245 | | | $ | 4,806 | | | $ | 11,750 | | | $ | 9,141 | |
| Platform commission | 6,245 | | | 4,806 | | | 11,750 | | | 9,141 | |
| United States | 9,379 | | | 8,099 | | | 16,064 | | | 18,896 | |
| Germany | 1,143 | | | 197 | | | 2,234 | | | 758 | |
Others(1) | 157 | | | 16 | | | 230 | | | 16 | |
| Ocean transportation service | 10,679 | | | 8,312 | | | 18,528 | | | 19,670 | |
| United States | 2,361 | | | 3,180 | | | 4,861 | | | 5,891 | |
| Germany | 750 | | | 60 | | | 1,380 | | | 121 | |
Others(1) | 27 | | | 2 | | | 47 | | | 2 | |
| Drayage service | 3,138 | | | 3,242 | | | 6,288 | | | 6,014 | |
| United States | 13,929 | | | 12,966 | | | 28,697 | | | 26,626 | |
| Germany | 1,876 | | | 368 | | | 2,954 | | | 667 | |
Others(1) | 238 | | | 146 | | | 459 | | | 265 | |
| Warehousing service | 16,043 | | | 13,480 | | | 32,110 | | | 27,558 | |
| United States | 8,712 | | | 8,171 | | | 17,834 | | | 15,349 | |
| Germany | 495 | | | 69 | | | 852 | | | 114 | |
Others(1) | 75 | | | 27 | | | 122 | | | 54 | |
| Packaging service | 9,282 | | | 8,267 | | | 18,808 | | | 15,517 | |
| United States | 53,509 | | | 45,607 | | | 107,694 | | | 88,115 | |
| Germany | 14,496 | | | 7,052 | | | 27,729 | | | 12,839 | |
Others(1) | 2,034 | | | 1,290 | | | 3,609 | | | 2,239 | |
| Last-mile delivery service | 70,039 | | | 53,949 | | | 139,032 | | | 103,193 | |
| United States | 4,853 | | | 4,588 | | | 9,696 | | | 8,792 | |
| Germany | 336 | | | 81 | | | 597 | | | 118 | |
Others(1) | 211 | | | 199 | | | 557 | | | 989 | |
| Others | 5,400 | | | 4,868 | | | 10,850 | | | 9,899 | |
| Service revenues | 120,826 | | | 96,924 | | | 237,366 | | | 190,992 | |
| United States | 164,978 | | | 141,452 | | | 291,256 | | | 251,046 | |
| Germany | 94,808 | | | 62,703 | | | 187,519 | | | 114,254 | |
| Japan | 13,231 | | | 12,822 | | | 24,762 | | | 23,601 | |
Others(1) | 17,800 | | | 8,705 | | | 30,228 | | | 14,619 | |
| Product revenues | 290,817 | | | 225,682 | | | 533,765 | | | 403,520 | |
| Total revenues | $ | 411,643 | | | $ | 322,606 | | | $ | 771,131 | | | $ | 594,512 | |
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(1) Other regions mainly include the U.K., Japan, Canada and Hong Kong, with variations across different product/ service lines. No other individual region’s revenues exceeded 10% of our total revenues for the three and six months ended June 30, 2026 and 2025.
Service Revenues—GigaCloud 3P
We derive service revenues primarily through the various 3P activities of sellers and buyers in the GigaCloud Marketplace, including revenues from platform commission, ocean transportation service, drayage service, warehousing service, packaging service, last-mile delivery service and others. When a seller and buyer enter into a transaction in the GigaCloud Marketplace, we generate revenues from platform services by earning a percentage commission depending on the transaction value. The standard commission ranges between 1% and 5%. Additionally, we charge a fulfillment fee for other freight services such as delivery of products via ocean transportation. We charge drayage service fees in connection with transportation of products from ports to warehouses at a flat fee. We charge the sellers storage fees based on the number of days and the size of the products that are stored in our fulfillment centers. We charge packaging fees in connection with merchandise that we pack and ship. We also charge buyers a flat fee for last-mile delivery services for delivery of products to end customers directly from our fulfillment centers, which varies by the weight of the products.
From time to time in the three and six months ended June 30, 2026, when we had excess fulfillment capacity, we utilized such excess fulfillment capacity and our extensive logistics network to offer third-party logistics services to customers to help fulfill their large parcel transportation needs. As we continue to grow our GigaCloud Marketplace, we expect to dedicate our logistics capacity to customers using our marketplace and to products sold on our own marketplace, and will opportunistically provide third-party logistics services when there is excess capacity within our network.
Product Revenues—GigaCloud 1P
We derive product revenues from the sale of our own inventory in our marketplace. Our 1P business creates more products for buyers, gives us insights into seller needs, provides us with proprietary data and increases the velocity of sales in our marketplace.
Product Revenues—Off-platform
We derive product revenues primarily from the sales of our own inventory through two sales models, which are (i) product sales made to third-party ecommerce websites and to brick-and-mortar retailers, or Product Sales to B, such as Wayfair, Amazon, Home Depot, Walmart, Target and Overstock; and (ii) product sales to individual customers through third-party ecommerce websites, or Product Sales to C, such as Amazon, OTTO, Real and Target, where end customers can visit our online stores and purchase directly from us. Regarding Product Sales to B, as expenses charged by these websites are not in exchange for a distinct good or service, the payments to these websites are not recognized as expenses but netted against revenues. With respect to Product Sales to C, expenses incurred for product sales made through these websites are recorded as selling and marketing expenses.
Cost of Revenues
Our cost of revenues primarily consists of cost of services and cost of products. The following table sets forth a breakdown of our cost of revenues, both in absolute amount and as a percentage of our total revenues, for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| $ | | % | | $ | | % | | $ | | % | | $ | | % |
| (In thousands, except for percentages) |
| (unaudited) |
| Cost of revenues | | | | | | | | | | | | | | | |
| Services | $ | 106,715 | | | 25.9 | | | $ | 85,856 | | | 26.6 | | | $ | 213,345 | | | 27.7 | | | $ | 165,012 | | | 27.8 | |
Product | 199,372 | | | 48.4 | | | 159,806 | | | 49.5 | | | 366,384 | | | 47.5 | | | 288,830 | | | 48.6 | |
| Total | $ | 306,087 | | | 74.4 | | | $ | 245,662 | | | 76.1 | | | $ | 579,729 | | | 75.2 | | | $ | 453,842 | | | 76.3 | |
Cost of Services
Cost of services primarily consist of delivery costs, an allocated portion of fulfillment center rental expenses, and costs associated with the operation of the GigaCloud Marketplace.
