GigaCloud Technology Inc

Previous wording

We monitor the following key financial and operating metrics to evaluate the growth of our GigaCloud Marketplace, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions.

Current wording

We monitor the following key financial and operating metrics to evaluate the growth of our GigaCloud Marketplace, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. The financial impact from the acquisition of New Classic was reflected in our unaudited condensed consolidated financial results since the completion of the acquisition in the first quarter of 2026. In the third quarter of 2026, we introduced New Classic-related SKUs to our GigaCloud Marketplace, which contributed to a one-time uplift in our operating metrics. The operating impact from the acquisition has been reflected in the operating metrics in our GigaCloud Marketplace since September 4, 2026.

Previous wording

GigaCloud Marketplace GMV increased to $1,744.8 million in the 12 months ended June 30, 2026 from $1,438.5 million in the 12 months ended June 30, 2025, representing a growth of 21.3% period-over-period, primarily due to the continued increase in the numbers of sellers and buyers transacting in our marketplace as our marketplace continued to gain scale and market position.

Current wording

GigaCloud Marketplace GMV increased to $1,846.2 million in the 12 months ended September 30, 2026 from $1,488.5 million in the 12 months ended September 30, 2025, representing a growth of 24.0% period-over-period, primarily due to the continued increase in the numbers of sellers and buyers transacting in our marketplace as our marketplace continues to gain scale and market position. In the third quarter of 2026, we introduced New Classic-related SKUs to our GigaCloud Marketplace, which contributed to approximately $2.7 million of GMV in the three months ended September 30, 2026.

Previous wording

The number of active 3P sellers in the GigaCloud Marketplace increased to 1,465 in the 12 months ended June 30, 2026 from 1,162 in the 12 months ended June 30, 2025, representing an increase of 26.1% period-over-period. We view active 3P sellers as a key driver of the product catalog in our marketplace, which helps attract and retain buyers. The GigaCloud Marketplace offers SKUs across furniture, home appliances, fitness equipment and other large parcel categories from our active 3P sellers. The number of SKUs from active 3P sellers was over 50,000 as of June 30, 2026. We expect to grow the number of active 3P sellers through geographic expansion, suppliers outreach, marketing initiatives, referrals and word-of-mouth. We also leverage our 1P inventory sales to establish new markets, reducing the risk in geographic expansion for new sellers, and increasing the appeal for new sellers to join our marketplace.

Current wording

The number of active 3P sellers in the GigaCloud Marketplace increased to 1,507 in the 12 months ended September 30, 2026 from 1,232 in the 12 months ended September 30, 2025, representing an increase of 22.3% period-over-period. We view active 3P sellers as a key driver of the product catalog in our marketplace, which helps attract and retain buyers. The GigaCloud Marketplace offers SKUs across furniture, home appliances, fitness equipment and other large parcel categories from our active 3P sellers. The number of SKUs from active 3P sellers was over 50,000 as of September 30, 2026. We expect to grow the number of active 3P sellers through geographic expansion, suppliers outreach, marketing initiatives, referrals and word-of-mouth. We also leverage our 1P inventory sales to establish new markets, reducing the risk in geographic expansion for new sellers, and increasing the appeal for new sellers to join our marketplace.

Previous wording

3P Seller GigaCloud Marketplace GMV represents the GMV our 3P Sellers transact in the GigaCloud Marketplace. 3P Seller GigaCloud Marketplace GMV increased to $962.3 million in 12 months ended June 30, 2026 from $757.5 million in the 12 months ended June 30, 2025, representing an increase of 27.0% period-over-period as our marketplace continued to gain scale and market position. 3P Seller GigaCloud Marketplace GMV represented 55.2% and 52.7% of total GigaCloud Marketplace GMV in the 12 months ended June 30, 2026 and June 30, 2025, respectively.

Current wording

3P Seller GigaCloud Marketplace GMV represents the GMV our 3P Sellers transact in the GigaCloud Marketplace. 3P Seller GigaCloud Marketplace GMV increased to $1,032.2 million in the 12 months ended September 30, 2026 from $790.4 million in 12 months ended September 30, 2025, representing an increase of 30.6% period-over-period. 3P Seller GigaCloud Marketplace GMV represented 55.9% and 53.1% of total GigaCloud Marketplace GMV in the 12 months ended September 30, 2026 and September 30, 2025, respectively.

