1stDibs Cuts $18M Costs, Posts $1.3M Q4 EBITDA on $90.2M GMV
1stDibs reduced operating expenses by 18% (nearly $18 million) and cut headcount over 30% since 2022, boosting gross margins from 69% to 73% and expanding Adjusted EBITDA margins by 1,900 basis points. In Q4, Adjusted EBITDA rose to $1.3 million (6% margin) on $90.2 million GMV (down 5%), while average order value climbed 5% to $2,600.
1. Cost Reduction and Margin Expansion
Since 2022, 1stDibs cut operating expenses by 18% (approx. $18 million) and reduced headcount by over 30%, raising gross margins from 69% in 2022 to 73% in 2025 and expanding Adjusted EBITDA margins by 1,900 basis points through disciplined cost reengineering.
2. Q4 Financial Performance
In Q4 2025, gross merchandise volume was $90.2 million, down 5% year over year, while net revenue grew 1% to $23 million and gross profit increased 3% to $16.9 million. Adjusted EBITDA reached $1.3 million, representing a 6% margin and marking the first profitable quarter since going public.
3. Operational Metrics and Unit Economics
Order volumes declined 9% but were offset by nine consecutive quarters of conversion rate growth and a 5% rise in average order value to $2,600. Active buyers totaled 60,700 (down 5%), unique sellers numbered 5,700 (down 4%), listings grew 3% to 1.9 million, and over 80% of traffic remained organic.
4. 2026 Outlook and Product Roadmap
For Q1 2026, guidance targets GMV of $86.5 million to $91.5 million, net revenue of $22.1 million to $23.1 million and Adjusted EBITDA margins breakeven to 4%. The 2026 plan centers on AI-powered search, enhanced personalization, pricing tools, shipping improvements and service initiatives to drive a return to GMV growth by year end.