1stdibs.Com, Inc. (DIBS) Earnings
1stdibs.Com, Inc. is expected to report next earnings on November 6, 2026 (in NaN days), with a consensus EPS estimate of $-0.06. DIBS has beaten EPS estimates in 8 of its last 12 reported quarters (average surprise +13.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $-0.06 | $-0.03 | +50.0% | $23M | +4.9% |
| May 8, 2026 | $-0.04 | $-0.06 | -50.0% | $22M | -1.5% |
| Nov 7, 2025 | $-0.13 | $-0.10 | +23.1% | $22M | +2.2% |
| Aug 6, 2025 | $-0.17 | $-0.12 | +29.4% | $22M | +1.7% |
| May 9, 2025 | $-0.13 | $-0.14 | -7.7% | $23M | +0.9% |
| Feb 28, 2025 | $-0.17 | $-0.14 | +17.6% | $23M | +2.0% |
| Nov 8, 2024 | $-0.13 | $-0.15 | -15.4% | $21M | -1.6% |
| May 8, 2024 | $-0.09 | $-0.08 | +11.1% | $22M | +1.2% |
| Feb 28, 2024 | $-0.10 | $-0.07 | +30.0% | $21M | +0.9% |
| Mar 1, 2023 | $-0.22 | $-0.18 | +18.2% | $23M | +5.1% |
| Nov 9, 2022 | $-0.29 | $-0.23 | +20.7% | $23M | +1.4% |
| Aug 10, 2022 | $-0.24 | $-0.26 | -8.3% | $25M | -1.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Core Quarter Performance Summary - Q2 2026 GMV reached $96 million, up 7% year-over-year, exceeding the high end of management guidance, marking the strongest GMV growth since Q4 2024. - Net revenue reached $23.3 million, up 5% year-over-year, also beating the high end of guidance; adjusted EBITDA margin hit 6%, well above guidance, with 13 percentage points of year-over-year margin expansion. - Funnel metrics showed broad improvement: traffic declines moderated vs. Q1, sessions were flat sequentially, conversion grew for the 11th consecutive quarter, and average order value (AOV) grew 10% year-over-year to $2,850, with median order value also up 10% to $1,500 indicating broad-based growth. - 75% of current traffic comes from organic sources, reflecting sustained brand strength; active buyers fell 10% year-over-year due to deliberate late 2025 sales and marketing spend reductions, while unique sellers held steady at ~5,700 and total listings grew 1% year-over-year to 1.9 million. ### Four Pillar Product Roadmap Progress - **Discovery**: Launched image search for mobile web and desktop, and continued development of semantic/natural language search via AI-powered catalog metadata enrichment. Rolled out new personalized homepage recommendations that generated the highest ever click-through rate for a homepage module, and overhauled the favorites experience to improve personalization signal data. Total Video View Time on Instagram tripled sequentially vs. Q1 via the new Tastemaker influencer program, reducing cost per ad impression and improving acquisition efficiency. - **Trust (expanded from original pricing pillar)**: Doubled AI-powered price parity coverage for competitor-priced items, with corrected items showing increased sell-through rates. The initiative is being expanded to cover item authenticity, seller quality, and overall platform integrity to increase buyer conversion. - **Shipping**: Deployed ML-powered freight quoting, increasing freight pre-quote coverage from 50% to 75% of listings, bringing total pre-quote coverage to nearly 90%. Optimized parcel rates to cut shipping costs by up to 8% for some categories, and integrated a third-party logistics platform to expand carrier tracking coverage over time. - **Service**: Launched a pilot AI-powered customer service chatbot for buyers and sellers, which already resolves a meaningful share of inquiries without human intervention. Improved the item listing creation workflow in the seller app to reduce friction for adding new inventory. ### New Revenue Stream Initiative - Launched paid sponsorships for the 9th annual First Dibs 50 event for interior designers, capturing $270,000 in initial non-endemic advertising revenue from brand partners seeking access to First Dibs' niche audience of high-net-worth buyers and top designers. One additional sponsored event is planned for 2026, with plans to scale event monetization long-term. ### Cost Structure Reengineering - Total operating expenses fell 11% year-over-year to $19.3 million, the lowest operating expense as a share of revenue since the 2021 IPO, while product and engineering investment (technology development) grew 7% year-over-year to $6.3 million, rebalancing resources toward long-term growth. Sales and marketing expenses fell 34% year-over-year to $5.4 million, equal to 23% of revenue (down from 37% year-over-year), driven by late 2025 strategic marketing realignment.
