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GigaCloud Technology, Inc. Class A (GCT)
NASDAQ:GCT
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GigaCloud Technology, Inc. Class A
(NASDAQ:GCT)
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Rating:75Outperform
Price Target:
$53.00
▲(12.81% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by strong financial performance (profitable growth and robust free cash flow) and a supportive earnings outlook with solid liquidity and active buybacks. Valuation is also favorable with a low P/E. Technicals are positive on trend but tempered by mixed momentum signals (negative MACD and elevated RSI), and margin sensitivity (service-margin pressure and freight-rate uncertainty) remains a key risk.
Positive Factors
Strong Free Cash Flow
GigaCloud's 2025 operating cash flow (~$191M) and FCF (~$183M), with FCF roughly 96% of net income, indicate durable cash generation. This high-quality cash flow funds reinvestment, bolt‑on M&A, and buybacks, lowering reliance on external financing and supporting strategic flexibility over months.
Marketplace Scale & GMV Growth
GMV growth (~18% TTM) alongside a 17% increase in 3P sellers and higher GMV per seller reflects expanding network effects. A larger buyer/seller base increases stickiness, drives recurring transaction volumes and services take‑rate opportunities, supporting durable marketplace revenue and competitive advantage.
Repeatable M&A & Ecosystem Expansion
The cash‑funded New Classic deal and the turnaround of Noble House demonstrate an effective M&A/integration playbook. Bolt‑on acquisitions deepen retailer relationships, expand SKU assortments and use existing fulfillment capabilities, strengthening distribution scale and long‑term go‑to‑market reach.
Negative Factors
Rising Leverage
FinancialAnalysis notes debt roughly equaled equity in 2025 (debt/equity ~1.0), a meaningful increase from prior years. Elevated leverage reduces balance‑sheet flexibility, raises interest and refinancing exposure, and limits the company's cushion to absorb operational shocks or fund opportunistic investments.
Service Margin Volatility
Service margins are structurally exposed to freight cycles and last‑mile cost swings; Q4 service margin fell about three percentage points. This logistics sensitivity makes service revenue and gross margins cyclical and harder to sustainably predict, posing recurring profitability risk for services.
Elevated Sales & Marketing Spend
Higher S&M (8% of revenue) reflects costly expansion—notably in Europe—and channel investments. While necessary to scale, persistent elevated go‑to‑market spending can compress operating margins during rollouts and creates ongoing reinvestment needs that may limit near‑term margin recovery.
GigaCloud Technology, Inc. Class A (GCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.28B
Dividend YieldN/A
Average Volume (3M)460.60K
Price to Earnings (P/E)10.6
Beta (1Y)1.67
Revenue Growth10.17%
EPS Growth4.97%
CountryUS
Employees1,561
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.04
Shares Outstanding28,980,013
10 Day Avg. Volume385,289
30 Day Avg. Volume460,604
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)3.09
Price to Sales (P/S)1.16
P/FCF Ratio8.20
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit4.77
Enterprise Value/Ebitda9.90
Forecast
1Y Price Target
$54.50Price Target Upside16.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.31
Revenue Forecast (FY)$1.35B
GigaCloud Technology, Inc. Class A Business Overview & Revenue Model
Company DescriptionGigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was founded in 2006 and is headquartered in Suzhou, China.
How the Company Makes MoneyGigaCloud Technology generates revenue primarily through subscription fees for its cloud services and transaction fees from its e-commerce platform. The company charges merchants a monthly subscription for access to its tools and services, which include website hosting, payment processing, and customer management. Additionally, GCT earns revenue from logistics services, such as warehousing and shipping, which are often bundled with its e-commerce solutions. Strategic partnerships with major shipping carriers and payment processors also enhance its service offerings, creating additional revenue streams. Furthermore, GCT may benefit from value-added services and premium features that merchants can opt into, contributing further to its earnings.
