Highlights

  • 1stdibs.com increased second-quarter gross merchandise value by 7% to USD 96.0 million, exceeding its own guidance range.
  • Net revenue rose 5% as gross margin improved to 73.9% and the quarterly net loss narrowed sharply.
  • The marketplace recorded approximately 32,000 orders and 58,000 active buyers, both below their corresponding prior-year levels.
  • Management guided third-quarter adjusted EBITDA margin between negative 1% and positive 2%, below the second-quarter reported margin.

Fewer buyers and orders did not prevent 1stdibs.com (NASDAQ:DIBS) from increasing merchandise value and improving profitability in the second quarter of 2026. Results released on 5 August showed the online design marketplace generating positive adjusted EBITDA while retaining a GAAP net loss. The combination highlights a quarter in which financial progress ran ahead of the platform's customer and transaction counts.

Merchandise Value Outpaces Revenue

Gross merchandise value reached USD 96.0 million, up 7% year on year and above the upper end of management's guidance. Chief executive David Rosenblatt described the increase as the strongest growth rate since late 2024.

The marketplace covers design, furniture, jewellery, art and fashion. Net revenue increased 5% to USD 23.3 million from USD 22.1 million. Gross profit was USD 17.2 million, with gross margin rising to 73.9% from 71.8%.

Merchandise value measures activity across the marketplace, while revenue is the company's reported income from its business. The two figures describe different parts of performance and should not be treated as interchangeable.

A Lower Cost Base Supports Earnings

The quarterly net loss narrowed to USD 1.0 million, or USD 0.03 per share, from USD 4.3 million, or USD 0.12 per share, a year earlier.

Adjusted EBITDA moved to a profit of USD 1.3 million and a 5.6% margin, compared with a loss of USD 1.8 million and a negative 7.9% margin. Chief financial officer Tom Etergino attributed the improvement to the lower cost structure developed between 2022 and 2025, which allowed higher revenue to support margin expansion.

The figures are preliminary and unaudited. Adjusted EBITDA is a non-GAAP measure and remains distinct from the reported net loss. Its positive result does not mean the company achieved GAAP net profitability.

Buyer and Order Counts Move Lower

The operating indicators were less favourable. Orders totalled approximately 32,000, down 4%, while active buyers fell 10% to about 58,000.

These declines accompanied the increase in merchandise value. The source includes indicative spending calculations derived from rounded data, but does not provide a company-reported average order value for the quarter. The direct operational evidence is therefore higher merchandise value alongside fewer orders and active buyers.

For the six months ended 30 June, net revenue totalled USD 45.7 million. The first-half net loss was USD 3.2 million, while adjusted EBITDA reached USD 1.9 million, representing a 4.1% margin.

Guidance Allows a Narrower Profit Margin

Cash, cash equivalents and short-term investments stood at USD 67.7 million at 30 June 2026. That balance accompanied the reduced quarterly loss and positive adjusted EBITDA.

For the third quarter, management forecast merchandise value of USD 89.0 million to USD 94.0 million and revenue of USD 22.0 million to USD 22.9 million. Adjusted EBITDA margin guidance ranged from negative 1% to positive 2%.

These forecasts allow for lower merchandise value and revenue than the second-quarter results. Stabilisation in buyer and order counts, alongside delivery against the margin range, remains an unresolved operating question rather than an achieved outcome.