1stdibs.com, Inc.

Q2 GMV was $96 million, up 7% year over year, and revenue was $23.3 million, up 5%, both above the high end of guidance. Gross profit was $17.2 million, up 8%, gross margin was 73.9% (up 210 basis points year over year), and adjusted EBITDA was $1.3 million, or about 6% margin. Average order value was approximately $2,850, up 10%, and median order value was approximately $1,500, also up 10%. For Q3, the company guided GMV to $89 million to $94 million, revenue to $22.0 million to $22.9 million, and adjusted EBITDA margin to negative 1% to positive 2%. For 2026, management now expects full-year GMV to grow year over year, expects gross margins of 72% to 74%, expects a third consecutive year of revenue growth, and still expects positive adjusted EBITDA; however, it said positive free cash flow is no longer likely in 2026 because of an accounting reclassification tied to payment processor agreements.

David Rosenblatt framed Q2 as proof that the company’s product and cost reengineering is working, saying the business is on track for sustainable top-line growth and positive adjusted EBITDA. He emphasized the four-pillar roadmap—discovery, trust, shipping, and service—and said the second half will focus on broadening those improvements across more of the platform. His tone was confident but measured: he repeatedly said the company is early in the multi-year build and that there is much more to do.

Tom Etergino said the company’s reworked cost structure is producing the intended operating leverage, with GMV up 7%, revenue up 5%, and adjusted EBITDA margin around 6% all beating the high end of guidance. He highlighted gross margin of 73.9% versus a 72% to 74% target range, operating expenses down 11% to $19.3 million, and sales and marketing down 34% to $5.4 million. Cash, cash equivalents, and short-term investments ended at $67.7 million, down $17.6 million sequentially, mainly due to $11.1 million of share repurchases and a roughly $5.9 million accounting reclassification related to payment processors. He also said the company repurchased about 2.4 million shares for $11.1 million, exhausting the 2026 authorization, and noted that while the underlying business is generating cash ahead of expectations, reported free cash flow is now unlikely to be positive in 2026 because of that reclassification.

Analysts pressed on what drove the quarter and what could keep results improving. Management said Q2 outperformance came from stabilized traffic and 10% average and median order value growth, not from a better luxury housing market, which credit card data showed was still down mid-single digits. Questions also focused on Tastemakers, where management said the pilot improved Instagram reach and engagement and could support a more efficient paid media program, though Tom said paid traffic would remain disciplined and only increase if unit economics are attractive. Another question asked about growth beyond Q4; David said the business feels good about its GMV trajectory beyond 2026 because the sales and marketing laps are easing, the roadmap should compound, and AI is enabling higher-priority initiatives, while a housing recovery is not required for continued growth.