GigaCloud Technology, Inc. Class A Key Performance Indicators (KPIs)
GigaCloud Technology, Inc. Class A Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call highlighted strong, broad-based operational and financial progress: record revenue and EPS, double-digit full-year growth, marketplace GMV expansion, successful M&A (Noble House stabilization and New Classic acquisition), robust Europe performance, solid product revenue growth, healthy cash/liquidity and active buybacks. Key near-term challenges center on service-margin pressure driven by lower ocean spot rates and peak-season last-mile costs, increased sales & marketing spend for expansion, and the transitory disruptions from portfolio rationalizations. Management expects some sequential recovery in service margins but flagged uncertainty around ocean freight rates and that Europe’s exceptional growth will moderate. Overall, positive operational momentum and capital strength outweigh the identifiable margin and macro-related risks.Q4-2025 Updates
Positive Updates
Record Revenue and EPS
Full year 2025 revenue rose 11% to $1.3 billion and quarterly revenue in Q4 was $363 million, up 23% year-over-year. Quarterly diluted EPS grew 37% to $1.04 and full year diluted EPS increased 18% to $3.59.
Marketplace GMV and Seller/Buyer Growth
Trailing 12-month marketplace GMV increased approximately 18% to nearly $1.6 billion. The 3P seller base expanded 17% year-over-year to 1,299 sellers; GMV from that seller base grew 23% to $851 million. The buyer base grew by nearly 2,800 net new buyers in 2025 to 12,089 total buyers.
Strong Product Revenue Performance
Product revenue increased 24% year-over-year in Q4 to $234 million. U.S. product revenue was $121 million, up 3% year-over-year despite a challenging backdrop. Noble House portfolio delivered over 40% year-over-year quarterly growth in Q4 following SKU rationalization.
Europe Expansion Driving Growth
Europe was a major growth vector with 68% revenue growth from 2024 to 2025. Europe product revenue rose 64% year-over-year to $98 million and Europe product margins expanded 220 basis points sequentially to 32.1%. Company expanded to seven facilities in Europe.
Successful M&A and Integration Playbook
Noble House acquisition (Q4 2023) turned from a company losing ~$40 million/year into profitability and growth, stabilized ahead of plan (stabilized in Q4 2025 vs original goal Q2 2026). New Classic was acquired on Jan 1 for $18 million cash and is being integrated with a six-quarter target; management expects initial revenue contribution in Q1 to be in the mid-teens (as stated).
Strong Profitability and Margins
Total gross margin for the quarter was 22.9%. Net income for Q4 was $38.5 million, a 24% increase year-over-year, with net income margin of 10.6%.
Cash Generation, Liquidity and Capital Allocation
Operating cash flow in Q4 was $64 million. The company ended the quarter with total liquidity of $417 million and is debt-free. Share repurchase activity: $33 million executed against a $111 million program (30% of the plan) at a weighted average price of $31.60 per share.
Service Revenue Growth
Service revenue increased 21% year-over-year to $129 million in Q4, driven by higher last-mile activity, packaging service revenue, and commissions reflecting larger transaction volumes and increased use of fulfillment services.
Negative Updates
Service Margin Compression and Ocean Rate Pressure
Service margin declined sequentially by three percentage points to 6% in Q4, driven by peak-season ground fulfillment surcharges and materially lower ocean spot rates in Q4 2025 versus Q4 2024, which reduced ocean service revenue and margins despite moving more containers.
Gross Margin Volatility
Overall gross margin was down slightly sequentially (though up year-over-year); management noted typical Q4 to Q1 sequential pressure from holiday-related last-mile surcharges with an expected partial recovery in Q1.
Increased Sales & Marketing Spend
Sales and marketing expense increased to $29 million, representing 8% of revenue vs 6% in prior-year Q4, due to higher channel-related advertising and staffing costs tied to European expansion.
Noble House Short-Term Disruption During Turnaround
Noble House experienced declines in the first half of 2025 during SKU rationalization (it had been losing close to $40 million/year pre-acquisition), requiring a period of lower revenue before the return to growth and profitability in H1/H2 2025.
