1stdibs.com Q3 Earnings Call Highlights

Key Points

• Third-quarter results improved: Revenue rose 5% to $23.1 million and GMV increased 4% to $92.6 million, while orders grew 1%—their first year-over-year gain since Q4 2024. Adjusted EBITDA was $1 million, the company’s fourth consecutive positive quarter.
• Cost discipline supported profitability, despite fewer buyers: Sales and marketing spending fell 33%, and adjusted EBITDA margin improved to 4.5%; active buyers declined 8% year over year. The company ended the quarter with $69 million in cash and authorized another $5 million share repurchase program.
• Leadership and outlook: Bradford Shellhammer will become CEO on January 1, 2027, succeeding David Rosenblatt, who will become executive chair. For Q4, 1stDibs expects GMV of $89 million–$95 million and an adjusted EBITDA margin of 1%–4%, with lower commission rates weighing on revenue growth relative to GMV.

1stdibs.com NASDAQ: DIBS reported higher third-quarter revenue and a return to order growth, as the online marketplace announced that Bradford Shellhammer will succeed David Rosenblatt as chief executive officer on January 1, 2027.

Gross merchandise value, or GMV, rose 4% year over year to $92.6 million in the quarter ended September 30, while revenue increased 5% to $23.1 million. The company posted adjusted earnings before interest, taxes, depreciation and amortization of $1 million, marking its fourth consecutive quarter of positive adjusted EBITDA.

Orders increased 1%, their first year-over-year gain since the fourth quarter of 2024, following declines of 12% in the first quarter and 4% in the second. Conversion improved for the 12th consecutive quarter, although active buyers were down 8% from a year earlier.

Rosenblatt, who has led the company since 2011, will become executive chair and work with Shellhammer on strategy and capital allocation. Shellhammer, currently chief product officer and chief marketing officer, joined 1stDibs in August 2025. Rosenblatt said Shellhammer already leads much of the company’s day-to-day operations.

Orders improve as marketing spending falls

Shellhammer attributed the company’s progress to product improvements focused on discovery, trust, shipping and service. He said the company’s GMV growth compared with a mid-single-digit decline in high-end furniture spending, based on credit card data tracked by 1stDibs.

Average order value rose 2% to approximately $2,700, while median order value increased 7% to about $1,400. Chief Financial Officer Tom Etergino said GMV growth was driven by an acceleration in vintage and antique furniture.

The company ended the quarter with more than 58,200 active buyers, up 1% sequentially but lower year over year. Etergino attributed the annual decline to a deliberate reduction in sales and marketing spending beginning in late 2025. Sales and marketing expenses fell 33% to $5.3 million in the quarter.

Unique sellers declined 3% to approximately 5,600, while listings grew 3% to more than 1.9 million. Etergino said the expanding catalog indicated that sellers were listing more inventory on average.

Total operating expenses fell 9% to $19.2 million, even as technology development expenses rose 8% to $6.4 million. Adjusted EBITDA margin improved to 4.5% from negative 1.1% a year earlier. The company also generated $2.9 million in free cash flow and ended the quarter with $69 million in cash, cash equivalents and short-term investments.

Product changes and lower commissions

Among the changes made during the quarter, 1stDibs launched a redesigned personalized homepage for logged-in users and restored seller branding on product pages and in buyer-seller messaging. Shellhammer said early testing showed that seller branding increased checkout activity, including an 8% lift in app checkout completion.

The company is testing search capabilities that combine keyword matching with artificial intelligence. Its customer service chatbot now independently handles nearly 25% of chat support inquiries, up from roughly 15% in July, Shellhammer said. Sponsored Listings revenue grew more than 35% in the third quarter.

In October, 1stDibs reduced commissions for select jewelry and watch brands and all handbags, categories that together account for approximately 7% of GMV. The move followed a test in which lower commissions for select jewelry brands encouraged additional supply.

Shellhammer said the company is researching potential opportunities in other categories, including home and art, but has made no decisions. He told analysts that 1stDibs has an appetite to expand the strategy, though it does not expect coverage to reach a double-digit percentage of GMV in the near term.

Fourth-quarter outlook

For the fourth quarter, 1stDibs forecast GMV of $89 million to $95 million, representing a decline of 1% to growth of 5% year over year. It projected revenue of $22.2 million to $23.4 million, or a decline of 3% to growth of 2%, and an adjusted EBITDA margin of 1% to 4%.

Etergino said the outlook assumes faster order growth than in the third quarter, but a modest decline in average order value. Quarter-to-date average order value was down by a low-single-digit percentage, he said.

The CFO attributed the gap between the GMV and revenue growth forecasts primarily to lower commission rates under the category strategy. The company maintained its full-year framework for GMV and revenue growth and positive adjusted EBITDA, assuming stable macroeconomic conditions.

The board also authorized an additional $5 million share repurchase program. Etergino said 1stDibs has returned more than $55 million to shareholders through buybacks since 2023.

About 1stdibs.com (NASDAQ:DIBS)

1stDibs.com, Inc operates a global online marketplace for luxury goods, connecting consumers with professional dealers, galleries, designers, and makers. The platform focuses on high-end and distinctive products across categories including furniture, home décor, jewelry, watches, fashion, art, and collectibles.

The company provides product discovery and transaction services through its website and digital platforms. Its offerings are intended to support the buying and selling of unique, design-oriented merchandise, with services that may include seller tools, customer support, authentication or verification processes for selected categories, and arrangements related to payments and shipping.

1stDibs was founded in 2000 and initially developed as an online destination for antiques and design merchandise.

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