1stdibs.com Inc. Reports Q3 2025 Financial Results: A Mixed Picture Amid Market Challenges

1stdibs operates as a premier online platform connecting design enthusiasts with sellers of vintage, antique, and contemporary luxury items. With a vast selection across categories such as furniture, home décor, jewelry, watches, art, and fashion, the company has become a go-to destination for discerning buyers. Established over two decades ago, 1stdibs has built a reputation for quality and trust, facilitated by its rigorous vetting process for sellers.

1stdibs tracks several critical metrics, including Gross Merchandise Value (GMV), Number of Orders, Active Buyers, and Adjusted EBITDA, to assess its performance. Despite these metrics being central to operational management, the company acknowledges potential challenges in accurate measurement due to factors like duplicate accounts and order cancellations.

In the third quarter of 2025, 1stdibs experienced a growth in GMV, albeit tempered by external pressures, including housing market volatility and geopolitical uncertainties. GMV serves as an essential indicator of marketplace vitality and customer engagement.

1stdibs reported net revenue of $22.0 million for Q3 2025, marking a 4% increase from $21.2 million in the same quarter of 2024. This growth is largely attributed to increased GMV, driven by a rise in average order values. However, the company noted that the overall revenue growth was moderated by challenging macroeconomic factors.

The company successfully decreased its cost of revenue to $5.6 million, down from $6.2 million in Q3 2024. This reduction was primarily driven by lower shipping expenses and improved pricing on credit card processing fees.

1stdibs achieved a gross profit of $16.3 million, with a gross margin of 74.3%, compared to $15.0 million and 71.0% in Q3 2024. The improvement in gross profit and margin was due to the decreased cost of revenue.

The provision for transaction losses decreased to $0.8 million, down from $0.9 million in the previous year, signaling improved performance in accounts receivable. However, other income also decreased to $1.2 million from $1.7 million, driven by lower interest income from reduced cash reserves and prevailing low-interest rates.

For the first nine months of 2025, net revenue reached $66.7 million, a 2% increase from $65.5 million in the same period of 2024, driven by higher GMV.

Cost of revenue for the nine-month period decreased to $18.1 million from $18.5 million, reflecting ongoing efforts to streamline operations and reduce credit card processing fees.

Operating expenses totaled $21.01 million for Q3, with notable changes across categories:

1stdibs reported a net loss of $3.50 million for Q3 2025, an improvement compared to a net loss of $5.68 million in Q3 2024. The net change in cash for the quarter was -$3.80 million, indicating liquidity challenges as the company continues to invest in growth initiatives.

As of September 30, 2025, 1stdibs reported cash and cash equivalents totaling $93.4 million, with an accumulated deficit of $345.0 million. The company anticipates continued operating losses as it invests in growth initiatives and expansion plans.

The Board of Directors has authorized a stock repurchase program, which was initially set at $20 million and later increased to $25.5 million. As of Q3 2025, the company repurchased shares totaling $1.8 million under the program.

1stdibs.com Inc.'s Q3 2025 financial results highlight a company in transition, showing resilience through revenue growth and cost management amidst challenging external factors. As 1stdibs continues to innovate and adapt to the evolving luxury market, stakeholders will be keenly watching for strategies that will enable sustainable growth and profitability in the coming quarters.