1stdibs.com, Inc.

Good morning, everyone. Thank you for joining us and welcome to the first dibs Q1 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I would now like to hand the call over to Kevin LaBuzz, head of investor relations and corporate development. Kevin, please go ahead.

Good morning and welcome to the first IBS earnings call for the quarter ended March 31st, 2026. I'm Kevin LaBuzz, Head of Investor Relations and Corporate Development. Joining me today are Chief Executive Officer David Rosenblatt and Chief Financial Officer Tom Edergino. David will provide an update on our business, including our strategy and growth opportunities. and Tom will review our first quarter financial results and second quarter outlook. This call will be available via webcast on our investor relations website at investors.firstdibs.com. Before we begin, please keep in mind that our remarks include forward-looking statements, including, but not limited to, statements regarding guidance and future financial performance. market demand, growth prospects, business plans, strategic initiatives, business and economic trends, and competitive position. Our actual results may differ materially from those expressed or implied in these forward-looking statements as a result of risk and uncertainties, including those described in our SEC filings. Any forward-looking statements that we make on this call are based on our beliefs and assumptions as of today, and we disclaim any obligation to update them except to the extent required by law. Additionally, during the call, we will present GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release, which you can find on our investor relations website, along with the replay of this call. Lastly, please note that all growth comparisons are made on a year-over-year basis, unless otherwise noted. I will now turn the call over to our CEO, David Rosenblatt. David?

