Gigacloud Technology Inc (GCT) 2026 Q1 法說會逐字稿

Good day, everyone, and welcome to GigaCloud Technologies first-quarter 2026 earnings conference call. Joining us today are GigaCloud's Founder and Chief Executive Officer, Larry Wu; its President, Iman Schrock, and its Chief Financial Officer, Erica Wei.

各位好，歡迎參加 GigaCloud Technologies 2026 年第一季財報電話會議。今天與會者包括 GigaCloud 創辦人兼執行長 Larry Wu、總裁 Iman Schrock，以及財務長 Erica Wei。

Larry, will provide opening remarks. Iman, will discuss the company's operation progress, and Erica will review financial results. After that, we will open the call to questions. As a reminder, this conference call contains statements about future events and expectations that are forward-looking in nature, and actual results may differ materially.

Larry 將發表開場致詞。Iman 將說明公司營運進展，Erica 將回顧財務結果。之後我們將開放提問。提醒各位，本次電話會議包含對未來事件與預期的陳述，屬於前瞻性聲明，實際結果可能有重大差異。

Additionally, today's call will include a discussion of non-GAAP measures within the meaning of SEC Regulation G. When required, a reconciliation of all non-GAAP financial measures to the most direct comparable financial measures calculated and presented in accordance with GAAP can be found in the press release issued today by GigaCloud, which is posted on the company's website.

此外，今天的電話會議將討論符合美國證券交易委員會（SEC）Regulation G 定義的非 GAAP 指標。

Now I will turn the call over to Larry. Please go ahead.

現在我把電話交給 Larry。請開始。

Thank you, operator, and hello, everyone. Our first quarter results highlight the resilience of our business model and the effectiveness of our strategy. During the quarter, industry conditions remain under pressure with the US furniture industry estimated to be down single digit year-over-year.

謝謝接線員，大家好。我們第一季的結果凸顯了商業模式的韌性以及策略的有效性。本季產業環境仍承受壓力，估計美國家具產業年減為個位數百分比。

While the US remains a critically important market for us, our performance reflects the power of diversification. Driven by the disciplined execution across multiple fronts, we've delivered more than 30% year-over-year revenue growth and more than 50% EPS growth, proof of a sound strategy and consistent disciplined execution, all guided by a long-term view of where we're headed.

雖然美國對我們仍是極其重要的市場，但我們的表現反映出多元化的力量。在多個面向的紀律性執行帶動下，我們實現了超過 30% 的年增營收成長與超過 50% 的 EPS 成長，證明策略健全且執行一貫且有紀律，並以我們前進方向的長期視角作為指引。

The long-term view is our comp, and it keeps us focused on what works, building multiple growth vectors while staying agile and responsive as conditions evolve. That approach continued to deliver across both what's driving us now and what we are building for the future. And the future we're building is clear, a truly channel-agnostic marketplace that serves every corner of the big and bulky industry, whether online or offline, domestic or international, spanning categories and borders, wherever our customers choose to do business.

長期視角是我們的指南針，使我們專注於有效的方法，在保持敏捷並隨著環境演變而快速回應的同時，打造多重成長動能。這種做法持續在「當下的驅動力」與「為未來打造的能力」兩方面交出成果。而我們正在打造的未來很清晰：一個真正不受通路限制（channel-agnostic）的市場平台，服務大型與笨重商品（big and bulky）產業的每個角落，不論線上或線下、國內或國際，跨品類、跨國界，無論客戶選擇在哪裡做生意。

Europe continues to be a powerful proof point, delivering growth today and demonstrating our model scales. What works here works abroad. Our success in Europe is a strong validation of our strategy, reflecting the value of long-term strategic positioning, thoughtful investment, and the ability to effectively localize.

歐洲持續是強而有力的驗證案例，既帶來當下的成長，也證明我們的模式具備可擴展性。在這裡行得通的，在海外也行得通。我們在歐洲的成功有力驗證了策略，反映出長期策略布局的價值、審慎投資，以及有效在地化的能力。

At the same time, we're building for the future. The acquisition of New Classic adds a new and promising growth vector to our platform. While integration is on track and the New Classic has already deepened our capabilities by broadening our offering, its full contribution lies ahead. We're approaching it deliberately confident that with time and the disciplined execution, these new capabilities position us to better serve more corners of the industry in the long run.

