1Stdibs.Com (DIBS) investor relations material

Executive summary

• Net revenue for Q1 2026 was $22.4 million, down 1% year-over-year, with GMV at $89.7 million and gross profit at $16.7 million, as the business maintained disciplined execution and asset-light operations amid a challenging demand environment.

• Adjusted EBITDA turned positive at $0.6 million (2.5% margin), marking a significant improvement from a loss of $1.7 million in Q1 2025 and validating structural cost changes.

• Gross margin improved to 74.4% from 72.4% year-over-year, driven by lower cost of revenue and ongoing cost discipline.

• Free cash flow was $0.8 million, up from negative $0.4 million in Q1 2025, and cash, cash equivalents, and short-term investments totaled $85.3 million at quarter-end.

• Continued investment in AI-assisted development, with over 50% of new code AI-driven, and ongoing product and engineering enhancements.

Financial highlights

• GMV was $89.7 million, down 5% year-over-year; net revenue was $22.4 million, down 1% year-over-year.

• Adjusted EBITDA margin improved to 2.5% in Q1 2026 from -7.9% in Q1 2025.

• Gross profit was $16.7 million, up 2% year-over-year; gross margin was 74.4%, up from 72.4%.

• Operating expenses declined 11% year-over-year, with sales and marketing down 31% to $6.3 million.

• Technology development expenses rose 10% to $6.2 million, while general and administrative expenses remained flat at $6.8 million.

Outlook and guidance

• Q2 2026 GMV guidance: $86–$91 million; net revenue: $21.6–$22.6 million; Adjusted EBITDA margin expected between -2% and 2%.

• Management expects continued operating losses in the near term as investments in growth persist.

• Full-year targets remain for positive Adjusted EBITDA, positive free cash flow, and a return to positive year-over-year GMV growth by Q4 2026.

• Existing cash and investments of $85.3 million are expected to fund operations for at least the next 12 months.

• Anticipated changes in payment processor agreements will reclassify $6–10 million from cash to other current assets, with no impact on total assets.