GigaCloud Technology Inc

Previous wording

(1)See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation——Non-GAAP Financial Measures” for information regarding our use of Adjusted EBITDA and Adjusted EPS – diluted and a reconciliation of net income to Adjusted EBITDA and net income per ordinary share – diluted to Adjusted EPS – diluted.

Current wording

(1) See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation——Non-GAAP Financial Measures” for information regarding our use of Adjusted EBITDA and Adjusted EPS – diluted and a reconciliation of net income to Adjusted EBITDA and net income per ordinary share – diluted to Adjusted EPS – diluted.

Previous wording

GigaCloud Marketplace GMV increased to $1,416.7 million in the 12 months ended March 31, 2025 from $907.7 million in the 12 months ended March 31, 2024, representing a growth of 56.1% 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 $1,438.5 million in the 12 months ended June 30, 2025 from $1,097.8 million in the 12 months ended June 30, 2024, representing a growth of 31.0% 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.

Previous wording

The number of active 3P sellers in the GigaCloud Marketplace increased to 1,154 in the 12 months ended March 31, 2025 from 865 in the 12 months ended March 31, 2024, representing an increase of 33.4% 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 increased to 37,146 as of March 31, 2025 from 35,649 as of December 31, 2024. 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 1,162 in the 12 months ended June 30, 2025 from 930 in the 12 months ended June 30, 2024, representing an increase of 24.9% 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 30,000 as of June 30, 2025. 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 was $734.3 million in the 12 months ended March 31, 2025 and $489.9 million in the 12 months ended March 31, 2024, representing an increase of 49.9% period-over-period. 3P Seller GigaCloud Marketplace GMV represented 51.8% and 54.0% of total GigaCloud Marketplace GMV in the 12 months ended March 31, 2025 and March 31, 2024, 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 $757.5 million in 12 months ended June 30, 2025 from $571.9 million in the 12 months ended June 30, 2024, representing an increase of 32.5% period-over-period. 3P Seller GigaCloud Marketplace GMV represented 52.7% and 52.1% of total GigaCloud Marketplace GMV in the 12 months ended June 30, 2025 and June 30, 2024, respectively.

Previous wording

The number of active buyers in the GigaCloud Marketplace increased to 9,966 in the 12 months ended March 31, 2025 from 5,493 in the 12 months ended March 31, 2024, representing an increase of 81.4% period-over-period. We view the number of active buyers as a key driver of our GigaCloud Marketplace GMV and revenue growth, and a key indicator of our ability to attract and engage buyers in our marketplace. We plan to expand our active buyers by enhancing our marketplace product categories, and leveraging referrals from existing users.

Current wording

The number of active buyers in the GigaCloud Marketplace increased to 10,951 in the 12 months ended June 30, 2025 from 7,257 in the 12 months ended June 30, 2024, representing an increase of 50.9% period-over-period. 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 decreased to $142,156 in the 12 months ended March 31, 2025 from $165,239 in the 12 months ended March 31, 2024, representing a decrease of 14.0% period-over-period. Spend per active buyer is a key driver of GMV and revenue for our GigaCloud Marketplace. We generally grow spend per active buyer by expanding our product categories, increasing buyers’ purchase frequency and raising the average price per purchase. The slight decrease in spend per active buyer in the 12 months ended March 31, 2025 was primarily due to a higher number of new buyers onboarded during the period, who generally require time to increase their spending in our GigaCloud Marketplace.

Current wording

The spend per active buyer in our GigaCloud Marketplace was $131,359 in the 12 months ended June 30, 2025 and $151,276 in the 12 months ended June 30, 2024, representing a decrease of 13.2% 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. The decrease in spend per active buyer for the 12 months ended June 30, 2025 was primarily due to a higher number of new buyers onboarded during the period, who generally require time to increase their spending in our GigaCloud Marketplace.

Previous wording

Sellers in our marketplace are typically manufacturers operating in Asia who are able to use our supply chain capabilities to establish overseas sales channels without having to invest in their own logistics or fulfillment centers overseas. We are focused on growing and retaining the number of sellers who choose to list their large parcel merchandise in our marketplace and utilize our fulfillment and logistics network for the shipping and handling of their products.

Current wording

Sellers in our marketplace are typically manufacturers operating in Asia who utilize our supply chain capabilities to establish overseas sales channels without having to invest in their own logistics or fulfillment centers overseas. We are focused on growing and retaining the number of sellers who choose to list their large parcel merchandise in our marketplace and utilize our fulfillment and logistics network for the shipping and handling of their products.

Previous wording

Our number of active 3P sellers was 1,154 in the 12 months ended March 31, 2025, compared to 865 in the 12 months ended March 31, 2024, representing an increase of 33.4% from the 12 months ended March 31, 2024. We believe this increasing trend will continue because of the growing recognition of our marketplace, our seller-friendly comprehensive logistics network enabling hassle-free delivery of large parcel merchandise and our expansion into new markets.

Current wording

Our number of active 3P sellers was 1,162 in the 12 months ended June 30, 2025, compared to 930 in the 12 months ended June 30, 2024, representing an increase of 24.9% from 12 months ended June 30, 2024. 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

Using our marketplace, sellers are able to quickly gain access to key global markets in which we operate, including the U.S., the U.K., Germany, Japan and Canada. We provide a flat rate program for shipping and handling, and sellers are able to utilize the space in our fulfillment centers. We also create sales analytics which provide valuable information as sellers determine which products to bring to market.

Current wording

Using our marketplace, sellers are able to quickly gain access to key global markets in which we operate, including the U.S., the U.K., Germany, Japan and Canada. We provide a flat rate program for shipping and handling, and sellers are able to utilize the storage space in our fulfillment centers. We also create sales analytics which provide valuable information as sellers determine which products to bring to market.

Previous wording

We attract new sellers predominantly through organic channels such as geographic expansion, suppliers outreach, marketing initiatives, referrals and word-of-mouth. In the past, we have completed acquisitions that supplemented our supply chain, fulfillment and logistics capabilities, which attracted more sellers and buyers onto our GigaCloud Marketplace after these strategic acquisitions. We may consider future acquisitions to increase the number of sellers and buyers. We also plan to augment organic customer acquisition by adding additional sales and marketing employees to enhance seller and buyer growth.

Current wording

We attract new sellers predominantly through organic channels such as geographic expansion, suppliers outreach, marketing initiatives, referrals and word-of-mouth. In the past, we have completed acquisitions that supplemented our supply chain, fulfillment and logistics capabilities, which attracted more sellers and buyers onto our GigaCloud

Previous 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. Our buyers can browse a product in our marketplace and list the product on their preferred ecommerce websites such as Rakuten, Amazon, Walmart, Wayfair, Home Depot and OTTO, or their own store prior to procuring and storing the product in a warehouse or shop. Once a sale to the end customer takes place, buyers can order the product in our marketplace and we will handle the fulfillment directly to the 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 June 30, 2025, the number of SKUs from GigaCloud 1P was over 20,000. Combined with the SKUs offered by active 3P sellers, buyers had access to more than 50,000 SKUs in total. Our buyers can browse a product in our marketplace and list the product on their preferred ecommerce websites such as Rakuten, Amazon, Walmart, Wayfair, Home Depot and OTTO, or their own store prior to procuring and storing the product in a warehouse or shop. Once a sale to the end customer takes place, buyers can order the product in our marketplace and we will handle the fulfillment directly to the end customer.

Previous wording

In the 12 months ended March 31, 2025, we had 9,966 active buyers in our marketplace with an average $142,156 spend per active buyer, representing a 81.4% increase in active buyers and a 14.0% decrease in spend per active buyer compared to the 5,493 active buyers in our marketplace with an average $165,239 spend per active buyer in the 12 months ended March 31, 2024, primarily attributable to a higher number of new buyers onboarded during the period, who generally require time to increase their spending in our GigaCloud Marketplace.

Current wording

In the 12 months ended June 30, 2025, we had 10,951 active buyers in our marketplace with an average $131,359 spend per active buyer, representing a 50.9% increase in active buyers and a 13.2% decrease in spend per active buyer compared to the 7,257 active buyers in our marketplace with an average $151,276 spend per active buyer in the 12 months ended June 30, 2024, primarily attributable to a higher number of new buyers onboarded during the period, who generally require time to increase their spending in our GigaCloud Marketplace.

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 64.5% and 62.8% of our total revenues in the three months ended March 31, 2025 and 2024, 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 61.7% and 61.5% of our total revenues in the six months ended June 30, 2025 and 2024, 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 March 31, 2025, we leased 35 fulfillment centers with an aggregate gross floor area of approximately 10.5 million square feet in five countries, and two other facilities with storage and showroom functions with an aggregate gross floor area of approximately 18,348 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 customers orders and other needs. As of June 30, 2025, we leased 36 fulfillment centers with an aggregate gross floor area of approximately 10.7 million square feet in five countries, and two other facilities with storage and showroom functions with an aggregate gross floor area of approximately 18,348 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

Revenues reported are attributed to geographic areas based on locations of our fulfillment centers, except for platform commission revenues which are attributed to Hong Kong, where the server of GigaCloud Marketplace is located. Revenues by geography for the three months ended March 31, 2025 and 2024 and were as follows:

Current wording

Revenues reported are attributed to geographic areas based on locations of our fulfillment centers, except for platform commission revenues which are attributed to Hong Kong, where the server of the GigaCloud Marketplace is located. The following table sets forth the breakdown of our revenues by geographic regions for the periods presented:

Previous wording

(1)No other individual region’s revenues exceeded 10% of our total revenues for the three months ended March 31, 2025 and 2024.

Current wording

(1) No other individual region’s revenues exceeded 10% of our total revenues for the three and six months ended June 30, 2025 and 2024.

Previous wording

From time to time in the three months ended March 31, 2025, 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 six months ended June 30, 2025, 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

Cost of products primarily consist of the purchase price of merchandise, shipping and handling costs for self-owned merchandise, rental expenses for fulfillment centers excluding the portion allocated to cost of service revenue and abnormal capacity, packaging fees and personnel related costs. Shipping and handling costs primarily consist of those costs incurred during the process of delivery in North America and markets in other regions such as Japan and Europe, including the expenses attributable to shipment and handling activities, when we deliver a good to a customer.

Current wording

Cost of products primarily consists of the purchase price of merchandise, shipping and handling costs for self-owned merchandise, rental expenses for fulfillment centers excluding the portion allocated to cost of service revenue and abnormal capacity, packaging fees and personnel related costs. Shipping and handling costs primarily consist of those costs incurred during the process of delivery in North America and markets in other regions such as Japan and Europe, including the expenses attributable to shipment and handling activities, when we deliver a good to a customer.

Previous wording

Our general and administrative expenses primarily consist of staff costs which included share-based compensation, payroll and related costs for employees involved in general corporate functions, professional fees, rental and depreciation expenses associated with the use of facilities and equipment by these employees, rental expenses during the initial start-up period in our fulfillment centers and other abnormal capacity costs, property insurance, donation, provision for bad debts and other general corporate expenses.

Current wording

Our general and administrative expenses primarily consist of staff costs which included share-based compensation, payroll and related costs for employees involved in general corporate functions, professional fees, rental and depreciation expenses associated with the use of facilities and equipment by these employees, rental expenses during the initial start-up period in our fulfillment centers and other abnormal capacity costs, property insurance, donation, provision for bad debt and other general corporate expenses.

Previous wording

Our revenues, which primarily consist of service revenues generated from GigaCloud 3P and product revenues generated from GigaCloud 1P and off-platform ecommerce sales, increased by 8.3% to $271.9 million in the three months ended March 31, 2025 from $251.1 million in the three months ended March 31, 2024. 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 ecommerce sales, increased by 3.8% to $322.6 million in the three months ended June 30, 2025 from $310.9 million in the three months ended June 30, 2024. 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 22.8% to $94.1 million in the three months ended March 31, 2025 from $76.6 million in the three months ended March 31, 2024. The increase was primarily attributable to:

Current wording

•Service Revenues from GigaCloud 3P. Our service revenues increased by 1.1% to $96.9 million in the three months ended June 30, 2025 from $95.8 million in the three months ended June 30, 2024. This was primarily attributable to:

Previous wording

◦an increase in revenues from warehousing services by 51.6% to $14.1 million in the three months ended March 31, 2025 from $9.3 million in the three months ended March 31, 2024 as we handled more products as our GigaCloud Marketplace GMV continued to increase;

Current wording

◦an increase in revenues from warehousing services by 40.6% to $13.5 million in the three months ended June 30, 2025 from $9.6 million in the three months ended June 30, 2024 as we handled more products as our GigaCloud Marketplace GMV continued to increase;

Previous wording

◦an increase in revenues from last mile delivery services by 23.0% to $49.2 million in the three months ended March 31, 2025 from $40.0 million in the three months ended March 31, 2024 as our GigaCloud Marketplace GMV and delivery volume continued to increase;

Current wording

◦an increase in revenues from last mile delivery services by 3.7% to $53.9 million in the three months ended June 30, 2025 from $52.0 million in the three months ended June 30, 2024 as our GigaCloud Marketplace GMV and delivery volume continued to increase;

Previous wording

◦an increase in revenues from other services by 22.0% to $5.0 million in the three months ended March 31, 2025 from $4.1 million in the three months ended March 31, 2024 , 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 other services by 63.3% to $4.9 million in the three months ended June 30, 2025 from $3.0 million in the three months ended June 30, 2024, primarily due to an increase in other supplemental fulfillment services provided by our Marketplace compared to the previous period; and

Previous wording

•Product Revenues from Off-platform Ecommerce. Our product revenues from off-platform ecommerce increased by 3.3% to $96.4 million in the three months ended March 31, 2025 from $93.3 million in the three months ended March 31, 2024. The increase was primarily due to increases in sales channels and sales volume in certain third-party off-platform ecommerce.

Current wording

•Product Revenues from Off-platform Ecommerce. Our product revenues from off-platform ecommerce increased by 6.8% to $131.2 million in the three months ended June 30, 2025 from $122.8 million in the three months ended June 30, 2024. The increase was primarily due to increases in sales channels and sales volume in certain third-party off-platform ecommerce.

Previous wording

•Our cost of services increased by 26.3% to $79.2 million in the three months ended March 31, 2025 from $62.7 million in the three months ended March 31, 2024, primarily due to:

Current wording

•Our cost of services increased by 3.7% to $85.9 million in the three months ended June 30, 2025 from $82.8 million in the three months ended June 30, 2024, primarily due to:

Previous wording

◦an increase in rental cost by 61.2% to $16.6 million in the three months ended March 31, 2025 from $10.3 million in the three months ended March 31, 2024 as the total square footage of our fulfillment centers increased;

Current wording

◦an increase in rental cost by 55.9% to $17.3 million in the three months ended June 30, 2025 from $11.1 million in the three months ended June 30, 2024 as the rental price and the total square footage of our fulfillment centers increased; and

Previous wording

•Our cost of products increased by 5.9% to $129.0 million in the three months ended March 31, 2025 from $121.8 million in the three months ended March 31, 2024, primarily due to:

Current wording

•Our cost of products increased by 5.4% to $159.8 million in the three months ended June 30, 2025 from $151.6 million in the three months ended June 30, 2024, primarily due to:

Previous wording

◦an increase in product cost by 8.9% to $93.8 million in the three months ended March 31, 2025 from $86.1 million in the three months ended March 31, 2024;

Current wording

◦an increase in product cost by 4.8% to $125.5 million in the three months ended June 30, 2025 from $119.8 million in the three months ended June 30, 2024 as sales volume increased during the period; and

Previous wording

As a result of the foregoing, our gross profit decreased by 4.2% to $63.7 million in the three months ended March 31, 2025 from $66.5 million in the three months ended March 31, 2024. Our gross margin was 23.4% in the three months ended March 31, 2025 and 26.5% in the three months ended March 31, 2024.

Current wording

As a result of the foregoing, our gross profit was $76.9 million in the three months ended June 30, 2025 and $76.4 million in the three months ended June 30, 2024. Our gross margin was 23.9% in the three months ended June 30, 2025 compared to 24.6% in the three months ended June 30, 2024.

Previous wording

Our selling and marketing expenses increased by 27.4% to $18.6 million in the three months ended March 31, 2025 from $14.6 million in the three months ended March 31, 2024, which was primarily due to (i) an increase in platform service fee we incurred on certain third-party ecommerce websites by 27.3% to $8.4 million in the three months ended March 31, 2025 from $6.6 million in the three months ended March 31, 2024 as sales volume and sales channels both increased, (ii) an increase in staff cost related to selling and marketing personnel by 32.1% to $7.4 million in the three months ended March 31, 2025 from $5.6 million in the three months ended March 31, 2024 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 75.0% to $0.7 million in the three months ended March 31, 2025 from $0.4 million in the three months ended March 31, 2024.

Current wording

Our selling and marketing expenses increased by 27.2% to $24.8 million in the three months ended June 30, 2025 from $19.5 million in the three months ended June 30, 2024, which was primarily due to (i) an increase in platform service fee we incurred on certain third-party ecommerce websites by 33.3% to $10.4 million in the three months ended June 30, 2025 from $7.8 million in the three months ended June 30, 2024 as sales volume and sales channels both increased, and (ii) an increase in staff cost related to selling and marketing personnel by 25.3% to $11.9 million in the three months ended June 30, 2025 from $9.5 million in the three months ended June 30, 2024, primarily relating to an increase in the number of sales and marketing personnel and an overall increase in employee incentives, which included cash bonus provided and share-based compensation awards granted during the three months ended June 30, 2025.

Previous wording

Our general and administrative expenses decreased by 7.1% to $14.3 million in the three months ended March 31, 2025 from $15.4 million in the three months ended March 31, 2024, which was primarily due to (i) a decrease in staff cost related to general and administrative personnel by 32.3% to $4.2 million in the three months ended March 31, 2025 from $6.2 million in the three months ended March 31, 2024 as we streamlined our team to promote operational efficiency, and (ii) a decrease in rental expense by 18.9% to $3.0 million in the three months ended March 31, 2025 from $3.7 million in the three months ended March 31, 2024 to $3.0 million in the three months ended March 31, 2025, primarily because the newly acquired fulfillment centers have became fully operational in the three months ended March 31, 2025 and the related expenses were moved from rental expenses to operational costs, partially offset by (iii) an increase in professional service expense by 26.1% to $2.9 million in the three months ended March 31, 2025 from $2.3 million in the three months ended March 31, 2024 as we engaged more professional services for our financial and legal advisors in the three months ended March 31, 2025 compared to the previous period, and (iv) an one-time donation expense of $0.7 million in the three months ended March 31, 2025 to support the recovery efforts for the Greater Los Angeles wildfire.

Current wording

Our general and administrative expenses decreased by 50.6% to $13.0 million in the three months ended June 30, 2025 from $26.3 million in the three months ended June 30, 2024, which was primarily due to (i) a decrease in staff cost related to general and administrative personnel by 48.2% to $7.3 million in the three months ended June 30, 2025 from $14.1 million in the three months ended June 30, 2024, primarily relating to a decrease in the number of general and administrative personnel, partially offset by an overall increase in employee incentives, which included cash bonus provided and share-based compensation awards granted during the three months ended June 30, 2025, and (ii) a decrease in rental expense by 75.8% to $1.5 million in the three months ended June 30, 2025 from $6.2 million in the three months ended June 30, 2024, primarily because the newly acquired fulfillment centers have become fully operational in the three months ended June 30, 2025 and the related expenses were moved from rental expenses to operational costs.

Previous wording

Research and development expenses increased by 38.9% to $2.5 million in the three months ended March 31, 2025 from $1.8 million in the three months ended March 31, 2024. The increase was primarily due to our dedication in expanding our research and development efforts, including an increase in the number of research and development projects and the number of employees to perform research and development function in the three months ended March 31, 2025 compared to the previous period.

Current wording

Research and development expenses slightly increased by 3.2% to $3.2 million in the three months ended June 30, 2025 from $3.1 million in the three months ended June 30, 2024. The increase was primarily due to our dedication in expanding our research and development efforts, including an increase in the number of research and development projects and the number of employees to perform research and development function.

Previous wording

Interest income was $2.6 million in the three months ended March 31, 2025 and $1.6 million in the three months ended March 31, 2024. The increase was primarily attributable to higher average bank deposits, wealth management products and investment and interest rates in the three months ended March 31, 2025 compared to the previous period.

Current wording

We had interest income of $2.8 million in the three months ended June 30, 2025 and $2.2 million in the three months ended June 30, 2024. The increase was primarily attributable to higher average bank deposits, wealth management products and investment in the three months ended June 30, 2025 compared to the previous period.

Previous wording

Foreign currency exchange gains, net were $0.8 million in the three months ended March 31, 2025, primarily attributable to the Japanese Yen and the Euro appreciating against the U.S. dollars in the three months ended March 31, 2025. Foreign currency exchange losses, net were $2.7 million in the three months ended March 31, 2024.

Current wording

Foreign currency exchange gains, net were $0.6 million in the three months ended June 30, 2025, primarily attributable to the Euro and the Japanese Yen appreciating against the U.S. dollars in the three months ended June 30, 2025. Foreign currency exchange losses, net were $1.1 million in the three months ended June 30, 2024.

Previous wording

As a result of the foregoing, our net income was $27.1 million in the three months ended March 31, 2025 and $27.2 million in the three months ended March 31, 2024.

Current wording

As a result of the foregoing, our net income was $34.6 million and $27.0 million in the three months ended June 30, 2025 and 2024, respectively.

Previous wording

◦an increase in revenues from ocean transportation services by 16.3% to $11.4 million in the three months ended March 31, 2025 from $9.8 million in the three months ended March 31, 2024 as our GigaCloud Marketplace GMV and delivery volume continued to increase;

Current wording

◦an increase in revenues from last mile delivery services by 12.3% to $103.2 million in the six months ended June 30, 2025 from $91.9 million in the six months ended June 30, 2024 as our GigaCloud Marketplace GMV and delivery volume continued to increase;

Previous wording

◦an increase in revenues from packaging services by 15.9% to $7.3 million in the three months ended March 31, 2025 from $6.3 million in the three months ended March 31, 2024 as we handled more products as our GigaCloud Marketplace GMV continued to increase;

Current wording

◦an increase in revenues from packaging services by 10.7% to $15.5 million in the six months ended June 30, 2025 from $14.0 million in the six months ended June 30, 2024 as we handled more products as our GigaCloud Marketplace GMV continued to increase;

Previous wording

◦a decrease in depreciation costs to $0.6 million in the three months ended March 31, 2025 from $1.2 million in the three months ended March 31, 2024.

Current wording

◦a decrease in depreciation costs to $1.4 million in the six months ended June 30, 2025 from $2.5 million in the six months ended June 30, 2024 due to optimization of warehousing space for GigaCloud 3P products and less on 1P products.

Previous wording

Segment Information for the Three Months Ended March 31, 2025

Current wording

Segment Information for the Three and Six Months Ended June 30, 2025 and 2024