同時，我們也在為未來布局。收購 New Classic 為我們的平台增添了一個全新且具潛力的成長動能。整合進度符合預期，且 New Classic 已透過擴大我們的產品供給而深化了我們的能力，但其完整貢獻仍在未來。我們將以審慎方式推進，並有信心隨著時間與紀律性執行，這些新能力將使我們長期能更好地服務產業更多面向。

We remain optimistic about the future. Our strategy is clear. Our platform is stronger than ever. Our team is executing with discipline, speed, and purpose. That optimism comes from knowing exactly where we're headed, and we're building towards that goal every day through organic expansion and strategic M&A, creating a stronger, more diversified ecosystem without losing agility.

我們對未來仍保持樂觀。我們的策略清晰。我們的平台比以往更強大。我們的團隊以紀律、速度與使命感在執行。這份樂觀來自於我們非常清楚前進方向，並透過有機擴張與策略性併購（M&A）每天朝目標邁進，在不失敏捷的前提下打造更強、更分散的生態系。

Now I will turn the call to Iman for discussion of our ongoing operational progress.

現在我把電話交給 Iman，請他說明我們持續的營運進展。

Thank you, Larry, and hello, everyone. Our marketplace delivered another quarter of strong growth, further reinforcing its expanding relevance and increasing scale. GMV rose 17% year-over-year on a trailing 12-month basis ended March 31, 2026, to $1.7 billion, reflecting both higher transaction activity and expanding buyer engagement.

謝謝你，Larry，大家好。我們的市場平台再度交出一季強勁成長，進一步強化其日益擴大的相關性與規模提升。截至 2026 年 3 月 31 日的過去 12 個月（TTM）計算，GMV 年增 17% 至 17 億美元，反映交易活動增加與買家參與度提升。

Our marketplace ecosystem continues to strengthen with active third-party sellers growing 19% to 1,377, broadening product assortment for our buyers, while active buyers increased 25% to 12,473, reinforcing the platform's value proposition. These results reflect a healthy, well-balanced marketplace with strong momentum. Our open-ended ecosystem and tech-enabled supply chain drive efficiency and help manage risk, especially in uncertain conditions.

我們的市場生態系持續強化：活躍第三方賣家增加 19% 至 1,377 家，為買家擴大商品組合；活躍買家增加 25% 至 12,473 名，進一步鞏固平台的價值主張。這些結果反映出一個健康、均衡且動能強勁的市場平台。我們的開放式生態系與科技賦能的供應鏈提升效率並有助於風險管理，尤其在不確定的環境下更為重要。

We remain focused on execution, operating lean, moving quickly and maintaining discipline to support long-term growth. Although the US market remains highly volatile due to the industry-wide headwinds and ongoing policy uncertainty, we delivered 12% US marketplace GMV growth on a quarterly basis. This performance was not driven by sector growth. It came from continued market share gains enabled by our SFR trading model and disciplined execution.

我們仍專注於執行，維持精實營運、快速行動並保持紀律，以支持長期成長。儘管美國市場因全產業逆風與持續的政策不確定性而高度波動，我們仍在季度基礎上實現美國市場平台 GMV 成長 12%。這項表現並非由產業成長所驅動。而是來自我們的 SFR 交易模式與紀律性執行所帶來的持續市占提升。

Moving beyond the US, Europe continues to emerge as a powerful growth vector and a clear example of our scalable execution-driven model. Overall, marketplace GMV in Europe grew 83% on a quarterly basis, driven by the same disciplined approach we successfully applied domestically here in the US.

走出美國之外，歐洲持續成為強大的成長動能，也是我們可擴展、以執行驅動之模式的明確例證。整體而言，歐洲市場平台 GMV 以季度基礎成長 83%，其動能來自我們在美國本土成功採用的同一套紀律性方法。

As we've shared before, our playbook for new markets remains consistent, lead with 1P to establish the market and attract buyers, then layer in 3P by leveraging buyer demand, creating scale efficiencies and reinforcing the value inherent in our strategy. Europe is still early in that journey with volume today primarily driven by 1P. However, 3P momentum is building rapidly with quarterly GMV growth of more than 500% year-over-year.

如同我們先前分享的，我們進入新市場的作戰手冊始終一致：先以 1P（第一方）切入以建立市場並吸引買家，接著在買家需求的帶動下導入 3P（第三方），創造規模效率並強化我們策略內在的價值。歐洲仍處於這段旅程的早期階段，目前的量主要由 1P 驅動。然而，3P 動能正在快速建立，季度 GMV 年增超過 500%。

That's the power of scaling a proven model. And we are complementing that organic growth with deliberate strategic initiatives, such as our recent acquisition of New Classic to deepen our reach within the industry and strengthen our presence across a broader range of channels. With New Classic, we have the opportunity to meaningfully deepen our penetration in servicing brick-and-mortar retailers, a massive segment of the furniture industry with significant runway for growth.