Europe Growth Not Expected to Sustain at Current Pace
Management cautioned that Europe will not indefinitely grow at the ~68% rate and expects gradual slowing over time, implying future topline deceleration risk from this primary growth driver.
Uncertainty Around Ocean Freight Outlook
Management explicitly stated they cannot predict future ocean spot rates; current rates are at relatively low levels and remain a source of margin volatility and revenue uncertainty for service lines.
Service/Product Guidance Granularity
Company did not provide a detailed product vs service revenue split for Q1 guidance, and indicated limited visibility on how ocean freight dynamics will impact service gross margin beyond expecting a modest sequential recovery from last-mile cost normalization.
Company Guidance
Management guided first-quarter revenue of $330–$355 million, saying the New Classic acquisition is included and should contribute in the "mid‑teens" (percent) of Q1 revenue, with product and service expected to grow at similar rates; they also expect some sequential recovery in service gross margin from the Q4 level of about 6% (down ~3 points sequentially) as last‑mile costs ease and modest pricing actions take hold. For context, Q4 revenue was $363 million (+23% YoY) and full‑year revenue was $1.3 billion (+11%), Q4 diluted EPS was $1.04 (full‑year $3.59), Q4 operating cash flow was $64 million, total Q4 gross margin was 22.9% (product margin 32.1%, up 220 bps sequential), net income was $38.5 million (net margin 10.6%), Europe product revenue was $98 million (+64% YoY), Noble House grew >40% in Q4, and the company finished with $417 million of liquidity, no debt, and an active $111 million repurchase program of which $33 million has been executed at a weighted average price of $31.60 (≈30% of the plan).GigaCloud Technology, Inc. Class A Financial Statement Overview
Summary
Strong scale and profitability with robust 2025 operating cash flow (~$191M) and free cash flow (~$183M) and solid earnings quality. Offsetting factors include margin compression versus prior peaks, softer recent free-cash-flow growth, and a higher-risk balance-sheet profile per the provided leverage commentary.Income Statement
Revenue has scaled rapidly over the last several years (from ~$275M in 2020 to ~$1.29B in 2025), with 2025 still posting solid growth versus 2024. Profitability remains strong with a ~10.6% net margin in 2025 and healthy operating profitability, but margins have generally compressed from earlier peak levels (2023–2024 to 2025), suggesting increased costs/competition as the business scales.78
Positive
Balance Sheet
Equity has grown meaningfully (to ~$486M in 2025), and returns on equity are strong (~28% in 2025), indicating efficient profit generation. However, leverage has risen sharply versus 2020–2021 levels, with debt roughly matching equity in 2025 (debt-to-equity ~1.0). This increases financial risk and reduces balance-sheet flexibility if operating conditions weaken.62
Positive
Cash Flow
Cash generation is a clear strength: operating cash flow (~$191M) and free cash flow (~$183M) in 2025 are both robust, and free cash flow is close to net income (roughly 96%), indicating solid earnings quality. The main offsets are a decline in free cash flow growth in 2025 and only moderate cash conversion versus revenue (operating cash flow at ~56% of revenue), implying working-capital needs or reinvestment demands can meaningfully influence cash results.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.29B | 1.16B | 703.83M | 490.07M | 414.20M |
| Gross Profit | 300.67M | 285.24M | 188.63M | 83.11M | 89.60M |
| EBITDA | 144.98M | 149.83M | 119.11M | 33.12M | 38.81M |
| Net Income | 137.37M | 125.81M | 94.11M | 23.97M | 29.26M |
Balance Sheet | |||||
| Total Assets | 1.20B | 1.07B | 846.91M | 418.60M | 186.78M |
| Cash, Cash Equivalents and Short-Term Investments | 379.78M | 302.43M | 183.28M | 143.53M | 63.20M |
| Total Debt | 469.34M | 484.28M | 403.24M | 148.21M | 5.27M |
| Total Liabilities | 716.66M | 665.26M | 556.49M | 223.44M | 60.95M |
| Stockholders Equity | 485.80M | 405.22M | 290.42M | 195.16M | 125.83M |
Cash Flow | |||||
| Free Cash Flow | 182.79M | 142.54M | 129.07M | 48.95M | 6.73M |
