tiprankstipranks
Trending News
More News >
GigaCloud Technology, Inc. Class A (GCT)
NASDAQ:GCT
US Market
Advertisement

GigaCloud Technology, Inc. Class A (GCT) AI Stock Analysis

Compare
1,823 Followers

Top Page

GCT

GigaCloud Technology, Inc. Class A

(NASDAQ:GCT)

Rating:78Outperform
Price Target:
$32.00
▲(21.07% Upside)
GigaCloud Technology, Inc. scores well due to strong financial performance and attractive valuation, indicating potential for growth. Technical indicators support a bullish outlook, though tariff-related challenges and U.S. sales decline pose risks. The company is actively addressing these issues, but uncertainties remain.
Positive Factors
Financial Performance
GigaCloud Technology reported 2Q25 results with revenue, EBITDA, and EPS topping consensus and estimates.
International Expansion
Solid European growth with GMV up 59% y/y helped offset a decline in U.S. domestic product sales, highlighting international momentum.
Platform Growth
GCT benefits from a network effect with 1,111 active sellers, up 36.3% y/y, and 9,306 active buyers, up 85.7%, on its platform.
Negative Factors
Gross Margin Pressure
Gross margin pressure weighed on adjusted EBITDA due to an increase in fulfillment costs, elevated procurement expenses, and inventory procured at peak ocean freight rates.
Guidance and Market Conditions
Management guided to weaker 1Q25 sales due to challenging market conditions and indicated 2Q25 sales would be lower as a result of planned SKU rationalization efforts.
U.S. Market Challenges
U.S. products revenue declined 17% year-over-year due to SKU rationalization efforts and softness in certain downstream channels.

GigaCloud Technology, Inc. Class A (GCT) vs. SPDR S&P 500 ETF (SPY)

GigaCloud Technology, Inc. Class A Business Overview & Revenue Model

Company DescriptionGigaCloud Technology, Inc. Class A (GCT) is a technology-driven company focusing on the development and provision of innovative cloud computing solutions. Operating within the tech sector, GigaCloud offers various cloud-based services that cater to businesses seeking scalable and efficient computing resources. Its core offerings include infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) solutions that help enterprises optimize their IT operations and drive digital transformation.
How the Company Makes MoneyGigaCloud Technology, Inc. generates revenue primarily through its cloud computing services. The company earns money by providing subscription-based access to its cloud infrastructure, platforms, and software solutions. Key revenue streams include fees from IaaS, PaaS, and SaaS offerings, with customers paying based on usage or subscription tiers. Significant partnerships with enterprise clients and technology integrators also contribute to its earnings, as these collaborations expand its market reach and customer base. Additionally, GigaCloud may engage in strategic partnerships or collaborations with other tech firms to enhance its service offerings and drive growth.

GigaCloud Technology, Inc. Class A Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive revenue growth, successful SKU rationalization, and strategic expansion in Europe. However, these were offset by tariff-related challenges, a decline in U.S. sales, and pressure on service margins. While there are strong growth indicators, the impact of tariffs and related uncertainties pose significant challenges.
Q2-2025 Updates
Positive Updates
Revenue and Bottom Line Growth
Revenue increased by 4% year-over-year, exceeding expectations, and bottom line performance grew by 28% year-over-year.
Marketplace GMV Growth
Marketplace GMV grew by 31% on a trailing 12-month basis, with European GMV up 59% year-over-year.
Expansion and Fulfillment in Europe
Opened an additional fulfillment center in Germany, contributing to Europe representing roughly 1/4 of global revenue with a 59% year-over-year growth in the region.
SKU Rationalization Success
Retired 3,800 outdated SKUs and introduced approximately 1,200 new ones, leading to improved margin profile for Noble House portfolio.
Strong Cash Position and Shareholder Returns
Ended the quarter with nearly $300 million in liquidity, executed $46 million in share buybacks, and maintained a steady liquidity position.
Negative Updates
Tariff-Related Challenges
Faced supply chain disruptions due to tariff hikes in key sourcing countries, leading to temporary shipping halts by 3P partners.
Decline in U.S. Domestic Product Sales
U.S. domestic product sales declined by 11%, with 5% attributable to SKU rationalization and 6% due to industry headwinds.
Service Revenue and Margin Pressure
Service revenue grew modestly by 1%, with service margin down 4.5% sequentially due to lower ocean spot rates and warehousing utilization.
Anticipated Margin Headwinds
Expected around 2.5% gross margin headwind in the coming quarter due to tariff-related cost increases.
Company Guidance
During GigaCloud Technology's Second Quarter 2025 Earnings Conference Call, the company provided guidance for the upcoming third quarter. Total revenue is expected to range between $295 million and $310 million. The company anticipates a gross margin headwind of approximately 2.5% due to recent tariff developments, which affected the cost of products procured during a brief spike in tariffs in April. Despite this, GigaCloud plans to mitigate these cost pressures through targeted price increases, although some temporary impact may persist before the supply chain fully adjusts. The company remains focused on flexibility and maintaining strong supplier relationships to effectively navigate the dynamic tariff environment and optimize sourcing costs.