Previous wording

The number of active buyers in the GigaCloud Marketplace increased to 12,823 in the 12 months ended June 30, 2026 from 10,951 in the 12 months ended June 30, 2025, representing an increase of 17.1% period-over-period as our marketplace continued to gain scale and market position. We view the number of active buyers as a key driver of GMV and revenue for our GigaCloud Marketplace. We plan to expand our active buyers by enhancing our marketplace product offerings and leveraging referrals from existing users.

Current wording

The number of active buyers in the GigaCloud Marketplace increased to 13,837 in the 12 months ended September 30, 2026 from 11,419 in the 12 months ended September 30, 2025, representing an increase of 21.2% period-over-period as our marketplace continued to gain scale and market position. We view the number of active buyers as a key driver of GMV and revenue for our GigaCloud Marketplace. We plan to expand our active buyers by enhancing our marketplace product offerings and leveraging referrals from existing users.

Previous wording

The spend per active buyer in our GigaCloud Marketplace was $136,069 in the 12 months ended June 30, 2026 and $131,359 in the 12 months ended June 30, 2025, representing an increase of 3.6% period-over-period. Spend per active buyer is a key driver of GMV and revenue for our GigaCloud Marketplace. We generally grow our spend per active buyer by expanding our product offerings, increasing buyer’s purchase frequency and raising the average price per purchase. Spend per active buyer for the 12 months ended June 30, 2026 increased compared to the previous period, primarily due to increased GMV and a greater spending by both new and existing buyers. As our GigaCloud Marketplace continued to gain scale and market position with newly onboarded buyers, we expect an upward trajectory in spend per active buyer, subject to any fluctuation from period to period depending on buyer mix, promotional activity, and broader market conditions.

Current wording

The spend per active buyer in our GigaCloud Marketplace was $133,425 and $130,349 in the 12 months ended September 30, 2026 and September 30, 2025, respectively, representing an increase of 2.4% period-over-period. Spend per active buyer is a key driver of GMV and revenue for our GigaCloud Marketplace. We generally grow our spend per active buyer by expanding our product offerings, increasing buyers’ purchase frequency and raising the average price per purchase. Spend per active buyer for the 12 months ended September 30, 2026 increased compared to the 12 months ended September 30, 2025, primarily due to increased GMV and a greater spending by both new and existing buyers. As our GigaCloud Marketplace continued to gain scale and market position with newly onboarded buyers, we expect an upward trajectory in spend per active buyer, subject to any fluctuation from period to period depending on buyer mix, promotional activity, and broader market conditions.

Previous wording

Our number of active 3P sellers was 1,465 in the 12 months ended June 30, 2026, compared to 1,162 in the 12 months ended June 30, 2025, representing an increase of 26.1% compared to the previous period. We believe this increasing trend will continue because of the growing recognition of our marketplace, our seller-friendly comprehensive fulfillment and logistics network which enables hassle-free delivery of large parcel merchandise and our expansion into new markets.

Current wording

Our number of active 3P sellers was 1,507 in the 12 months ended September 30, 2026, compared to 1,232 in the 12 months ended September 30, 2025, representing an increase of 22.3% from 12 months ended September 30, 2025. We believe this increasing trend will continue because of the growing recognition of our marketplace, our seller-friendly comprehensive fulfillment and logistics network which enables hassle-free delivery of large parcel merchandise and our expansion into new markets.

Previous wording

Buyers in our marketplace are typically resellers operating in the U.S., Europe and Japan who procure large parcel merchandise to resell to other retailers or to end customers. Our marketplace is attractive to buyers because we minimize inventory risk from our buyers’ business operations. As of June 30, 2026, the number of SKUs from GigaCloud 1P was over 40,000. Combined with the SKUs offered by active 3P sellers, buyers had access to more than 90,000 SKUs in total. Our buyers can browse a product in our marketplace and list the product on their preferred ecommerce websites such as Wayfair, Amazon, Home Depot, Walmart, Target and Overstock, or their own store prior to procuring and storing the product in a warehouse or shop. Once a sale to a retailer or end customer takes place, buyers can order the product in our marketplace and we will handle the fulfillment directly to the retailer or end customer.