| Operating Cash Flow | 190.66M | 158.08M | 133.45M | 49.66M | 8.56M |
| Investing Cash Flow | -5.09M | -55.42M | -90.55M | -709.00K | -1.82M |
| Financing Cash Flow | -67.78M | -24.97M | -4.00M | 31.89M | -2.96M |
GigaCloud Technology, Inc. Class A Technical Analysis
Positive
46.98
Price Trends
39.43
Positive
35.55
Positive
29.52
Positive
Market Momentum
-0.45
Negative
69.33
Neutral
57.18
Neutral
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 46.98 is above the 20-day moving average (MA) of 37.77, above the 50-day MA of 39.43, and above the 200-day MA of 29.52, indicating a bullish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 69.33 is Neutral, neither overbought nor oversold. The STOCH value of 57.18 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.28B | 10.59 | 30.27% | ― | 10.17% | 4.97% | |
70 Outperform | $1.36B | 33.32 | 19.01% | 1.33% | 10.27% | 3.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $666.30M | ― | 16.74% | ― | 9.46% | ― | |
49 Neutral | $403.27M | 17.44 | 27.12% | ― | 3.08% | -54.07% |
* Technology Sector Average
GCT
GigaCloud Technology, Inc. Class A
46.98
29.52
169.07%
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GigaCloud Technology, Inc. Class A Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
GigaCloud Technology Posts Record Q4 and 2025 Results
Positive
Feb 26, 2026
On February 26, 2026, GigaCloud Technology reported record fourth-quarter and full-year 2025 results, with Q4 revenue up 22.7% to $362.7 million and diluted EPS climbing 36.8% to $1.04. Full-year revenue rose 11.1% to $1.29 billion and diluted EPS increased 17.7% to $3.59, while marketplace GMV grew 17.5% to $1.58 billion on double-digit gains in active sellers and buyers.
Management highlighted strong cash generation and a debt-free balance sheet, with $416.9 million in cash and investments at year-end 2025 underpinning continued investment and capital returns. The company is executing a $111 million three-year share repurchase program approved in August 2025, has already bought back shares under the plan, and issued first-quarter 2026 revenue guidance of $330 million to $355 million, underscoring confidence in its diversified growth strategy.
The most recent analyst rating on (GCT) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on GigaCloud Technology, Inc. Class A stock, see the GCT Stock Forecast page.
Business Operations and StrategyM&A Transactions
GigaCloud completes acquisition of New Classic Home Furnishings
Positive
Jan 2, 2026
On January 2, 2026, GigaCloud Technology Inc completed the acquisition of New Classic Home Furnishings, Inc., a U.S.-based distributor serving the home furnishings market, for $18 million on a debt-free basis, including a post-closing earn-out, funded from existing cash and unanimously approved by its board. Founded over 25 years ago and serving more than 1,000 retailer customers with a portfolio exceeding 2,000 SKUs, New Classic is expected to strengthen GigaCloud’s ecosystem by expanding its wholesale operations, deepening retailer relationships and enhancing product assortment as the company integrates New Classic’s retailer network into its technology-enabled marketplace and fulfillment capabilities, potentially improving GigaCloud’s competitive position in large-parcel commerce and offering retailers more efficient ways to operate in a dynamic trading environment.
The most recent analyst rating on (GCT) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on GigaCloud Technology, Inc. Class A stock, see the GCT Stock Forecast page.
M&A Transactions
GigaCloud Technology Announces Acquisition of New Classic
Positive
Dec 3, 2025
On December 3, 2025, GigaCloud Technology Inc announced a definitive agreement to acquire New Classic Home Furnishings, Inc. for $18 million. The acquisition, funded from existing cash, is expected to close on January 2, 2026, following customary conditions, and has been unanimously approved by GigaCloud’s Board of Directors.
The most recent analyst rating on (GCT) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on GigaCloud Technology, Inc. Class A stock, see the GCT Stock Forecast page.
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.