Thanks, Kevin. Good morning, everyone. A quarter ago, we shared our expectations for our performance in 2026. Disciplined execution, durable profitability, and steady roadmap progress. The first quarter delivered on all three. our top line results reflect the deliberate sales and marketing reductions we enacted late last year and our bottom line results reflect the structural cost work we have been executing since 2022. we are on track across revenue costs and product development and our 2026 financial framework remains unchanged the demand environment remains challenging The U.S. housing market continues to hover near a 30-year low, weighing on consumer appetite for luxury home goods. While the near-term backdrop is soft, the long-term opportunity is significant. For example, there are approximately 5 million U.S. households worth at least $5 million, and our active buyer base of approximately 58,300 represents a fraction of that addressable market. Our goal, however, is to generate growth irrespective of the timing of a market recovery. Once conditions normalize, we will be in a strong position to accelerate growth. Turning to the financials, our performance reflects both market conditions and the decisions we made last year to optimize our cost structure. GMV and revenue were $89.7 million and $22.4 million, down 5% and 1% respectively. which is a result not only of market conditions, but also of our decision to reduce performance marketing spending by nearly 50% in the fourth quarter of 2025. Adjusted EBITDA of $600,000, above the midpoint of guidance, is proof that our financial model is now capable of generating adjusted EBITDA profitability, even in a challenging external environment. We have fundamentally re-engineered our business, lowering expenses and headcounts since late 2022 to ensure future revenue recovery flows disproportionately to the bottom line. With that context, let me walk you through the quarter's performance. Funnel trends remained consistent. Traffic declines driven primarily by our pullback in performance marketing and substantial sales and marketing headcount reductions were partially offset by our 10th consecutive quarter of conversion growth and higher average order values. This conversion growth is the direct result of sustained product investment, and it gives us confidence that our roadmap is working. Underpinning these results is a deliberate shift in how we are allocating resources. While total operating expenses declined 11%, technology development spending grew 10%, a reflection of our conviction that product and engineering is our highest ROI investment. The returns are compounding. AI-assisted development now accounts for over 50% of our new code, up from approximately 30% last quarter, enabling our team to ship faster than ever. Our 2026 roadmap is where those resources are being deployed. Organized around four pillars, discovery, pricing, shipping, and service, it is designed to remove friction, modernize the platform, and drive our anticipated return to GMV growth by the fourth quarter. Before walking through our roadmap progress, it is worth stepping back to explain how we think about product development. Our roadmap is not organized around market conditions or macro assumptions. It is organized around solving specific customer problems. The barriers that prevent a design enthusiast from finding the perfect item, trusting its price, receiving it seamlessly, and getting help when they need it exist regardless of where the housing market is or what consumer sentiment looks like. Solving them makes First Dibs a better marketplace in any environment. At the heart of our roadmap is a transformation in how buyers find and engage with our marketplace. Our goal is to make First Dibs a daily destination for design enthusiasts by meeting the buyer where she is and by removing the barriers to discovery. Today, finding the right item still requires too much expertise, the right terminology, the right category knowledge, and the right search keyword string. Our discovery roadmap is designed to change that, and the first quarter was a period of foundational progress in that regard. We began by investing in content and community. In February, we launched First Dibs Tastemakers, our brand ambassador program built around authentic voices from within and around our community. Early results are promising, with measurable increases in reach and engagement on Instagram. We also debuted Objects of Desire, a podcast hosted by our editorial director, Anthony Barzilay-Freund, and interior designer, Naz Nozawa, which explores the emotional and cultural stories behind the objects people love. These initiatives are designed to build the daily engagement and brand affinity that drives organic traffic and buyer acquisition over time. Once buyers arrive in our environment, we are making it easier for them to navigate our catalog. Using AI, we significantly enrich the metadata underpinning our inventory, giving our search engine more signal to work with. The results were immediate. Our search success rate improved by nearly 4%, and the number of null results decreased by over 25%, meaning more buyers are finding items to engage with on every visit. We also redesigned our search bar experience, resulting in higher search activity. These improvements are the foundation for what comes next. Over the course of 2026, we are building toward AI-powered semantic and natural language search. The ability for a buyer to describe what they want in plain language and receive tailored results in return. A buyer shouldn't need to know the difference between a Chesterfield and an old sofa to find the perfect piece. They should be able to tell us what they want in the manner they naturally think about it and trust that first dibs will understand. We are building that capability progressively throughout the year, and in the second quarter, we plan to launch visual search, allowing buyers to upload an image and find similar items in our catalog. On personalization, the first quarter marks an important shift. We moved our homepage from an editorial first to a recommendation first experience. For recognized users, the platform now services personalized items based on their behavior and preferences from the moment they arrive, a step toward making first dibs a daily habit. We also deepened our work on favorites, driving an increase in the percentage of users who favorited an item sequentially, building the behavioral data that will help power personalization over time. Our progress in discovery highlights our belief that AI is a catalyst for our marketplace. While our moat remains firmly built on high trust relationships and a physical catalog of one-of-a-kind items, AI is the tool that makes those items discoverable to a broader audience. Discovery brings buyers to the listing. Pricing gives them the confidence to buy it. Buyer trust is the foundation of every transaction on First Dibs. Our pricing roadmap is designed to reinforce that trust by ensuring that every listing is priced transparently, competitively, and consistently. In the first quarter, we made progress on price parity, our initiative to ensure that items on first dibs are priced consistently across sales channels. By expanding to two additional resale platforms and by deepening our reach on existing ones, we increased the price parity coverage for listings by 44%. Early data suggests that items priced at parity with other sites convert at higher rates than those that are not. validating our thesis that pricing transparency directly drives buyer trust and confidence. In the second quarter, we will invest in the offer and product detail page experience to help buyers and sellers reach agreement faster, reducing friction at one of the most critical moments in the transaction. We will also more prominently surface our price match guarantee and the pricing of comparable historical transactions, giving buyers greater confidence and context at the point of purchase. Together, these initiatives are building a pricing environment where buyers can act with conviction. Once a buyer trusts the price, the next question is simple. What will it cost to get it delivered? Our vision for shipping is straightforward. Reduce costs, increase transparency, and eliminate the uncertainty that causes buyers to abandon a purchase. Cost competitiveness and transparency at checkout are conversion drivers, and we made progress on both. During the quarter, we integrated USPS into our shipping infrastructure, giving buyers access to a broader range of carrier options at meaningfully lower parcel rates, approximately 30% to 50% cheaper for packages under 20 pounds. In the second quarter, we plan to launch an ML-powered quoting tool that will deliver more competitive real-time pricing on our largest items, categories where shipping costs have traditionally been opaque and expensive. Also on deck for the second quarter is a significant upgrade to our shipment tracking capabilities. Today, approximately 25% of orders lack real-time tracking. a source of buyer uncertainty that we are committed to eliminating. By expanding our tracking infrastructure from 10 to over 70 supported carriers, we will increase tracking coverage, ensuring that buyers can follow their purchase from seller to doorstep. Together, these initiatives are the building blocks of our multi-year vision, a shipping program that is cost competitive, fully transparent, and anchored by all-in pricing. so that every buyer knows the total cost of their purchase before they commit. Competitive pricing and seamless shipping earn a transaction. Exceptional service earns a relationship. Elevating the level of service we provide to both buyers and sellers is the fourth pillar of our roadmap. On the seller side, we are rolling out improved listing tools that leverage AI to make it easier and faster to bring inventory to market. These tools reduce friction from generating optimized item titles to streamlining the image upload process, ultimately building toward a more robust AI-assisted listing experience. Early adoption has been encouraging, and we expect these tools to deepen seller engagement and improve listing quality over time. We are also building an AI-powered client service chatbot for buyers and sellers set to launch in the second quarter. Our expectation is that this will allow us to provide faster, more responsive service at scale. The cumulative impact of these roadmap investments is reflected in a simple data point. For the second consecutive year, our annual seller sentiment survey confirmed that First Dibs is the primary sales channel for our sellers, surpassing their own showrooms. What was a meaningful shift last year is now a confirmed trend. Our sellers are not simply listing on First Dibs. They are depending on us. That is a powerful foundation as we continue to invest in tools and technology designed to deepen that relationship and drive their success. A quarter ago, we laid out our 2026 financial framework, positive full-year adjusted EBITDA, positive free cash flow, a third consecutive year of revenue growth, and a return to GMV growth by the fourth quarter. One quarter in, we are on track against all four. Our conviction in the durability of our marketplace has never been stronger. Curation, scarcity, and human expertise are the foundation of First Dibs. And in an era of AI-generated content, these qualities are becoming more valuable, not less. Thank you for your continued support. I'll now turn it over to Tom to review our first quarter financial results and second quarter outlook.