1stdibs.com, Inc.

Previous wording

We define GMV as the total dollar value from items sold by our sellers through 1stDibs in a given month, minus cancellations within that month, and excluding shipping and U.S. sales taxes. GMV includes all sales reported to us by our sellers, whether transacted through the 1stDibs online marketplace or reported as an offline sale. We view GMV as a measure of the total economic activity generated by our online marketplace and as an indicator of the scale, growth, and health of our online marketplace. Our historical performance for GMV may not be indicative of future performance in GMV.

Current wording

We define GMV as the total dollar value from items sold by our sellers through 1stDibs in a given month, minus cancellations within that month, and excluding shipping and applicable taxes. GMV includes all sales reported to us by our sellers, whether transacted through the 1stDibs online marketplace or reported as an offline sale. We view GMV as a measure of the total economic activity generated by our online marketplace and as an indicator of the scale, growth, and health of our online marketplace. Our historical performance for GMV may not be indicative of future performance in GMV.

Previous wording

General and administrative expenses include payroll, employee benefits, stock-based compensation, and other headcount-related expenses associated with finance, legal, facility and human resources related personnel, lease expense, net of sublease income, business liability insurance, accounting, professional fees, consulting costs, and depreciation of property and equipment. We expense all general and administrative expenses as incurred.

Current wording

General and administrative expenses include payroll, employee benefits, stock-based compensation, and other headcount-related expenses associated with finance, legal, facility and human resources related personnel, lease expense, net of sublease income, comprehensive insurance costs, accounting, professional fees, consulting costs, and depreciation of property and equipment. We expense all general and administrative expenses as incurred.

Previous wording

Net revenue was $22.4 million for the three months ended March 31, 2026, as compared to $22.5 million for the three months ended March 31, 2025. The decrease of $0.2 million, or 1%, was mainly due to a decrease in GMV which was mainly due to a decrease in orders for the three months ended March 31, 2026. While the impacts are difficult to isolate and quantify, we believe our GMV, number of orders, and net revenue have continued to be impacted negatively, both directly and indirectly, by macroeconomic factors, including significant housing market volatility, significant capital market volatility, and global economic and geopolitical developments. We believe we have, and continue to work to position the business to benefit from an improvement in macroeconomic factors.

Current wording

Net revenue was $23.3 million for the three months ended June 30, 2026, as compared to $22.1 million for the three months ended June 30, 2025. The increase of $1.2 million, or 5%, was due to an increase in GMV, mainly due to an increase in average order value partially offset by a decrease in orders for the three months ended June 30, 2026. While GMV and net revenue increased, we believe our GMV, number of orders, and net revenue have continued to be impacted negatively, both directly and indirectly, by macroeconomic factors, including significant housing market volatility and global economic and geopolitical developments. While this is our belief, the impacts are difficult to isolate and quantify. We believe we have positioned, and continue to work to position, the business to benefit from an improvement in macroeconomic factors.

Previous wording

Provision for transaction losses was $0.7 million for the three months ended March 31, 2026, as compared to $0.9 million for the three months ended March 31, 2025. The decrease of $0.2 million, or 25%, was mainly due to a decrease in damage and chargeback claims.

Current wording

Cost of revenue was $6.1 million for the three months ended June 30, 2026, as compared to $6.2 million for the three months ended June 30, 2025. The decrease of $0.2 million, or 2%, was mainly due to decreases in professional fees, depreciation, and net shipping expenses.

Previous wording

Gross profit was $16.7 million and gross margin was 74.4% for the three months ended March 31, 2026, as compared to gross profit of $16.3 million and gross margin of 72.4% for the three months ended March 31, 2025. The increase in gross profit and gross margin for the three months ended March 31, 2026 was mainly due to the decrease in cost of revenue partially offset by the decrease in net revenue as outlined above.

Current wording

Gross profit was $17.2 million and gross margin was 73.9% for the three months ended June 30, 2026, as compared to gross profit of $15.9 million and gross margin of 71.8% for the three months ended June 30, 2025. The increase in gross profit and gross margin for the three months ended June 30, 2026 was mainly due to the increase in revenue and the decrease in cost of revenue as outlined above.

Previous wording

Sales and marketing expense was $6.3 million for the three months ended March 31, 2026, as compared to $9.1 million for the three months ended March 31, 2025. The decrease of $2.8 million, or 31%, was mainly due to a $1.8 million decrease in performance-based marketing and promotional campaigns. We also had a $0.7 million net decrease in headcount costs mainly due to our 2025 restructuring, partially offset by severance from the March 2026 reorganization and annual compensation adjustments.

