DIBS · 1stdibs.Com, Inc.

1stDibs’ Q1 2026 results reflect a deliberate trade-off: modest top-line contraction amid structural cost optimization, yielding meaningful bottom-line improvement. Revenue declined 1% YoY to $22.4 million, consistent with GMV falling 5% to $89.7 million — driven by fewer orders (down 12%) and active buyers (down 10%). Yet gross profit rose 2% YoY and gross margin expanded 200 bps to 74.4%, indicating pricing resilience and favorable mix or lower fulfillment costs. Operating expenses fell sharply year-over-year — sales & marketing dropped $2.8M, and total operating expenses declined $2.6M — validating management’s multi-year cost re-engineering. This enabled GAAP net loss to narrow by $2.6M and Non-GAAP Adjusted EBITDA to reach $0.6 million — the second straight quarter of positive Adjusted EBITDA and a key milestone toward full-year profitability. Management explicitly attributes this to reallocated resources toward product and engineering, calling it the 'structural work we have done since 2022' showing up directly in results. The Q2 guidance range reflects continued caution: GMV outlook implies flat-to-slightly-down YoY performance, while Adjusted EBITDA margin guidance spans negative to slightly positive, acknowledging near-term volatility but affirming confidence in full-year positive Adjusted EBITDA and free cash flow. Importantly, the company ended Q1 with $85.3 million in total liquid assets — over 3.8x its annualized Q1 revenue — providing ample runway to execute its strategy without capital constraints.