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1. Company Snapshot

1.a. Company Description

1stdibs.Com, Inc.operates an online marketplace for vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion products worldwide.The company offers online marketplace that enables commerce between sellers and buyers; and Design Manager, an online platform that provides software solution to interior designers.


1stdibs.Com, Inc.was incorporated in 2000 and is headquartered in New York, New York.

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1.b. Last Insights on DIBS

1stdibs.Com's recent performance was driven by strong Q3 2025 results, with a significantly improved adjusted EBITDA margin of -1% and guidance for positive adjusted EBITDA in Q4 2025. The company achieved profitability gains through price increases, seller base optimization, and a 22% reduction in S&M expenses. Additionally, 1stDibs' survey on 2026 interior design trends revealed top designer choices, including maximalism and vintage antiques. The company is also set to benefit from surging digital demand, with AI-driven shopping boosting Black Friday online sales to record highs.

1.c. Company Highlights

2. Company Delivers Breakthrough Quarter with Improved Efficiency and Execution

The company's third quarter financial performance was marked by revenue of $22 million, up 4% year-over-year, and a gross profit margin of 74%, up 3 percentage points. The adjusted EBITDA loss was approximately $240,000, a significant improvement from the loss of $3 million in the same period last year. The company's EPS came in at -$0.1, beating estimates of -$0.13. The strong financial performance was driven by disciplined expense management, which resulted in operating expenses being down 6% year-over-year.

Publication Date: Nov -23

📋 Highlights
  • EBITDA Margin Improvement:: Adjusted EBITDA margins improved to -1% (vs. -14% YoY), a 13pp improvement, driven by $7M annual cost savings from headcount reduction and marketing efficiency.
  • Share Repurchase Authorization:: Board approved a $12 million share repurchase program, reflecting confidence in free cash flow generation and profitability.
  • GMV Acceleration:: GMV grew 5% in Q3 (vs. -2% in Q2), with on-platform AOV up 10% to $2,700, driven by higher-value order mix.
  • Organic Traffic Growth:: 75% of traffic was organic (up 3pp YoY), reducing reliance on performance marketing and lowering customer acquisition costs.
  • Operating Expense Reduction:: Operating expenses fell 6% YoY (down 10% ex-severance), structurally lowering the breakeven revenue by $250M through strategic realignment.

Operational Highlights

The company's operational performance was also strong, with GMV growing 5% in the third quarter, driven by a rebound in average order value (AOV) and conversion growth. The company's product-led strategy continues to produce results, with the eighth consecutive quarter of conversion growth. The company's focus on quality of its supply base is evident, with a slight mix shift towards higher-value orders.

Strategic Realignments and Cost Savings

The company's strategic realignment executed in September has fundamentally changed its profitability equation, with estimated annual savings of $7 million. As David Rosenblatt noted, "We achieved this by realizing a net head count reduction, new performance marketing efficiencies and other cost savings totaling $7 million annually, while growing our product development capacity." The reduction in performance marketing spend is the largest component of these savings, achieved by raising efficiency thresholds for new consumer acquisition.

Valuation Metrics

Looking at the company's valuation metrics, the P/S Ratio is 2.04, and the EV/EBITDA is -15.39. The company's ROE is -20.13%, and the ROIC is -22.85%. These metrics indicate that the market is pricing in a certain level of growth and profitability, which the company is working to achieve through its strategic realignments and cost savings.

Guidance and Outlook

The company has provided guidance for the fourth quarter, with expected GMV of $90 million to $96 million and net revenue of $22.3 million to $23.5 million. The company expects to generate positive adjusted EBITDA in the fourth quarter and for the full year 2026, marking a major financial milestone in building a capital-efficient and resilient business model.

