DIBS Q2 2026 Earnings Call Summary

Gross Merchandise Value (GMV): $96 million, up 7% year-over-year, exceeding guidance.
Revenue: $23.3 million, up 5%, also above guidance.
Adjusted EBITDA Margin: Approximately 6%, significantly up from the previous year and above guidance.
Average Order Value (AOV): Approximately $2,850, up 10% year-over-year; median order value also increased by 10% to approximately $1,500.
Active Buyers: Approximately 57,700, down 10% year-over-year due to reduced sales and marketing spend.
Cash Position: $67.7 million, down $17.6 million sequentially, primarily due to share repurchases and a reclassification of cash related to payment processing.

Product Improvements: Continued enhancements in discovery, pricing, shipping, and service, with AI now accounting for over 70% of new code.
Discovery Enhancements: Launched image search and improved personalization features, leading to higher engagement metrics.
Tastemakers Ambassador Program: Successful pilot with increased social media engagement, including a tripling of video view time on Instagram.
Pricing Strategy: Doubled price parity coverage, leading to improved sell-through rates.
Shipping Improvements: Expanded freight pre-quote coverage and reduced shipping costs for buyers.
New Revenue Streams: Introduced paid event sponsorships during the 1stDibs 50 event, generating approximately $270,000 in non-endemic advertising revenue.

Third Quarter Guidance: GMV expected between $89 million and $94 million (flat to up 6%); revenue expected between $22 million and $22.9 million (flat to up 4%); adjusted EBITDA margin between -1% and +2%.
Full Year 2026 Outlook: GMV growth expected year-over-year; Q4 GMV also anticipated to grow. Adjusted EBITDA expected to remain positive for the year.
Long-term Growth Drivers: Continued focus on product roadmap, AI enhancements, and potential market expansion beyond current offerings.

Market Environment: The luxury housing market remains weak, with high-end furniture demand declining year-over-year, which could impact future growth.
Active Buyers Decline: A 10% decrease in active buyers indicates challenges in customer retention and acquisition, exacerbated by reduced marketing spend.
Free Cash Flow Concerns: Due to an accounting reclassification, the company is unlikely to generate positive free cash flow in 2026, despite strong underlying business performance.

Growth Initiatives: Management emphasized the importance of their four-pillar roadmap (discovery, trust, shipping, and service) and plans to broaden deployment in the second half of the year.
Impact of Luxury Market Recovery: While the luxury market is currently not contributing to growth, management believes they can sustain growth independently of market recovery.
Tastemakers Program: The program is seen as a cost-effective way to reach younger audiences and improve engagement, with potential for increased marketing spend if profitable.
Future GMV Growth: Management expressed confidence in GMV growth beyond 2026, driven by the compounding effects of their strategic initiatives and improvements in the marketplace.

DIBS — 1stdibs.com, Inc.