GigaCloud Technology Inc. GCT used its second-quarter 2026 earnings call to emphasize marketplace scaling and disciplined integration. Founder, chairman and CEO Larry Wu and president Iman Schrock highlighted Europe and New Classic as growth priorities.
Revenues rose 27.6% to $411.6 million, beating the Zacks Consensus Estimate of $383.7 million. Adjusted EPS was $1.65; GAAP EPS of $1.16 topped the Zacks Consensus Estimate of $0.85.
GCT Marketplace Growth Supports the Core Model
President Iman Schrock said that trailing 12-month marketplace GMV increased 21% year over year to $1.7 billion. Active third-party sellers rose 26% to 1,465, and active buyers increased 17% to 12,823.
Schrock highlighted 9% U.S. GMV growth despite declines in the furniture industry. He pointed to the marketplace model, supplier-fulfilled retailing and dynamic pricing as sources of flexibility.
Founder, chairman and CEO Larry Wu said that GigaCloud remains focused on building digital infrastructure for large-parcel B2B transactions across channels and geographies. He emphasized expansion and profitable growth.
GigaCloud Builds Momentum in Europe
Europe was GigaCloud's fastest-growing region. Schrock said that quarterly GMV there increased 66% year over year, while third-party sellers rose more than 400%.
Third-party sellers now account for more than 15% of Europe marketplace GMV, up from 6% a year earlier. Schrock said that the marketplace is progressing from first-party product seeding toward greater third-party participation.
In the Q&A, CFO Erica Wei said that Europe is generating high double-digit growth. Product margins are a strong contributor, while service margins trail the United States because logistics density and scale are less developed.
GCT Advances the New Classic Integration
New Classic generated $16.3 million of second-quarter revenues, and its year-over-year sales decline improved to 8% from about 20% in the first quarter after the acquisition. Schrock said that integration remains on track for completion by mid-next year.
A ROTH Capital Partners analyst asked what is driving the improvement. Erica Wei said that the first two quarters centered on combining teams, systems, processes and operations.
Wei also added that some new products are already being introduced, with a broader pickup expected over several quarters. She pointed to the Noble House timeline, where product activity generally took three to four quarters to build.
GigaCloud Faces Freight and Competitive Questions
Service gross margin improved 3.2 percentage points sequentially to 11.7%. Wei attributed the gain to carrier optimization, responsive pricing and favorable ocean freight dynamics under long-term capacity contracts.
A ROTH Capital Partners analyst asked whether higher spot freight rates could keep supporting margins. Wei said that costs are more visible than market pricing, and higher ocean rates can support service margins while pressuring product economics.
A Maxim Group analyst also asked about Amazon's Supply Chain as a Service. Schrock said GigaCloud differentiates through a large-parcel B2B marketplace combined with integrated logistics and a channel-agnostic fulfillment model.
GCT Sets Q3 Range and Keeps Capital Flexible
GigaCloud expects third-quarter revenues of $375-$400 million. Wei said that the outlook includes New Classic and incorporates continued operational stabilization as integration progresses.
The company repurchased about $30 million of shares during the quarter and another $18 million afterward. It then replaced the prior authorization with a new three-year, $120 million repurchase program.
On M&A, Wei said that New Classic remains the near-term priority. Longer term, she said that GigaCloud could consider distribution businesses, technology additions or European logistics assets, with strategic fit and integration demands guiding decisions.
GigaCloud Maintains a Disciplined Growth Posture
Larry Wu centered his remarks on profitable growth, operational adaptability and controlled expansion. He said GigaCloud intends to keep scaling its marketplace while using its balance sheet and cash generation to support long-term opportunities.
Wu's emphasis, alongside CFO Erica Wei's integration and capital-allocation commentary, kept the near-term focus on Europe, New Classic and disciplined deployment of resources in a challenging furniture environment.
GCT's Zacks Rank and Style Scores
GCT carries a Zacks Rank #3 (Hold). Its Value Score of A and VGM Score of B are the stronger Style Score readings, while its Growth Score of C and Momentum Score of D present a more mixed profile.
The Zacks Style Score is designed to complement the Zacks Rank, with the strongest combinations centered on Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks paired with A or B scores. Because the Rank is driven by earnings-estimate revisions, it can change as analysts update estimates after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here.
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