1stdibs.com Inc.

11/07/2025 | Press release | Distributed by Public on 11/07/2025 07:41

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

Management's Discussion And Analysis of Financial Condition And Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with the consolidated financial statements and related notes that are included elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements based upon current plans, expectations, and beliefs that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Risk Factors" in our Annual Report on Form 10-K. Our historical results are not necessarily indicative of the results that may be expected for any period in the future.
Company Overview
We are one of the world's leading online marketplaces for connecting design lovers with many of the best sellers and makers of vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion. We believe we are a leading online marketplace for these luxury design items based on the aggregate number of listings on our online marketplace and our Gross Merchandise Value ("GMV"). Our sellers, who undergo an evaluation by our in-house experts to vet the integrity of their listings, in-depth marketing content, and custom-built technology platform create trust in our brand and facilitate high-consideration purchases of luxury design items online. By disrupting the way these items are bought and sold, we are both expanding access to, and growing the market for, luxury design.
1stDibs began over two decades ago with the vision of bringing the magic of the Paris flea market online by creating a listings site for top vintage and antique furniture sellers. The quality of our initial seller base enabled us to build a reputation in the design industry as a trusted source for unique luxury design. Since then, we have strengthened our brand as well as deepened and broadened our seller relationships. We launched our e-commerce platform in 2013 and transitioned to a full e-commerce marketplace model in 2016.
Key Operating and Financial Metrics
We use the following key metrics and non-GAAP measures to evaluate our performance, identify trends affecting our business, and make strategic decisions:
•GMV;
•Number of Orders;
•Active Buyers; and
•Adjusted EBITDA (see "Non-GAAP Financial Measures" for a discussion of Adjusted EBITDA and a reconciliation of net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA).
For GMV, Number of Orders, and Active Buyers, these metrics are based on internal company data, assumptions, and estimates and are used in managing our business. We believe that these figures are reasonable estimates, and we actively take measures to improve their accuracy, such as eliminating known fictitious or duplicate accounts. There are, however, inherent challenges in gathering accurate data across large online and mobile populations. For example, individuals may have multiple email accounts in violation of our terms of service, which would result in an Active Buyer being counted more than once, thus impacting the accuracy of our number of Active Buyers. In addition, certain metrics, such as the number of Active Buyers, Number of Orders, and GMV are measured based on such numbers as reported in a given month, minus cancellations within that month. As we do not retroactively adjust such numbers for cancellations occurring after the month, the metrics presented do not reflect subsequent order cancellations. We regularly review and may adjust our processes for calculating these metrics to improve their accuracy. These key operating and financial metrics may vary from period to period and should not be viewed as indicative of other metrics.
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2025 2024 2025 2024
GMV $ 89,064 $ 84,613 $ 273,695 $ 267,813
Number of Orders 31,960 33,347 100,041 102,614
Active Buyers 63,195 62,527 63,195 62,527
Adjusted EBITDA (unaudited) $ (243) $ (2,983) $ (3,743) $ (6,366)
Gross Merchandise Value
We define GMV as the total dollar value from items sold by our sellers through 1stDibs in a given month, minus cancellations within that month, and excluding shipping and U.S. sales taxes. GMV includes all sales reported to us by our sellers, whether transacted through the 1stDibs online marketplace or reported as an offline sale. We view GMV as a measure of the total economic activity generated by our online marketplace and as an indicator of the scale, growth, and health of our online marketplace. Our historical performance for GMV may not be indicative of future performance in GMV.
Number of Orders
We define Number of Orders as the total number of orders placed or reported through the 1stDibs online marketplace in a given month, minus cancellations within that month. Our historical performance for Number of Orders may not be indicative of future performance in Number of Orders.
Active Buyers
We define Active Buyers as buyers who have made at least one purchase through our online marketplace during the 12 months ended on the last day of the period presented, net of cancellations. A buyer is identified by a unique email address; thus an Active Buyer could have more than one account if they were to use a separate unique email address to set up each account. We believe this metric reflects scale, engagement and brand awareness, and our ability to convert user activity on our online marketplace into transactions. Our historical performance for Active Buyers may not be indicative of future performance in Active Buyers.
