1stdibs.Com, Inc.

What they do

1stDibs operates an asset-light online marketplace where roughly 5,700 unique sellers list approximately 1.9 million items with stock value exceeding $10.0 billion as of December 31, 2025. Sellers are evaluated by in-house experts and use the platform to manage inventory, market to buyers and negotiate prices directly. The company does not take physical possession of items sold; it enables fulfillment and shipping logistics and offers a purchase-protection program called the 1stDibs Promise. It had 7.8 million registered users as of December 31, 2025, up from 7.0 million a year earlier.

Revenue drivers

• Marketplace transactions (GMV-based) — The core business generates revenue from marketplace sales of luxury design items, with GMV of $96.0 million in Q2 2026, up 7% year-over-year. Annual revenue was $89.6 million in 2025, $88.3 million in 2024 and $84.7 million in 2023.
• Trade buyers (interior designers) — Trade Buyers, described as highly experienced interior designers, accounted for 31% of on-platform GMV in both 2025 and 2024. The Trade 1st program offers them personalized support, exclusive trade pricing and buyer incentives at no membership fee.
• Repeat purchasers — Active Buyers making more than one purchase in a year represented approximately 30% of total Active Buyers in both 2025 and 2024, indicating a recurring revenue base within the marketplace.
• Higher average order values — On-platform average order value was approximately $2,600 in 2025 versus $2,500 in 2024, and median order value was approximately $1,300 versus $1,200, reflecting a high-consideration, higher-priced product mix.

Recent performance

Second quarter 2026 net revenue was $23.3 million, up 5% year-over-year, with gross profit of $17.2 million and gross margin of 73.9% versus 71.8% a year earlier. GAAP net loss narrowed to $1.0 million from $4.3 million, and non-GAAP Adjusted EBITDA was $1.3 million, a 5.6% margin, versus $(1.8) million and (7.9)% in Q2 2025. GMV was $96.0 million, up 7%, which management called the strongest growth rate since late 2024. Orders were approximately 32K, down 4%, and Active Buyers were approximately 58K, down 10%. Cash, cash equivalents and short-term investments totaled $67.7 million as of June 30, 2026.

Strategy

Management describes a reengineered cost structure built from 2022 through 2025 that is intended to convert revenue upside into margin expansion, evidenced by Adjusted EBITDA margin improving over 13 percentage points year-over-year in Q2 2026. The company reduced Sales and Marketing spend while growing GMV, which management attributes to the product roadmap driving structural improvement in competitive position. In 2024 1stDibs shifted its seller acquisition and monetization approach to concentrate on fewer, more highly engaged sellers, discontinuing the pricing option with no monthly subscription fees and higher commission rates. The company continues to invest in its marketplace platform, seller relationships, brand, and the Trade 1st program for interior designers.

Risks

• History of operating losses — 1stDibs has incurred net losses every year presented, including $13.7 million in 2025, $18.6 million in 2024 and $22.7 million in 2023, and had an accumulated deficit of $346.0 million as of December 31, 2025.
• Declining buyer and order metrics — In Q2 2026 Active Buyers fell 10% year-over-year to approximately 58K and orders fell 4% to approximately 32K even as GMV grew, indicating growth is coming from higher order values rather than more customers.
• Seller base contraction — Unique sellers declined to approximately 5,700 as of December 31, 2025 from approximately 5,900 a year earlier, following the 2024 shift toward fewer, more highly engaged sellers.
• Macroeconomic and demand sensitivity — The company cites inflation, macroeconomic uncertainty and geopolitical instability as factors that could affect demand for the discretionary luxury design items sold on its marketplace.

Outlook

For the third quarter of 2026, management guides GMV of $89.0 million to $94.0 million, net revenue of $22.0 million to $22.9 million, and Adjusted EBITDA margin of (1%) to 2%. The company states it expects to incur net losses in the future and that it will need to generate and sustain increased revenue or materially reduce operating costs to achieve profitability. A GAAP reconciliation to forward-looking Adjusted EBITDA is not provided due to the variability of items such as stock-based compensation.