1stdibs.com, Inc. (NASDAQ: DIBS) reported fourth‑quarter 2025 results that marked the company’s first positive adjusted EBITDA as a public company. Net revenue for the quarter was $22.968 million, a 1% year‑over‑year increase from $22.770 million in Q4 2024, but still $0.14 million below the consensus estimate of $23.11 million. The company posted a net loss of $1.041 million, and earnings per share were $‑0.03 versus the consensus estimate of $‑0.04, a beat of $0.01 or 25%.
The revenue miss and modest growth were driven by a 5% decline in gross merchandise value and a drop in active buyers, reflecting the broader macro‑economic headwinds that have weighed on the luxury e‑commerce market. Despite these challenges, 1stdibs was able to achieve a positive adjusted EBITDA margin of 0% to 4%, a turnaround from the negative 1% margin reported in Q3 2025. Gross margin expanded to 73.5% from 72.3% in Q4 2024, underscoring the company’s pricing power and disciplined cost management.
Management attributed the profitability inflection to disciplined cost management and improved monetization. CEO David Rosenblatt said, "While our top‑line results reflect a challenging macro backdrop, our bottom‑line performance demonstrates the power of our strategic realignment and the strength of our brand. We enter 2026 focused on accelerating top‑line growth, supported by a high‑impact product roadmap designed to deepen our lead in the luxury market." CFO Tom Etergino added, "Through disciplined cost management and improved monetization, we achieved a meaningful Adjusted EBITDA inflection despite a constrained top‑line environment. We exited 2025 with a structurally leaner cost base and high conviction in our 2026 plan, which targets positive full‑year Adjusted EBITDA and free cash flow."
For Q1 2026, 1stdibs guided net revenue of $22.1 million to $23.1 million and an adjusted EBITDA margin of 0% to 4%. The guidance signals management’s confidence in sustaining profitability while continuing to focus on efficient growth and the deployment of AI‑driven product enhancements that are expected to further improve monetization and customer experience.
Market reaction to the results was mixed to negative. Investors focused on the revenue miss and the continued decline in GMV and active buyers, which outweighed the positive milestone of first positive adjusted EBITDA. The market’s cautious stance highlights the premium placed on growth metrics in the luxury e‑commerce sector, even as profitability milestones are achieved.
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