DIBS · 1stdibs.Com, Inc.

0001600641-26-000019

Summary

Q1 revenue dipped slightly amid order declines, but gross profit rose on lower cost of revenue while operating and net losses narrowed substantially from cost discipline including 2025 restructuring effects, generating positive operating cash flow for the first time.

Key takeaways

Gross profit increased to $16.7M (2.1% YoY) and gross margin reached 74.4% as cost of revenue declined more than revenue.
Operating loss narrowed to -$3.3M (46.9% YoY improvement) reflecting operating expense reductions.
Net loss improved to -$2.2M (54.8% YoY) with diluted EPS at -$0.06 (57.1% YoY).

Full analysis

Gross profit rose to $16.7 million, up 2.1% year-over-year from $16.3 million, expanding the gross margin to 74.4%. Management attributes this increase primarily to a decrease in cost of revenue, which fell more than net revenue. Cost of revenue encompasses payment processing, shipping, fulfillment, and personnel expenses supporting revenue operations and logistics. The disproportionate decline in these costs relative to revenue highlights effective cost leverage even amid lower volume.