這就是擴展一個已被驗證模式的力量。我們也以審慎的策略性舉措來補強這項有機成長，例如近期收購 New Classic，以深化我們在產業內的觸及範圍，並強化我們在更廣泛通路中的布局。透過 New Classic，我們有機會在服務實體零售商（brick-and-mortar retailers）方面大幅提升滲透率；這是家具產業中規模龐大且仍有顯著成長空間的區塊。

All of this is in service of our long-term goal of building the foundational infrastructure that powers the industry wherever business happens. As Larry shared in his year-end letter to the shareholders, this vision of becoming the industry's infrastructure is exactly where we're headed. And with every move, we'll get closer.

所有這些努力，都是為了我們的長期目標：打造支撐產業運作的基礎性基建，讓商業無論發生在何處都能運轉。正如 Larry 在年終致股東信中所分享的，成為產業基礎設施的願景正是我們前進的方向。而每一步行動，都將讓我們更接近。

Integration of New Classic is underway and proceeding as planned. We're approaching it with the same discipline and patience that has served us well in the past because we know that getting this right matters than getting it fast. Right now, our teams are focused on the foundational work, aligning processes, integrating systems, building relationships with New Classic clients to ensure a smooth transition and developing new product assortments that are better tailored to the channels New Classic opens up for us.

New Classic 的整合正在進行中，並按計畫推進。我們以過去一貫的紀律與耐心來推動，因為我們知道，把事情做對比做快更重要。目前，我們的團隊專注於基礎性工作，包括流程對齊、系統整合、與 New Classic 客戶建立關係以確保順利過渡，以及開發更貼合 New Classic 為我們開啟之通路的新產品組合。

Consistent with our approach to previous acquisitions, we do not intend to run New Classic as a stand-alone company. Instead, we will fully integrate New Classic into our platform and manage it as a part of our broader portfolio, unlocking greater efficiency through scale and shared resources. The full value will take time to unfold, but we're confident the long-term payoff deeper market reach and more complete offering will be significant.

與我們過去併購案的一貫做法一致，我們不打算將 New Classic 作為獨立公司運營。相反地，我們將把 New Classic 完整整合進我們的平台，並作為更廣泛投資組合的一部分來管理，透過規模效應與共享資源釋放更高效率。完整價值需要時間逐步展現，但我們有信心，長期回報——更深的市場觸及與更完整的產品供給——將相當可觀。

As we've shared many times before, our focus is on profitable revenue. Unprofitable revenue is simply not our model. One of our core strengths is the ability to pivot quickly when conditions change. We don't chase revenue for the sake of revenue. So when tariffs reshaped the landscape in 2025, we moved decisively. We made an intentional decision to exit certain lower-margin product categories in the domestic market, such as steel furniture, where the economics no longer made sense.

正如我們多次分享的，我們的重點是具獲利性的營收。不具獲利性的營收根本不是我們的模式。我們的核心優勢之一，是在環境變化時能快速轉向。我們不會為了營收而追逐營收。因此，當關稅在 2025 年重塑產業格局時，我們果斷行動。我們有意識地決定退出美國國內市場中某些低毛利產品類別，例如鋼製家具，因為其經濟效益已不再合理。

That decision put near-term pressure on US revenue, but it was the right call to protect our bottom line integrity. Now with New Classic, we have a clear path to recapture and grow from there. Through New Classic's strong brick-and-mortar relationship, we expect to drive margin-accretive revenue in the US market over time, reinforcing our long-term profitability while being disciplined on what we're willing to chase. That's how we grow, not just for the quarter, but for the long run.

這項決策在短期內對美國營收造成壓力，但為了維護我們損益底線的完整性，這是正確的選擇。如今有了 New Classic，我們有一條清晰的路徑可以重新奪回並在此基礎上成長。透過 New Classic 強大的實體通路關係，我們預期將隨時間在美國市場帶動具毛利增厚效果的營收，既強化長期獲利能力，也在我們願意追逐的機會上保持紀律。這就是我們成長的方式——不只是為了單一季度，而是為了長期。

Now it is my pleasure to turn the call over to Erica for a discussion of our first quarter financials.