Cost of Products
Cost of products primarily consists of the purchase price of merchandise, shipping and handling costs for self-owned merchandise, rental expenses for fulfillment centers excluding the portion allocated to cost of service revenue and abnormal capacity, packaging fees and personnel related costs. Shipping and handling costs primarily consist of those costs incurred during the delivery process, including the expenses attributable to shipment and handling activities, when we deliver a good to a customer.
Gross Profit and Margin
The table below sets forth a breakdown of our gross profit and gross profit margin for each of the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| (In thousands, except for percentages) |
| Gross Profit | $ | 105,556 | | $ | 76,944 | | $ | 191,402 | | $ | 140,670 |
| Gross margin (%) | 25.6 | % | | 23.9 | % | | 24.8 | % | | 23.7 | % |
Operating Expenses
Our operating expenses consist of selling and marketing expenses, general and administrative expenses, research and development expenses and losses on disposal of property and equipment. The following table sets forth a breakdown of our operating expenses, both in absolute amount and as a percentage of our total revenues, for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| $ | | % | | $ | | % | | $ | | % | | $ | | % |
| (In thousands, except for percentages) |
| Operating expenses | | | | | | | | | | | | | | | |
| Selling and marketing expenses | $ | 36,182 | | | 8.8 | | | $ | 24,778 | | | 7.7 | | | $ | 67,424 | | | 8.7 | | | $ | 43,336 | | | 7.3 | |
| General and administrative expenses | 19,164 | | | 4.7 | | | 13,031 | | | 4.0 | | | 28,926 | | | 3.8 | | | 27,371 | | | 4.6 | |
| Research and development expenses | 2,691 | | | 0.7 | | | 3,184 | | | 1.0 | | | 5,049 | | | 0.7 | | | 5,677 | | | 1.0 | |
| Losses on disposal of property and equipment | 8 | | | — | | | 108 | | | — | | | 13 | | | — | | | 120 | | | — | |
| Total operating expenses | $ | 58,045 | | | 14.1 | | | $ | 41,101 | | | 12.7 | | | $ | 101,412 | | | 13.2 | | | $ | 76,504 | | | 12.9 | |
Selling and Marketing Expenses
Our selling and marketing expenses primarily consist of staff costs which included share-based compensation, payroll and related expenses for personnel engaged in selling and marketing activities, platform service fees charged by third-party ecommerce websites arising from Product sales to C on Off-platform channels, advertising expenses, traveling expenses and commissions paid to independent sales representatives. Advertising expenses include advertisements through various forms of media and marketing and promotional activities.
The following table sets forth a breakdown of our selling and marketing expenses, both in absolute amount and as a percentage of our total revenues, for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| $ | | % | | $ | | % | | $ | | % | | $ | | % |
| (In thousands, except for percentages) |
| Selling and marketing expenses | | | | | | | | | | | | | | | |
| Staff cost | $ | 15,422 | | | 3.7 | | | $ | 11,938 | | | 3.7 | | | $ | 27,888 | | | 3.6 | | | $ | 19,306 | | | 3.2 | |
Platform service fees | 16,214 | | | 3.9 | | | 10,373 | | | 3.2 | | | 30,544 | | | 4.0 | | | 18,789 | | | 3.2 | |
Advertising expenses | 2,107 | | | 0.5 | | | 1,619 | | | 0.5 | | | 4,217 | | | 0.5 | | | 3,378 | | | 0.6 | |
| Traveling | 524 | | | 0.1 | | | 280 | | | 0.1 | | | 1,061 | | | 0.1 | | | 555 | | | 0.1 | |
| Commission | 464 | | | 0.1 | | | 24 | | | — | | | 922 | | | 0.1 | | | 52 | | — | |
| Others | 1,451 | | | 0.4 | | | 544 | | | 0.2 | | | 2,792 | | | 0.4 | | | 1,256 | | | 0.2 | |
| Total selling and marketing expenses | $ | 36,182 | | | 8.8 | | | $ | 24,778 | | | 7.7 | | | $ | 67,424 | | | 8.7 | | | $ | 43,336 | | | 7.3 | |
General and Administrative Expenses
Our general and administrative expenses primarily consist of staff costs which included share-based compensation, payroll and related costs for employees involved in general corporate functions, professional fees, office supplies and utility, rental and depreciation expenses associated with the use of facilities and equipment by these employees, rental expenses during the initial start-up period in our fulfillment centers and other abnormal capacity costs, property insurance, provision for bad debt and other general corporate expenses.
The following table sets forth a breakdown of our general and administrative expenses, both in absolute amount and as a percentage of our total revenues, for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| $ | | % | | $ | | % | | $ | | % | | $ | | % |
| (In thousands, except for percentages) |
| General and administrative expenses | | | | | | | | | | | | | | | |
| Staff cost | $ | 11,450 | | | 2.8 | | | $ | 7,307 | | | 2.3 | | | $ | 15,587 | | | 2.0 | | | $ | 11,473 | | | 1.9 | |
Professional fees | 1,722 | | | 0.4 | | | 2,223 | | | 0.7 | | | 3,191 | | | 0.4 | | | 5,122 | | | 0.9 | |
| Office supplies and utility | 467 | | | 0.1 | | | 377 | | | 0.1 | | | 859 | | | 0.1 | | | 1,307 | | | 0.2 | |
Rental | 2,013 | | | 0.5 | | | 1,535 | | | 0.5 | | | 3,420 | | | 0.4 | | | 4,515 | | | 0.8 | |
Property insurance | 843 | | | 0.2 | | | 987 | | | 0.3 | | | 1,841 | | | 0.2 | | | 2,027 | | | 0.3 | |
| Donation | — | | | — | | | — | | | — | | | — | | | — | | | 726 | | | 0.1 | |
| Provision for bad debts | 1,643 | | | 0.4 | | | 69 | | | — | | | 1,915 | | | 0.2 | | | 497 | | | 0.1 | |
| Depreciation | 645 | | | 0.2 | | | 466 | | | 0.1 | | | 1,285 | | | 0.2 | | | 1,139 | | | 0.2 | |
| Others | 381 | | | 0.1 | | | 67 | | | — | | | 828 | | | 0.1 | | | 565 | | | 0.1 | |
| Total general and administrative expenses | $ | 19,164 | | | 4.7 | | | $ | 13,031 | | | 4.0 | | | $ | 28,926 | | | 3.8 | | | $ | 27,371 | | | 4.6 | |
Research and Development Expenses
Our research and development expenses primarily consist of IT- and platform-related personnel costs, including share-based compensation expense associated with our engineering, programming, data analytics, and product development personnel responsible for the design, development, and testing of our platform, rental and depreciation expenses associated with the use of facilities and equipment of research and development personnel, and information technology costs.
Losses on Disposal of Property and Equipment
Our losses on disposal of property and equipment primarily consist of the losses on the disposal of old and obsolete property and equipment.