Current wording

Buyers in our marketplace are typically resellers operating in the U.S., Asia and Europe who procure large parcel merchandise to resell to end customers. Our marketplace is attractive to buyers because we minimize inventory risk from our buyers’ business operations. As of September 30, 2026, the number of SKUs from GigaCloud 1P was over 40,000. Combined with the SKUs offered by active 3P sellers, buyers had access to more than 90,000 SKUs in total. Our buyers can browse products in our marketplace and list the product on their preferred ecommerce websites such as Wayfair, Amazon, Home Depot, Walmart, Target and Overstock, or their own store prior to procuring and storing the product in a warehouse or shop. Once a sale to a retailer or end customer takes place, buyers can order the product in our marketplace and we will handle the fulfillment directly to the retailer or end customer.

Previous wording

In the 12 months ended June 30, 2026, we had 12,823 active buyers in our marketplace with an average $136,069 spend per active buyer, representing a 17.1% increase in active buyers and a 3.6% increase in spend per active buyer compared to the 10,951 active buyers in our marketplace with an average $131,359 spend per active buyer in the 12 months ended June 30, 2025, primarily attributable to a higher number of new buyers onboarded during the period and increased GMV.

Current wording

In the 12 months ended September 30, 2026, we had 13,837 active buyers in our marketplace with an average $133,425 spend per active buyer, representing a 21.2% increase in active buyers and a 2.4% increase in spend per active buyer compared to the 11,419 active buyers in our marketplace with an average $130,349 spend per active buyer in the 12 months ended September 30, 2025, primarily attributable to a higher number of new buyers onboarded during the period and increased GMV.

Previous wording

In the past, we have completed strategic acquisitions to broaden our product offerings, supplement our supply chain, fulfillment and logistics capabilities. In January 2026, we completed the acquisition of New Classic. We may consider future acquisitions of assets, companies, technologies or businesses that are complementary to our business and the costs of identifying and consummating acquisitions may be significant. Acquisitions could result in the use of substantial amounts of cash, the occurrence of significant goodwill impairment charges, amortization expenses for other intangible assets and exposure to potential unknown liabilities of the acquired business.

Current wording

In the past, we have completed strategic acquisitions to broaden our product offerings and supplement our supply chain, fulfillment and logistics capabilities. In January 2026, we completed the acquisition of New Classic. We may consider future acquisitions of assets, companies, technologies or businesses that are complementary to our business and the costs of identifying and consummating acquisitions may be significant. Acquisitions could result in the use of substantial amounts of cash, the occurrence of significant goodwill impairment charges, amortization expenses for other intangible assets and exposure to potential unknown liabilities of the acquired business.

Previous wording

Following any new acquisitions, our results of operations may be affected by the newly acquired businesses or operations, the purchase accounting for the acquisition, any liabilities incurred in connection with the acquisitions and expenditures made to integrate the newly acquired businesses or operations. As a result of our acquisitions and the consolidation of our operating subsidiaries’ financial results into our consolidated financial results, the periods presented in our historical financial statements may not be comparable to one another and our future results of operations and financial results may also differ.

Current wording

Following any new acquisitions, our results of operations may be affected by the newly acquired businesses or operations, any liabilities incurred in connection with the acquisitions, and expenditures made to integrate the newly acquired businesses or operations. As a result of our acquisitions and the consolidation of our operating subsidiaries’ financial results into our consolidated financial results, the periods presented in our historical financial statements may not be comparable to one another and our future results of operations and financial results may also differ.

Previous wording

Recent global economic uncertainties, inflation, fluctuating interest rates, lower consumer confidence and demand for discretionary goods, and geopolitical events such as recent international trade disputes and the ongoing conflicts in the Middle East, along with other global tensions, could further impact the demand of products and freight rates. Other macroeconomic factors that can affect customer spending patterns include employment rates, availability of customer and commercial credit, interest rates, tax rates and energy costs.

Current wording

Recent global economic uncertainties, inflation, fluctuating interest rates, surge in fuel and transportation costs, lower consumer confidence and demand for discretionary goods, and geopolitical events such as recent international trade disputes and the ongoing conflicts in the Middle East, along with other global tensions, could further impact the demand of products and freight rates. Other macroeconomic factors that can affect customer spending patterns include employment rates, availability of customer and commercial credit, interest rates, tax rates and energy costs.

Previous wording

In addition, during the second quarter, we noticed a generally heightened enforcement environment in customs clearance, in which we and our suppliers have experienced longer customs clearance times and other disruptions at certain U.S. ports and associated incremental costs, which have not been material to date. Furthermore, on June 3, 2026, the U.S. administration issued Executive Order 14411, “Strengthening Customs Enforcement,” directing CBP and the Department of Homeland Security to implement a series of enhanced customs enforcement measure. Due to the uncertainty surrounding any new and future changes in customs compliance requirements and enforcement under Executive Order 14411, our logistics costs, product availability, compliance cost and results of operations could be adversely affected.