現在我很高興把電話會議交給 Erica，請她說明我們第一季的財務表現。

Thank you, and hello, everybody. A quick reminder before we get into our financial results. All figures I cover today are rounded and unless otherwise noted, comparisons are against the same period last year.

謝謝，各位好。在進入財務結果之前先快速提醒一下。我今天提到的所有數字皆已四捨五入，除非另有說明，對比基準皆為去年同期。

First quarter, we drove sustained profitable growth, a challenging backdrop. Revenue grew 32% to $359 million from first quarter, while earnings per share grew 53% to $1.04. Breaking our results down further. Service revenue increased 24% to $117 million as more industry participants turn to our marketplace. Packaging, warehousing and other services revenue double digits, partially offset by lower ocean service revenue due to reduced ocean spot rates in Q1 of 2026 compared with that of Q1 2023 and reduced ocean volume for the after tariff changes that occurred in April 2025.

第一季，在充滿挑戰的背景下，我們推動了持續的獲利性成長。營收較第一季成長 32% 至 3.59 億美元，而每股盈餘成長 53% 至 1.04 美元。進一步拆解我們的結果。服務營收增加 24% 至 1.17 億美元，因為更多產業參與者轉向使用我們的市集平台。包裝、倉儲及其他服務營收呈雙位數成長，部分被海運服務營收下降所抵銷；海運服務營收下降係因 2026 年第一季的海運即期運價低於 2023 年第一季，且 2025 年 4 月關稅變動後海運量減少。

From a margin perspective, service gross margins increased 250 basis points sequentially -- primarily hold of holiday season surcharges in the first quarter. On a year-over-year basis, service margin declined by 7.3%, mainly driven by lower ocean spot rates and also impacted by higher delivery and revenue. Turning to the product side.

從毛利率角度來看，服務毛利率較前一季提升 250 個基點——主要因第一季仍保留假期旺季附加費。以年對年來看，服務毛利率下降 7.3%，主要由較低的海運即期運價所致，並且也受到較高的配送與營收影響。接著看產品端。

Product revenue rose 7% to $243 million as we saw growth across all regions. In the US, product revenue totaled $126 million, up 15% from last year's first quarter even against a challenging backdrop. Within that 15%, 2% of the increase represented organic growth, while approximately $14 million was attributable to inorganic growth with the acquisition.

產品營收成長 7% 至 2.43 億美元，我們看到所有地區皆有成長。在美國，產品營收合計 1.26 億美元，較去年第一季成長 15%，即便外部環境充滿挑戰。在這 15% 的成長中，2% 來自有機成長，而約 1,400 萬美元則歸因於併購帶來的非有機成長。

That said, on a stand-alone portfolio basis, meaning New Classic performance to the same quarter last year before we acquired it on January 1. New Classic was down approximately 20% year-over-year. This -- factors, the difficult US industry environment we've been navigating and some near-term disruption as we integrate New Classic operations into our own. This pattern is familiar to us, saw the same with our last acquisition, Noble House, which experienced a similar short-term decline before we streamlined operations, removed redundancies and applied our platform efficiencies.

不過，以獨立投資組合口徑來看，也就是將 New Classic 與我們於 1 月 1 日收購前、去年同期的表現相比。New Classic 年對年約下滑 20%。這反映了多項因素，包括我們一直在應對的美國產業環境艱困，以及在我們將 New Classic 營運整合進自身體系時所產生的一些短期擾動。這種模式我們並不陌生；上一筆併購 Noble House 也出現過相似的短期下滑，之後我們透過精簡營運、消除重複並導入平台效率而改善。

It's settled, Noble House not only recovered top line-wise, but also delivered improved margins and stronger profitability. That's the long-term view in action. Patience through the noise conviction Comparable trajectory with New Classic short-term followed by long-term margin-accretive growth. In Europe, product revenue grew 80% year-over-year to $103 million as we continue to observe strong demand.

結果顯示，Noble House 不僅在營收端恢復成長，還帶來更佳的毛利率與更強的獲利能力。這就是長期視角的實踐。在雜音中保持耐心與信念——我們預期 New Classic 也將走出相似軌跡：短期承壓，隨後帶來長期、具毛利增厚效果的成長。在歐洲，產品營收年對年成長 80% 至 1.03 億美元，因為我們持續觀察到強勁需求。

Product margins were 31.3% this quarter, up 3.8% year-over-year, driven primarily by price increases as we capitalized on strong demand and benefited from lower ocean shipping costs. As previously shared, while service margins tend to decline during periods of low ocean shipping rates, product generally benefited from such lower with the two having an offsetting. On a sequential basis, product margins declined 80 points due to expected seasonality with the first quarter generally being our softest.

