1stdibs.com reported third‑quarter 2025 results that surpassed consensus expectations, delivering net revenue of $21.972 million and a net loss of $3.506 million, which translates to an earnings‑per‑share figure of –$0.10. The company beat the consensus EPS estimate of –$0.17 by $0.07, a 41% improvement, while revenue exceeded the $21.75 million estimate by $0.22 million. The upside was driven by disciplined cost control and a favorable mix of high‑margin luxury transactions that lifted average order values.
Operating expenses fell 6% year‑over‑year to $21.014 million, a reversal of the prior‑year trend. The decline was largely the result of a targeted headcount reduction and a reallocation of resources from sales and marketing to technology development, as highlighted by CFO Tom Etergino. In Q3 2024 operating expenses were $22.428 million, so the company achieved a $1.414 million expense reduction that helped narrow the loss.
Gross margin expanded to 74.3% in Q3 2025, up from 71.0% in the same quarter of 2024. The improvement was supported by a non‑recurring insurance recovery that added roughly one percentage point, as well as a higher proportion of high‑margin items in the product mix. The margin gain underscores the company’s ability to extract more value from each transaction while keeping cost growth in check.
Guidance for the fourth quarter projects net revenue of $22.3‑23.5 million and gross merchandise value of $90‑96 million, with an Adjusted EBITDA margin of 2‑5%. Management reiterated its expectation of positive Adjusted EBITDA in Q4 and for the full year 2026, citing the strengthened cost base, continued technology investments, and pricing power that have driven margin expansion. The company also announced a $12 million share‑repurchase program, signaling confidence in its intrinsic value.
CEO David Rosenblatt emphasized that the quarter represented a “breakthrough period for efficiency and execution,” noting that disciplined expense management pushed the Adjusted EBITDA margin to a negative 1%, a 13‑percentage‑point improvement year‑over‑year. CFO Etergino echoed this sentiment, stating that the cost‑control measures and sharper marketing efficiency have accelerated the path to sustained profitability. The company’s focus on product‑led growth, machine‑learning pricing, and shipping enhancements is expected to sustain conversion gains and market‑share expansion.
Investors reacted positively to the earnings beat and margin expansion, reflecting confidence in 1stdibs.com’s trajectory toward profitability. Analysts highlighted the EPS beat and the significant improvement in gross and Adjusted EBITDA margins as key drivers of the favorable market sentiment.
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