NEW YORK — Online luxury marketplace 1stDibs achieved bottom-line improvements for the fourth quarter and fiscal year 2025 despite the continuation of top-line constraints.
For the quarter ended Dec. 31, 2025, 1stDibs posted net revenue of $23 million, up 1% year-over-year. Gross profit rose by 3% to $16.9 million, while gross margin was 73.5% vs. 72.3% in the same quarter of 2024.
Non-GAAP adjusted EBITDA and adjusted EBITDA margin were $1.3 million and 5.6%, respectively, vs. a loss of $1.6 million and negative 7.2% in Q4 a a year ago. GAAP net loss for the quarter was $1 million vs. $5.2 million a year ago.
See also:
Gross merchandise value (GMV) for Q4 was $90.2 million, a 5% decrease year-over-year. Orders fell by 9% to 33,000 and active buyers decreased 5% to 61,000.
“While our top-line results reflect a challenging macro backdrop, our bottom-line performance demonstrates the power of our strategic realignment and the strength of our brand,” said CEO David Rosenblatt, who called 2025 “a year of accountability and execution.”
“We enter 2026 focused on accelerating top-line growth, supported by a high-impact product roadmap designed to deepen our lead in the luxury market,” he said.
During the company’s earnings call, Rosenblatt outlined four areas of concentration for 2026 around product discovery, pricing, shipping and service.
Within product discovery some key initiatives are the use of AI for semantic search, which will help buyers look for products using everyday language, making searches more intuitive and accessible. Also within this category is a new social strategy that Rosenblatt referred to as “1stDibs Tastemakers,” which will be made up of influencers from the designer, collector and seller communities.
AI also is being deployed via a LLM to assist with pricing parity. The company is improving its “make offer” experience as well, he said, to make it easier for buyers and sellers to make a deal.
Acknowledging that the current shipping model is “too complex,” Rosenblatt said this year 1stDibs will revamp its shipping to a standardized framework designed to remove friction among 1stDibs, sellers and buyers.
On the service side, AI-aided support will increase to give the company’s experts more time to focus on loyal buyers, he said. Rosenblatt said 1stDibs will be a beneficiary of AI. “We see AI not as a competitor, but as a catalyst,” he said.
For the full year, 1stDibs achieved net revenue of $89.6 million, up 2% from 2024. Gross profit was $65.4 million, marking an increase of 3%. Gross margin was 73% vs. 71.9% in 2024. GAAP net loss was $13.7 million. Non-GAAP adjusted EBITDA showed a loss of $2.4 million vs. a loss of $8 million in the previous year. Adjusted EBITDA margin was negative 2.7% vs. negative 9.1% in the prior year.
“Our fourth quarter performance highlights the significant operating leverage inherent in our asset-light marketplace,” said Tom Etergino, CFO. “Through disciplined cost management and improved monetization, we achieved a meaningful adjusted EBITDA inflection despite a constrained top-line environment. We exited 2025 with a structurally leaner cost base and high conviction in our 2026 plan, which targets positive full-year adjusted EBITDA and free cash flow.”
First quarter 2026 guidance calls for GMV between $86.5 million and $91.5 million, net revenue in the $22.1 million to $23.1 million range and adjusted EBITDA margin of zero to 4%.
Longer range, both Rosenblatt and Etergino said the expectation is for positive year-over-year GMV growth by the fourth quarter of 2026.