本季產品毛利率為 31.3%，年對年提升 3.8%，主要受價格上調帶動；我們把握強勁需求，同時受惠於較低的海運成本。如先前所分享，當海運費率偏低時，服務毛利率往往會下滑，而產品端通常會因較低運費而受益，兩者具有相互抵銷的效果。以季對季來看，產品毛利率下降 80 個基點，原因是預期的季節性影響，第一季通常是我們相對較淡的季度。

Total company gross margin grew to 23.9% for Q1 of 2026 from 23.4% last year quarter. From a standpoint, sales and marketing costs for Q1 were $31 million or 9% of total revenue compared to last year. The increase was primarily higher channel commission spend and staffing costs associated with earning expansion. General and administrative costs totaled $10 million or 3% of total revenue, down from 5% from last year's first quarter, reflecting increased warehouse utilization rates and lower professional and administrative expenses.

2026 年第一季公司整體毛利率提升至 23.9%，高於去年同期的 23.4%。從費用角度來看，第一季銷售與行銷費用為 3,100 萬美元，占總營收 9%，與去年同期相比。增加主要來自更高的通路佣金支出，以及與獲利擴張相關的人員配置成本。一般及行政費用合計 1,000 萬美元，占總營收 3%，低於去年第一季的 5%，反映倉庫利用率提升，以及專業服務與行政費用下降。

This brings net income to 10.6% with net income of $38, 12% year-over-year, on a per share basis, EPS was up 53% year-over-year, driven by increased net income and amplified by a reduction in average weighted shares due to buybacks. We used $22 million in operating cash flows in the first quarter as we built up more inventory for the summer selling season in the second quarter.

因此，淨利率為 10.6%，淨利為 3,800 萬美元，年對年成長 12%；以每股計算，EPS 年對年成長 53%，由淨利增加所帶動，並因庫藏股使加權平均流通股數下降而放大。第一季我們使用了 2,200 萬美元的營運現金流，因為我們為第二季夏季銷售旺季建立了更多庫存。

Total liquidity, inclusive of equivalents, restricted cash, and short-term investments totaled $364 million. Importantly, we remain debt-free with a disciplined capital allocation strategy. This strategy includes return capital to shareholders through continued buybacks and strategic acquisitions that support long-term growth objectives. As of date, our cumulative share buybacks across all plans totaled approximately $114 million.

總流動性（包含約當現金、受限制現金及短期投資）合計為3.64億美元。重要的是，我們仍維持零負債，並採取嚴謹的資本配置策略。此策略包括透過持續回購以及支持長期成長目標的策略性併購，將資本回饋股東。截至目前，我們在所有計畫下的累計股票回購總額約為1.14億美元。

We have completed 38% of our latest $111 million plan announced in August of 2025, with $68 million in remaining authorizations for future buybacks. Before we wrap up, a note on the second quarter. The flooding that took place in Vietnam towards the end of 2025, the worst in decades, resulted in some delays and short-term supply chain disruptions for our outdoor season inventory. Looking ahead, we remain confident in our ability to manage through these temporary disruptions and expect revenue in the $365 million to $390 million range.

我們已完成於2025年8月宣布之最新1.11億美元回購計畫的38%，未來回購仍有6,800萬美元的剩餘核准額度。在我們結束之前，補充第二季的情況。2025年底越南發生的洪災為數十年來最嚴重，導致我們戶外季節庫存出現部分延遲及短期供應鏈中斷。展望未來，我們仍有信心能管理這些暫時性干擾，並預期營收落在3.65億至3.90億美元區間。

Operator, we are now ready to begin the Q&A session.

接線員，我們現在準備開始問答環節。

(Operator Instructions)

(接線員指示)

Thomas Forte, Maxim Group.

Thomas Forte，Maxim Group。

Great, thanks. So one question and one follow-up. And first off, congratulations on another strong quarter. So Larry, as you scale the business, how should we think about your strategic M&A efforts and your interest in acquiring larger assets as the business gets bigger?

很好，謝謝。我有一個問題和一個追問。首先，恭喜再度交出強勁的一季。Larry，隨著業務規模擴大，我們應如何看待你們的策略性併購（M&A）作為，以及在公司變大後對收購更大型資產的興趣？

Yeah. Thank you for the question. Yes, we are continuously looking for the opportunity that this could potentially help us to build a broader product line or any opportunities to help us to really improve our technology capability to better service the customer. Yes, we are definitely looking.

