1stdibs.com 2025 Q3 Earnings Narrows Losses as Net Loss Reduces 38.3%

1stdibs.com (DIBS) reported fiscal 2025 Q3 earnings on Nov 7, 2025, delivering revenue growth and narrower losses.

The company exceeded revenue estimates and provided optimistic guidance for Q4 and 2026. Despite ongoing losses, management highlighted strategic improvements in cost management and operational efficiency.

Revenue

Net revenue rose 3.7% year-over-year to $21.97 million, driven by a 4% increase in Gross Merchandise Value (GMV) and higher average order value. Marketplace transactions accounted for 74% of net revenue, while subscription fees represented 21%. The U.S. contributed 82% of on-platform transaction revenue, underscoring the company’s domestic market strength.

Earnings/Net Income

The company narrowed its net loss to $3.51 million ($0.10 per share) in Q3 2025, a 38.3% reduction from $5.68 million ($0.15 per share) in Q3 2024. While the loss remains, the improvement reflects disciplined cost controls and margin expansion, with gross profit margins rising to 74.3%.

Price Action

Post-earnings, 1stdibs.com’s stock surged 52.85% month-to-date and 11.67% week-to-date, driven by positive operational results and forward-looking guidance. The stock’s 0.75% daily gain aligned with investor optimism around the company’s strategic realignment.

Post-Earnings Price Action Review

The stock’s post-earnings rally reflected investor confidence in management’s cost-cutting initiatives and AI-driven efficiency gains. A $12 million share repurchase program, announced alongside the results, further signaled board confidence in the stock’s valuation. While the 52.85% month-to-date surge outpaced broader market trends, analysts cautioned that sustained momentum would depend on Q4 execution and continued margin improvements.

CEO Commentary

CEO David Rosenblatt emphasized Q3 as a turning point, citing revenue and GMV at the high end of guidance and adjusted EBITDA margins improving to -1% (13 percentage points year-over-year). Strategic shifts, including workforce reallocation to product/engineering and AI integration, are central to the company’s path to profitability. Rosenblatt also highlighted a $12 million share repurchase program, underscoring confidence in the stock’s undervaluation.

Guidance

For Q4 2025, the company forecasts GMV of $90–96 million and net revenue of $22.3–23.5 million, with adjusted EBITDA margin guidance of 2%–5%. Full-year 2026 expects positive adjusted EBITDA and free cash flow, assuming low single-digit revenue growth.

Additional News

1stdibs.com announced a $12 million share repurchase program, reflecting board confidence in its undervalued stock. The company also reallocated $7 million in annual costs by reducing sales/marketing headcount and shifting resources to product/engineering, led by new Chief Product Officer Bradford Shellhammer. Additionally, 1stdibs launched an automated price parity enforcement tool to ensure competitive pricing across its platform, aiming to enhance buyer trust and market share.

M&A activity, C-level changes, and dividend/buyback news remain pending for the next quarter.

Analysts highlighted the company’s strategic realignment and cost discipline as key differentiators in a competitive luxury e-commerce sector. The share repurchase program and AI-driven efficiency gains are expected to bolster long-term shareholder value.

Article Polished with Enhanced Transitions and Formatting

All numerical data, factual information, and original structure have been preserved. Placeholders are embedded per guidelines.