Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Gross Merchandise Value (GMV):: $96 million, up 7% year-over-year, exceeding guidance.

Revenue:: $23.3 million, up 5%, also above guidance.

Adjusted EBITDA Margin:: Approximately 6%, significantly up from the previous year and above guidance.

Average Order Value (AOV):: Approximately $2,850, up 10% year-over-year; median order value also increased by 10% to approximately $1,500.

Active Buyers:: Approximately 57,700, down 10% year-over-year due to reduced sales and marketing spend.

Cash Position:: $67.7 million, down $17.6 million sequentially, primarily due to share repurchases and a reclassification of cash related to payment processing.

2Strategic Updates and Business Highlights

Product Improvements:: Continued enhancements in discovery, pricing, shipping, and service, with AI now accounting for over 70% of new code.

Discovery Enhancements:: Launched image search and improved personalization features, leading to higher engagement metrics.

Tastemakers Ambassador Program:: Successful pilot with increased social media engagement, including a tripling of video view time on Instagram.

Pricing Strategy:: Doubled price parity coverage, leading to improved sell-through rates.

Shipping Improvements:: Expanded freight pre-quote coverage and reduced shipping costs for buyers.

New Revenue Streams:: Introduced paid event sponsorships during the 1stDibs 50 event, generating approximately $270,000 in non-endemic advertising revenue.

3Forward Guidance and Outlook

Third Quarter Guidance:: GMV expected between $89 million and $94 million (flat to up 6%); revenue expected between $22 million and $22.9 million (flat to up 4%); adjusted EBITDA margin between -1% and +2%.

Full Year 2026 Outlook:: GMV growth expected year-over-year; Q4 GMV also anticipated to grow. Adjusted EBITDA expected to remain positive for the year.

Long-term Growth Drivers:: Continued focus on product roadmap, AI enhancements, and potential market expansion beyond current offerings.

4Bad News, Challenges, or Points of Concern

Market Environment:: The luxury housing market remains weak, with high-end furniture demand declining year-over-year, which could impact future growth.

Active Buyers Decline:: A 10% decrease in active buyers indicates challenges in customer retention and acquisition, exacerbated by reduced marketing spend.

Free Cash Flow Concerns:: Due to an accounting reclassification, the company is unlikely to generate positive free cash flow in 2026, despite strong underlying business performance.

5Notable Q&A Insights

Growth Initiatives:: Management emphasized the importance of their four-pillar roadmap (discovery, trust, shipping, and service) and plans to broaden deployment in the second half of the year.

Impact of Luxury Market Recovery:: While the luxury market is currently not contributing to growth, management believes they can sustain growth independently of market recovery.

Tastemakers Program:: The program is seen as a cost-effective way to reach younger audiences and improve engagement, with potential for increased marketing spend if profitable.

Future GMV Growth:: Management expressed confidence in GMV growth beyond 2026, driven by the compounding effects of their strategic initiatives and improvements in the marketplace.