Guidance
- **Q3 2026 Guidance**: GMV is projected between $89 million and $94 million, representing flat to 6% year-over-year growth; net revenue is projected between $22 million and $22.9 million, representing flat to 4% year-over-year growth; adjusted EBITDA margin is projected between -1% and +2%. - **Full Year 2026 Guidance Upgrade**: Management now expects full-year 2026 GMV to grow year-over-year (up from prior guidance), and reaffirms expectations for Q4 2026 GMV growth. Revenue take rates are projected at 24% to 25%, revised down from 25% to 26% due to a growing mix of higher-value orders with lower blended commission rates. Gross margins are projected at 72% to 74%, revised up from the prior 2025 range of 71% to 73%. Management reaffirms expectations for full-year positive adjusted EBITDA. Due to an accounting reclassification of cash related to payment processor agreement changes, management no longer expects to generate positive reported free cash flow for 2026, though underlying operating cash generation is ahead of original expectations.
Segment performance
By vertical category: All categories saw improved growth rates vs. Q1 2026, with particularly strong performance in vintage and antique furniture, art, and fashion. By buyer channel: Both consumer and trade GMV grew year-over-year. By revenue type: Transaction revenue (tied directly to GMV) accounted for 74% of total net revenue, contributing $17.24 million of the $23.3 million total net revenue. New non-endemic advertising revenue from First Dibs 50 event sponsorships contributed $270,000, making up approximately 1.16% of total net revenue.
Risks & headwinds
- Persistent weakness in the U.S. housing market, which remains near a 30-year low, and ongoing year-over-year declines in high-end furniture and luxury home goods demand, create headwinds for overall market growth. - The company's deliberate reduction in sales and marketing spend continues to suppress traffic growth and results in a lower year-over-year active buyer count, creating short-term top-line headwinds even as efficiency improves. - The accounting reclassification related to payment processor agreements reduces reported cash and will result in 2026 reported free cash flow no longer being positive, despite no change to underlying operating or economic performance.
Analyst Q&A
Q: With Q2 results exceeding expectations driven by past growth and cost initiatives, what additional initiatives will the company roll out in coming quarters to continue improving results? /
A: Management will focus on scaling the four-pillar roadmap in the second half of 2026, after completing foundational development in the first half. The company will roll out new personalization models across more platform areas, continue building semantic search, expand the trust initiative to cover authenticity and seller quality, roll out additional shipping improvements, and launch the tested AI chatbot more broadly across the customer service infrastructure.
Q: Are Q2 2026 results indeed not driven by luxury market improvements, and what would the impact be if the luxury housing market recovers? /
A: Management confirms Q2 outperformance was achieved despite mid-single-digit year-over-year declines in the luxury home furnishings market, with outperformance driven by stabilized traffic and broad-based AOV growth against 34% lower year-over-year sales and marketing spend. A market recovery would certainly provide a positive tailwind, but current growth does not depend on a macro recovery, and Q2 performance serves as proof the company's product roadmap is effective even in weak conditions.
Q: As the company scales the Tastemaker social media program, how will it impact sales and marketing costs, and what engagement growth should be expected? /
A: Management remains highly disciplined on paid marketing spend, and the Tastemaker program has improved advertising efficiency by reducing cost per impressions. The company will only increase spend if it can be done profitably, and will maintain strict unit economic discipline for all marketing investment.
Q: What is the framework for sustained GMV growth beyond Q4 2026, even if the housing macro remains muted? /
A: Growth beyond 2026 will be driven by four core factors: lapping the 2025 sales and marketing spend cuts starting in Q4 2026, which will deliver easier comparisons over the next several quarters; compounding improvements from the multi-year product roadmap, which delivers ongoing core marketplace improvements; AI-driven capabilities that accelerate product development and impact; and long-term opportunities to expand the company's addressable market. Just as in Q2 2026, sustained growth does not require a housing market recovery, though the company will benefit when a recovery eventually occurs.