1stdibs.com 2025 Q3 Earnings Narrows Losses, Improves Margins by 13 Pts

The luxury e-commerce platform exceeded revenue estimates by 2.15% and narrowed net losses by 38.3% year-over-year. Guidance for Q4 2025 includes positive adjusted EBITDA margins and a $12M share repurchase program.

Revenue

1stdibs.com reported Q3 2025 revenue of $21.97 million, a 3.7% increase from $21.19 million in the prior-year quarter. The result surpassed the Zacks Consensus Estimate of $21.51 million by 2.15%, driven by higher Gross Merchandise Value (GMV) and average order value.

Earnings/Net Income

The company narrowed its net loss to $3.51 million, or $0.10 per share, from $5.68 million, or $0.15 per share, in 2024 Q3. While losses persist, the 33.3% improvement in EPS and 38.3% reduction in net losses highlight progress in cost management.

Post-Earnings Price Action Review

The strategy of buying DIBS shares on revenue beat announcements and holding for 30 days historically showed positive returns. DIBS has consistently exceeded revenue estimates, with a 2.15% beat in Q3 2025. Prior quarters saw a 29.41% earnings surprise and a 4.56% single-day gain post-beat. However, volatility remains a risk, with a P/E ratio of -7.29 and exposure to market conditions. Investors should balance the company’s operational improvements with its unprofitable short-term trajectory.

CEO Commentary

CEO David Rosenblatt described Q3 2025 as a “breakthrough period,” citing a 13-point improvement in adjusted EBITDA margins to -1% and $7M in annual cost savings. Strategic priorities include AI-driven efficiency, modernized marketing, and a $12M share repurchase program to return capital at a valuation discount.

Guidance

The company guided to Q4 2025 GMV of $90M–$96M and net revenue of $22.3M–$23.5M, with adjusted EBITDA margins projected at +2% to +5%. Full-year 2026 expects positive adjusted EBITDA and free cash flow, supported by structural cost savings and organic traffic growth.

Additional News

1stdibs.com announced a $12 million share repurchase program, signaling board confidence in its valuation. CEO David Rosenblatt unveiled a strategic shift, reallocating headcount from sales/marketing to technology development, including the appointment of Bradford Shellhammer as Chief Product Officer and Chief Marketing Officer. Additionally, the company launched an automated price parity enforcement tool to maintain competitive pricing.