是的。謝謝你的提問。是的，我們持續尋找可能幫助我們建立更廣泛產品線的機會，或是能協助我們真正提升技術能力、以更好服務客戶的任何機會。是的，我們確實正在尋找。

Excellent. And for my follow-up, how should we think about how rising oil prices affect your business?

很好。那我的追問是，油價上漲會如何影響你們的業務？

Yes. Right now, I think -- okay.

是的。目前我想——好。

Go ahead, Larry.

Larry，你先請。

Yes, you can go ahead.

是的，你可以先說。

Thanks for the question, Thomas. So I think rising oil prices definitely has an impact in terms of the immediate impact would be delivery cost, both on the ocean and ground front, right?

謝謝你的提問，Thomas。我認為油價上漲確實會帶來影響，就直接影響而言，會反映在配送成本上，包含海運與陸運兩端，對吧？

And then there's obviously the general indirect impact to both the consumers, the earlier parts or the manufacturing stage of the supply chain. However, it's not fundamentally different from many of the disruptions we've seen in the past, simply a form of cost increase. It could be logistics. It could be -- ultimately, we do try to stay very, very early by sign. So we're quite confident in terms of navigating such increases.

此外，顯然也會對消費者以及供應鏈較前段、或製造階段帶來一般性的間接影響。不過，這在本質上與我們過去看到的許多干擾並無根本差異，只是成本上升的一種形式。可能是物流。也可能是——最終，我們確實會努力非常、非常早地透過簽約來鎖定。因此，我們對於因應這類成本上升相當有信心。

Great. Thanks for taking my question. Thanks, Larry. Thanks, Erica.

很好。謝謝回答我的問題。謝謝，Larry。謝謝，Erica。

Thank you.

謝謝。

Ryan Meyers.

Ryan Meyers。

Hey, guys, thanks for taking my questions. First one for me. The business is obviously accelerating and performing very well despite what you guys consider a difficult macro environment. The question is, what do you think is really just driving your guys' ability to consistently outperform sort of the broader furniture and large parcel market right now?

嗨，各位，謝謝回答我的問題。我第一個問題。儘管你們認為總體宏觀環境艱難，但業務顯然正在加速且表現非常好。問題是，你們認為究竟是什麼在驅動你們目前能持續跑贏更廣泛的家具與大型包裹市場？

Good question, Ryan. I think it ultimately comes down to the marketplace. So the marketplace that's driven by the SFR model, which is a little bit different from maybe what most folks are used to in the industry. It does truly give participants a little more flexibility, a little more efficiency and tries to help folks manage risk, especially inventory risk a little better. So as we gain more recognition, a little more exposure, we see more and more joining the marketplace looking for those benefits. And you can see this through our GMV numbers.

好問題，Ryan。我認為最終關鍵在於我們的市集（marketplace）。這個市集由SFR模式所驅動，與業界多數人可能習慣的模式有些不同。它確實能讓參與者更有彈性、更有效率，並協助大家更好地管理風險，尤其是庫存風險。因此，隨著我們獲得更多認可與曝光，我們看到越來越多人加入市集以取得這些效益。你也可以從我們的GMV數據看出來。

Okay. Got it. And then just briefly a question on inventory and operating cash flow. It was obviously down for the year, and it looks like you guys had a big inventory build. What should we be aware of in terms of that inventory build and the purpose of that?

好的。了解。接著簡單問一下庫存與營運現金流。今年顯然是下降的，而且看起來你們的庫存大幅增加。關於這次庫存增加及其目的，我們需要注意什麼？

Yeah. So the majority of that was in preparation for the Q4 season. So I'm sure you're well aware that Q2 is a pretty season for us because of our outdoor. So that was for the inventory buildup. On top of that, there is also a little bit of increased spend due to the acquisition. New Classic has slightly -- the terms of buying are not as favorable as GigaCloud right out of the gate, but obviously, that will change over time.

是的。其中大部分是為了第四季旺季做準備。我相信你也很清楚，第二季對我們來說是相當旺的季節，因為有戶外產品。所以這就是庫存增加的原因。此外，因為併購也有一些支出增加。New Classic在採購條件上相較於GigaCloud一開始沒有那麼有利，但顯然這會隨時間而改變。

Okay. Got it. Thanks for taking my questions.

好的。了解。謝謝回答我的問題。

Of course. Thank you.