Interest Expense
Our interest expense primarily consists of our financial lease interest expense for leased equipment used in our fulfillment centers and other facilities.
Interest Income
Our interest income primarily consists of interest income from bank deposits, wealth management products and short-term investment.
Foreign Currency Exchange Gains (Losses), Net
Our foreign exchange gains and losses represent the gains or losses due to appreciation or depreciation of the U.S. dollar against the Japanese Yen, the Euro, the Canadian dollar and the British Pound.
Others, net
Others, net primarily consists of credit card cash back.
Income Tax Expense
Our income tax expense primarily consists of current tax expense, deferred tax expense and uncertain tax positions.
Results of Operations
The following table sets forth a summary of our unaudited condensed consolidated results of operations, both in absolute amount and as a percentage of our total revenues, for the periods presented. This information should be read together with our unaudited condensed consolidated financial statements and related notes included elsewhere in this quarterly report. The results of operations in any period are not necessarily indicative of our future trends.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| $ | | % | | $ | | % | | $ | | % | | $ | | % |
| (In thousands, except for percentages) |
| (unaudited) |
| Revenues | | | | | | | | | | | | | | | |
| Service revenues | $ | 120,826 | | | 29.4 | | | $ | 96,924 | | | 30.0 | | | $ | 237,366 | | | 30.8 | | | $ | 190,992 | | | 32.1 | |
| Product revenues | 290,817 | | | 70.6 | | | 225,682 | | | 70.0 | | | 533,765 | | | 69.2 | | | 403,520 | | | 67.9 | |
| Total revenues | 411,643 | | | 100.0 | | | 322,606 | | | 100.0 | | | 771,131 | | | 100.0 | | | 594,512 | | | 100.0 | |
| Cost of revenues | | | | | | | | | | | — | | | | | — | |
| Services | 106,715 | | | 25.9 | | | 85,856 | | | 26.6 | | | 213,345 | | | 27.7 | | | 165,012 | | | 27.8 | |
| Products | 199,372 | | | 48.4 | | | 159,806 | | | 49.5 | | | 366,384 | | | 47.5 | | | 288,830 | | | 48.6 | |
| Total cost of revenues | 306,087 | | | 74.4 | | | 245,662 | | | 76.1 | | | 579,729 | | | 75.2 | | | 453,842 | | | 76.3 | |
| Gross profit | 105,556 | | | 25.6 | | | 76,944 | | | 23.9 | | | 191,402 | | | 24.8 | | | 140,670 | | | 23.7 | |
| Operating expenses | | | | | | | | | | | | | | | |
| Selling and marketing expenses | 36,182 | | | 8.8 | | | 24,778 | | | 7.7 | | | 67,424 | | | 8.7 | | | 43,336 | | | 7.3 | |
| General and administrative expenses | 19,164 | | | 4.7 | | | 13,031 | | | 4.0 | | | 28,926 | | | 3.8 | | | 27,371 | | | 4.6 | |
| Research and development expenses | 2,691 | | | 0.7 | | | 3,184 | | | 1.0 | | | 5,049 | | | 0.7 | | | 5,677 | | | 1.0 | |
| Losses on disposal of property and equipment | 8 | | | — | | | 108 | | | — | | | 13 | | | — | | | 120 | | | — | |
| Total operating expenses | 58,045 | | | 14.1 | | | 41,101 | | | 12.7 | | | 101,412 | | | 13.2 | | | 76,504 | | | 12.9 | |
| Operating income | 47,511 | | | 11.5 | | | 35,843 | | | 11.1 | | | 89,990 | | | 11.7 | | | 64,166 | | | 10.8 | |
| Interest expense | (106) | | | — | | | (32) | | | — | | | (226) | | | — | | | (55) | | | — | |
| Interest income | 3,058 | | | 0.7 | | | 2,814 | | | 0.9 | | | 6,042 | | | 0.8 | | | 5,435 | | | 0.9 | |
| Foreign currency exchange gains (losses), net | (847) | | | (0.2) | | | 647 | | | 0.2 | | | (1,127) | | | (0.1) | | | 1,439 | | | 0.2 | |
| Others, net | 293 | | | 0.1 | | | 1,682 | | | 0.5 | | | 1,147 | | | 0.1 | | | 2,474 | | | 0.4 | |
| Income before income taxes | 49,909 | | | 12.1 | | | 40,954 | | | 12.7 | | | 95,826 | | | 12.4 | | | 73,459 | | | 12.4 | |
| Income tax expense | (7,574) | | | (1.8) | | | (6,402) | | | (2.0) | | | (15,367) | | | (2.0) | | | (11,761) | | | (2.0) | |
| Net income | $ | 42,335 | | | 10.3 | | | $ | 34,552 | | | 10.7 | | | $ | 80,459 | | | 10.4 | | | $ | 61,698 | | | 10.4 | |
Comparison of Three Months Ended June 30, 2026 and 2025
Revenues
Our revenues, which primarily consist of service revenues generated from GigaCloud 3P and product revenues generated from GigaCloud 1P and off-platform sales, increased by 27.6% to $411.6 million in the three months ended June 30, 2026 from $322.6 million in the three months ended June 30, 2025. This increase was primarily due to the increased market recognition and scale of our GigaCloud Marketplace, leading to increases in our GigaCloud Marketplace GMV, sales volume and number of sellers and buyers.
•Service Revenues from GigaCloud 3P. Our service revenues increased by 24.7% to $120.8 million in the three months ended June 30, 2026 from $96.9 million in the three months ended June 30, 2025. This was primarily attributable to:
◦an increase in revenues from last mile delivery services by 29.9% to $70.0 million in the three months ended June 30, 2026 from $53.9 million in the three months ended June 30, 2025 as our GigaCloud Marketplace GMV, pricing and delivery volume continued to increase;
◦an increase in revenues from warehousing services by 19.0% to $16.0 million in the three months ended June 30, 2026 from $13.5 million in the three months ended June 30, 2025 as we increased the number of fulfillment centers to handle more products as our GigaCloud Marketplace GMV continued to increase;
◦an increase in revenues from ocean transportation services by 28.9% to $10.7 million in the three months ended June 30, 2026 from $8.3 million in the three months ended June 30, 2025 due to an increase in the ocean transportation delivery volume and an increase in the pricing of ocean transportation services during the period;
◦an increase in revenues from platform services by 29.2% to $6.2 million in the three months ended June 30, 2026 from $4.8 million in the three months ended June 30, 2025 as our GigaCloud Marketplace GMV continued to increase; and
◦an increase in revenues from packaging services by 12.0% to $9.3 million in the three months ended June 30, 2026 from $8.3 million in the three months ended June 30, 2025 as we handled more products as our GigaCloud Marketplace GMV continued to increase; and
◦an increase in revenues from other services by 10.2% to $5.4 million in the three months ended June 30, 2026 from $4.9 million in the three months ended June 30, 2025, primarily due to an increase in other supplemental fulfillment services provided by our Marketplace compared to the previous period.
