GigaCloud Technology Inc

Welcome to GigaCloud Technologies' second quarter 2025 earnings conference call. Joining us today from GigaCloud are the company's founder, Chief Executive Officer and Chairman Larry Wu, its President Iman Shrock, and its Chief Financial Officer Erica Wei. Larry will begin with some opening remarks, Iman will discuss the company's operational 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 afford looking in nature, and actual results may differ materially. Additionally, today's call will include the 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 directly comparable financial measures calculated and presented in accordance with GAAP can be found in the press release issued today by GigaCloud, as well as on the company's website. I would now like to turn the call over to Larry. Please go ahead, sir.

Thank you, Operator, and welcome everyone to our call today. Let me start by saying what eventful quarter we had between supply chain disruption from terrorist hikes, a challenging industry backdrop, and the continued execution of our SKU rationalization initiatives. We had a few curveballs. Yet despite it all, we delivered strong results. Revenue increased by 4% year over year, exceeding our own expectations. And more importantly, we drove a greater share of that growth into bottom line performance, which grew 28% year over year. A few highlights on the key events of this quarter before we dive into details. We started this quarter facing heightened tariffs on our key sourcing countries, including Vietnam, China, and Malaysia. With the rapid changes that followed shortly after the initial announcement, the unprecedented level of uncertainty quickly led to disruptions in the overall ecosystem. A number of our three key partners halted shipping for several weeks, adopting the wait and see approach. And we had to act quickly to ensure our own competitive sourcing. Despite this challenge, we saw marketplace GMB grow by 31% on a trading 12 month basis. Rather than a setback, I see this event as a proving ground for the marketplace and the supplier for food retailing or SFR model, one designed to bring agility and efficiency to global trade. As I said last quarter, but there is repeating, a marketplace powered by SFR model is an adaptive channel agnostic ecosystem purpose built to allow participants to pivot quickly by creating new paths forward when old ones become hindered. In today's environment, where efficiency and flexibility aren't just advantages, but necessities, our value proposition is critical. Momentum in Europe continued to build, with the GMB up 59% year over year to support that demand, we recently opened an additional fulfillment center in Germany, which quickly becoming a key part of our global network. We're also seeing growing interest from our three key suppliers looking to diversify beyond the US market, especially in light of a recent trade tariff. A clear sign that Europe is shaping up to become more than just a growth market. Looking internally, our skewed rationalization effort for the Nova House portfolio are advancing, as we continue to purposefully streamline our product portfolio by facing all the low margin skews by replacing them with high performing profit driving product offering. Iman will share more details on this shortly. As we have communicated before, we have been and always will be focused on the growth. Now I will turn the call over to Iman to provide an update on our key operational goals.

Thank you, Larry. Despite continued market uncertainty, our marketplace once again delivered impressive results. For the trailing 12 months ending June 30th, 2025, GMB increased over 31%, surpassing $1.4 billion, as both sellers and buyers of large parcel goods capitalize on the advantages of our flexible SFR model. Our active three piece seller base continues to expand, standing at $1,162, up about 25% from last year. GMB from this group rose roughly 32% year over year on a trailing 12 month basis to $758 million. Our active buyer base maintains strong momentum, surpassing $10,000 for the first time to almost $11,000, an increase of approximately 51% year over year. As we continue to welcome a growing number of new buyers to our platform, we see a slight dip in average spend since newcomers typically start small before scaling up their activity over time. Europe continues to be one of our strongest growth areas. GMB in the region grew 59% year over year in the second quarter. While our one piece sales there remain robust, we are particularly excited about a notable and recent surge in interest from the three piece seller partners to enter this market. Historically, three piece activity has been largely focused on the US domestic market. But just in the past couple of months, we have seen a meaningful shift with three piece sellers now actively seeking expansion into Europe and other international markets as means to diversify their channels and better navigate evolving trade dynamics. Our platform and infrastructure empower our partner to scale quickly and efficiently without the burden of heavy capital commitments while remaining agile in a rapidly evolving environment. We are honored to be the partner they trust to facilitate this expansion and proud to play a role in their growth journey. This expansion of three feet to Europe is yet another example of giga clouds proven playbook. We go first. We enter new markets first through one P validate scalability profitability and only then do we bring in three key partners. By taking the lead, we ensure our partners step into a proven framework for success without the time investment risk or the risk associated with trial and error. Europe is emerging not only as a growth region, but as a strategic pillar of our global expansion. To support these demands in July, we opened an additional fulfillment center in Germany, our sixth in the country, bringing our global footprint to approximately 11.2 million square feet. Germany is now a vital hub for fulfillment across Europe. With more sellers looking expand, looking to expand beyond the US, we are scaling thoughtfully. Over time, we see Europe as having the potential of becoming a business of comparable scale and significance to our domestic US operations in the years ahead. Turning our attention to recent skill rationalization efforts, as we shared in our previous earnings, the legacy noble house operations have now been fully integrated into giga cloud. With everyone working as one team, once operational processes have been successfully streamlined, we turned our attention to the product portfolio. When we first acquired noble house out of bankruptcy, we inherited a portfolio of over 8000 skews that had been stale for more than a year, posing a significant challenge to profitability. Since then, our team has worked diligently to develop new skews that align with today's market demands. I am proud to share that as of today, we have retired 3800 outdated skews, introduced approximately 1200 new ones and continue to carry around 3000 original skews with plans to expand further throughout the year. In addition to new product offerings, we have also gained significant efficiencies by embracing the marketplace with this portfolio and benefiting from the differentiating advantages brought to us by the SFR business model. The strengthened skew lineup coupled with lean execution enabled by our marketplace has significantly improved the margin profile of noble house portfolio, now just three points behind legacy giga cloud. We remain focused on disciplined execution and by next summer, we expect portfolios to settle into a more stable rhythm, shifting from a full overhaul to a balanced ongoing cadence of skew refreshes and retirements, as is typical for any healthy product portfolio. Now I'd like to turn things over to Erica for a discussion of our second quarter financial results.