making new buyer acquisition more efficient, even as we maintain spending discipline. We plan to scale the Tastemaker program significantly in the second half of 2026. Once a buyer finds what they are looking for, the next question is simple. Can they trust the price? That is what our pricing roadmap is designed to answer. In the second quarter, we doubled our price parity coverage, using AI to identify and flag items priced inconsistently across competitor sites. Initial results validate the approach. Items corrected for price parity are showing an increase in sell-through rates. This sends an important signal to buyers that they don't need to cross-reference pricing on first dibs. Price parity is one of many elements of consumer trust in our platform. Based on our progress this quarter, we are expanding our pricing pillar into a broader trust initiative, one that addresses the full range of signals buyers rely on when deciding whether to transact on first dibs, including authenticity, seller quality, and platform integrity. Pricing gives buyers confidence in the value of an item, trust that gives them confidence in the platform itself. And given how central trust is to our brand and to buyer confidence, we believe that expanding this work will drive conversion. More to come on this evolution in the third quarter. Even a buyer who trusts the price can be stopped by shipping uncertainty. That is the friction our shipping roadmap is designed to eliminate. Three priorities guide that effort. Upfront competitive pricing, on-time delivery, and accurate tracking. In Q2, we made the most progress on the competitive pricing front. In May, we deployed ML-powered freight quoting, increasing freight pre-quote coverage from approximately 50% to 75% of listings, and growing overall pre-quote coverage to nearly 90%. More items now show an upfront shipping cost before a buyer reaches checkout, reducing a common source of purchase friction. We also optimized our parcel rates, making certain shipping categories up to 8% cheaper. For verticals like furniture and art, where shipping can represent a meaningful portion of the total purchase price, lower rates directly improve the economics of a transaction and reduce a barrier to completing a purchase. on tracking we integrated with a third-party logistics platform that will significantly expand our carrier coverage over time giving buyers greater visibility into their purchases from seller to doorstep together these improvements are building blocks of our broader multi-year vision a shipping experience that is fully transparent and cost competitive anchored by all-in pricing so that every buyer knows their total cost before they commit. All-in pricing eliminates one of the most persistent sources of checkout abandonment in our category, the moment a buyer discovers the shipping cost. When the total price is visible up front, the path from intent to purchase becomes more direct. Exceptional service extends an order into a relationship. That is the animating idea behind our fourth pillar. In the quarter, we launched a pilot of an AI-powered customer service chatbot, built in partnership with a top provider in the space, available to both buyers and sellers. Early results are promising. The chatbot is resolving a meaningful share of inquiries without human intervention, allowing our service team to focus on the complex, high-touch interactions where human expertise matters the most. For sellers, we improve the item listing creation process in our Seller app, reducing the friction involved in bringing inventory to market. The easier we make it for sellers to list, the faster high-quality supply reaches buyers. The through line across all four pillars is growing confidence. Confidence that our roadmap is the right one, that our team is executing against it, and that the results are showing up where it matters. Our roadmap is not the only place we are building new revenue streams. The first Dibs 50, our annual celebration of the world's top interior designers, marked its ninth year in May. This year, for the first time, we introduced paid event sponsorships. Mila, House of Roll, and Ciroc partnered with us to reach our audience of top interior designers and high net worth buyers, an audience they cannot easily access elsewhere. The core insight is straightforward. Over the years, we have aggregated a uniquely valuable audience, and live events give us a new and differentiated way to monetize it. The timing is right as well. As AI-generated content becomes ubiquitous, advertisers are placing a growing premium on authentic, curated experiences, exactly what First Dibs events deliver. It's early, but the initial sponsor interest validates the premise that our audience has real commercial value beyond the marketplace itself we plan to host one additional sponsored event in 2026 and to scale events in the future the first dibs 50 is a reminder of what makes this platform distinctive a community of influential designers a catalog of one-of-a-kind objects and a level of trust that brands and buyers alike are willing to pay for q2 confirms that the roadmap is working, but we are early. The work of improving discovery, trust, shipping, and service across the marketplace as complex as ours is a multi-year endeavor. We have made a strong start, and there is a great deal more to do. Thank you for your continued support. I will now turn it over to Tom to review our second quarter financial results and third quarter outlook.

Thanks, David. Good morning, everyone. From 2022 through 2025, we systematically re-engineered our cost structure, reducing headcount, rationalizing expenses, and rebuilding the foundation of this business with one objective in mind, ensuring that when revenue growth resumed, it would flow disproportionately to the bottom line. Q2 provides early evidence that this is working exactly as designed. Across all three metrics, GMV, revenue, and adjusted EBITDA margin, we beat the high end of our guidance. GMV grew 7%, revenue grew 5%, and adjusted EBITDA margin reached approximately 6%. Critically, that margin expansion is happening alongside a deliberate rebalancing of our team towards product and engineering, the highest ROI investment we can make. We are expanding margins while simultaneously concentrating more of our resources on the work that will drive our next phase of growth. Let me walk you through the numbers. GMB of $96 million was up 7% and above the high end of our guidance range. That growth reflected progress across all three dimensions of our funnel, easing traffic declines, expanding average order values, and continued conversion growth. Traffic declines moderated relative to the first quarter and sessions were flat on a sequential basis. We entered the quarter with approximately 75% of traffic from organic sources, a continued reflection of the enduring strength of the First Dibs brand. Average order value reached approximately $2,850, up 10% year-over-year. Median order value, which excludes the impact of outlier transactions, also grew 10% to approximately $1,500. That trend tells us order value expansion is broad-based, a clear signal of the trust buyers place in our platform. Conversion grew for the 11th consecutive quarter, reflecting the compounding impact of our product investments and giving us continued confidence in our roadmap. While order volume declined year over year, orders grew sequentially. Consumer and trade GMB both grew year over year. Together, the two channels reinforced the same story. Our platform is gaining traction across buyer types independent of the macro environment. On a vertical basis, growth rates improved across all categories relative to the first quarter, with strength in vintage and antique furniture, art, and fashion. We ended the quarter with approximately 57,700 active buyers down 10%, reflecting the deliberate reduction in sales and marketing spend enacted in late 2025. Turning to supply, unique sellers held steady at approximately 5,700 flat sequentially, reflecting continued stabilization following our 2024 and 2025 pricing actions. Listings grew 1% year-over-year to nearly 1.9 million, providing buyers with a deep and expanding catalog of one-of-a-kind inventory. Turning to the income statement, net revenue reached $23.3 million, up 5%, exceeding the high end of our guidance range. Transaction revenue, which is tied directly to GMV, represented approximately 74% of total revenue. The quarter also included approximately $270,000 of non-endemic advertising revenue related to the first DIVS 50 sponsorships, an early but tangible contribution from this nascent revenue stream. Take rates declined approximately 30 basis points year over year, largely driven by a mixed shift to higher value orders, which carry a lower blended commission rate. Of course, profit was $17.2 million, up 8%. Of course, margin was 73.9%, up 210 basis points year over year, and at the high end of our target range of 72% to 74%, helped by modest reductions in professional services, depreciation, and shipping costs. Total operating expenses were $19.3 million, down 11%. That decline did not come at the expense of product investment. Technology development continued to grow year over year, consistent with our decision to rebalance resources towards product and engineering, even as total opex declined. sales and marketing expenses were 5.4 million dollars down 34 percent this reduction reflects the strategic realignment implemented in late 2025 which fundamentally reset our marketing organization and rationalized performance marketing spend as well as lower headcount related expenses following our first quarter reorganization sales and marketing as a percentage of revenue was 23% down from 37% a year ago. Technology development expenses were $6.3 million up 7%. This increase reflects continued investment in product and engineering in support of our 2026 roadmap, including the impact of our annual merit cycle in March. Technology development as a percentage of revenue was approximately 27% flat year over year. General administrative expenses were $6.7 million, up 1%, reflecting the ongoing discipline in our overhead cost base. General administrative as a percentage of revenue was approximately 29% versus 30% a year ago. Lastly, provision for transaction losses were approximately $930,000, or 4% of revenue, in line with our historical range of 2% to 4%. As I mentioned previously, total operating expenses were $19.3 million, down 11%. In addition, operating expenses as a percentage of revenue were at the lowest level since we went public in 2021. Adjusted EBITDA was $1.3 million, representing a margin of approximately 6%, well above the high end of our guidance range. This result is a direct product of the cost structure