- Revenue Growth Q2 2025 revenue rose 4% YoY to $323M, with Europe contributing 25% of global revenue.
- Product Revenue Performance Product revenue increased 5% YoY to $226M, driven by the legacy Noble House portfolio.
- Gross Margin Expansion Sequential gross margin improved 174 bps to 29.2% from SKU rationalization and operational efficiencies.
- Service Revenue Challenges Service revenue grew to $97M but was impacted by lower ocean freight revenue and Q2 supply chain disruptions.
- Net Income & Margin Net income reached $35M with a 10.7% net margin, while operating expenses fell to 13% of revenue (vs. 16% prior year).
Product Strength Drives Revenue Growth
Product revenue, the company's core business, grew 5% year-over-year to $226 million. This growth was fueled by outperformance from the legacy Noble House portfolio, indicating successful integration and a resilient customer base.
Service Segment Faces Headwinds
Service revenue, however, experienced slower growth, reaching $97 million. This moderation was attributed to lower ocean freight revenue and temporary supply chain disruptions encountered in April and May.
Looking Ahead: Tariff Challenges and Growth Opportunities
While GigaCloud navigates short-term challenges posed by recent tariff developments, management remains optimistic about long-term growth prospects. The company anticipates a 2.5% gross margin headwind in the third quarter due to these tariffs.
Shareholder Value Creation
Beyond organic growth, GigaCloud is actively pursuing strategic acquisitions and share buybacks to enhance shareholder value. The company ended the quarter with a healthy $300 million in liquidity, providing ample financial flexibility to execute these initiatives.