Adjusted EBITDA
We define Adjusted EBITDA as net loss excluding depreciation and amortization, stock-based compensation expense, other income, net, provision for income taxes, restructuring expenses and strategic alternative expenses. Adjusted EBITDA is a key performance measure used by our management and board of directors to assess our operating performance and the operating leverage of our business. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses that we exclude from Adjusted EBITDA. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results, enhances the overall understanding of our past performance and future prospects, and allows for greater transparency with respect to key financial metrics used by our management in their financial and operational decision-making. See "Non-GAAP Financial Measures" for more information and for a reconciliation of net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA.
Components of Results of Operations
Net Revenue
Our net revenue consists principally of seller marketplace services. Seller marketplace services primarily consist of marketplace transactions, subscriptions, and listing fees. Marketplace transaction fees are collected when sellers pay us commissions ranging from 5% to 50% of GMV and processing fees, which are approximately 3% of the buyer's total payment, net of expected refunds. If a seller accepts a return or refund for an on-platform purchase, the related commission and, in some cases, processing fees are refunded. Subscriptions provide access to our online marketplace, allowing sellers, who are our customers, to execute successful purchase transactions with buyers. We offer our sellers various subscription pricing tiers which allows them to choose the plan that best fits their business, with choices of a higher monthly subscription fee and lower commission rates or lower monthly subscription fee and higher commission rates. Listing fee revenue is collected when sellers pay us for promoting certain products on their behalf and at their discretion through our online marketplace. Advertisements consist of impression-based ads displayed on our online marketplace on the seller's behalf.
Cost of Revenue
Cost of revenue includes payment processor fees and hosting expenses. Cost of revenue also includes payroll, employee benefits, stock-based compensation, other headcount-related expenses associated with personnel supporting revenue-related operations and logistics, consulting costs, and amortization expense related to our capitalized internal-use software.
In certain transactions where our shipping services are elected by sellers, we facilitate shipping of items purchased from the seller to the buyer. The difference between the amount collected for shipping and the amount charged by the shipping carrier is included in cost of revenue in our condensed consolidated statements of operations. We facilitate fulfillment and shipping, but do not take ownership of or manage inventory.
Gross Profit and Gross Margin
Gross profit is net revenue less cost of revenue, and gross margin is gross profit as a percentage of net revenue. Gross profit has been, and will continue to be, affected by various factors, including leveraging economies of scale, the costs associated with
hosting our platform, the level of amortization of our internal-use software, the fluctuations in shipping costs including our ability to pass these costs on to buyers, and the extent to which we expand our operations. We expect that our gross margin will fluctuate from period to period depending on the interplay of these various factors.
Sales and Marketing
Sales and marketing expenses include payroll, employee benefits, stock-based compensation, other headcount-related expenses associated with sales and marketing personnel, advertising expense, consulting costs, and promotional discounts offered to new and existing buyers. Advertising expenses consist primarily of costs incurred promoting and marketing our services, such as costs associated with acquiring new users through performance-based marketing, social media programs, email, and events. Promotional discounts and incentives represent incentives solely to buyers and, therefore, are not considered payments made to our customers. Buyers are not our customers because access to the 1stDibs online marketplace is free for buyers, and we have no performance obligations with respect to buyers; we consider our sellers to be our customers.
Technology Development
Technology development expenses include payroll, employee benefits, stock-based compensation, and other headcount-related expenses associated with engineering and product development personnel and consulting costs related to technology development. We expense all technology development expenses as incurred, except for those expenses that meet the criteria for capitalization as internal-use software.
General and Administrative
General and administrative expenses include payroll, employee benefits, stock-based compensation, and other headcount-related expenses associated with finance, legal, facility and human resources related personnel, lease expense, net of sublease income, business liability insurance, accounting, professional fees, consulting costs, and depreciation of property and equipment. We expense all general and administrative expenses as incurred.