•Product Revenues from GigaCloud 1P. Our product revenues from GigaCloud 1P increased by 4.1% to $98.1 million in the three months ended June 30, 2026 from $94.2 million in the three months ended June 30, 2025. The increase was primarily due to increased sales in Europe, Japan and Canada, and the number of buyers as our marketplace continued to grow in scale.
•Product Revenues from Off-platform. Our product revenues from off-platform increased by 46.8% to $192.6 million in the three months ended June 30, 2026 from $131.2 million in the three months ended June 30, 2025, primarily due:
◦an increase in product sales to B channels by 43.6% to $92.5 million in three months ended June 30, 2026 from $64.4 million in three months ended June 30, 2025, primarily due to increased revenues generated from offline sales channels acquired from New Classic, increased sales during the outdoor season and increased sales channels in Europe and the U.S.;
◦an increase in product sales to C by 50.0% to $100.2 million in three months ended June 30, 2026 from $66.8 million in three months ended June 30, 2025, primarily due to the expansion of the number of third-party ecommerce channels through which the Company sells, particularly in Europe, as well as increased sales volume through existing B2C channels.
Cost of Revenues
Our cost of revenues increased by 24.6% to $306.1 million in the three months ended June 30, 2026 from $245.7 million in the three months ended June 30, 2025.
•Our cost of services increased by 24.2% to $106.7 million in the three months ended June 30, 2026 from $85.9 million in the three months ended June 30, 2025, primarily due to:
◦an increase in delivery cost by 25.7% to $74.8 million in the three months ended June 30, 2026 from $59.5 million in the three months ended June 30, 2025 as last mile delivery costs and products handled increased during the period;
◦an increase in rental cost by 19.1% to $20.6 million in the three months ended June 30, 2026 from $17.3 million in the three months ended June 30, 2025 due to more warehousing space and equipment being used for service revenue generating activities; and
◦an increase in staff cost by 29.3% to $7.5 million in the three months ended June 30, 2026 from $5.8 million in the three months ended June 30, 2025 primarily due to increased temporary operating staff to support expanded fulfillment centers operations.
•Our cost of products increased by 24.8% to $199.4 million in the three months ended June 30, 2026 from $159.8 million in the three months ended June 30, 2025, primarily due to:
◦an increase in product cost by 24.5% to $156.2 million in the three months ended June 30, 2026 from $125.5 million in the three months ended June 30, 2025 as sales volume increased during the period;
◦an increase in delivery cost by 39.8% to $14.4 million in the three months ended June 30, 2026 from $10.3 million in the three months ended June 30, 2025 as our sales volume and the pricing of delivery increased during the period;
◦an increase in staff cost by 39.4% to $9.2 million in the three months ended June 30, 2026 from $6.6 million in the three months ended June 30, 2025 as we increased the number of fulfillment centers and temporary operating staff to support expanded fulfillment centers operations; and
◦an increase in rental cost by 16.4% to $17.0 million in the three months ended June 30, 2026 from $14.6 million in the three months ended June 30, 2025 due to more warehousing space and equipment being used for product revenue generating activities.
Gross Profit and Gross Margin
As a result of the foregoing, our gross profit was $105.6 million in the three months ended June 30, 2026 and $76.9 million in the three months ended June 30, 2025. Our gross margin was 25.6% in the three months ended June 30, 2026 compared to 23.9% in the three months ended June 30, 2025. Service gross profit margin increased in the three months ended June 30, 2026 primarily due to improvement in ocean transportation margin and an increase in pricing of last-mile delivery service during the period. Product gross profit margin also increased in the three months ended June 30, 2026 primarily due to increased sales of higher-margin to-C products in Europe.
Selling and Marketing Expenses
Our selling and marketing expenses increased by 46.0% to $36.2 million in the three months ended June 30, 2026 from $24.8 million in the three months ended June 30, 2025, which was primarily due to (i) an increase in platform service fee we incurred on certain third-party ecommerce websites by 55.8% to $16.2 million in the three months ended June 30, 2026 from $10.4 million in the three months ended June 30, 2025 as sales volume and sales channels both increased, and (ii) an increase in staff cost related to selling and marketing personnel by 29.4% to $15.4 million in the three months ended June 30, 2026 from $11.9 million in the three months ended June 30, 2025, primarily relating to an increase in the number of sales and marketing personnel and share-based compensation awards granted during the three months ended June 30, 2026.
General and Administrative Expenses
Our general and administrative expenses increased by 47.7% to $19.2 million in the three months ended June 30, 2026 from $13.0 million in the three months ended June 30, 2025, which was primarily due to (i) an increase in staff cost related to general and administrative personnel by 57.5% to $11.5 million in the three months ended June 30, 2026 from $7.3 million in the three months ended June 30, 2025, primarily relating to share-based compensation awards granted during the three months ended June 30, 2026, partially offset by a decrease in the number of general and administrative personnel, and (ii) an increase in rental expense by 33.3% to $2.0 million in the three months ended June 30, 2026 from $1.5 million in the three months ended June 30, 2025, primarily because expenses relating to certain newly acquired fulfillment centers were included in rental expense before they become fully operational. The increase was partially offset by a decrease in professional service expense by 22.7% to $1.7 million in the three months ended June 30, 2026 from $2.2 million in the three months ended June 30, 2025, as we engaged less professional services for our financial and legal advisors compared to the previous period.
Research and Development Expenses
Research and development expenses decreased by 15.6% to $2.7 million in the three months ended June 30, 2026 from $3.2 million in the three months ended June 30, 2025. The decrease was primarily due a decrease in the number of research and development projects and the number of employees to perform research and development function.
Losses on Disposal of Property and Equipment
We had losses on disposal of property and equipment of $8 thousand in the three months ended June 30, 2026, compared to $108 thousand in the three months ended June 30, 2025.
Interest Expense
We had interest expenses of $106 thousand in the three months ended June 30, 2026 and $32 thousand in the three months ended June 30, 2025.
Interest Income
We had interest income of $3.1 million in the three months ended June 30, 2026 and $2.8 million in the three months ended June 30, 2025. The increase was primarily attributable to higher average bank deposits, wealth management products and investment in the three months ended June 30, 2026 compared to the previous period.