Current wording

In addition, starting from the second quarter of 2026, we noticed a generally heightened enforcement environment in customs clearance, in which we and our suppliers have experienced longer customs clearance times and other disruptions at certain U.S. ports and associated incremental costs, which have not been material to date. Furthermore, on June 3, 2026, the U.S. administration issued Executive Order 14411, “Strengthening Customs Enforcement,” directing CBP and the Department of Homeland Security to implement a series of enhanced customs enforcement measure. Due to the uncertainty surrounding any new and future changes in customs compliance requirements and enforcement under Executive Order 14411, our logistics costs, product availability, compliance cost and results of operations could be adversely affected.

Previous wording

Our results of operations are also affected by our ability to introduce new service offerings. We have a history of expanding our service offering to enhance our customer experience and to increase revenues. We started our business by primarily selling our own self-procured large parcel merchandise directly to end customers. We expanded our service offerings and launched our GigaCloud Marketplace in 2019, and the revenues generated by GigaCloud Marketplace grew quickly, representing 55.2% and 61.7% of our total revenues in the six months ended June 30, 2026 and 2025, respectively. We continue to evaluate opportunities to launch additional services.

Current wording

Our results of operations are also affected by our ability to introduce new service offerings. We have a history of expanding our service offering to enhance our customer experience and to increase revenues. We started our business by primarily selling our own self-procured large parcel merchandise directly to end customers. We expanded our service offerings and launched our GigaCloud Marketplace in 2019, and the revenues generated by GigaCloud Marketplace grew quickly, representing 56.0% and 61.8% of our total revenues in the nine months ended September 30, 2026 and 2025, respectively. We continue to evaluate opportunities to launch additional services.

Previous wording

Our results of operations depend in part on our ability to invest in our infrastructure and technology platform to cost-effectively meet the demands of our anticipated growth. Our global fulfillment and logistics network is a key part of our infrastructure, which consists of fulfillment centers and other facilities that are strategically located, designed and equipped to efficiently manage inventory and to fulfill customers orders and other needs. As of June 30, 2026, we leased 38 fulfillment centers with an aggregate gross floor area of approximately 12.4 million square feet in five countries, and two other facilities with storage and showroom functions with an aggregate gross floor area of approximately 107,716 square feet in the U.S. Additionally, we maintain partnerships with several major shipping, trucking and freight service providers to supplement our transportation network and shipping requirements.

Current wording

Our results of operations depend in part on our ability to invest in our infrastructure and technology platform to cost-effectively meet the demands of our anticipated growth. Our global fulfillment and logistics network is a key part of our infrastructure, which consists of fulfillment centers and other facilities that are strategically located, designed and equipped to efficiently manage inventory and to fulfill customer orders and other needs. As of September 30, 2026, we leased 37 fulfillment centers with an aggregate gross floor area of approximately 12.4 million square feet in five countries, and two other facilities with storage and showroom functions with an aggregate gross floor area of approximately 107,716 square feet in the U.S. Additionally, we maintain partnerships with several major shipping, trucking and freight service providers to supplement our transportation network and shipping requirements.

Previous wording

(1) Other regions mainly include the U.K., Japan, Canada and Hong Kong, with variations across different product/ service lines. No other individual region’s revenues exceeded 10% of our total revenues for the three and six months ended June 30, 2026 and 2025.

Current wording

(1) Other regions mainly include the U.K., Japan, Canada and Hong Kong, with variations across different product/service lines. No other individual region’s revenues exceeded 10.0% of our total revenues for the three and nine months ended September 30, 2026 and 2025.

Previous wording

We derive service revenues primarily through the various 3P activities of sellers and buyers in the GigaCloud Marketplace, including revenues from platform commission, ocean transportation service, drayage service, warehousing service, packaging service, last-mile delivery service and others. When a seller and buyer enter into a transaction in the GigaCloud Marketplace, we generate revenues from platform services by earning a percentage commission depending on the transaction value. The standard commission ranges between 1% and 5%. Additionally, we charge a fulfillment fee for other freight services such as delivery of products via ocean transportation. We charge drayage service fees in connection with transportation of products from ports to warehouses at a flat fee. We charge the sellers storage fees based on the number of days and the size of the products that are stored in our fulfillment centers. We charge packaging fees in connection with merchandise that we pack and ship. We also charge buyers a flat fee for last-mile delivery services for delivery of products to end customers directly from our fulfillment centers, which varies by the weight of the products.

