GigaCloud Technology Touts Big-and-Bulky B2B Model at Needham, Highlights 10% Sales Growth

GigaCloud Technology (NASDAQ:GCT) executives used an appearance at the Needham Growth Conference to outline the company’s B2B marketplace model for “big and bulky” goods, highlight recent financial results, and discuss how supply chain changes and regional diversification have shaped performance.

Company background and focus on big-and-bulky commerce

Founder, Chairperson, and CEO Larry Wu described GigaCloud as a B2B marketplace designed to help businesses transact in categories such as furniture, where products are non-standard, logistics-heavy, and the supplier and retailer landscape is fragmented. Wu said the company has operated in e-commerce for 16 years, starting in Japan, later expanding to the U.K., and entering the U.S. in 2013. GigaCloud launched its B2B marketplace service in 2019 and went public in 2022.

Wu also pointed to third-party recognition, including being named by Forbes as the number one U.S.-based company under a $2 billion market cap for 2025 and remaining in the top 20 for 2026, along with recognition from EY (Los Angeles area Entrepreneur of the Year) and mentions from publications including Time Magazine, Newsweek, and Furniture Today.

Latest quarter results, share repurchases, and capital allocation

Wu reviewed what he described as the most recent quarter’s figures, reporting $333 million of revenue, up 10% year over year. He also cited net income of $37 million and said net profit showed a single-digit contraction in absolute dollars due to factors including tariff uncertainty around “Election Day” dynamics and softness in consumer demand.

Despite those pressures, Wu said the company delivered earnings per share of $0.99, up 1% year over year, which he attributed to an “aggressive share repurchase program.” Wu said GigaCloud repurchased roughly 10% of the company over the last 12 months and emphasized that the business is debt-free.

Wu added that operating cash flow exceeded net income in the quarter, with more than $70 million generated from operations compared with $37 million of net profit. He said the company raised about $41 million in its 2022 IPO, and over the subsequent three years had deployed roughly $200 million through share repurchases and acquisitions.

Europe growth offset U.S. softness

Wu said Europe has been a major growth driver, helping counter slower conditions in the U.S. He stated that Europe had represented about 20% of revenue but grew to roughly one-third of total revenue in the quarter discussed (which he identified as Q3 2025), with 70% year-over-year growth in the region.

Asked how Europe strengthened during a period of tariff-related uncertainty, Wu said the company had been diversifying its supply chain for seven to eight years. He said that for products sold into the U.S., 70% now comes from supply chains outside China, which he said helped the company manage tariff-related disruption. Wu also argued that while tariffs can cause near-term disruption and higher prices may hurt demand to some extent, he did not believe there was evidence that higher taxes necessarily compress distributor margins over time.

The Supplier Fulfilled Retailing model and infrastructure

Wu described GigaCloud’s core approach as “Supplier Fulfilled Retailing” (SFR), a trademarked model aimed at improving supply chain efficiency by enabling suppliers to fulfill retail orders directly to consumers, reducing retailer warehousing touchpoints. He said removing the retailer warehouse leg can lower shipping costs and reduce damage by eliminating an extra handling point.

Beyond logistics, Wu said SFR also addresses forecasting and inventory challenges in furniture, where retailers may manage tens of thousands of SKUs with shallow inventory depth, making forecast error costly. Wu argued that keeping inventory with suppliers can reduce variance through a “pooling effect,” similar to risk pooling in insurance, because suppliers serve many retailers and can manage aggregated demand variability more effectively.

Wu said GigaCloud supports the model with physical infrastructure, including 25 U.S. warehouses used for nationwide “load balancing,” allowing inventory allocation and fulfillment to match expected demand. He said the company leases, rather than owns, its warehouse footprint. He added that warehouse expansion has historically been covered by operating cash flow, and noted that while the company is debt-free with $360 million in cash, its balance sheet includes warehouse lease liabilities as a significant component.

Marketplace activity, revenue streams, and take rate

Wu outlined three revenue components:

• 1P, where the company sources inventory and takes inventory risk
• 3P, where third-party sellers place inventory into GigaCloud warehouses and transact with buyers through the platform
• Logistics-related revenue, tied to fulfillment services

On marketplace scale, Wu said GigaCloud has about 1,100 active buyers, with average annual spend of about $130,000. He said the marketplace has roughly 50,000 SKUs, with furniture representing about 70% of total gross merchandise value (GMV), and additional categories including auto parts, toys, and home appliances.

When asked about the company’s take rate, Wu said that in 3P the total take rate—including transaction fees and fulfillment-related revenue—can range from about 35% to above 50% when ocean shipping prices are elevated. He added that, for 1P, all sales revenue is recognized by the company, but that 1P involves inventory risk; he said GigaCloud has longstanding experience managing that risk from its pre-marketplace history.

In discussing the buyer base, Wu said demand is fragmented across both e-commerce resellers—who may sell on marketplaces such as Amazon, Wayfair, eBay, TikTok, Temu—and brick-and-mortar retailers. He added that the furniture retail landscape remains fragmented, with the largest company representing about 10% of the industry.

About GigaCloud Technology (NASDAQ:GCT)

GigaCloud Technology Inc (NASDAQ:GCT) is a China-based provider of software-as-a-service (SaaS) and cloud computing solutions tailored for cross-border e-commerce. The company’s core offering, its Supply Chain Embedded E-commerce as a Service (SCEaaS) platform, integrates procurement, order management, warehousing, logistics and payment services into a unified cloud-based system. This end-to-end digital supply chain solution is designed to help small and medium-sized Chinese exporters efficiently connect with global buyers without the need to build and maintain their own infrastructure.

Through its modular, subscription-based SaaS model, GigaCloud enables merchants to scale operations on demand and minimize upfront capital expenditures.