Foreign Currency Exchange Gains (Losses), Net
Foreign currency exchange losses, net were $0.8 million in the three months ended June 30, 2026, primarily attributable to the Euro and the Japanese Yen depreciating against the U.S. dollars in the three months ended June 30, 2026. Foreign currency exchange gains, net were $0.6 million in the three months ended June 30, 2025.
Others, net
Others, net decreased to $0.3 million in the three months ended June 30, 2026 from $1.7 million in the three months ended June 30, 2025, primarily due to payments to be received from legal claims was only recorded in the three months ended June 30, 2025.
Income Tax Expense
We had income tax expense of $7.6 million and $6.4 million in the three months ended June 30, 2026 and 2025, respectively.
Net Income
As a result of the foregoing, our net income was $42.3 million and $34.6 million in the three months ended June 30, 2026 and 2025, respectively.
Comparison of Six Months Ended June 30, 2026 and 2025
Revenues
Our revenues, which primarily consist of service revenues generated from GigaCloud 3P and product revenues generated from GigaCloud 1P and off-platform sales, increased by 29.7% to $771.1 million in the six months ended June 30, 2026 from $594.5 million in the six months ended June 30, 2025. This increase was primarily due to the increased market recognition and scale of our GigaCloud Marketplace, leading to increases in our GigaCloud Marketplace GMV, sales volume and number of sellers and buyers.
•Service Revenues from GigaCloud 3P. Our service revenues increased by 24.3% to $237.4 million in the six months ended June 30, 2026 to $191.0 million in the six months ended June 30, 2025. The increase was attributable to:
◦an increase in revenues from last mile delivery services by 34.7% to $139.0 million in the six months ended June 30, 2026 from $103.2 million in the six months ended June 30, 2025 as our GigaCloud Marketplace GMV, pricing and delivery volume continued to increase;
◦an increase in revenues from warehousing services by 16.3% to $32.1 million in the six months ended June 30, 2026 from $27.6 million in the six months ended June 30, 2025 as we increased the number of fulfillment centers to handle more products as our GigaCloud Marketplace GMV continued to increase;
◦an increase in revenues from packaging services by 21.3% to $18.8 million in the six months ended June 30, 2026 from $15.5 million in the six months ended June 30, 2025 as we handled more products as our GigaCloud Marketplace GMV continued to increase;
◦an increase in revenues from platform services by 29.7% to $11.8 million in the six months ended June 30, 2026 from $9.1 million in the six months ended June 30, 2025 as our GigaCloud Marketplace GMV continued to increase; partially offset by
◦a decrease in revenues from ocean transportation services by 6.1% to $18.5 million in the six months ended June 30, 2026 from $19.7 million in the six months ended June 30, 2025 due to a decrease in the pricing of ocean transportation services compared to the previous period.
•Product Revenues from GigaCloud 1P. Our product revenues from GigaCloud 1P increased by 7.1% to $188.1 million in the six months ended June 30, 2026 from $175.6 million in the six months ended June 30, 2025. The increase was primarily due to increased sales in Europe, Japan and Canada, and the number of buyers as our marketplace continued to grow in scale.
•Product Revenues from Off-platform. Our product revenues from off-platform increased by 51.9% to $345.5 million in the six months ended June 30, 2026 from $227.5 million in the six months ended June 30, 2025, primarily due to:
◦an increase in product sales to B channels by 47.4% to $159.8 million in the six months ended June 30, 2026 from $108.4 million in the six months ended June 30, 2025, primarily due to increased revenues generated from offline sales channels acquired from New Classic, increased sales during the outdoor season and increased sales channels in Europe and the U.S.; and
◦an increase in product sales to C by 55.8% to $185.6 million in the six months ended June 30, 2026 from $119.1 million in the six months ended June 30, 2025, primarily due to the expansion of the number of third-party ecommerce channels through which the Company sells, particularly in Europe, as well as increased sales volume through existing B2C channels.
Cost of Revenues
Our cost of revenues increased by 27.7% to $579.7 million in the six months ended June 30, 2026 from $453.8 million in the six months ended June 30, 2025.
•Our cost of services increased by 29.3% to $213.3 million in the six months ended June 30, 2026 from $165.0 million in the six months ended June 30, 2025, primarily due to:
◦an increase in delivery cost by 31.5% to $149.8 million in the six months ended June 30, 2026 from $113.9 million in the six months ended June 30, 2025 as last mile delivery costs and products handled increased during the period;
◦an increase in rental cost by 22.7% to $41.6 million in the six months ended June 30, 2026 from $33.9 million in the six months ended June 30, 2025 due to more warehousing space and equipment being used for service revenue generating activities;
◦an increase in staff cost by 25.4% to $14.3 million in the six months ended June 30, 2026 from $11.4 million in the six months ended June 30, 2025 primarily due to increased temporary operating staff to support expanded fulfillment centers operations.
•Our cost of products increased by 26.9% to $366.4 million in the six months ended June 30, 2026 from $288.8 million in the six months ended June 30, 2025, primarily due to:
◦an increase in product cost by 25.7% to $285.0 million in the six months ended June 30, 2026 from $226.7 million in the six months ended June 30, 2025 as sales volume increased during the period;
◦an increase in delivery cost by 47.5% to $27.0 million in the six months ended June 30, 2026 from $18.3 million in the six months ended June 30, 2025 as our sales volume and the pricing of delivery increased during the period;
◦an increase in rental cost by 18.3% to $32.3 million in the six months ended June 30, 2026 from $27.3 million in the six months ended June 30, 2025 due to more warehousing space and equipment being used for product revenue generating activities; and
◦an increase in staff cost by 40.2% to $17.1 million in the six months ended June 30, 2026 from $12.2 million in the six months ended June 30, 2025 primarily due to increased temporary operating staff to support expanded fulfillment centers operations.
Gross Profit and Gross Margin
As a result of the foregoing, our gross profit increased by 36.0% to $191.4 million in the six months ended June 30, 2026 from $140.7 million in the six months ended June 30, 2025. Our gross margin was 24.8% in the six months ended June 30, 2026 and 23.7% in the six months ended June 30, 2025. The overall increase in gross profit margin was
impacted by offsetting trends in our product and service segments. Product gross profit margin increased in the six months ended June 30, 2026 primarily due to increased sales through higher-margin customer channels and increased sales of higher-margin products in Europe. This increase was partially offset by a decrease in service gross profit margin primarily due to ocean transportation margin compression as market rates declined.
