GigaCloud Technology Inc (NASDAQ:GCT) Surpasses Q3 Earnings Estimates, Shares Rally

GigaCloud Technology Inc (NASDAQ:GCT) reported third-quarter financial results that surpassed analyst expectations, driving significant after-hours movement as investors digested the company's performance amid a challenging economic environment. The B2B e-commerce platform provider demonstrated resilience with record quarterly revenue while navigating margin pressures that characterized the period.

Earnings Performance Versus Estimates

The company's third-quarter results revealed a notable outperformance against Wall Street projections. GigaCloud reported revenue of $332.6 million, representing a 9.7% year-over-year increase that comfortably exceeded the $304 million analysts had anticipated. This top-line strength translated to the bottom line, where diluted earnings per share of $0.99 outpaced the $0.76 consensus estimate.

Key financial metrics from the quarter include:

• Revenue: $332.6 million actual versus $304 million estimated
• EPS: $0.99 actual versus $0.76 estimated
• Gross margin: 23.2%, down from 25.5% in the prior-year period
• Net income: $37.2 million, decreased 8.6% year-over-year
• Adjusted EBITDA: $43.4 million, decreased 11.1% year-over-year

Market Reaction and Price Action

Following the earnings release, GigaCloud shares experienced substantial after-hours trading activity, climbing approximately 11.8% as investors responded to the earnings beat. This positive movement contrasts with the stock's recent performance trends, which showed declines over the past month. The strong after-hours reaction suggests market participants viewed the results favorably, particularly given the company's ability to grow revenue and exceed EPS expectations despite margin compression.

Business Highlights and Strategic Initiatives

Beyond the headline financial figures, GigaCloud demonstrated robust operational growth across several key metrics. The company's marketplace gross merchandise value increased 20.7% year-over-year to $1.49 billion for the twelve months ended September 30, 2025. Third-party seller activity showed particular strength, with GMV from these sellers growing 24.4% to $790.4 million and representing 53.1% of total marketplace GMV.

Operational achievements during the period include:

• Active third-party sellers increased 17.2% to 1,232
• Active buyers grew 33.8% to 11,419
• Spend per active buyer reached $130,349
• Cash and equivalents totaled $366.6 million, up from $303.1 million at year-end 2024

The company also announced the planned acquisition of New Classic Home Furnishings for $18 million in cash, a strategic move aimed at expanding GigaCloud's channel-agnostic B2B marketplace and enhancing domestic distribution capabilities.

Forward Guidance and Analyst Expectations

Looking ahead, GigaCloud provided fourth-quarter revenue guidance ranging between $328 million and $344 million. This outlook compares favorably to analyst estimates of $310.6 million for the coming quarter, suggesting management expects continued momentum through year-end. The company's share repurchase program, which has seen $87 million in buybacks since its IPO, remains active under a newly authorized $111 million program.

CEO Larry Wu emphasized the company's resilience, stating, "This quarter reaffirmed the resilience of our diversified business. Through disciplined execution and a robust, debt-free balance sheet that supports our growth initiatives, we continued to scale in a difficult environment and strengthen the foundation for long-term value creation."

For detailed earnings estimates and future projections, view the complete earnings analysis for GigaCloud Technology.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions.