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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business
GigaCloud Technology Inc (the “Company”), a limited liability company based in the Cayman Islands, with its subsidiaries (collectively referred to as the “Group”, “we” or “our”) are principally engaged in large parcel merchandise sales and the provision of ecommerce solutions for small cross-border business owners utilizing the Group’s online platform (“GigaCloud Marketplace”) and fulfillment centers primarily located in the United States, Japan, Europe and Canada.
Organization
The accompanying unaudited condensed consolidated financial statements as of June 30, 2025 included the financial statements of the Company and its subsidiaries, and the consolidated statements in this Form 10-Q, should be read in conjunction with the consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of the Group have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the 2024 Form 10-K.
There were no significant changes to our significant accounting policies as disclosed in the 2024 Form 10-K.
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents consist of cash on hand and highly liquid investments purchased with original maturities of three months or less. Cash that is restricted for withdrawal or use is reported separately on the unaudited condensed consolidated balance sheets. The Group’s restricted cash represents security deposits held in designated bank accounts for issuance of letters of guarantee.
A reconciliation of cash, cash equivalents and restricted cash in the unaudited condensed consolidated balance sheets to the amounts in the unaudited condensed consolidated statements of cash flows is as follows:
June 30, 2025December 31, 2024
(In thousands)
Cash and cash equivalents$240,119 $259,759 
Restricted cash691 685 
Total cash, cash equivalents and restricted cash shown in the unaudited condensed consolidated statements of cash flows$240,810 $260,444 
Concentration and Risk
Concentration of customers and suppliers
No customers individually represented greater than 10.0% of total revenues of the Group for the three and six months ended June 30, 2025 and 2024.
Three customers individually represented greater than 10.0% of total accounts receivable balance as of June 30, 2025 and one customer individually represented greater than 10.0% of total accounts receivable balance as of December 31, 2024. No other customers accounted for 10.0% or more of total accounts receivable balance as of June 30, 2025 and December 31, 2024.
June 30, 2025December 31, 2024
proportion of total accounts
receivable balance 		proportion of total accounts
receivable balance
Customer A22.3%19.7%
Customer B10.3%*
Customer C10.2%*
*Less than 10.0% of total accounts receivable balance as of the period end.
During the three months ended June 30, 2025 and 2024, one service provider individually represented 19.3% and 20.6% of total purchases, and no other vendors individually accounted for 10% or more of total purchases. During the six months ended June 30, 2025 and 2024, one service provider individually represented 19.2% and 19.2% of total purchases, and no other vendors individually accounted for 10% or more of total purchases.
Concentration of credit risk
Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, cash equivalents, restricted cash, investments, accounts receivable, and amounts due from third-party payment platforms.
The Group’s investment policy requires cash, cash equivalents, restricted cash and investments to be placed with high quality financial institutions and to limit the amount of credit risk from any one institution. The Group regularly evaluates the credit standing of the counterparties or financial institutions.
Accounts receivable (Note 3) from product and service sales are exposed to credit risk. The assessment of the counter parties’ creditworthiness is primarily based on past payment history and current ability to pay, taking into account information specific to the counter parties as well as pertaining to the economic environment in which the counter parties operate.
Segment Reporting
The Group’s chief operating decision maker has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. For the purpose of internal reporting and management’s operational review, the Group’s chief executive officer and management personnel do not segregate the Group’s business by revenue stream or geography. Management has determined that the Group has one operating segment. The measurement of segment assets is reported on the unaudited condensed consolidated balance sheets as total consolidated assets. The revenue, costs and expenses, and the net income for the reportable segment are the same as those presented on the unaudited condensed consolidated statements of comprehensive Income.
Long-lived assets consist of property and equipment and operating lease right-of-use assets. The geographic information for long-lived assets as of June 30, 2025 and December 31, 2024 was as follows:
June 30, 2025December 31, 2024
(In thousands)
The United States$419,300 $456,563 
Others47,371 24,865 
Total long-lived assets$466,671 $481,428 
Revenues reported are attributed to geographic areas based on locations of the Group’s fulfillment centers, except for platform commission revenues which are attributed to Hong Kong, where the server of the GigaCloud Marketplace is located. Revenues by geographic regions for the three and six months ended June 30, 2025 and 2024 were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Revenues by geographic regions:(In thousands)
Hong Kong$4,806 $4,479 $9,141 $8,077 
Platform commission4,806 4,479 9,141 8,077 
United States8,099 15,436 18,896 25,177 
Others(1)
213 68 774 128 
Ocean transportation service8,312 15,504 19,670 25,305 
United States3,180 3,609 5,891 7,152 
Others(1)
62 8 123 15 
Drayage service3,242 3,617 6,014 7,167 
United States12,966 9,326 26,626 18,416 
Others(1)
514 263 932 500 
Warehousing service13,480 9,589 27,558 18,916 
United States45,607 48,149 88,115 85,526 
Germany7,052 3,086 12,839 5,096 
Others(1)
1,290 724 2,239 1,300 
Last-mile delivery service53,949 51,959 103,193 91,922 
United States8,171 6,921 15,349 12,674 
Others(1)
96 765 168 1,291 
Packaging service8,267 7,686 15,517 13,965 
United States4,588 2,376 8,792 6,401 
Others(1)
280 577 1,107 657 
Others4,868 2,953 9,899 7,058 
Service revenues$96,924 $95,787 $190,992 $172,410 
United States141,452 159,007 251,046 290,440 
Germany62,703 40,092 114,254 69,365 
Japan12,822 10,230 23,601 19,851 
Others(1)
8,705 5,751 14,619 9,878 
Product revenues$225,682 $215,080 $403,520 $389,534 
Total revenues$322,606 $310,867 $594,512 $561,944 
_____________________
(1) No other individual region’s revenues exceeded 10% of the Company’s total revenues for the three and six months ended June 30, 2025 and 2024.
Recent Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption permitted and can be applied on either a prospective or retroactive basis. The Group is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The ASU amends existing income statement disclosure guidance, primarily requiring disaggregated disclosure of specific expense categories, such as purchases of inventory, employee compensation, depreciation and intangible asset amortization. For public business entities, the ASU is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and the ASU can be applied on either a prospective or retroactive basis. The Group is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures.
Change in Accounting Principle
In the first quarter of fiscal 2025, the Group voluntarily changed the method of accounting for last-mile fulfillment activities associated with 1P product sales in certain regions from applying the policy election to account for shipping services as fulfillment activities to recognizing last-mile shipping as a promised service, which the Group determined to be a separate performance obligation. The change was made due to the introduction of new GigaCloud marketplace functionalities that provide added flexibility for marketplace buyers when electing last-mile services.
The Group believes that this change in accounting method is preferable, as it results in a disaggregation of revenue and related costs that provides more transparency to users of its financial statements and is more aligned with the nature of marketplace transactions. In accordance with US GAAP, comparable periods presented have been retrospectively adjusted to reflect the change. This change did not have any material impact to the Group's prior period net income or earnings per share, and as such the Group did not retroactively adjust prior periods for such immaterial effects.
Certain financial statement line items included in the unaudited condensed consolidated statements of comprehensive income for the three month periods ended June 30, 2025 and 2024, and the six month periods ended June 30, 2025 and 2024, respectively, were adjusted as follows:
Three Months Ended June 30, 2025Three Months Ended June 30, 2024
As computed under previous methodEffect of changeAs reported under preferable methodAs computed under previous methodEffect of changeAs reported under preferable method
(In thousands)(In thousands)
Revenues
Service revenues$88,248 $8,676 $96,924 $85,378 $10,409 $95,787 
Product revenues234,358 (8,676)225,682 225,489 (10,409)215,080 
Cost of revenues
Services78,185 7,671 85,856 74,040 8,786 82,826 
Products167,477 (7,671)159,806 160,380 (8,786)151,594 
Six Months Ended June 30, 2025Six Months Ended June 30, 2024
As computed under previous methodEffect of changeAs reported under preferable methodAs computed under previous methodEffect of changeAs reported under preferable method
(In thousands)(In thousands)
Revenues
Service revenues$173,903 $17,089 $190,992 $152,793 $19,617 $172,410 
Product revenues420,609 (17,089)403,520 409,151 (19,617)389,534 
Cost of revenues
Services150,004 15,008 165,012 128,471 17,055 145,526 
Products303,838 (15,008)288,830 290,478 (17,055)273,423 
Reclassification
Certain reclassifications have been made to our prior period's financial statements to conform to our current period presentation. These reclassifications had no effect on our previously reported results of operations or retained earnings.