Provision for Transaction Losses
Provision for transaction losses primarily consists of transaction loss expense associated with our buyer protection program, including damages to products caused in shipping and transit, items that were not received or not as described by the seller, and reimbursements to buyers at our discretion if they are dissatisfied with their experience. The provision for transaction losses also includes bad debt expense associated with our seller accounts receivable balance.
Results of Operations
The following table summarizes our results of operations for the periods indicated:
(in thousands) Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Net revenue $ 21,972 $ 21,190 $ 66,652 $ 65,487
Cost of revenue 5,641 6,154 18,101 18,520
Gross profit 16,331 15,036 48,551 46,967
Operating expenses:
Sales and marketing 7,959 9,146 25,217 27,580
Technology development 5,906 5,471 17,420 15,686
General and administrative 6,358 6,864 19,916 20,756
Provision for transaction losses 791 947 2,653 2,183
Total operating expenses 21,014 22,428 65,206 66,205
Loss from operations (4,683) (7,392) (16,655) (19,238)
Other income, net:
Interest income 977 1,357 3,065 4,695
Other, net 252 356 1,040 1,128
Total other income, net 1,229 1,713 4,105 5,823
Net loss before income taxes (3,454) (5,679) (12,550) (13,415)
Provision for income taxes (52) (4) (75) (8)
Net loss $ (3,506) $ (5,683) $ (12,625) $ (13,423)
The following table summarizes our results of operations as a percentage of net revenue for the periods indicated:
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Net revenue 100 % 100 % 100 % 100 %
Cost of revenue 26 29 27 28
Gross profit 74 71 73 72
Operating expenses:
Sales and marketing 36 44 38 42
Technology development 27 26 26 24
General and administrative 29 32 30 32
Provision for transaction losses 4 4 4 3
Total operating expenses 96 106 98 101
Loss from operations (22) (35) (25) (29)
Other income, net:
Interest income 5 6 5 7
Other, net 1 2 1 2
Total other income, net 6 8 6 9
Net loss before income taxes (16) (27) (19) (20)
Provision for income taxes - - - -
Net loss (16) % (27) % (19) % (20) %
Comparison of the Three Months Ended September 30, 2025 and 2024
Net Revenue
Three Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Net revenue $ 21,972 $ 21,190 $ 782 4 %
Net revenue was $22.0 million for the three months ended September 30, 2025, as compared to $21.2 million for the three months ended September 30, 2024. The increase of $0.8 million, or 4%, was primarily driven by an increase in GMV which was mainly due to an increase in average order value for the three months ended September 30, 2025. While the impacts are difficult to isolate and quantify, we believe our GMV, number of orders, and net revenue have continued to be impacted negatively, both directly and indirectly, by macroeconomic factors, including significant housing market volatility, significant capital market volatility, and global economic and geopolitical developments. We believe we have, and continue to work to position the business to benefit from an improvement in macroeconomic factors.
Our marketplace transaction fees represent the majority of our net revenue and accounted for 74% of our net revenue for each of the three months ended September 30, 2025 and 2024. Subscription fees accounted for 21% and 22% of our net revenue for the three months ended September 30, 2025 and 2024, respectively.
Cost of Revenue
Three Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Cost of revenue $ 5,641 $ 6,154 $ (513) (8) %
Cost of revenue was $5.6 million for the three months ended September 30, 2025, as compared to $6.2 million for the three months ended September 30, 2024. The decrease of $0.5 million, or 8%, was primarily driven by a $0.3 million decrease in net shipping expenses, partially due to an insurance recovery relating to a shipping matter and a $0.1 million decrease in credit card processing fees due to better pricing negotiated with one of our main payment processors.
Gross Profit and Gross Margin
Gross profit was $16.3 million and gross margin was 74.3% for the three months ended September 30, 2025, as compared to gross profit of $15.0 million and gross margin of 71.0% for the three months ended September 30, 2024. The increase in gross profit and gross margin for the three months ended September 30, 2025 was primarily driven by the decrease in cost of revenue, and to a lesser extent, the increase in net revenue, as outlined above.