we rebuilt starting in 2022, revenue upside flowing disproportionately to the bottom line, exactly as designed. Turning to the balance sheet, we entered the quarter with cash, cash equivalents, and short-term investments of $67.7 million, down $17.6 million sequentially. That decline primarily reflects two items, $11.1 million in share repurchases and approximately $5.9 million related to a change in our agreement with our payment processors that resulted in an accounting reclassification of cash and cash equivalents to receivables from payment processors and seller accounts. This reclassification has no economic impact. It is a presentation change only. Total assets remain unchanged. The offsetting liability to sellers is unchanged and there is no impact to net income, working capital, or overall financial position. The cash balance appears smaller, but this cash was always offset by an equal payable to the sellers. The offset now simply sits against a different asset account. Excluding it, cash declined approximately $11.7 million, driven primarily by capital returns to shareholders. During the quarter, we repurchased approximately 2.4 million shares for $11.1 million under our 2026 stock repurchase program, exhausting the authorization. Since inception of our repurchase programs, we have repurchased approximately 11.4 million shares for approximately $55.3 million. Before moving to guidance, I want to address our full year free cash flow directly. Our 2026 financial framework includes a commitment to positive free cash flow, and the operational performance of the business supports that. If anything, performance has exceeded our expectations year to date. However, the reclassification I just discussed affects our reported free cash flow and means we are no longer likely to generate positive free cash flow in 2026. Excluding the reclassification, the underlying business is generating cash ahead of our original expectations. Turning to the outlook, our guidance reflects quarter-to-date results and our forecast for the remainder of the period. We forecast third quarter GMV between $89 million and $94 million, or flat to up 6%. Net revenue of $22 million to $22.9 million, or flat to up 4%. and it doesn't even a margin between negative 1% and positive 2%. Our GMV guidance reflects three factors. First, product-driven growth. Continued year-over-year GMV growth at the midpoint, a reflection of compounding roadmap progress against the backdrop of significant sales and marketing reductions. Second, quality-driven performance. While traffic remains a headwind, we expect continued growth in conversion and AOV. Third, seasonal dynamics. The third quarter is our seasonally softest period, and we are facing our toughest year-over-year GMV comparison of 2026. Our revenue guidance reflects take-rate dynamics. Revenue is expected to grow year-over-year, though at a modestly slower rate than GMV at the midpoint, reflecting a continued mix shift towards higher value orders. These transactions carry a lower blended commission rate. Our adjusted EBITDA margin guidance reflects two factors. First, structural efficiency, continued operating expense discipline from actions taken in late 2025. Second, seasonal dynamics. The third quarter is our seasonally softest period. A sequential step down in revenue is the primary driver of lower margin versus Q2. Turning to our 2026 financial framework, We are upgrading our expectations for GMV growth based on Q2 performance. Our revised financial framework is we now expect GMV to grow year-over-year for 2026 as a whole. We also expect Q4 GMV to grow year-over-year, our original milestone. We expect revenue take rates of approximately 24% to 25%, down from our prior outlook of 25% to 26%, as higher order values, which carry a lower blended commission rate, represent a growing share of our GMB. We expect to deliver a third consecutive year of revenue growth, reflecting the resilience of our marketplace in the face of a soft market for luxury home goods. We expect gross margins of 72% to 74%, up from 71% to 73% in 2025. We remain focused on efficient growth with a full-year outlook of positive adjusted EBITDA. On free cash flow, as discussed, because of our accounting reclassification related to our payment processor agreements, we are no longer likely to generate positive free cash flow for 2026. Underprinting this plan is the assumption that macroeconomic conditions, particularly those impacting the housing market and the consumer discretionary spending remain stable. In 2022, we began resetting our expense base with a specific goal in mind, ensuring that when revenue recovered, it would flow disproportionately to the bottom line. Q2 is the clearest evidence yet that this design is working. GMB, revenue, and adjusted EBITDA all came in above the high end of guidance. Adjusted EBITDA margin reached approximately 6%, And we achieved all this while continuing to invest in product and engineering, the engine of our long-term growth. We are on plan, we are executing, and our conviction in the path ahead has never been stronger. We appreciate your continued support and look forward to updating you on the progress in the coming quarters. Thank you. I will now turn the call over to the operator to take your questions.