Current wording

Sales and marketing expense was $5.4 million for the three months ended June 30, 2026, as compared to $8.1 million for the three months ended June 30, 2025. The decrease of $2.8 million, or 34%, was mainly due to a $1.4 million decrease in performance-based marketing. We also had a $1.2 million decrease in headcount costs which included a $0.8 million decrease in salaries and benefits and a $0.4 million decrease in stock-based compensation expense mainly due to our recent reorganizations.

Previous wording

Other income, net was $1.1 million for the three months ended March 31, 2026, as compared to $1.5 million for the three months ended March 31, 2025. The decrease of $0.3 million, or 21%, was due mainly to lower interest income driven by lower cash, cash equivalents, and short-term investments for the three months ended March 31, 2026 coupled with lower interest rates.

Current wording

Other income, net was $1.1 million for the three months ended June 30, 2026, as compared to $1.4 million for the three months ended June 30, 2025. The decrease of $0.3 million, or 25%, was mainly due to lower interest income driven by lower cash, cash equivalents, and short-term investments for the three months ended June 30, 2026 coupled with lower interest rates.

Previous wording

Our marketplace transaction fees represent the majority of our net revenue and accounted for 74% and 75% of our net revenue for the three months ended March 31, 2026 and 2025, respectively. Subscription fees accounted for 21% of our net revenue for each of the three months ended March 31, 2026 and 2025.

Current wording

Our marketplace transaction fees represent the majority of our net revenue and accounted for 74% and 75% of our net revenue for the six months ended June 30, 2026 and 2025, respectively. Subscription fees accounted for 21% of our net revenue for each of the six months ended June 30, 2026 and 2025.

Previous wording

Technology development expense was $6.2 million for the three months ended March 31, 2026, as compared to $5.6 million for the three months ended March 31, 2025. The increase of $0.6 million, or 10%, was mainly due to a $0.5 million increase in salaries and benefits from our annual March compensation adjustments.

Current wording

Technology development expense was $12.5 million for the six months ended June 30, 2026, as compared to $11.5 million for the six months ended June 30, 2025. The increase of $1.0 million, or 9%, was mainly due to a $0.8 million increase in salaries and benefits resulting from our annual compensation adjustments in March.

Previous wording

•The exclusion of other income, net, which includes interest income related to our cash, cash equivalents and short-term investments, and realized and unrealized gains and losses on foreign currency exchange;

Current wording

•The exclusion of other income, net, which includes interest income related to our cash, cash equivalents and short-term investments, and realized and unrealized gains and losses on foreign currency exchange; and

Previous wording

•The exclusion of discrete restructuring expenses such as severance and benefit costs from reductions in force and reorganizations that are fundamentally different in strategic nature from ongoing initiatives. We believe the exclusion of these items facilitates a more consistent comparison of operating performance over time because they are distinct from ongoing operational costs; and

Current wording

•The exclusion of discrete restructuring expenses such as severance and benefit costs from reductions in force and reorganizations that are fundamentally different in strategic nature from ongoing initiatives. We believe the exclusion of these items facilitates a more consistent comparison of operating performance over time because they are distinct from ongoing operational costs.

Previous wording

We define Adjusted EBITDA as our net loss, excluding: (1) depreciation and amortization; (2) stock-based compensation expense; (3) other income, net; (4) provision for income taxes; (5) restructuring expenses; and (6) strategic alternative expenses. The following table provides a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA:

Current wording

We define Adjusted EBITDA as our net loss, excluding: (1) depreciation and amortization; (2) stock-based compensation expense; (3) other income, net; (4) provision for income taxes; and (5) restructuring expenses. The following table provides a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA:

Previous wording

As of March 31, 2026, we had cash, cash equivalents and short-term investments of $85.3 million and an accumulated deficit of $348.2 million. Net cash provided by operating activities was $1.1 million in the three months ended March 31, 2026. We expect operating losses to continue in the foreseeable future as we continue to strategically invest in growth activities. Our cash flows, including net cash used in or provided by operating activities, may vary from quarter to quarter, due to the timing of payments to sellers, vendor contracts and prepayments, annual bonuses, marketing related expenses, and other factors. Our principal use of cash is to fund our operations including platform development to support our strategic initiatives and anticipated share repurchases under our Stock Repurchase Program. As we continue to enhance our processes and enter into a new agreement with our payment processors, in 2026 we expect to have certain funds classified as payment processor receivables and seller accounts, an other current asset on our consolidated balance sheet. This change is expected to lower our cash and cash equivalents balance by approximately $6 million to $10 million and increase our other current assets by the same approximate amounts. This change will have no impact on total current assets or total assets.

