Good day everyone, welcome to GigaCloud Technology's Q1 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. Larry will provide opening remarks, Iman will discuss the company's operation progress, 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, actual results may differ materially. Additionally, today's call will include a discussion of non-GAAP measures within 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, which is posted on the company's website. Now, I will turn the call over to Larry. Please go ahead. Thank you, operator. 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 U.S. furniture industry estimated to be down single-digit year-over-year. While the U.S. 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. The long-term view is our compass, 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. 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. 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. 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. 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. Now, I will turn the call to Iman for discussion of our ongoing operational progress. 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 twelve-month basis ended March 31st, 2026 to $1.7 billion, reflecting both higher transaction activity and expanding buyer engagement. 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 chains drive efficiency and help manage risk, especially in uncertain conditions. We remain focused on execution, operating lean, moving quickly, and maintaining discipline to support long-term growth. Although the U.S. market remains highly volatile due to the industry-wide headwind and ongoing policy uncertainty, we delivered 12% U.S. 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. Moving beyond the U.S., Europe continues to emerge as a powerful growth sector 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 U.S. As we've shared before, our playbook for new markets remains consistent. Lead with 1P to establish the market and attract buyers. 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. 3P momentum is building rapidly, with quarterly GMV growth of more than 500% year-over-year. 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. 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 Wu 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. 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 more 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. Consistent with our approach to previous acquisitions, we do not intend to run New Classic as a standalone 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. 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. 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. That decision put near-term pressure on U.S. revenue. 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 relationships, we expect to drive margin-accretive revenue in the U.S. market over time, reinforcing our long-term profitability while staying disciplined on what we're willing to chase. That's how we grow, not just for the quarter, but for the long run. Now it is my pleasure to turn the call over to Erica for a discussion of our first quarter financials. 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. First quarter, we drove sustained profitable growth, a challenging backdrop. Revenue grew 32% to $359 million from last 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 turned to our Marketplace. Large packaging, warehousing, and other services revenue is in double digits, partially offset by lower ocean service revenue due to reduced ocean spot rates in Q1 of 2026 compared with that of Q1 twenty twenty-- and reduced ocean volume for the after tariff changes that occurred in April 2025. From a margin perspective, service gross margins increased 250 basis points sequentially. Primary removal of holiday season surcharges in Q1. On a year-over-year basis, service margin declined by 7.3%, mainly driven by lowered ocean spot rates and also impacted by higher delivery and risk. Turning to the product side. Product revenue rose 7% to $243 million as we saw growth across all, of all regions. In the U.S., product revenue totaled $126 million, up 15% from last year's Q1, even against a challenging backdrop. Within that 15%, 2% of the increase represented organic growth, while approximately $14 million was attributable to inorganic growth by acquisition. On a standalone portfolio basis, meaning New Classic's 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 U.S. industry environment we've been navigating, and some near-term disruption as we integrate New Classic's operations into our own. This pattern is familiar to us. We saw the same thing with our last acquisition, Noble House, which experienced a similar short-term decline before we streamlined operations, removed redundancies, and applied our platform efficiencies. Once the commotion settled, Noble House not only recovered top-line-wise but also delivered improved margins and stronger profitability. That's long-term view in action. Patience through the noise, conviction outcomes. 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. 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 benefit from such lows, 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. 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 percent last year. The increase was primarily higher channel commission spend and staffing costs associated with our 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. This brings net income mark to 10.6%, with net income of $38, up percent 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 integration for the summer selling season the second quarter. Total liquidity inclusive of restricted cash and short-term investments totaled $364 million. Importantly, we remain debt-free with a disciplined capital allocation strategy. This strategy includes 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. 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-$390 million range. Operator, we are now ready to begin the Q&A session. Thank you. The floor is now open for questions. If you do have a question, please press star one on your telephone keypad at this time. To remove yourself from the queue, press star one again. Please hold while we poll. Our first question comes from Thomas Forte from Maxim Group. Sir, your line is live. Great. Thanks. One question, one follow-up. First off, congratulations on another strong quarter. 