We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset closer to your mouth when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Bobby Brooks with Northland Capital Markets. Your line is now open. Please go ahead.

Hey, good morning, guys, and thank you for taking my questions. So it's clear that these strong two Q results are beginning to reflect the growth and cost initiative enacted over the last several quarters. But I know you guys aren't satisfied with the current success and want more. So I was curious to hear maybe what are some growth or cost initiatives you are maybe planning to implement in the coming quarters or took action on during the second quarter that could continue to bolster results in the coming quarters?

Hi, Bobby. Good morning. So, I mean, we're really driving growth off our roadmap. That's our focus. And, you know, we got there a couple quarters earlier than we had expected. And I think that is attributable to the strength of our product roadmap. I guess the way we think about it is the first half has really been focused on building a foundation in our four primary areas of focus. And then the second half of the year is going to be focused on broadening the deployment of those across as many service areas as possible. So the four pillars of our roadmap are discovery, trust, which used to be pricing only, but is now expanded to trust, shipping, and services. And we had wins in each area. So in terms of discovery, the biggest win is we rolled out a new machine learning model to drive personalization. We applied that initially on the homepage and saw really good results. And so we're going to roll that out in the second half alongside continuing to build towards a better semantic and natural language search capability. In the area of trust, we doubled our price parity coverage in Q2. And as I mentioned, we're going to expand that in the second half to include issues around item and seller quality, item authenticity, and overall platform integrity alongside our continued focus on pricing transparency. In terms of shipping, we had a nice win in the second quarter. We used, again, a new machine learning model to expand freight pre-quote coverage from roughly 50% to 75% of listings, which had the impact of growing our overall pre-quote coverage to 90%. And going forward, we've got other initiatives focused on incentives for faster handling time, better and broader tracking, and also a continued focus on reducing shipping costs to the buyer. And then lastly, in terms of service, we successfully tested an AI-powered customer service chatbot in Q2. And so the second half is going to be about rolling that out more broadly to our kind of service infrastructure, which will have the impact also of freeing up our people to focus on more complex customer service issues. So overall, I'd say, you know, it's a good quarter. We're happy with where we are, but we have much, much more in front of us than behind us. But like I said, I think we're off to a good start.

For sure. And you touched on this a bit in the prepared remarks. So I'll ask it in a different way than I initially was thinking of it, but it seems like 2Q results were not bolstered by any trends in the luxury market. So first, is my assumption there correct? And second, how big of a benefit might we see if a recovery in the luxury housing market plays out for your growth?

So you are correct. I mean, the syndicated credit card data that we use to track the market says that luxury home furnishings decline mid-single digits in Q2. So that is correct. You know, we, relative to our own expectations, we attribute the outperformance versus guidance in Q2 to traffic, which stabilized. And then also average order value, which was up 10%. And I think significantly, it wasn't just average order value that increased, but the median order value increased by the same percentage, by 10 percentage points, which indicates that the strength was relatively broad-based. Look, I mean, if the market comes back, it's tough to quantify the impact on us. I mean, other than saying it'll certainly be positive. But I think it's actually part of, you know, the reason why we were pleased with our Q2 was not just because our performance came in spite of the continued market contraction, but also, you know, we're still comping our sales and marketing spend cutbacks at the end of last year. Overall, sales and marketing spend was down over 30% year over year in the quarter. So plus 7% on GMV versus plus 30% declines in sales and marketing spend and negative mid-single digit declines in market. Again, I think we interpret as a proof point that that roadmap that I discussed is taking effect.

