Hedge funds are buying these two big tech stocks while selling two rivals
Introduction & Market Context
GigaCloud Technology Inc. (NASDAQ:GCT) presented its Q3 2025 investor slides on November 6, showcasing 10% year-over-year revenue growth despite facing margin pressures. The company, which operates a B2B marketplace for large parcel merchandise, reported record earnings per share while continuing to expand its global footprint and marketplace participation.
The stock closed at $27.38, down 7.01% during regular trading hours, though it showed a modest 0.8% recovery in after-hours trading. This reaction came despite GigaCloud beating analyst expectations with EPS of $0.99 versus the forecasted $0.72, representing a 37.5% positive surprise.
Quarterly Performance Highlights
GigaCloud reported total revenue of $333 million for Q3 2025, representing 10% year-over-year growth. The company maintained a solid gross profit of $77 million, though this represented a slight 0.4% decline compared to the same period last year. Net income came in at $37 million, down 9% year-over-year, while diluted EPS reached $0.99, up 1% from Q3 2024.
As shown in the following comprehensive financial snapshot:
The company maintained strong liquidity with $367 million as of September 30, 2025, and remains debt-free. GigaCloud's marketplace continues to show robust growth, with Gross Merchandise Value (GMV) reaching $1.5 billion for the trailing twelve months, up 21% year-over-year. Third-party GMV grew even faster at 24% to reach $790 million.
Marketplace Growth & Buyer Trends
One of the most impressive metrics in GigaCloud's presentation was the 34% year-over-year growth in active buyers, which reached 11,419 for the trailing twelve months ended September 30, 2025. The company also reported 17% growth in active third-party sellers, now numbering 1,232. Average spend per active buyer remained substantial at approximately $130,000.
The company highlighted the increasing spend from buyer cohorts, particularly those who joined in 2024:
According to the presentation, buyers who joined in 2024 increased their spending from $74 million in Q3 2024 to $88 million in Q3 2025, demonstrating strong retention and growing wallet share. This trend supports GigaCloud's claim that its marketplace model drives sustained engagement and spending over time.
Business Model & Global Logistics Network
GigaCloud's presentation emphasized its Supplier Fulfilled Retailing (SFR) model, which the company describes as transforming wholesale trade by reorganizing the supply chain and redefining key roles for a more efficient B2B ecosystem:
This model connects sellers (suppliers/manufacturers) with buyers (retailers/resellers) through the GigaB2B.com platform and GigaCloud's global fulfillment network. The company highlighted how this approach differs from traditional models by reducing inventory risk and enabling direct-to-consumer fulfillment.
GigaCloud's logistics capabilities remain a core competitive advantage:
The company now operates 37 fulfillment facilities across five countries with over 10.9 million square feet of space under unified management. Its logistics network includes ocean transportation through 16 ports of destination, handling over 30,000 containers annually, and last-mile delivery capabilities that reach over 90% of customers in the continental United States within three days.
Product Expansion & Global Presence
GigaCloud continues to diversify beyond its furniture roots, now offering over 50,000 SKUs across multiple categories:
The company's global footprint spans North America, Europe, and Asia, with fulfillment centers strategically positioned to serve key markets:
This international presence has helped drive growth, particularly in Europe where revenue reportedly surged by 70% according to the earnings call.
Strategic Initiatives & Outlook
For Q4 2025, GigaCloud provided revenue guidance between $328 million and $344 million. The company is also preparing to close its acquisition of New Classic Home Furnishings on January 1, 2026, with integration expected to take 4-6 quarters.
GigaCloud's capital allocation strategy has evolved from its 2022 IPO, which raised $41 million in gross proceeds, to include strategic acquisitions and share repurchases. In 2023, the company spent $87 million on the acquisitions of Noble House and Wonder, while also initiating a share repurchase program. In 2024 and 2025, the company continued share repurchases, with $69 million and $16 million spent, respectively.
Despite the positive quarterly results and strategic progress, investors will be watching closely to see if GigaCloud can maintain its growth trajectory while improving margins in the coming quarters. The slight decline in gross profit and net income year-over-year suggests some challenges amid the overall growth story.
Full presentation:
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