REVENUES
The Group’s revenues are disaggregated by major products/services lines and timing of revenue recognition. Detailed information is specified as follows:
| | | | | | | | | | | | | | | | | |
| Year ended December 31, |
| Major products/services lines | 2025 | | 2024 | | 2023 |
| (In thousands) |
| Service revenues | | | | | |
| Platform commission | $ | 19,650 | | | $ | 16,879 | | | $ | 11,187 | |
| Ocean transportation service | 37,226 | | | 65,759 | | | 19,703 | |
| Drayage service | 12,375 | | | 15,214 | | | 10,762 | |
| Warehousing service | 58,346 | | | 46,189 | | | 24,423 | |
| Packaging service | 34,394 | | | 29,951 | | | 17,296 | |
| Last-mile delivery service | 244,952 | | | 195,646 | | | 142,734 | |
| Others | 21,242 | | | 19,696 | | | 9,835 | |
| Total service revenues | 428,185 | | | 389,334 | | | 235,940 | |
| Product revenues | | | | | |
| Product sales to B | 208,358 | | | 215,702 | | | 86,578 | |
| Product sales to C | 278,476 | | | 193,937 | | | 118,044 | |
| Off-platform ecommerce | 486,834 | | | 409,639 | | | 204,622 | |
| GigaCloud 1P | 374,247 | | | 361,450 | | | 263,174 | |
| Others | 631 | | | 619 | | | 95 | |
| Total product revenues | 861,712 | | | 771,708 | | | 467,891 | |
| Revenues | $ | 1,289,897 | | | $ | 1,161,042 | | | $ | 703,831 | |
| | | | | | |
| Year ended December 31, |
| Timing of revenue recognition | 2025 | | 2024 | | 2023 |
| (In thousands) |
| Revenue from goods or services transferred to customers over time | $ | 357,470 | | | $ | 327,406 | | | $ | 198,259 | |
| Revenue from goods or services transferred to customers at a point in time | 932,427 | | | 833,636 | | | 505,572 | |
| Revenues | $ | 1,289,897 | | | $ | 1,161,042 | | | $ | 703,831 | |
Contract Liabilities
As of December 31, 2025 and 2024, the amounts of contract liabilities are $6.5 million and $4.5 million, respectively. Changes in the contract liabilities balances for the years ended December 31, 2025, 2024 and 2023 are as follows:
| | | | | | | | | | | | | | | | | |
| Year ended December 31, |
| 2025 | | 2024 | | 2023 |
| (In thousands) |
| Balance as of beginning of the year | $ | 4,486 | | | $ | 5,537 | | | $ | 2,001 | |
| Revenue recognized from opening balance of contract liabilities | (4,486) | | | (5,537) | | | (2,001) | |
| Increase due to cash received | 668,899 | | | 598,533 | | | 422,547 | |
| Increase due to the acquisition | — | | | — | | | 2,051 | |
| Revenue recognized from cash received during the year | (662,603) | | | (593,991) | | | (419,073) | |
| Foreign exchange effect | 163 | | | (56) | | | 12 | |
| Balance as of end of the year | $ | 6,459 | | | $ | 4,486 | | | $ | 5,537 | |
Contract liabilities relate to considerations received in advance for merchandise sales and services provided on GigaCloud Marketplace for which control of the services occur at a later point in time. The contract liabilities will be recognized as revenue when the Group fulfills its performance obligations to transfer the promised products or services to customers, which is expected to occur within one year.
The Group has elected the practical expedient in ASC 606-10-50-14(a) not to disclose the information about remaining performance obligations which are part of contracts that have an original expected duration of one year or less.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.