Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Description of the Business

1stdibs.com, Inc. (“1stDibs” or the “Company”) is one of the world’s leading online marketplaces for connecting design lovers with many of the best sellers and makers of vintage & antique furniture, contemporary furniture, home décor, jewelry, watches, art, and fashion. The Company’s sellers, who undergo an evaluation by its in-house experts to vet the integrity of their listings, in-depth marketing content, and custom-built technology platform create trust in the Company’s brand and facilitate high-consideration purchases of luxury design items online. By disrupting the way these items are bought and sold, 1stDibs is both expanding access to, and growing the market for, luxury design items.

The Company was incorporated in the state of Delaware on March 10, 2000 and is headquartered in New York, NY.

Basis of Presentation

The accompanying condensed consolidated financial statements are prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K (the “Form 10-K”) for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on March 3, 2025.

The consolidated balance sheet as of December 31, 2024, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in stockholders’ equity, and cash flows for the interim periods. The results for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending December 31, 2025.

There have been no material changes to the Company's significant accounting policies as described in the Form 10-K.

Restructuring Charges

During the year ended December 31, 2024, the Company incurred $1.4 million of employee severance and benefits costs relating to a workforce reduction. The majority of the remaining $0.3 million of severance accrued as of June 30, 2025 is anticipated to be paid during the year ending December 31, 2025, while approximately $0.1 million is expected to be paid during the first quarter of 2026.

The following table displays a rollforward of the charges and payments to the accrued balance as of June 30, 2025:


(in thousands)	Restructuring Charges
Balance, December 31, 2024	$	1,262
Restructuring charges	—
Cash payments	(944)
Balance, June 30, 2025	$	318

There was no expense recorded in the three and six months ended June 30, 2025 related to restructuring charges. During the three and six months ended June 30, 2024 there was $0.4 million of general and administrative expense relating to restructuring charges that we recorded in the condensed consolidated statements of operations.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, provision for transaction losses, allowance for doubtful accounts, impairment assessment of goodwill, the determination of useful lives, income taxes, and the valuation of leases. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements.

Segment Information

An operating segment is defined as a component of a business for which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”). The Company operates and manages its business as one reportable and operating segment. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on a consolidated basis for purposes of evaluating financial performance and allocating resources. The Company’s single reportable and operating segment contains one reporting unit, which consists of the Company’s online marketplace that enables commerce between sellers and buyers. The CODM regularly reviews the GAAP consolidated statement of operations from a significant expense perspective when evaluating financial performance and allocating resources. While the CODM also reviews other funnel metrics regularly (i.e. Gross Merchandise Value (“GMV”), Number of Orders, etc.), there are no additional significant segment expenses other than those disclosed in the condensed consolidated statements of operations.

Cash, Cash Equivalents, and Restricted Cash

The following represents the Company’s cash, cash equivalents, and restricted cash as of the periods presented:


(in thousands)	June 30, 2025		June 30, 2024
Cash and cash equivalents	$	22,431	$	23,807
Restricted cash, current	1,329		—
Restricted cash, non-current	3,683		3,620
Total cash, cash equivalents, and restricted cash	$	27,443	$	27,427

The Company considers all short-term, highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Certain cash equivalents consist of investments in debt securities that are classified as available-for-sale. As of June 30, 2025, the Company’s restricted cash, current relates to a hold back of cash from a payment processor that was subsequently released and paid back to the Company in July 2025. As of June 30, 2025 and 2024, the Company’s restricted cash, non-current relates to $3.7 million and $3.6 million in Letters of Credit for its office leases, respectively. The carrying value of the restricted cash approximates fair value. During the three and six months ended June 30, 2025, the Company purchased $1.1 million and $12.4 million of available-for-sale securities classified as cash equivalents, respectively. During the three and six months ended June 30, 2024 the Company purchased $8.9 million and $25.6 million of available-for-sale securities classified as cash equivalents, respectively.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which modifies the rules on income tax disclosures. The standard will require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The new standard is effective for annual periods beginning after December 15, 2024. The Company adopted the standard during the year ended December 31, 2025. Adoption requires additional disclosures in the December 31, 2025 Form 10-K and will not have a financial impact on the Company’s consolidated balance sheets and statement of operations.