當然。謝謝。

Matt Koranda, Roth Capital Partners.

Matt Koranda，Roth Capital Partners。

Good morning. It's Joseph on for Matt. I just wanted to see if you guys could talk about a little bit here on gross margin profitability, kind of piggybacking on Tom's initial question. As we think about elevated energy levels, you said in your prepared remarks kind of you have some giveback in services gross margins and increased product gross margins as we're thinking about the impact of higher energy levels. But anything else kind of you guys can highlight for us there in terms of the impact of services in the -- as of the last couple of quarters? And how should we be thinking about service gross margins as we look into 2026?

早安。我是Joseph，代替Matt發問。我想請你們談談毛利率獲利能力，算是延伸Tom一開始的問題。在能源價格維持高檔的情況下，你們在事先準備的講稿中提到，考量較高的能源水準影響時，服務毛利率會有一些回吐，而產品毛利率會提高。但就過去幾季服務業務的影響而言，還有沒有其他你們可以為我們補充的重點？以及展望2026年，我們應如何看待服務毛利率？

Thank you for the question. So for the quarter that just passed, Q1, I think we saw product margins improve year-over-year and about compared to Q4. So there's a lot of -- that's a result of both us capitalizing on continued demand and pricing appropriately, plus there's also the benefit of spot rates, ocean spot rates, particularly going down in 2025.

謝謝你的提問。就剛結束的季度Q1而言，我認為我們看到產品毛利率年增，且相較Q4也有所改善。這在很大程度上——是我們把握持續的需求並進行適當定價的結果，同時也受惠於2025年海運即期運價（特別是海運即期運價）下滑。

On the service front, we have the opposite effect. We have decreased service gross margin because of that reduced ocean spot rate. So there's a bit of a natural hedge going on between the 2 service -- sorry, the 2 revenue lines. Moving ahead, assuming spot rates in terms of logistics will be increasing, the 2 lines might move the other direction, but still in an offsetting manner.

在服務面方面，我們看到的是相反的效果。由於海運即期運價下降，我們的服務毛利率因此下滑。所以在這兩項服務——抱歉，兩條營收線之間，存在一點自然避險的效果。往後看，假設物流的即期運價將上升，這兩條線可能會往相反方向變動，但仍會以互相抵銷的方式呈現。

Got it. Okay. I appreciate the color there. And then as we kind of integrate new Classic is with 1Q being the first consolidated quarter, just any thoughts here on the time line? Are we expecting the business to kind of slowly ramp just as we saw Noble House within that 12 to 18-month range? Should we -- should that be accelerated or lagging that time line? Just any preliminary thoughts there?

了解。好的。謝謝你提供這些補充說明。接著，隨著我們整合 New Classic，且第一季是首次合併入帳的季度，想請教一下時間表方面的看法？我們是否預期這個業務會像 Noble House 一樣，在 12 到 18 個月的區間內逐步爬升？這個時間表會加速還是落後？想聽聽任何初步的想法。

Yeah. So I think during our last call, we had communicated roughly 6 quarters, which is similar to the Noble House case in terms of integration efforts. and we believe that is still the case. We're on track for that schedule. So in the beginning, we'll probably see a little bit of disruption, similar with Noble House as we are focusing on integrating the foundation and getting the portfolio set up for success in the future. And then once we get through that phase, we'll see things going in the opposite direction and going back to growth.

是的。我想在上次電話會議中，我們曾溝通大約需要 6 個季度，這在整合工作上與 Noble House 的案例相近，我們認為目前仍是如此。我們正按該時程推進。因此在一開始，我們可能會看到一些干擾，與 Noble House 類似，因為我們正專注於整合基礎、並讓產品組合為未來成功做好配置。等我們度過那個階段後，情況就會往相反方向發展，並回到成長軌道。

Got it. Okay. And then just a final question here. Just could you give us some thoughts on capital allocation? I know the biggest bucket being share buybacks with you guys having a little bit over $60 million in share buybacks left on your authorization between -- and also between international expansion and M&A. Just kind of rough cut thoughts on how we should be thinking about capital allocation in the near term or longer term?

了解。好的。最後一個問題。能否談談資本配置方面的想法？我知道最大的一塊是庫藏股回購，你們在授權額度下還剩下略高於 6,000 萬美元的回購額度，另外也包括國際擴張與併購（M&A）。想請你們大致談談，我們應該如何看待短期或長期的資本配置？

Yes. Thank you. You're absolutely right. Those are our 2 main focal points in terms of capital allocation. We've been doing the share buybacks for a while now, and that's something that will continue to be an important part of our plan. In terms of strategic acquisitions, that is also something that we have planned for the future. It just won't necessarily be immediately right now since we are focused on integrating New Classic the right way.