Current wording

We derive service revenues primarily through the various 3P activities of sellers and buyers in the GigaCloud Marketplace, including revenues from platform commission, ocean transportation service, drayage service, warehousing service, packaging service, last-mile delivery service and others. When a seller and buyer enter into a transaction in the GigaCloud Marketplace, we generate revenues from platform services by earning a percentage commission depending on the transaction value. The standard commission ranges between 1% and 5%. For certain 3P customers that only utilize our platform technology services, we charge a commission fee at 0.8% capped at $500 on a monthly basis. Additionally, we charge a fulfillment fee for other freight services such as delivery of products via ocean transportation. We charge drayage service fees in connection with transportation of products from ports to warehouses at a flat fee. We charge the sellers storage fees based on the number of days and the size of the products that are stored in our fulfillment centers. We charge packaging fees in connection with merchandise that we pack and ship. We also charge buyers for last-mile delivery services for delivery of products to end customers directly from our fulfillment centers, which varies by the weight of the products.

Previous wording

From time to time in the three and six months ended June 30, 2026, when we had excess fulfillment capacity, we utilized such excess fulfillment capacity and our extensive logistics network to offer third-party logistics services to customers to help fulfill their large parcel transportation needs. As we continue to grow our GigaCloud Marketplace, we expect to dedicate our logistics capacity to customers using our marketplace and to products sold on our own marketplace, and will opportunistically provide third-party logistics services when there is excess capacity within our network.

Current wording

From time to time in the three and nine months ended September 30, 2026, when we had excess fulfillment capacity, we utilized such excess fulfillment capacity and our extensive logistics network to offer third-party logistics services to customers to help fulfill their large parcel transportation needs. As we continue to grow our GigaCloud Marketplace, we expect to dedicate our logistics capacity to customers using our marketplace and to products sold on our own marketplace, and will opportunistically provide third-party logistics services when there is excess capacity within our network.

Previous wording

The table below sets forth a breakdown of our gross profit and gross profit margin for each of the periods presented:

Current wording

The table below sets forth our gross profit and gross profit margin for each of the periods presented:

Previous wording

Our interest expense primarily consists of our financial lease interest expense for leased equipment used in our fulfillment centers and other facilities.

Current wording

Our interest expense primarily consists of financial lease interest expense for leased equipment used in our fulfillment centers and other facilities.

Previous wording

Our interest income primarily consists of interest income from bank deposits, wealth management products and short-term investment.

Current wording

Our interest income primarily consists of interest income from bank deposits, wealth management products and short-term investments.

Previous wording

Our revenues, which primarily consist of service revenues generated from GigaCloud 3P and product revenues generated from GigaCloud 1P and off-platform sales, increased by 27.6% to $411.6 million in the three months ended June 30, 2026 from $322.6 million in the three months ended June 30, 2025. This increase was primarily due to the increased market recognition and scale of our GigaCloud Marketplace, leading to increases in our GigaCloud Marketplace GMV, sales volume and number of sellers and buyers.

Current wording

Our revenues, which primarily consist of service revenues generated from GigaCloud 3P and product revenues generated from GigaCloud 1P and off-platform sales, increased by 27.4% to $423.6 million in the three months ended September 30, 2026 from $332.6 million in the three months ended September 30, 2025. This increase was primarily due to the increased market recognition and scale of our GigaCloud Marketplace, leading to increases in our GigaCloud Marketplace GMV, sales volume and number of sellers and buyers.

Previous wording

•Service Revenues from GigaCloud 3P. Our service revenues increased by 24.7% to $120.8 million in the three months ended June 30, 2026 from $96.9 million in the three months ended June 30, 2025. This was primarily attributable to:

Current wording

•Service Revenues from GigaCloud 3P. Our service revenues increased by 25.5% to $136.0 million in the three months ended September 30, 2026 from $108.4 million in the three months ended September 30, 2025. The increase was attributable to:

Previous wording

◦an increase in revenues from last mile delivery services by 29.9% to $70.0 million in the three months ended June 30, 2026 from $53.9 million in the three months ended June 30, 2025 as our GigaCloud Marketplace GMV, pricing and delivery volume continued to increase;

Current wording

◦an increase in revenues from last mile delivery services by 23.8% to $75.4 million in the three months ended September 30, 2026 from $60.9 million in the three months ended September 30, 2025 as our GigaCloud Marketplace GMV and delivery volume continued to increase;

Previous wording

◦a decrease in revenues from ocean transportation services by 6.1% to $18.5 million in the six months ended June 30, 2026 from $19.7 million in the six months ended June 30, 2025 due to a decrease in the pricing of ocean transportation services compared to the previous period.

