1stDibs — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue was $23.1 million, an increase of 5% year-over-year.
• Gross profit was $16.9 million, an increase of 3% year-over-year.
• Gross margin was 73.2%, compared to 74.3% in the third quarter 2025.
• GAAP net loss was $1.2 million, compared to a net loss of $3.5 million in the third quarter 2025.
• Non-GAAP Adjusted EBITDA was $1.0 million, compared to $(0.2) million in the third quarter 2025.
• Non-GAAP Adjusted EBITDA Margin was 4.5%, compared to (1.1)% in the third quarter 2025.
• Cash, cash equivalents, and short-term investments totaled $69.0 million as of September 30, 2026.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $0.4 million, compared to $6.7 million in the prior year period.
• Free cash flow for the nine months ended September 30, 2026, was $(1.3) million, compared to $(7.4) million in the prior year period.

Guidance and Future Outlook:

• Fourth quarter 2026 GMV guidance is $89.0 million to $95.0 million.
• Fourth quarter 2026 net revenue guidance is $22.2 million to $23.4 million.
• Fourth quarter 2026 non-GAAP Adjusted EBITDA margin guidance is 1% to 4%.
• Management stated they see a large opportunity ahead and are focused on capturing it.
• The company remains focused on expense discipline while investing in product and engineering work.

Business Segments and Product Lines:

• Gross Merchandise Value (GMV) was $92.6 million, an increase of 4% year-over-year.
• Number of orders was approximately 32,000, an increase of 1% year-over-year.
• Active buyers were approximately 58,000, a decrease of 8% year-over-year.
• Orders grew year-over-year for the first time since the fourth quarter of 2024.
• GMV growth occurred despite continued softness in the high-end furniture market.
• Management attributed performance to product improvements reaching more buyers and resulting share gains.

Market and Competitive Landscape:

• The company operates in the luxury design marketplace sector, connecting buyers with sellers of vintage, antique, and contemporary furniture, home décor, art, jewelry, watches, and fashion.
• Management noted continued softness in the high-end furniture market.
• The company believes its performance reflects share gains relative to competitors.

Risks and Challenges:

• Forward-looking statements involve risks including the ability to execute business plans, achieve future growth, attract and retain buyers and sellers, and enhance GMV growth.
• Risks include the ability to manage and reduce operating costs, maintain a leaner cost base, and execute the stock repurchase program.
• Macroeconomic conditions, geopolitical events, and other factors discussed in SEC filings could cause actual results to vary materially from expectations.
• Stock-based compensation expense is subject to variability based on employee stock transactions, fair market value of common stock, and hiring/retention needs.

Management Commentary and Tone:

• David Rosenblatt, CEO, described the quarter as one of "product-driven improvement" and expressed confidence in capturing a large opportunity.
• Tom Etergino, CFO, highlighted the delivery of the fourth consecutive quarter of positive Adjusted EBITDA and emphasized a focus on expense discipline.
• The tone reflects confidence in product improvements driving order growth and share gains despite market headwinds.

Other Key Points:

• On November 3, 2026, the Board of Directors authorized a repurchase of up to $5.0 million of common stock.
• A change to the payment processor agreement resulted in a reclassification of cash to receivables, negatively impacting free cash flow by approximately $2.3 million for the three months and $8.2 million for the nine months ended September 30, 2026.
• Net cash used in financing activities for the nine months ended September 30, 2026, was $24.3 million, primarily driven by payments for repurchase of common stock ($20.7 million) and taxes related to net share settlement ($3.6 million).
• Final results will be included in the Quarterly Report on Form 10-Q for the period ended September 30, 2026.
• A webcast to discuss results was held on November 5, 2026, at 8:00 a.m. Eastern Time.