3. NewsRoom

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One Quarter Was Enough To Send 1stdibs.Com From Cheap To Expensive (Downgrade)

Dec -03

Source: seekingalpha.com

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AI Pushes Black Friday E-Commerce Sales to a Record-High: 5 Picks

Dec -01

Source: zacks.com

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1stDibs to Participate in Upcoming Investor Conference

Nov -25

Source: businesswire.com

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2026 Interior Design Trends: 1stDibs Survey Identifies Maximalism, Chocolate Brown, and Vintage Antiques as Top Designer Choices

Nov -17

Source: businesswire.com

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Is 1stdibs.com (DIBS) Outperforming Other Retail-Wholesale Stocks This Year?

Nov -11

Source: zacks.com

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1stdibs.Com, Inc. (DIBS) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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1stdibs.com (DIBS) Reports Q3 Loss, Tops Revenue Estimates

Nov -07

Source: zacks.com

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1stdibs.com (DIBS) to Release Quarterly Earnings on Friday

Oct -31

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.34%)

6. Segments

Seller Marketplace Services

Expected Growth: 15.4%

Growing demand for luxury goods, increasing online marketplaces, and 1stdibs' unique platform for high-end, one-of-a-kind items drive growth. The platform's global reach and curated experience attract high-end buyers, fueling market expansion.

Other Services

Expected Growth: 10.5%

Growing demand for secure and efficient delivery of high-value and specialty items, increasing e-commerce sales, and rising need for premium logistics services drive growth in 1stdibs' logistics, shipping, and storage solutions segment.

7. Detailed Products

Fine Art

Original paintings, prints, and sculptures from renowned artists and emerging talents

Furniture

Antique, vintage, and modern furniture pieces from top designers and makers

Jewelry

High-end, one-of-a-kind jewelry pieces from esteemed designers and estate collections

Home Decor

Unique decorative items, including lighting, textiles, and accessories

Collectibles

Rare and limited edition items, including sports memorabilia, coins, and stamps

Watches and Accessories

Luxury timepieces and high-end accessories from esteemed brands and independent makers

8. 1stdibs.Com, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for 1stdibs.com, Inc. is medium because while there are other online marketplaces for luxury goods, 1stdibs.com, Inc. has established a strong brand and reputation in the industry, making it difficult for substitutes to easily replace it.

Bargaining Power Of Customers

The bargaining power of customers for 1stdibs.com, Inc. is high because customers have many options for purchasing luxury goods online, and they can easily switch to competitors if they are not satisfied with the prices or services offered by 1stdibs.com, Inc.

Bargaining Power Of Suppliers

The bargaining power of suppliers for 1stdibs.com, Inc. is low because the company has a strong network of suppliers and dealers, and it has established long-term relationships with them, giving it bargaining power in negotiating prices and terms.

Threat Of New Entrants

The threat of new entrants for 1stdibs.com, Inc. is medium because while it is possible for new companies to enter the online luxury goods market, there are significant barriers to entry, including the need for a strong brand and reputation, as well as the need for a large network of suppliers and dealers.

Intensity Of Rivalry

The intensity of rivalry for 1stdibs.com, Inc. is high because the online luxury goods market is highly competitive, with many established players competing for market share, and the company must continually innovate and improve its services to stay ahead of the competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.03%
Debt Cost 3.95%
Equity Weight 85.97%
Equity Cost 9.19%
WACC 8.46%
Leverage 16.32%

11. Quality Control: 1stdibs.Com, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Tandy Leather Factory

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Value: 9.3

Growth: 3.8

Quality: 6.8

Yield: 5.0

Momentum: 0.5

Volatility: 5.3

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Honest

A-Score: 4.0/10

Value: 4.7

Growth: 6.0

Quality: 6.4

Yield: 0.0

Momentum: 4.5

Volatility: 2.7

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1stdibs

A-Score: 3.9/10

Value: 8.4

Growth: 4.7

Quality: 5.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

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Yield: 5.0

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Volatility: 2.0

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Quality: 2.7

Yield: 0.0

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A-Score: 2.3/10

Value: 7.2

Growth: 3.4

Quality: 2.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.19$

Current Price

6.19$

Potential

-0.00%

Expected Cash-Flows