Operating Expenses
Sales and Marketing
Three Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Sales and marketing $ 7,959 $ 9,146 $ (1,187) (13) %
Sales and marketing expense was $8.0 million for the three months ended September 30, 2025, as compared to $9.1 million for the three months ended September 30, 2024. The decrease of $1.2 million, or 13%, was mainly due to a $1.2 million decrease in performance-based marketing and promotional campaigns. We also had $0.7 million in savings from our January 2025 reduction in workforce which was offset by the $0.8 million of severance expense due to our September 2025 reorganization.
Technology Development
Three Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Technology development $ 5,906 $ 5,471 $ 435 8 %
Technology development expense was $5.9 million for the three months ended September 30, 2025, as compared to $5.5 million for the three months ended September 30, 2024. The increase of $0.4 million, or 8%, was primarily driven by a $0.5 million increase in salaries and benefits mainly due to our annual compensation increases in March and additional bonus awards during the three months ended September 30, 2025.
General and Administrative
Three Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
General and administrative $ 6,358 $ 6,864 $ (506) (7) %
General and administrative expense was $6.4 million for the three months ended September 30, 2025, as compared to $6.9 million for the three months ended September 30, 2024. The decrease of $0.5 million, or 7%, was mainly due to a $0.3
million decrease in headcount-related and stock-based compensation as a result of the 2024 reductions in workforce. Additionally, there was a $0.1 million decrease in non-income tax expense.
Provision for Transaction Losses
Three Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Provision for transaction losses $ 791 $ 947 $ (156) (16) %
Provision for transaction losses was $0.8 million for the three months ended September 30, 2025, as compared to $0.9 million for the three months ended September 30, 2024. The decrease of $0.2 million, or 16%, was primarily driven by a decrease in the reserves for bad debt.
Other Income, Net
Three Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Total other income, net $ 1,229 $ 1,713 $ (484) (28) %
Other income, net was $1.2 million for the three months ended September 30, 2025, as compared to $1.7 million for the three months ended September 30, 2024. The decrease of $0.5 million, or 28%, was due mainly to lower interest income driven by lower cash, cash equivalents, and short-term investments for the three months ended September 30, 2025 coupled with lower interest rates.
Comparison of the Nine Months Ended September 30, 2025 and 2024
Net Revenue
Nine Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Net revenue $ 66,652 $ 65,487 $ 1,165 2 %
Net revenue was $66.7 million for the nine months ended September 30, 2025, as compared to $65.5 million for the nine months ended September 30, 2024. The increase of $1.2 million, or 2%, was primarily driven by an increase in GMV which was mainly due to an increase in average order value.
Our marketplace transaction fees represent the majority of our net revenue and accounted for 74% of our net revenue for each of the nine months ended September 30, 2025 and 2024. Subscription fees accounted for 21% and 22% of our net revenue for the nine months ended September 30, 2025 and 2024, respectively.
Cost of Revenue
Nine Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Cost of revenue $ 18,101 $ 18,520 $ (419) (2) %
Cost of revenue was $18.1 million for the nine months ended September 30, 2025, as compared to $18.5 million for the nine months ended September 30, 2024, The decrease of $0.4 million, or 2%, was primarily driven by a $0.5 million decrease in credit card processing fees due to better pricing negotiated with one of our main payment processors, partially offset by a $0.3 million increase in salaries and benefits due to annual compensation increases in March.
Gross Profit and Gross Margin
Gross profit was $48.6 million and gross margin was 72.8% for the nine months ended September 30, 2025, as compared to gross profit of $47.0 million and gross margin of 71.7% for the nine months ended September 30, 2024. The increase in gross profit and gross margin for the nine months ended September 30, 2025 was primarily driven by the decrease in cost of revenue and increase in net revenue as outlined above.