Selling and Marketing Expenses
Our selling and marketing expenses increased by 55.7% to $67.4 million in the six months ended June 30, 2026 from $43.3 million in the six months ended June 30, 2025, which was primarily due to (i) an increase in platform service fee we incurred on certain third-party ecommerce websites by 62.2% to $30.5 million in the six months ended June 30, 2026 from $18.8 million in the six months ended June 30, 2025 as sales volume and sales channels both increased, (ii) an increase in staff cost related to selling and marketing personnel by 44.6% to $27.9 million in the six months ended June 30, 2026 from $19.3 million in the six months ended June 30, 2025 primarily relating to the increased number of sales and marketing personnel, as well as share-based compensation awards granted during the six months ended June 30, 2026, (iii) an increase in other selling and marketing expenses by 115.4% to $2.8 million in the six months ended June 30, 2026 from $1.3 million in the six months ended June 30, 2025 primarily relating to brand license fees and other sales and marketing activities; and (iv) an increase in commission to $0.9 million in the six months ended June 30, 2026 from $0.1 million in the six months ended June 30, 2025 as we incurred increased commission paid to sales and marketing representatives after the New Classic acquisition.
General and Administrative Expenses
Our general and administrative expenses increased by 5.5% to $28.9 million in the six months ended June 30, 2026 from $27.4 million in the six months ended June 30, 2025, which was primarily due to (i) an increase in staff cost related to general and administrative personnel by 35.7% to $15.6 million in the six months ended June 30, 2026 from $11.5 million in the six months ended June 30, 2025 primarily relating to share-based compensation awards granted at higher fair value compared to the previous period. The increase was partially offset by (ii) a decrease in professional service by 37.3% to $3.2 million in the six months ended June 30, 2026 from $5.1 million in the six months ended June 30, 2025, as we engaged less professional services for our financial and legal advisors compared to the previous period, and (iii) a decrease in rental expense by 24.4% to $3.4 million in the six months ended June 30, 2026 from $4.5 million in the six months ended June 30, 2025, primarily because certain newly acquired fulfillment centers have become fully operational in the six months ended June 30, 2026 and the related expenses were moved from rental expenses to operational costs.
Research and Development Expenses
Research and development expenses decreased by 12.3% to $5.0 million in the six months ended June 30, 2026 from $5.7 million in the six months ended June 30, 2025. The decrease was primarily due a decrease in the number of research and development projects and the number of employees to perform research and development function.
Losses on Disposal of Property and Equipment
We had losses on disposal of property and equipment of $13 thousand in the six months ended June 30, 2026, compared to $120 thousand in the six months ended June 30, 2025.
Interest Expense
We had interest expenses of $226 thousand in the six months ended June 30, 2026 and $55 thousand in the six months ended June 30, 2025.
Interest Income
We had interest income of $6.0 million in the six months ended June 30, 2026 and $5.4 million in the six months ended June 30, 2025. The increase was primarily attributable to higher average bank deposits, wealth management products and investment in the six months ended June 30, 2026 compared to the previous period.
Foreign Currency Exchange Gains (Losses), Net
We had foreign currency exchange losses, net of $1.1 million in the six months ended June 30, 2026, compared to foreign currency exchange gains, net of $1.4 million in the six months ended June 30, 2025, primarily attributable to the Japanese Yen and the Euro depreciating against the U.S. dollars in the six months ended June 30, 2026.
Others, net
Others, net was $1.1 million in the six months ended June 30, 2026 from credit card cash back, and $2.5 million in the six months ended June 30, 2025. The decrease was primarily due to payments to be received from legal claims being only recorded in the six months ended June 30, 2025.
Income Tax Expense
We had income tax expense of $15.4 million and $11.8 million in the six months ended June 30, 2026 and 2025, respectively.
Net Income
As a result of the foregoing, our net income was $80.5 million and $61.7 million in the six months ended June 30, 2026 and 2025, respectively.
Segment Information for the Three and Six Months Ended June 30, 2026 and 2025
For the purpose of internal reporting and management's operation review, we do not segregate our business by revenue stream or geography. Our management has determined that our company has one operating segment. See Note 1, Summary of Significant Accounting Policies, in the notes to the unaudited condensed consolidated financial statements included elsewhere in this quarterly report.
Long-lived assets consist of property and equipment and operating lease right-of-use assets. The geographic information for long-lived assets as of June 30, 2026 and December 31, 2025 was as follows:
| | | | | | | | | | | |
| June 30, 2026 | | December 31, 2025 |
| (In thousands) |
| (unaudited) |
| The United States | $ | 404,485 | | | $ | 407,887 | |
| Others | 90,071 | | | 55,849 | |
| Total long-lived assets | $ | 494,556 | | | $ | 463,736 | |
Revenues reported are attributed to geographic areas based on locations of our fulfillment centers, except for platform commission revenues which are attributed to Hong Kong, where the server of GigaCloud Marketplace is located. The following table sets forth the breakdown of our revenues by geographic regions for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| (In thousands) |
Revenues by geographic regions: | (unaudited) |
| Hong Kong | $ | 6,245 | | | $ | 4,806 | | | $ | 11,750 | | | $ | 9,141 | |
| Platform commission | 6,245 | | | 4,806 | | | 11,750 | | | 9,141 | |
| United States | 9,379 | | | 8,099 | | | 16,064 | | | 18,896 | |
| Germany | 1,143 | | | 197 | | | 2,234 | | | 758 | |
Others(1) | 157 | | | 16 | | | 230 | | | 16 | |
| Ocean transportation service | 10,679 | | | 8,312 | | | 18,528 | | | 19,670 | |
| United States | 2,361 | | | 3,180 | | | 4,861 | | | 5,891 | |
| Germany | 750 | | | 60 | | | 1,380 | | | 121 | |
Others(1) | 27 | | | 2 | | | 47 | | | 2 | |
| Drayage service | 3,138 | | | 3,242 | | | 6,288 | | | 6,014 | |
| United States | 13,929 | | | 12,966 | | | 28,697 | | | 26,626 | |
| Germany | 1,876 | | | 368 | | | 2,954 | | | 667 | |
Others(1) | 238 | | | 146 | | | 459 | | | 265 | |
| Warehousing service | 16,043 | | | 13,480 | | | 32,110 | | | 27,558 | |
| United States | 8,712 | | | 8,171 | | | 17,834 | | | 15,349 | |
| Germany | 495 | | | 69 | | | 852 | | | 114 | |
Others(1) | 75 | | | 27 | | | 122 | | | 54 | |
| Packaging service | 9,282 | | | 8,267 | | | 18,808 | | | 15,517 | |
| United States | 53,509 | | | 45,607 | | | 107,694 | | | 88,115 | |
| Germany | 14,496 | | | 7,052 | | | 27,729 | | | 12,839 | |
Others(1) | 2,034 | | | 1,290 | | | 3,609 | | | 2,239 | |
| Last-mile delivery service | 70,039 | | | 53,949 | | | 139,032 | | | 103,193 | |
| United States | 4,853 | | | 4,588 | | | 9,696 | | | 8,792 | |
| Germany | 336 | | | 81 | | | 597 | | | 118 | |
Others(1) | 211 | | | 199 | | | 557 | | | 989 | |
| Others | 5,400 | | | 4,868 | | | 10,850 | | | 9,899 | |
| Service revenues | 120,826 | | | 96,924 | | | 237,366 | | | 190,992 | |
| United States | 164,978 | | | 141,452 | | | 291,256 | | | 251,046 | |
| Germany | 94,808 | | | 62,703 | | | 187,519 | | | 114,254 | |
| Japan | 13,231 | | | 12,822 | | | 24,762 | | | 23,601 | |
Others(1) | 17,800 | | | 8,705 | | | 30,228 | | | 14,619 | |
| Product revenues | 290,817 | | | 225,682 | | | 533,765 | | | 403,520 | |
| Total revenues | $ | 411,643 | | | $ | 322,606 | | | $ | 771,131 | | | $ | 594,512 | |
_____________________
(1) Other regions mainly include the U.K., Japan, Canada and Hong Kong, with variations across different product/ service lines. No other individual region’s revenues exceeded 10% of our total revenues for the three and six months ended June 30, 2026 and 2025.
