DIBS — 1stdibs.Com, Inc.

1. Key Financial Results and Metrics:

• Gross Merchandise Volume (GMV): $89.7 million, down 5% year-over-year.
• Net Revenue: $22.4 million, down 1%.
• Adjusted EBITDA: Approximately $600,000, marking a 2.5% margin, positive for the second consecutive quarter.
• Average Order Value (AOV): Approximately $2,750, up 7%; Median Order Value: approximately $1,400, up 12%.
• Active Buyers: Approximately 58,300, down 10% due to reduced marketing spend.
• Cash Position: Ended the quarter with $85.3 million, down $9.8 million sequentially, primarily due to $9.1 million in share repurchases.

2. Strategic Updates and Business Highlights:

• The company is focusing on a product road map organized around four pillars: discovery, pricing, shipping, and service.
• Significant investments in AI-driven product enhancements, resulting in a 4% improvement in search success rates and a 25% reduction in null search results.
• New initiatives include the launch of the 1stDibs Tastemakers program and the Objects of Desire podcast to enhance community engagement.
• Shipping costs were reduced by integrating USPS, offering lower rates for packages under 20 pounds.
• Continued emphasis on improving seller tools and customer service, including the rollout of an AI-powered client service chatbot.

3. Forward Guidance and Outlook:

• For Q2 2026, GMV is projected between $86 million and $91 million (down 4% to up 1%).
• Net revenue guidance is set at $21.6 million to $22.6 million (down 2% to up 2%).
• Adjusted EBITDA margin guidance ranges from negative 2% to positive 2%.
• The company expects a return to positive year-over-year GMV growth by Q4 2026, driven by product improvements and a more favorable comparison to previous marketing spend reductions.

4. Bad News, Challenges, or Points of Concern:

• The demand environment remains challenging, particularly due to the U.S. housing market being near a 30-year low, impacting consumer appetite for luxury goods.
• Traffic and order volume have declined, with a 12% drop in order volume attributed to reduced sales and marketing efforts.
• Active buyer count has decreased, reflecting the impact of strategic marketing reductions.
• The company faces ongoing risks related to macroeconomic conditions that could affect consumer discretionary spending.

5. Notable Q&A Insights:

• Management expressed confidence that GMV growth can return by Q4 without relying on a market recovery, citing the compounding effects of their product road map.
• Key product improvements are expected to drive both near-term and long-term growth, with particular emphasis on search functionality and logistics.
• The leadership reiterated their commitment to prioritizing unit economics over volume, which may continue to impact short-term growth metrics.