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? Yeah, thank you for the question. We were continuously looking for the opportunity that this could potentially help us just build, you know, broader product line or any opportunities to help us to really, you know, improve our technology capability to better service the customer. We are definitely looking. Excellent. For my follow-up, how should we think about how rising oil prices affect your business? Yeah. Right now I think, you know, Okay. Go ahead, Larry. Yeah, you can go ahead. Thanks for the question, Thomas. I think rising oil prices definitely has an impact in terms of the immediate impact would be the delivery cost, both on the ocean and ground front, right? There's obviously the general indirect impact to both the consumer, 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, you know, it could be logistics. Ultimately, we do try to stay very, very priced so we're quite confident in terms of navigating such increases. Great. Thanks for taking my questions. Thanks, Larry. Thanks, Erica. Thank you. Thank you. Our next question comes from Ryan Meyers. Sir, your line is open. Hey, guys. Thanks for taking my questions. First one for me, you know, the business is obviously accelerating and performing very well despite what you guys consider a difficult macro environment. The question is, you know, 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? Good question, Ryan. I think it ultimately comes down to the marketplace. 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. As we gain more recognition, a little more exposure, we see more and more joining the marketplace looking for those benefits. You can see this through our GMV numbers. Okay. Got it. Then just briefly a question on inventory and operating cash flow. It was obviously down for the year, it looks like you guys had a big inventory build. You know, what should we be aware of in terms of that inventory build and the purpose of that? Yeah. The majority of that was in preparation for the Q4 season. I'm sure you're well aware that Q2 is a pretty even for us because of our outdoors. That was for the inventory buildup. On top of that, there was also a little bit of increased spend due to the acquisition. New Classic has slightly, the terms of buying are not as favorable as Giga Cloud right out the gate, but obviously that will change with time. Okay. Got it. Thanks for taking my questions. Of course. Thank you. Thank you. Our next question comes from Matt Koranda from Roth Capital Partners. Matt, your line is open. 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 growth margins and increased product growth margins as we're thinking about the impact of higher energy levels. Anything else you guys can highlight for us there in terms of the impacts of services, as of the last couple of quarters, how should we be thinking about service growth margins as we look into 2026? Thank you for the question. For the quarter that just passed, Q1, I think we saw product margins improve year-over-year and about, compared to Q4. 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. On the service front, we have the opposite effect. We have decreased service gross margin because of that reduced ocean spot rate. There's a bit of a natural hedge going on between the two service, sorry, the two revenue lines. Moving ahead, assuming spot rates in terms of logistics will be increasing, the two lines might move the other direction, but still in an offsetting manner. Got it. Okay. I appreciate the color there. Then as we kind of integrate New Classic is, with 1 Q being the first consolidated quarter, just any thoughts here on the timeline? Are we expecting the business to Slowly ramp, just as we saw Noble House within that 12 to 18-month range. Should that be accelerated or lagging that timeline? Just any preliminary thoughts there. Yeah. I think during our last call, we had communicated roughly six 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. 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. Once we get through that phase, we'll see things going in the opposite direction and going back to growth. Got it. Okay, then just a final question here. Just could you give us some thoughts on capital allocation? I know the biggest bucket's 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. Yes. Thank you. You're absolutely right. Those are our two main focal points in terms of capital allocation. We've been doing the share buybacks for a while now. 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. Got it. I appreciate the time. Thank you for answering my questions. Thank you. Thank you. Our last question comes from I'm sorry, Dionisio from Aegis Capital. Go ahead, your line is open. Good morning. 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? Also, as you grow so quickly in that market, might that require any infrastructure spend, whether it be, you know, warehouses or so forth? Thank you. Yes. Thank you for the question. 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 U.S., 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 U.S. 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. 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 two 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. 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. Okay. That's very helpful. Congratulations on the quarter. Thank you. Thank you. Thank you. Yeah, this is Larry. There's one call-out, you know, I want to add to what Erica already shared about the service margin. Actually, the pressure of the margin numbers is on, not coming from ocean shipping, but also come from the grounds, you know, service we're providing to our customer. Just because, you know, the challenge we're seeing from the economy that, you know, just because of the redundant 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, you know, few quarters. That's just something I want to add. Thank you. Thank you. This does conclude today's conference. We appreciate your participation. You may disconnect your lines at this time, and have a wonderful day.