1stdibs.com’s Earnings Calls: AI Chatbot Rollout Timeline and Growth Driver Shifts Clash

Date of Call: Aug 5, 2026

Financials Results

• Revenue: $23.3 million, up 5% year-over-year
• Gross Margin: 73.9%, up 210 basis points year-over-year

Guidance:

• Q3 GMV forecast between $89 million and $94 million, flat to up year-over-year.
• Q3 net revenue forecast between $22 million and $22.9 million, flat to up 4% year-over-year.
• Q3 adjusted EBITDA margin forecast between negative 1% and positive 2%.
• Full-year 2026 GMV expected to grow year-over-year for the first time.
• Full-year 2026 Q4 GMV expected to grow year-over-year.
• Full-year 2026 revenue take rates expected to be approximately 24% to 25%.
• Full-year 2026 gross margins expected to be 72% to 74%, up from 71% to 73% in 2025.
• Full-year 2026 outlook remains for positive adjusted EBITDA.
• No longer likely to generate positive free cash flow for 2026 due to accounting reclassification.

Business Commentary:

Revenue and GMV Growth:

• First Dibs reported GMV of $96 million for Q2, up 7% year-over-year, and revenue of $23.3 million, up 5% year-over-year.
• The growth was driven by improvements in product offerings, including conversion growth for the 11th consecutive quarter, expanding average order values, and increased traffic from organic sources.

Margin Expansion and Cost Management:

• The company achieved an adjusted EBITDA margin of approximately 6%, marking an improvement of over 13 percentage points year-over-year.
• This expansion was due to strategic reductions in sales and marketing expenses and a focus on cost efficiency, despite a challenging macro environment.

Product Development and AI Integration:

• Significant progress was made in the company's roadmap focusing on discovery, pricing, shipping, and service, with AI-assisted development accounting for over 70% of new code.
• Initiatives like image search, semantic search, and AI-powered customer service chatbots contributed to enhanced user experience and increased buyer engagement.

Average Order Value and Conversion:

• First Dibs saw an increase in average order value by 10% year-over-year, reaching approximately $2,850, and a rise in median order value by the same percentage.
• This was supported by high-value sales, such as art transactions, and continued conversion growth, indicating increased trust and confidence in the platform.

Traffic and Market Positioning:

• The company's traffic declines moderated sequentially, with sessions stabilizing, reflecting improved product engagement.
• This stabilization was supported by strong organic traffic, making up approximately 75% of total traffic, indicating the enduring strength of the First Dibs brand.

Sentiment Analysis:

Overall Tone: Positive

• Management stated 'Q2 provides early evidence that this is working exactly as designed' regarding cost structure and margin expansion. They emphasized 'our roadmap is working' and expressed 'conviction in the path.' CEO noted 'the head has never been stronger' and that results 'confirm we are on track.'

Q&A:

• Question from Bobby (Northland Capital Markets): What growth or cost initiatives are planned for coming quarters to continue bolstering results?
  Response: Focus is on broadening deployment of the four pillars (discovery, trust, shipping, service) across more service areas, with specific second-half rollouts of semantic search, expanded trust initiatives, shipping cost incentives, and broader AI chatbot use.

• Question from Bobby (Northland Capital Markets): Were Q2 results bolstered by luxury market trends, and what benefit would a recovery bring?
  Response: Results were not supported by the luxury market, which continued to decline; outperformance came despite market contraction and significant sales/marketing spend reductions, proving the roadmap's effectiveness independent of macro recovery.

• Question from Bobby (Northland Capital Markets): How does scaling the tastemaker program impact costs and expectations given the tripling of Instagram view time?
  Response: The program is a cost-effective way to reach a younger audience and improve paid media efficiency; they will continue to buy paid traffic profitably but remain disciplined, with scaling planned for the second half.

• Question from Kurt (William Blair): Can you provide details on GMV growth components beyond Q4 and the framework for continued growth given the muted housing macro?
  Response: Confidence in GMV trajectory is strengthened by Q2 performance, with drivers including lapping sales/marketing cuts, compounding product roadmap effects, and AI-driven capabilities; growth is not dependent on a housing market recovery.

Contradiction Point 1

Progress and Timeline of Product Roadmap Execution

Contradiction on the completion status and timeline of AI chatbot rollout for service.

Bobby (Northland Capital Markets) - Bobby (Northland Capital Markets)

2026Q2: The focus is on executing the product roadmap... For service, the AI chatbot pilot will be scaled to free up human agents for complex issues. - [David Rosenblatt](CEO)

Given the strong Q2 results from cost and growth initiatives, what further plans are in place for upcoming quarters to sustain performance? - Bobby Brooks (Northland Capital Markets)

2026Q1: Progress in Q1 included foundational work... AI-powered client service chatbot in Q2. - [David Rosenblatt](CEO)

Contradiction Point 2

Specifics of the Service Pillar Initiative

Contradiction on whether AI chatbot is a new launch or a scaling of an existing pilot.

Bobby (Northland Capital Markets) - Bobby (Northland Capital Markets)

2026Q2: For service, the AI chatbot pilot will be scaled to free up human agents for complex issues. - [David Rosenblatt](CEO)

What initiatives are planned for upcoming quarters to sustain the strong Q2 results driven by cost and growth measures? - Bobby Brooks (Northland Capital Markets)

2026Q1: Progress in Q1 included foundational work... AI-powered client service chatbot in Q2. - [David Rosenblatt](CEO)

Contradiction Point 3

Growth Drivers and Market Dependency

Contradiction on whether housing market recovery is necessary for growth.

Bobby (Northland Capital Markets) - Bobby (Northland Capital Markets)

2026Q2: A market recovery would be positive but is not required for sustained growth, as the company's performance is driven by its roadmap and product improvements. - [David Rosenblatt](CEO)

Did Q2 results benefit from luxury market trends, and how significant would a housing market recovery be for future growth? - Ralph Schackart (William Blair & Company L.L.C.)

2025Q4: The primary drivers for growth in 2026 are: lapping significant cuts in performance marketing spend... and the compounding benefit of increased product and engineering investment... Given the tough macro. - [David Rosenblatt](CEO)

Contradiction Point 4

The Nature of AI's Role

Contradiction on whether AI is a catalyst or a potential disruptor to core business elements.

What were Kurt's key insights or comments during the earnings call? - Kurt (William Blair)

2026Q2: AI as a primary driver, providing new capabilities. - [David Rosenblatt](CEO)

Beyond reiterated Q4 and 2026 GMV growth, what factors drive confidence in continued growth amid a weak housing market? - Ralph Schackart (William Blair & Company L.L.C.)

2025Q4: AI poses a greater threat to commodity products, whereas 1stDibs deals in one-of-a-kind, high-value items where seller expertise, buyer trust, and complex transactional infrastructure are irreplaceable. - [David Rosenblatt](CEO)

Contradiction Point 5

Primary Growth Drivers

Shift from cost-cutting to product roadmap as the main growth lever.

What were the key factors behind the earnings results? - Kurt (William Blair)

2026Q2: Confidence is based on: 1) Lapping the sales & marketing cuts made in late 2025... 2) The compounding effect of the multi-year product roadmap... - [David Rosenblatt](CEO)

Beyond the reiterated Q4 and 2026 GMV guidance, what factors support continued growth amid a muted housing market? - Ralph Schackart (William Blair & Company L.L.C., Research Division)

2025Q3: The goals were: 1) Achieve adjusted EBITDA profitability in Q4 2025... 2) Reallocate headcount and investment from sales/marketing to higher ROI engineering and product development. - [David Rosenblatt](CEO)