Non-GAAP Financial Measure
To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EPS – diluted, to understand and evaluate our core operating performance. Adjusted EBITDA is net income excluding interest, income taxes and depreciation and amortization, further adjusted to exclude share-based compensation expenses. Adjusted EPS – diluted is a financial measure defined as our Adjusted EBITDA divided by our diluted weighted-average shares outstanding. Management uses Adjusted EBITDA and Adjusted EPS – diluted as measures of operating performance, for planning purposes, to allocate resources to enhance the financial performance of our business, to evaluate the effectiveness of our business strategies and in communications with our Board of Directors and investors concerning our financial performance. Non-GAAP financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. The table below sets forth a reconciliation of Adjusted EBITDA for the periods indicated:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| (In thousands) |
| Net income | $ | 42,335 | | | $ | 34,552 | | | $ | 80,459 | | | $ | 61,698 | |
| Add: Income tax expense | 7,574 | | | 6,402 | | | 15,367 | | | 11,761 | |
| Add: Interest expense | 106 | | | 32 | | | 226 | | | 55 | |
| Less: Interest income | (3,058) | | | (2,814) | | | (6,042) | | | (5,435) | |
| Add: Depreciation and amortization | 2,205 | | | 2,140 | | | 4,431 | | | 4,189 | |
| Add: Share-based compensation expense | 11,245 | | | 3,026 | | | 11,590 | | | 4,253 | |
| Adjusted EBITDA | $ | 60,407 | | | $ | 43,338 | | | $ | 106,031 | | | $ | 76,521 | |
The table below sets forth a reconciliation of Adjusted EPS – diluted for the periods indicated:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
Net income per ordinary share – diluted | $ | 1.16 | | | $ | 0.91 | | | $ | 2.19 | | | $ | 1.58 | |
| Adjustments, per ordinary share: | | | | | | | |
| Add: Income tax expense | 0.21 | | | 0.17 | | | 0.42 | | | 0.30 | |
| Add: Interest expense | — | | | — | | | 0.01 | | | — | |
| Less: Interest income | (0.08) | | | (0.07) | | | (0.16) | | | (0.14) | |
| Add: Depreciation and amortization | 0.05 | | | 0.06 | | | 0.11 | | | 0.11 | |
| Add: Share-based compensation expenses | 0.31 | | | 0.07 | | | 0.32 | | | 0.11 | |
| Adjusted EPS – diluted | $ | 1.65 | | | $ | 1.14 | | | $ | 2.89 | | | $ | 1.96 | |
| Weighted average number of ordinary shares outstanding - diluted | 36,546,441 | | | 38,106,956 | | | 36,658,585 | | | 39,117,361 | |
Liquidity and Capital Resources
Liquidity
To date, we have financed our operating and investing activities mainly through cash generated from our business. As of June 30, 2026, we had $334.5 million in cash and cash equivalents, $0.7 million in restricted cash and $43.3 million in short-term investments.
In July 2022, we entered into a two-year credit facility agreement with Wells Fargo Bank, National Association, under which we are able to borrow up to $30 million during the term of the facility. The credit facility also requires us to comply with various customary covenants and other restrictions. The credit facility agreement was first renewed in July 2024, and further renewed in June 2026 with a maturity date of June 30, 2028. As of the date of this quarterly report, we have not made any draw down from this credit facility.
In December 2025, we entered into a credit facility agreement for letter of guarantee with China CITIC Bank, or CITIC Bank, under which we are provided with a credit facility not exceeding RMB60 million, commencing from December 2025 to September 2026. As of the date of this quarterly report, we have not made any draw downs from this credit facility.
We believe our cash on hand will be sufficient to meet our current and anticipated needs for general corporate purposes for at least the next 12 months. We may, however, need additional cash resources in the future if we experience changes in business conditions or other developments. We may also need additional cash resources in the future if we find and wish to pursue opportunities for investment, acquisition, capital expenditure or similar actions. If we determine that our cash requirements exceed the amount of cash we have on hand, we may seek to issue equity or equity-linked securities or obtain debt financing. The issuance and sale of additional equity would result in further dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in amounts or on terms acceptable to us, if at all.
The following table sets forth a summary of our cash flows for the periods presented:
| | | | | | | | | | | |
| Six Months Ended June 30, |
| 2026 | | 2025 |
| (In thousands) |
| (unaudited) |
Summary of Condensed Consolidated Statement of Cash Flow Data: | | | |
| Net cash provided by operating activities | $ | 26,704 | | | $ | 48,042 | |
| Net cash used in investing activities | (28,996) | | | (24,178) | |
| Net cash used in financing activities | (42,598) | | | (46,207) | |
| Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | (414) | | | 2,709 | |
| Net decrease in cash, cash equivalents and restricted cash | $ | (45,304) | | | $ | (19,634) | |
| Cash, cash equivalents and restricted cash at the beginning of the period | $ | 380,540 | | | $ | 260,444 | |
| Cash, cash equivalents and restricted cash at the end of the period | $ | 335,236 | | | $ | 240,810 | |
Operating Activities
Net cash provided by operating activities in the six months ended June 30, 2026 was $26.7 million, as compared to $48.0 million in the six months ended June 30, 2025. This was attributable to net income of $80.5 million, as adjusted by non-cash items and the effects of changes in working capital and other activities. Adjustments to reconcile net income to net cash provided by operating activities primarily consisted of (i) outflow of $22.7 million in inventories due to increased inventory procurement to support increased sales volume and demand, (ii) outflow of $19.2 million in accounts receivables, net due to an increase in sales volume, (iii) outflow of $22.1 million in prepayments and other assets due to a longer lead time before prepaid inventory was received, (iv) outflow of $10.3 million in accounts payable, accrued expenses and other current liabilities primarily due to increases in prepayments during the period, (v) inflow of $11.7 million in operating leases due to timing difference in rental payments for the period; and (vi) outflow of $9.5 million in income tax payable due to tax payments made during the period.