Current wording

◦an increase in revenues from ocean transportation services by 89.6% to $18.2 million in the three months ended September 30, 2026 from $9.6 million in the three months ended September 30, 2025 due to an increase in the pricing of ocean transportation services during the period;

Previous wording

◦an increase in revenues from other services by 10.2% to $5.4 million in the three months ended June 30, 2026 from $4.9 million in the three months ended June 30, 2025, primarily due to an increase in other supplemental fulfillment services provided by our Marketplace compared to the previous period.

Current wording

◦an increase in revenues from platform services by 36.7% to $6.7 million in the three months ended September 30, 2026 from $4.9 million in the three months ended September 30, 2025 as our GigaCloud Marketplace GMV continued to increase; and

Previous wording

◦an increase in revenues from packaging services by 12.0% to $9.3 million in the three months ended June 30, 2026 from $8.3 million in the three months ended June 30, 2025 as we handled more products as our GigaCloud Marketplace GMV continued to increase; and

Current wording

◦an increase in revenues from packaging services by 11.5% to $9.7 million in the three months ended September 30, 2026 from $8.7 million in the three months ended September 30, 2025 as we handled more products as our GigaCloud Marketplace GMV continued to increase.

Previous wording

•Product Revenues from GigaCloud 1P. Our product revenues from GigaCloud 1P increased by 4.1% to $98.1 million in the three months ended June 30, 2026 from $94.2 million in the three months ended June 30, 2025. The increase was primarily due to increased sales in Europe, Japan and Canada, and the number of buyers as our marketplace continued to grow in scale.

Current wording

•Product Revenues from GigaCloud 1P. Our product revenues from GigaCloud 1P increased by 9.2% to $107.3 million in the three months ended September 30, 2026 from $98.3 million in the three months ended September 30, 2025. The increase was primarily due to increased sales in Europe, Japan and Canada, and the number of buyers as our marketplace continued to grow in scale.

Previous wording

•Product Revenues from Off-platform. Our product revenues from off-platform increased by 46.8% to $192.6 million in the three months ended June 30, 2026 from $131.2 million in the three months ended June 30, 2025, primarily due:

Current wording

•Product Revenues from Off-platform. Our product revenues from off-platform increased by 43.2% to $180.2 million in the three months ended September 30, 2026 from $125.8 million in the three months ended September 30, 2025, primarily due to:

Previous wording

◦an increase in product sales to B channels by 43.6% to $92.5 million in three months ended June 30, 2026 from $64.4 million in three months ended June 30, 2025, primarily due to increased revenues generated from offline sales channels acquired from New Classic, increased sales during the outdoor season and increased sales channels in Europe and the U.S.;

Current wording

◦an increase in product sales to B by 48.3% to $74.3 million in the three months ended September 30, 2026 from $50.1 million in the three months ended September 30, 2025, primarily due to increased revenues generated from offline sales channels acquired from New Classic, increased sales during the outdoor season and increased sales channels in Europe, Canada and the U.S.

Previous wording

◦an increase in product sales to C by 50.0% to $100.2 million in three months ended June 30, 2026 from $66.8 million in three months ended June 30, 2025, primarily due to the expansion of the number of third-party ecommerce channels through which the Company sells, particularly in Europe, as well as increased sales volume through existing B2C channels.

Current wording

◦an increase in product sales to C by 39.7% to $105.9 million in the three months ended September 30, 2026 from $75.8 million in the three months ended September 30, 2025, primarily due to the expansion of the number of third-party ecommerce channels through which we sell, particularly in Europe, as well as increased sales volume through existing B2C channels.