GigaCloud Technology, Inc. Class A Financial Statement Overview

Summary
GigaCloud Technology, Inc. demonstrates strong financial performance with impressive revenue and profit growth. The income statement is particularly strong, with significant revenue and net profit margin improvements. However, the balance sheet shows room for improvement, particularly in debt management, and the lack of 2024 data limits full assessment.
Income Statement
85
Very Positive
GigaCloud Technology, Inc. has shown impressive revenue growth with Total Revenue increasing significantly over the years, particularly a 65% growth from 2023 to 2024. The Gross Profit Margin in 2024 was approximately 24.6%, demonstrating effective cost management. The Net Profit Margin improved to around 10.8%, indicating strong bottom-line performance. EBIT and EBITDA margins were robust at about 11.2%, reflecting efficient operations.
Balance Sheet
60
Neutral
The balance sheet analysis reveals a cautious approach to debt, with a Debt-to-Equity Ratio of 1.39 in 2023. The company's Return on Equity for 2023 was around 32.4%, showcasing effective use of equity to generate profits. However, the absence of data for 2024 limits further analysis. GCT's Equity Ratio stood at about 34.3% in 2023, indicating a solid capital structure but with room for improvement.
Cash Flow
75
Positive
The cash flow statement highlights strong Free Cash Flow growth, with Free Cash Flow increasing by 10.4% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio was favorable, showing efficient cash generation relative to reported profits. Free Cash Flow to Net Income Ratio was also strong, suggesting sustainable cash flow generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.18B1.16B703.83M490.07M414.20M275.48M
Gross Profit282.41M285.24M188.63M83.11M89.60M75.12M
EBITDA142.67M149.83M119.79M33.77M38.81M45.55M
Net Income125.76M125.81M94.11M23.97M29.26M37.45M
Balance Sheet
Total Assets1.09B1.07B846.91M418.60M186.78M138.34M
Cash, Cash Equivalents and Short-Term Investments251.71M302.43M183.28M143.53M63.20M61.54M
Total Debt471.91M484.28M403.24M145.29M5.27M4.03M
Total Liabilities678.14M665.26M556.49M223.44M60.95M51.57M
Stockholders Equity412.90M405.22M290.42M195.16M125.83M86.77M
Cash Flow
Free Cash Flow138.26M142.54M129.07M48.95M6.73M32.63M
Operating Cash Flow152.20M158.08M133.45M49.66M8.56M33.28M
Investing Cash Flow-38.33M-55.42M-90.55M-709.00K-1.82M-647.00K
Financing Cash Flow-22.81M-24.97M-4.00M31.89M-2.96M23.27M

GigaCloud Technology, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.43
Price Trends
50DMA
23.60
Positive
100DMA
19.59
Positive
200DMA
19.55
Positive
Market Momentum
MACD
1.58
Positive
RSI
47.99
Neutral
STOCH
6.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCT, the sentiment is Positive. The current price of 26.43 is below the 20-day moving average (MA) of 27.75, above the 50-day MA of 23.60, and above the 200-day MA of 19.55, indicating a neutral trend. The MACD of 1.58 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 6.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GCT.

GigaCloud Technology, Inc. Class A Risk Analysis

GigaCloud Technology, Inc. Class A disclosed 84 risk factors in its most recent earnings report. GigaCloud Technology, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

GigaCloud Technology, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.05B8.4533.76%21.20%19.41%
67
Neutral
$690.37M21.0811.27%5.76%28.93%
65
Neutral
$670.51M32.2457.39%12.86%
65
Neutral
$494.35M6.28-94.58%-1.23%-11.22%
61
Neutral
$35.62B7.50-10.94%1.87%8.86%-10.27%
58
Neutral
$506.27M-15.33%1.45%-28.78%
$431.17M-15.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GCT
GigaCloud Technology, Inc. Class A
26.43
6.33
31.49%
RPAY
Repay Holdings
5.88
-2.56
-30.33%
PRTH
Priority Technology Holdings
8.33
2.34
39.07%
CCSI
Consensus Cloud Solutions
26.67
2.60
10.80%
CINT
CI&T
5.40
-1.38
-20.35%
ATGL
Alpha Technology Group Ltd.
30.08
27.97
1325.59%

GigaCloud Technology, Inc. Class A Corporate Events

Executive/Board ChangesStock Buyback
GigaCloud Technology Announces New Board Appointment
Neutral
Aug 18, 2025

On August 12, 2025, Lorri Kelley announced her resignation from GigaCloud Technology Inc’s Board of Directors, effective August 16, 2025. Kelley, who served as Chair of the Nominating and Corporate Governance Committee, will remain as an advisor until September 30, 2025. Her departure was voluntary and not due to any disagreements with the company. Subsequently, on August 13, 2025, the Board appointed Kerry Lebensburger, a seasoned furniture industry executive, to fill the vacancy, effective August 17, 2025. In addition, the Board approved a new share repurchase program on August 13, 2025, authorizing the repurchase of up to $111 million in Class A ordinary shares, effective August 17, 2025, for three years, replacing the previous program.

Shareholder Meetings
GigaCloud Technology Holds Annual Shareholder Meeting
Neutral
Jul 14, 2025

On July 11, 2025, GigaCloud Technology, Inc. held its Annual Meeting where shareholders voted on three key proposals. The meeting had a quorum with 83.96% of voting power present. Shareholders ratified the appointment of KPMG Huazhen LLP as the independent auditor for the fiscal year ending December 31, 2025. They also approved the compensation of the Named Executive Officers and decided on a three-year frequency for future advisory votes on executive compensation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025