Operating Expenses
Sales and Marketing
Nine Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Sales and marketing $ 25,217 $ 27,580 $ (2,363) (9) %
Sales and marketing expense was $25.2 million for the nine months ended September 30, 2025, as compared to $27.6 million for the nine months ended September 30, 2024. The decrease of $2.4 million, or 9%, was mainly due to a $1.5 million decrease in performance-based marketing and promotional campaigns, and a $0.8 million decrease in salaries, benefits, and stock-based compensation resulting from decreases in headcount primarily related to our reduction in workforce in January 2025. The decrease in salaries and benefits were partially offset by the severance expense related to our September 2025 reorganization.
Technology Development
Nine Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Technology development $ 17,420 $ 15,686 $ 1,734 11 %
Technology development expense was $17.4 million for the nine months ended September 30, 2025, as compared to $15.7 million for the nine months ended September 30, 2024. The increase of $1.7 million, or 11%, was mainly due to a $1.6 million increase in salaries and benefits resulting from our annual compensation increases in March.
General and Administrative
Nine Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
General and administrative $ 19,916 $ 20,756 $ (840) (4) %
General and administrative expense was $19.9 million for the nine months ended September 30, 2025, as compared to $20.8 million for the nine months ended September 30, 2024. The decrease of $0.8 million, or 4%, was mainly due to a $0.9 million decrease in salaries and wages as a result of our 2024 reductions in workforce.
Provision for Transaction Losses
Nine Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Provision for transaction losses $ 2,653 $ 2,183 $ 470 22 %
Provision for transaction losses was $2.7 million for the nine months ended September 30, 2025, as compared to $2.2 million for the nine months ended September 30, 2024. The increase of $0.5 million, or 22%, was mainly due to a provision adjustment in the prior year resulting from a change in estimate based upon historical trend analysis as well as the timing and volume of claims.
Other Income, Net
Nine Months Ended September 30,
(in thousands) 2025 2024 $ Change % Change
Total other income, net $ 4,105 $ 5,823 $ (1,718) (30) %
Other income, net was $4.1 million for the nine months ended September 30, 2025, as compared to $5.8 million for the nine months ended September 30, 2024. The decrease of $1.7 million, or 30%, was mainly due to lower interest income driven by lower cash, cash equivalents, and short-term investments for the nine months ended September 30, 2025 coupled with lower interest rates.
Non-GAAP Financial Measures
We have included Adjusted EBITDA, which is a non-GAAP financial measure, because it is a key measure used by our management team to help us to assess our operating performance and the operating leverage in our business. We also use this measure to analyze our financial results, establish budgets and operational goals for managing our business, and make strategic decisions. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses that we exclude from Adjusted EBITDA. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, enhances the overall understanding of our past performance and future prospects, and allows for greater transparency with respect to key financial metrics used by our management in their financial and operational decision-making. We also believe that the presentation of this non-GAAP financial measure provides an additional tool for investors to use in comparing our core business and results of operations over multiple periods with other companies in our industry, many of which present similar non-GAAP financial measures to investors, and to analyze our operating performance.
The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. The non-GAAP financial measures presented should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with GAAP. Further, these non-GAAP financial measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations. Accordingly, these non-GAAP financial measures should be considered as supplemental in nature, and are not intended, and should not be construed, as a substitute for the related financial information calculated in accordance with GAAP. These limitations of Adjusted EBITDA include the following:
•The exclusion of certain recurring, non-cash charges, such as depreciation and amortization of property and equipment. While these are non-cash charges, we may need to replace the assets being depreciated in the future and Adjusted EBITDA does not reflect cash requirements for these replacements or new capital expenditure requirements;
•The exclusion of stock-based compensation expense, which has been a significant recurring expense and will continue to constitute a significant recurring expense for the foreseeable future, as equity awards are expected to continue to be an important component of our compensation strategy;
•The exclusion of other income, net, which includes interest income related to our cash, cash equivalents and short-term investments and realized and unrealized gains and losses on foreign currency exchange;
•The exclusion of discrete restructuring expenses such as severance and benefit costs from reductions in force and reorganizations that are fundamentally different in strategic nature from ongoing initiatives. We believe the exclusion of these items facilitates a more consistent comparison of operating performance over time because they are distinct from ongoing operational costs; and
•The exclusion of strategic alternative expenses in connection with capital return strategies, buy and sell-side mergers, acquisitions, partnerships and divestitures, including integration costs.
Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss and our other GAAP results.
We define Adjusted EBITDA as our net loss, excluding: (1) depreciation and amortization; (2) stock-based compensation expense; (3) other income, net; (4) provision for income taxes; (5) restructuring expenses; and (6) strategic alternative expenses. The following table provides a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA:
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2025 2024 2025 2024
Net loss $ (3,506) $ (5,683) $ (12,625) $ (13,423)
Depreciation and amortization 392 507 1,272 1,439
Stock-based compensation expense 3,246 3,902 10,838 11,008
Other income, net (1,229) (1,713) (4,105) (5,823)
Provision for income taxes 52 4 75 8
Restructuring expenses 802 - 802 348
Strategic alternative expenses - - - 77
Adjusted EBITDA $ (243) $ (2,983) $ (3,743) $ (6,366)
Liquidity and Capital Resources
As of September 30, 2025, we had cash, cash equivalents and short-term investments of $93.4 million and an accumulated deficit of $345.0 million. Net cash used in operating activities was $6.7 million in the nine months ended September 30, 2025. We expect operating losses to continue in the foreseeable future as we continue to strategically invest in growth activities. Our cash flows, including net cash used in or provided by operating activities, may vary from quarter to quarter, due to the timing of payments to sellers, vendor contracts and prepayments, annual bonuses, marketing related expenses, and other factors. Our principal use of cash is to fund our operations including platform development to support our strategic initiatives and anticipated share repurchases under our Stock Repurchase Programs.
Based on our current plans, we believe our existing cash, cash equivalents and short-term investments will be sufficient to fund our operations and capital expenditure requirements through at least the next 12 months. We expect to continue to incur substantial expenditures in the near term to support our ongoing activities. While management believes that our current cash, cash equivalents and short-term investments are sufficient to fund our operating expenses and capital expenditure requirements for at least the next 12 months, we may need to borrow funds or raise additional equity to achieve our longer-term business objectives.
Our future capital requirements will depend on many factors, including:
•the emergence of competing online marketplaces and other adverse market developments;
•the timing and extent of our sales and marketing and technology development expenditures; and
•any investments, acquisitions or other similar strategic endeavors we may choose to pursue in the future.
A change in the outcome of any of these or other variables could significantly impact our operating plans, and we may need additional funds to meet operational needs and capital requirements associated with such plans. In addition, any future borrowings may result in additional restrictions on our business and any issuance of additional equity would result in dilution to investors. If we are unable to raise additional capital when we need it, it could harm our business, results of operations, and financial condition.
Stock Repurchase Program
In August 2023, the Board of Directors authorized the 2023 Stock Repurchase Program to repurchase up to an aggregate of $20.0 million of our common stock. In June 2024, the Board of Directors authorized an increase to our 2023 Stock Repurchase Program to an aggregate authorized repurchase amount of $25.5 million. On June 10, 2024, we announced the completion of our 2023 Stock Repurchase Program.
In August 2024, the Board of Directors authorized the 2024 Stock Repurchase Program to repurchase up to an aggregate of $10.0 million of our common stock.
During the nine months ended September 30, 2025, 477,992 shares of our common stock were purchased for a total cost of $1.8 million and approximately $2.0 million remains available under our 2024 Stock Repurchase Program.