Previous wording

•Our cost of services increased by 24.2% to $106.7 million in the three months ended June 30, 2026 from $85.9 million in the three months ended June 30, 2025, primarily due to:

Current wording

•Our cost of services increased by 17.1% to $115.3 million in the three months ended September 30, 2026 from $98.5 million in the three months ended September 30, 2025, primarily due to:

Previous wording

•Our cost of products increased by 24.8% to $199.4 million in the three months ended June 30, 2026 from $159.8 million in the three months ended June 30, 2025, primarily due to:

Current wording

•Our cost of products increased by 29.2% to $203.0 million in the three months ended September 30, 2026 from $157.1 million in the three months ended September 30, 2025, primarily due to:

Previous wording

◦an increase in product cost by 24.5% to $156.2 million in the three months ended June 30, 2026 from $125.5 million in the three months ended June 30, 2025 as sales volume increased during the period;

Current wording

◦an increase in product cost by 28.5% to $158.1 million in the three months ended September 30, 2026 from $123.0 million in the three months ended September 30, 2025 as sales volume increased during the period;

Previous wording

◦an increase in delivery cost by 25.7% to $74.8 million in the three months ended June 30, 2026 from $59.5 million in the three months ended June 30, 2025 as last mile delivery costs and products handled increased during the period;

Current wording

◦an increase in delivery cost by 33.6% to $15.9 million in the three months ended September 30, 2026 from $11.9 million in the three months ended September 30, 2025 as last mile delivery costs and our sales volume increased;

Previous wording

◦an increase in rental cost by 16.4% to $17.0 million in the three months ended June 30, 2026 from $14.6 million in the three months ended June 30, 2025 due to more warehousing space and equipment being used for product revenue generating activities.

Current wording

◦an increase in rental costs by 26.4% to $17.7 million in the three months ended September 30, 2026 from $14.0 million in the three months ended September 30, 2025 due to more warehousing space and equipment being used for product revenue generating activities; and

Previous wording

◦an increase in staff cost by 39.4% to $9.2 million in the three months ended June 30, 2026 from $6.6 million in the three months ended June 30, 2025 as we increased the number of fulfillment centers and temporary operating staff to support expanded fulfillment centers operations; and

Current wording

◦an increase in staff costs by 38.1% to $8.7 million in the three months ended September 30, 2026 from $6.3 million in the three months ended September 30, 2025 as we increased the number of fulfillment centers and temporary operating staff to support expanded fulfillment centers operations.

Previous wording

Our selling and marketing expenses increased by 46.0% to $36.2 million in the three months ended June 30, 2026 from $24.8 million in the three months ended June 30, 2025, which was primarily due to (i) an increase in platform service fee we incurred on certain third-party ecommerce websites by 55.8% to $16.2 million in the three months ended June 30, 2026 from $10.4 million in the three months ended June 30, 2025 as sales volume and sales channels both increased, and (ii) an increase in staff cost related to selling and marketing personnel by 29.4% to $15.4 million in the three months ended June 30, 2026 from $11.9 million in the three months ended June 30, 2025, primarily relating to an increase in the number of sales and marketing personnel and share-based compensation awards granted during the three months ended June 30, 2026.

Current wording

Our selling and marketing expenses increased by 36.1% to $34.7 million in the three months ended September 30, 2026 from $25.5 million in the three months ended September 30, 2025, which was primarily due to (i) an increase in platform service fee we incurred on certain third-party ecommerce websites by 44.7% to $17.8 million in the three months ended September 30, 2026 from $12.3 million in the three months ended September 30, 2025 as sales volume and sales channels both increased, particularly for sales to end customers on third-party ecommerce websites, (ii) an increase in staff cost related to selling and marketing personnel by 23.5% to $12.6 million in the three months ended September 30, 2026 from $10.2 million in the three months ended September 30, 2025 as we increased the number of sales and marketing personnel and the commission paid to them, and (iii) an increase in other selling and marketing expense by 350.0% to $0.9 million in the three months ended September 30, 2026 from $0.2 million in the three months ended September 30, 2025 primarily relating to showroom rental fees and other sales and marketing activities.

Previous wording

We had losses on disposal of property and equipment of $8 thousand in the three months ended June 30, 2026, compared to $108 thousand in the three months ended June 30, 2025.

Current wording

We had losses on disposal of property and equipment of $102 thousand in the three months ended September 30, 2026 compared to $7 thousand in the three months ended September 30, 2025.

Previous wording

We had interest expenses of $106 thousand in the three months ended June 30, 2026 and $32 thousand in the three months ended June 30, 2025.

Current wording

We had interest expenses of $124 thousand in the three months ended September 30, 2026 and $71 thousand in the three months ended September 30, 2025.