1Stdibs.Com (DIBS) investor relations material

Executive summary

• Q2 2026 GMV reached $96.0 million, up 7% year-over-year, and net revenue was $23.3 million, both exceeding guidance, with gross profit at $17.2 million and gross margin improving to 73.9%.

• Adjusted EBITDA was $1.3 million (5.6% margin), a significant turnaround from a loss last year, and net loss narrowed to $1.0 million from $4.3 million in Q2 2025.

• Operating expenses declined 11% year-over-year, mainly due to a 34% reduction in sales and marketing costs following restructuring.

• Growth was driven by product improvements, AI-powered features, and expansion in non-core verticals, despite a challenging luxury home goods market and reduced marketing spend.

• Cost structure reengineering and headcount reduction of over 30% since 2022 enabled margin expansion and operational efficiency.

Financial highlights

• Gross margin improved to 73.9%–74% in Q2 2026, with gross profit at $17.2 million and adjusted EBITDA margin at 5.6%.

• Net loss per share was $0.03, compared to $0.12 in Q2 2025.

• Cash, cash equivalents, and short-term investments totaled $67.7 million as of June 30, 2026.

• Free cash flow for H1 2026 was negative $4.2 million, impacted by a $5.9 million payment processor reclassification.

• No debt outstanding; capital allocation focused on share repurchases and liquidity.

Outlook and guidance

• Q3 2026 guidance: GMV expected between $89.0 million and $94.0 million; net revenue between $22.0 million and $22.9 million; Adjusted EBITDA margin projected between -1% and 2%.

• Full-year 2026 GMV and revenue expected to show positive year-over-year growth, with continued profitability and margin expansion.

• Revenue take rates revised to 24%-25% due to higher-value order mix.

• Management expects continued operating losses in the near term as investments in growth persist, but liquidity is sufficient for at least 12 months.

• Not likely to generate positive free cash flow in 2026 due to accounting reclassification, but underlying business remains cash generative.