Current wording

As of June 30, 2026, we had cash, cash equivalents and short-term investments of $67.7 million and an accumulated deficit of $349.2 million. Net cash used in operating activities was $3.7 million in the six months ended June 30, 2026. We expect operating losses to continue in the foreseeable future as we continue to strategically invest in growth activities. Our cash flows, including net cash used in or provided by operating activities, may vary from quarter to quarter, due to the timing of payments to sellers, vendor contracts and prepayments, annual bonuses, marketing related expenses, and other factors. Our principal use of cash is to fund our operations including platform development to support our strategic initiatives. As of June 30, 2026, a change to our payment processor agreement resulted in a reclassification of approximately $5.9 million from cash and cash equivalents to receivables from payment processors and seller accounts, which is recorded in other current assets. These amounts represent amounts received or expected to be received from buyers through third-party payment processors which flow through a bank account for payment to sellers in connection with marketplace transactions. Additionally, our free cash for the three and six months ended June 30, 2026, was negatively impacted by the reclassification of $5.9 million.

Previous wording

In November 2025, our Board of Directors authorized us to repurchase up to an aggregate of $12.0 million of our common stock (“2025 Stock Repurchase Program”). During the three months ended March 31, 2026, 1,735,588 shares of our common stock were repurchased for a total cost of $9.4 million and approximately $1.0 million remains available under our 2025 Stock Repurchase Program. The following table summarizes total treasury stock purchased under each of the Company's programs as of the periods presented:

Current wording

During the six months ended June 30, 2026, 4,141,020 shares of our common stock were repurchased for a total cost of $20.7 million. As of June 30, 2026, no funds remained available for future repurchases under our 2026 Stock Repurchase Program. The following table summarizes total treasury stock purchased under each of the Company's programs as of the periods presented:

Previous wording

Net cash provided by operating activities was $1.1 million for the three months ended March 31, 2026 and was mainly due to positive operating results. These positive results were partially offset by changes in operating assets and liabilities, including a $1.4 million increase in receivables from payment processors due to timing, a $1.1 million decrease in accounts payable and accrued expenses due to the timing of vendor payments and related invoices, and a $1.1 million decrease in operating lease liabilities due to our operating lease payments.

Current wording

Net cash used in operating activities was $5.2 million for the six months ended June 30, 2025 and was driven primarily by changes in operating assets and liabilities, including a $2.0 million decrease in operating lease liabilities due to our monthly operating lease payments, a $1.7 million decrease in accounts payable and accrued expenses due to timing of payments and invoices, and a $1.3 million increase in prepaid expenses and other current assets due to timing of prepaid contracts.

Previous wording

Net cash provided by investing activities was $6.8 million for the three months ended March 31, 2026, and was mainly due to $22.0 million in maturities of short-term investments, partially offset by $15.0 million in purchases of short-term investments.

Current wording

Net cash provided by investing activities was $22.5 million for the six months ended June 30, 2026, and was mainly due to $43.9 million in maturities and sales of short-term investments, partially offset by $20.8 million in purchases of short-term investments.

Previous wording

Net cash used in investing activities was $3.3 million for the three months ended March 31, 2025, and was driven primarily by $24.0 million in purchases of short-term investments, partially offset by $21.0 million in maturities and sales of short-term investments.

Current wording

Net cash provided by investing activities was $5.9 million for the six months ended June 30, 2025, and was driven primarily by $38.8 million in maturities and sales of short-term investments, partially offset by $32.5 million in purchases of short-term investments.

Previous wording

Net cash used in financing activities was $10.3 million for the three months ended March 31, 2026, and was driven primarily by $9.1 million in repurchases of our common stock as part of our 2025 Stock Repurchase Program and $1.2 million of payments for taxes related to net share settlements of stock-based compensation awards.

Current wording

Net cash used in financing activities was $22.8 million for the six months ended June 30, 2026, and was driven primarily by $20.7 million in repurchases of our common stock as part of our 2025 and 2026 Stock Repurchase Programs and $2.1 million of payments for taxes related to net share settlements of stock-based compensation awards.

Previous wording

Net cash used in financing activities was $2.4 million for the three months ended March 31, 2025, and was driven primarily by $1.8 million in purchases of our common stock as part of our 2024 Stock Repurchase Program and $0.6 million of payments for taxes related to net share settlements of stock-based compensation awards.

Current wording

Net cash used in financing activities was $3.1 million for the six months ended June 30, 2025, and was driven primarily by $1.8 million in purchases of our common stock as part of our 2024 Stock Repurchase Program and $1.3 million of payments for taxes related to net share settlements of stock-based compensation awards.

Previous wording

See Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” to our condensed consolidated financial statements for a description of recently issued accounting pronouncements that may potentially impact our financial position, results of operations, or cash flows.

Current wording

See Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” to our condensed consolidated financial statements for a description of recently issued accounting pronouncements.