Subsequent to September 30, 2025, in November 2025, our Board of Directors authorized us to repurchase up to an aggregate of $12.0 million of our common stock ("2025 Stock Repurchase Program"). The Board also terminated the 2024 Stock Repurchase Program it previously authorized in August 2024. The following table summarizes total treasury stock purchased under each of the Company's programs as of the periods presented:
(in thousands except share amounts) September 30, 2025 December 31, 2024
Shares Cost Basis Shares Cost Basis
2023 Stock Repurchase Program 4,926,635 $ 25,373 4,926,635 $ 25,373
2024 Stock Repurchase Program 1,994,879 8,039 1,516,887 6,245
Total 6,921,514 $ 33,412 6,443,522 $ 31,618
Cash Flows
The following table summarizes our cash flows for the periods indicated:
Nine Months Ended September 30,
(in thousands) 2025 2024
Net cash used in operating activities
$ (6,707) $ (5,708)
Net cash provided by investing activities 4,202 15,325
Net cash used in financing activities
(3,776) (25,155)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 294 222
Net decrease in cash, cash equivalents, and restricted cash $ (5,987) $ (15,316)
Cash Flows from Operating Activities
Net cash used in operating activities was $6.7 million for the nine months ended September 30, 2025 and was due mainly to changes in operating assets and liabilities, including a $3.1 million decrease in operating lease liabilities due to our operating lease payments, a $1.8 million increase in prepaid expenses and other current assets due to timing of prepaid contracts, a $1.5 million decrease in payables due to sellers as a result of timing of when sellers are paid, and a $1.1 million decrease in accounts payable and accrued expenses due to the timing of vendor invoices and related invoices.
Net cash used in operating activities was $5.7 million for the nine months ended September 30, 2024, and was driven primarily by a $2.2 million decrease in accounts payable and accrued expenses due to the timing of payments and invoices, a $2.2 million decrease in operating lease liabilities due to the continued lease payments on our previous and current NYC headquarters, partially offset by our sublease income, and a $1.8 million decrease in other current liabilities and other liabilities related to payments to settle multiple Sales and other non-income tax contingencies. Theses decreases were partially offset by a $2.7 million increase in payables due to sellers due to timing of the bi-weekly payments we make to our sellers.
Cash Flows from Investing Activities
Net cash provided by investing activities was $4.2 million for the nine months ended September 30, 2025, and was mainly due to by $56.8 million in maturities and sales of short-term investments, partially offset by $51.9 million in purchases of short-term investments.
Net cash provided by investing activities was $15.3 million for the nine months ended September 30, 2024, and was driven primarily by $85.6 million maturities and sales of short-term investments, partially offset by $68.9 million purchases of short-term investments.
Cash Flows from Financing Activities
Net cash used in financing activities was $3.8 million for the nine months ended September 30, 2025, and was driven primarily by $2.0 million of payments for taxes related to net share settlements of stock-based compensation awards and $1.8 million in repurchases of our common stock as part of our 2024 Stock Repurchase Program.
Net cash used in financing activities was $25.2 million for the nine months ended September 30, 2024, and was driven primarily by $22.8 million in repurchases of our common stock as part of our 2023 and 2024 Stock Repurchase Programs and $3.2 million of payments for taxes related to net share settlements of stock-based compensation awards, partially offset by $0.8 million in proceeds from the exercise of stock options.
Interim Goodwill Impairment Assessment
During the three months ended September 30, 2025, the Company performed a quantitative assessment of our goodwill as a result of the continued decline in our stock price and related overall market capitalization, as well as the impact of macroeconomic factors. While there was no impairment recorded, the fair value of our reporting unit, without the use of an implied control premium, exceeded its carrying value by less than 10%, indicating that goodwill may be at risk of impairment in the future.
Contractual Obligations
As of September 30, 2025, there were no material changes in commitments under contractual obligations compared to the contractual obligations disclosed in our Form 10-K.
Recent Accounting Pronouncements
See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" to our condensed consolidated financial statements for a description of recently issued accounting pronouncements that may potentially impact our financial position, results of operations, or cash flows.
Emerging Growth Company
We are an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that (i) we are no longer an emerging growth company or (ii) we affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. We may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies.
Critical Accounting Policies and Estimates
Our consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Actual results may differ from these estimates. To the extent that there are material differences between these estimates and our actual results, our future financial statements will be affected.
There have been no significant changes to our critical accounting policies and estimates included in our Form 10-K.
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