1stDibs continues ‘path to profitability’ with Q3 gains
NEW YORK — Luxury online marketplace 1stDibs experienced continued positive movement on its “path to sustained profitability” with increases in net revenue, gross profit and gross margin in the third quarter.
“The third quarter represented a major breakthrough defined by focus and execution,” said David Rosenblatt, CEO. “We successfully completed a major strategic alignment, making structural changes that directly led to our best adjusted EBITDA margin as a public company.”
Net revenue for the third quarter ended Sept. 30 was $22 million, a year-over-year increase of 4%. Gross profit rose by 9% from Q3 2024 to $16.3 million and gross margin for the quarter was 74.3% vs. 71% in the same quarter a year ago. The company reported a non-GAAP adjusted EBITDA loss of $200,000 and an adjusted EBITDA margin of negative 1.1% vs. a loss of $3 million and a margin of negative 14.1% in Q3 a year ago.
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“Our third quarter performance reflects disciplined cost management and operating rigor,” said Tom Etergino, CFO. “Through targeted reductions and sharper marketing efficiency, we delivered adjusted EBITDA well above guidance and our strongest margin performance as a public company.
“This reset of our expense base accelerates our path to sustained profitability, putting us on track to achieve positive adjusted EBITDA in the fourth quarter and for the full-year 2026,” he said.
Active buyers rose by 1% year-over-year to about 63,000, while number of orders fell by 4% to about 32,000 from 2024. Gross merchandise value (GMV) was $89.1 million, up 5% year-over-year. The company’s cash, cash equivalents and short-term investments totaled $93.4 million.
The quarter ended with about 5,800 unique sellers, a drop of 17%, and 1.9 million listings, up 1%. Etergino pointed to art, jewelry and vintage and antique furniture as categories that performed well.
During the company’s earnings call, Rosenblatt said 1stDibs has continued to grow and gain market share in a tough market. In September, he said, the company reduced headcount in its sales and marketing area while shifting the focus toward technology.
“The most scalable way to meet buyers and sellers is through technology,” he said. Part of that technology focus includes the use of AI, which is part of every major initiative, he said, noting about 25% of new code is now being written by AI.
The company’s fourth quarter guidance sets GMV between $90 million and $96 million, net revenue between $22.3 million and $23.5 million, and adjusted EBITDA margin between 2% and 5%.
On Nov. 4, the company’s board of directors authorized the repurchase of up to $12 million of 1stDibs’ common stock, which replaces a previous stock repurchase program from August 2024.