是的。謝謝。你說得完全正確。就資本配置而言，這兩項是我們主要的關注重點。我們進行股票回購已經有一段時間了，這也會持續是我們計畫中的重要部分。至於策略性收購，這也是我們未來規劃的一部分。只是未必會在當下立刻進行，因為我們目前專注於以正確的方式整合 New Classic。

Got it. I appreciate the time. Thank you for answering my questions.

了解。謝謝你撥冗。感謝你回答我的問題。

Thank you.

謝謝。

Rommel Dionisio, Aegis Capital.

Rommel Dionisio，Aegis Capital。

Good morning, and thank you for taking my question. I wonder if you could provide a little more color, please, on the strength in Europe. Obviously, you're making continued progress in growth in that market. Could you just talk about it on a regional basis? Is Germany the key driver there? Or is it some other markets? And also, as you grow so quickly in that market, might that require any infrastructure spend, whether it be warehouses or so forth? Thank you.

早安，謝謝讓我提問。我想請你們再多補充一些歐洲市場強勁表現的細節。顯然你們在該市場的成長持續取得進展。能否以區域角度談談？德國是主要驅動因素嗎？還是其他市場？另外，當你們在該市場成長如此快速時，是否需要任何基礎設施支出，例如倉庫等？謝謝。

Yes. Thank you for the question. So we are doing quite well in Europe. I think there's a few elements to think about here. First off, the model has been tested and performed well in the US and it's a little -- perhaps a little faster when we're scaling things up in Europe as well. On top of that, the difference between the US market and Europe market. Europe is a market that is significantly more fragmented than the United States. More different -- more channels, more vendors, more differences in terms of countries, what folks want.

是的。謝謝你的提問。我們在歐洲的表現確實相當不錯。我想這裡有幾個要素可以思考。首先，這個模式已在美國市場驗證並表現良好，而在歐洲擴張時，我們把規模做起來的速度可能也更快一些。此外，美國市場與歐洲市場之間也存在差異。歐洲市場相較於美國明顯更為分散。有更多不同——更多通路、更多供應商、各國之間在需求偏好上也有更多差異。

As of right now, we are operating out of Germany and the United Kingdom in Europe in terms of warehousing. However, our product delivery or ultimate sales is not limited to those 2 regions. Germany is kind of the centralized driver right now, but we are already covering many different countries such as France, Italy, for example, Spain.

截至目前，在歐洲的倉儲營運方面，我們是以德國與英國為據點。不過，我們的產品配送或最終銷售並不侷限於這兩個地區。德國目前算是較為集中的主要驅動點，但我們已經覆蓋許多不同國家，例如法國、義大利，以及西班牙。

Moving ahead, given the speed of growth and how much volume, especially the anticipated growth coming from the 3P side, yes, I do think we will be planning for more fulfillment centers in that region.

往後看，考量成長速度與出貨量，尤其是預期來自 3P 端的成長，是的，我確實認為我們會規劃在該區域設置更多履約中心。

Okay, that's very helpful. Congratulations on the quarter. Thank you.

好的，這非常有幫助。恭喜本季表現。謝謝。

Thank you.

謝謝。

Yeah, This is Larry. There's one call of out I want to add to what Erica already shared about the service margin. Actually, the pressure of the margin numbers just -- not only coming from ocean shipping, but also come from the ground service we're providing to our customer just because the challenge we're seeing from the economy that just because of the rebound in the capacity that we're seeing everybody in the shipping industry that we will see the pressure that we've been seeing will continue probably for the coming few quarters. That's just something I want to add. Thank you.

是的，我是 Larry。我想補充一點，延伸 Erica 剛才分享的服務毛利率。其實毛利率數字的壓力不僅來自海運，也來自我們提供給客戶的地面服務；由於我們從經濟面看到的挑戰，以及航運產業整體運能回升，我們預期目前看到的壓力可能會在接下來幾個季度持續。這是我想補充的部分。謝謝。

Thank you. And this does conclude today's conference. We appreciate your participation. You may disconnect your lines at this time, and have a wonderful day.

謝謝。今天的電話會議到此結束。感謝各位的參與。您現在可以掛斷電話，祝您有美好的一天。