Net cash provided by operating activities in the six months ended June 30, 2025 was $48.0 million. This was attributable to net income of $61.7 million, as adjusted by non-cash items and the effects of changes in working capital and other activities. Adjustments to reconcile net income to net cash provided by operating activities primarily consisted of (i) outflow of $9.7 million in accounts receivables, net due to increase in sales volume, (ii) outflow of $8.9 million in inventories due to increased inventory procurement to support increased sales volume and demand, (iii) outflow of $6.9 million in tax payable due to tax payments made for the period, and (iv) inflow of $3.0 million in operating leases due to initial rent abatement period as we increased the number of fulfillment centers during the period.
Investing Activities
Net cash used in investing activities in the six months ended June 30, 2026 was $29.0 million, consisting of purchases of investments of $42.8 million, acquisitions, net of cash acquired of $14.3 million in connection with the
acquisition of New Classic and cash paid for purchase of property and equipment of $7.8 million, partially offset by cash received from sales and maturities of investments of $35.8 million.
Net cash used in investing activities in the six months ended June 30, 2025 was $24.2 million, consisting of purchases of investments of $67.3 million and cash paid for purchase of property and equipment of $4.0 million, partially offset by cash received from sales and maturities of investments of $47.0 million.
Financing Activities
Net cash used in financing activities in the six months ended June 30, 2026 was $42.6 million, consisting of repurchases of ordinary shares of $42.3 million and repayment of finance lease obligations of $0.3 million.
Net cash used in financing activities in the six months ended June 30, 2025 was $46.2 million, consisting of repurchases of ordinary shares of $46.0 million and repayment of finance lease obligations of $0.2 million.
Share Repurchase Program
On August 13, 2025, the Board approved a new share repurchase program which authorized the repurchase of its Class A ordinary share up to $111.0 million, effective August 17, 2025 for three years (the “2025 Program”). As of August 5, 2026, approximately $29.6 million remained unutilized under the 2025 Program.
On August 5, 2026, the Company’s Board of Directors approved a new $120.0 million share repurchase program (the “2026 Program”). The 2026 Program became effective on August 6, 2026 and will remain in effect for a period of three years, while the 2025 Program was terminated on the same date.
Under the share repurchase program, we may purchase our ordinary shares through various means, including open market transactions, privately negotiated transactions, block trades, any combination thereof or other legally permissible means. We may effect repurchase transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The number of shares repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with our working capital requirements, general business conditions and other factors. Our board of directors will review the share repurchase program periodically, and may modify, suspend or terminate the share repurchase program at any time. We plan to fund repurchases from our existing cash balance.
See “Part II—Item 2—Unregistered Sales of Equity Securities and Use of Proceeds” of this quarterly report on Form 10-Q for more information.
Capital Resources
Our capital expenditures consist primarily of purchase of property and equipment. Our capital expenditures were $7.8 million and $4.0 million in six months ended June 30, 2026 and 2025, respectively. We intend to fund our future capital expenditures with our existing cash balance, short-term investments and anticipated cash flows from operations. We will continue to make well-planned capital expenditures to meet the expected growth of our business.
Contractual Obligations
The following table sets forth our contractual obligations as of June 30, 2026:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Payment Due by Year |
| Total | | Within 2026 | | 2027 – 2029 | | After 2030 |
| (In thousands) |
Lease commitment(1) | | | | | | | |
| Operating leases | $ | 558,302 | | | $ | 71,211 | | | $ | 350,736 | | | $ | 136,355 | |
| Finance leases | 1,555 | | | 365 | | | 1,101 | | | 89 | |
| Total | $ | 559,857 | | | $ | 71,576 | | | $ | 351,837 | | | $ | 136,444 | |
_____________________
(1)Lease commitment consists of the commitments under the lease agreements for our fulfillment centers and storage shelves.
Except for those disclosed above, we did not have any significant capital or other commitments, long-term obligations, or guarantees as of June 30, 2026.
Off-Balance Sheet Commitments and Arrangements
We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any unconsolidated third parties. In addition, we have not entered into any derivative contracts that are indexed to our shares and classified as shareholders’ equity or that are not reflected in our unaudited condensed consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. Moreover, we do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us.
Holding Company Structure
The Cayman Islands currently has no exchange control regulations or currency restrictions which may affect the import or export of capital, including the availability of cash and cash equivalents for use by our company, or the remittance of dividends, interest or other payments to non-resident holders of our securities.
Our company, GigaCloud Technology Inc, is a holding company incorporated in the Cayman Islands. We conduct our operations primarily through our principal subsidiaries. As a result, our ability to pay dividends depends upon dividends paid by our subsidiaries. If our subsidiaries incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us.
In addition, as determined in accordance with local regulations, our subsidiaries in certain of our markets may be restricted from paying us dividends offshore or from transferring a portion of their assets to us, whether in the form of dividends, loans or advances, unless certain requirements are met or regulatory approvals are obtained. In addition, our subsidiaries may be restricted in their ability to pay dividends or distributions or make other transfers to us as a result of the laws of their respective jurisdictions of organization and agreements of our subsidiaries. See “Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities—Dividends” of the 2025 Form 10-K. Even though we currently do not require any such dividends, loans or advances from our entities for working capital and other funding purposes, we may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to our shareholders.
Trend Information
Other than as disclosed elsewhere in this quarterly report, we are not aware of any known trends, uncertainties, demands, commitments or events for the six months ended June 30, 2026 that are reasonably likely to have a material adverse effect on our net revenues, income, profitability, liquidity or capital resources, or that are reasonably likely to cause a material change in the relationship between costs and revenues, or that would cause reported financial information to be not necessarily indicative of future operating results or financial conditions.
Critical Accounting Estimates
We prepare our financial statements in conformity with U.S. GAAP. The preparation of these financial statements requires our management to make estimates and assumptions based on the most recently available information, our own historical experience and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates. For the fiscal quarter ended June 30, 2026, we had not identified critical accounting estimates that involve a significant level of estimation uncertainty and would have a material impact on our results. There have been no material changes to our critical accounting policies and estimates as compared to the critical accounting policies and estimates disclosed in the 2025 Form 10-K.
Recent Accounting Pronouncements
A list of recently issued accounting pronouncements that are relevant to us is included in Note 1 “Recent accounting pronouncements” to our unaudited condensed consolidated financial statements included elsewhere in this quarterly report.