1Stdibs.Com (DIBS) investor relations material

Executive summary

• Q1 2026 net revenue was $22.4 million, down 1% year-over-year, with GMV at $89.7 million, reflecting stable but slightly lower marketplace activity amid a challenging demand environment.

• Gross profit increased to $16.7 million, with gross margin rising to 74.4% from 72.4% year-over-year, driven by lower cost of revenue.

• Adjusted EBITDA turned positive at $0.6 million (2.5% margin), marking a significant improvement from a loss of $1.7 million in the prior year and validating structural cost changes.

• Net loss narrowed to $2.2 million from $4.8 million in Q1 2025, reflecting improved operating efficiency and reduced sales and marketing expenses.

• Continued investment in AI-driven initiatives and product innovation, with AI-assisted development now accounting for over 50% of new code.

Financial highlights

• GMV was $89.7 million, down 5% year-over-year, and net revenue was $22.4 million, down 1%.

• Adjusted EBITDA reached $0.6 million, representing a 2.5% margin, above the midpoint of guidance.

• Gross profit was $16.7 million, up 2%, with gross margins at 74.4%, up from 72.4% a year ago.

• Free cash flow was $0.8 million, compared to negative $0.4 million in Q1 2025.

• Cash, cash equivalents, and short-term investments ended at $85.3 million, down $9.8 million sequentially, mainly due to $9.1 million in share repurchases.

Outlook and guidance

• Q2 2026 GMV guidance: $86–$91 million; net revenue: $21.6–$22.6 million; adjusted EBITDA margin: -2% to +2%.

• Expect a return to positive year-over-year GMV growth by Q4 2026, driven by compounding product roadmap impact.

• Full-year 2026 framework: positive adjusted EBITDA, positive free cash flow, third consecutive year of revenue growth, and gross margins of 72%-74%.

• Management expects continued operating losses in the near term as investments in growth persist.

• Existing cash and investments of $85.3 million are expected to fund operations for at least the next 12 months.