For sure, that is impressive. And just last question for me, I want to unpack kind of the financial dynamics and kind expectations going forward as you scale out the tastemakers program you mentioned the tripling of Instagram view time sequentially that's something that really struck me so as you plan of scaling that out in the second half how does that impact the sales and marketing line item and maybe just discuss like how you paid those influencers out and then secondly I get a tripling sequentially is unlikely, but, uh, of, of like the view time on Instagram, but what might be your expectations for the growth and engagement as you scale out this program?

Sure. So let me, let me sort of just talk more qualitatively about the tastemaker program, and then I'll turn it over to Tom to discuss the cost impact. Um, so we've been, again, incredibly happy with our progress here. You know, I think the truth is we were probably a little late to the party in terms of focusing on social media as a channel, but we're there now. We launched in Q2, and it's off to a great start. You cited some of the data points that we look at, but I think also more qualitatively it's important, again, not just because it's a hedge against the uncertainty around SEO and trends in the search market, but also it's a way to reach a broader audience and specifically a younger audience than we've reached in the past, you know, in a way that is both cost-effective and kind of engaging and so on to them. So this is something we're going to put a lot into in terms of energy and effort. You know, it also does, over time, help our paid program. But that, you know, I think at the end of the day, it's sort of a win across, you know, many, many dimensions, which is why we're so pleased. Tom, maybe you can say a few words about the cost impact.

So, again, as you know, Bobby, we're very disciplined in our paid marketing program. We've obviously mentioned that it's declined significantly year over year, and we've really focused on unit economics. As we start to see that, you know, that we can buy right now, this is creating more efficiency. So we will continue to buy paid traffic, you know, as long as it's profitable. So you could see, you know, somewhat of an increase going forward if we can do so profitably. But we're going to stay very disciplined in our paid marketing spend.

Got it. Appreciate the call and congrats on a strong quarter.

Your next question and final question comes from the line of Ralph Shackert with William Blair. Your line is now open. Please go ahead.

Taking the question. This is Jack Franceschi on for Ralph. I just want to ask about GMV specifically. I know you guys reiterated growth in the fourth quarter and for the full year. I know that you don't provide 27 guidance, but I was wondering if there's some sort of framework you can give for continued growth beyond Q4, and maybe what are the components driving that growth, considering that the housing macro remains muted? Thanks, guys.

Sure, of course. So I think, you know, we feel good about our GMV trajectory beyond the end of this year, and I think our conviction in that is even higher now than it was before, given our recent performance. And I'd attribute it to a couple things. First of all, you know, the sales and marketing lapping effect will improve from here. We made those cuts at the end of Q3 last year, so we'll get a full quarters impact in Q4, and then obviously for the following two quarters after that, and then a partial benefit in Q3 next year, 27. Secondly, and I think in the long run, more importantly, you know, the roadmap will continue to compound. The areas of focus on our roadmap are really kind of foundational core drivers of marketplace performance. Our marketplace is very complex. And so we see this as, you know, as a multi-year endeavor. So again, we're off to a good start, but there's a lot more ahead of us than there is behind us. Third, you know, in each of those four focus areas, AI is the primary driver of our most important, highest priority, highest impact initiatives. And AI just fundamentally gives us capabilities that we would not have had without it. That's not unique to us as a company, but we are a beneficiary. And I think, you know, long, longer term, once we rebuild the foundation of the marketplace, I do think we have opportunities to expand our addressable market. And, you know, lastly, in terms of your question about the housing market, I don't think, again, as it wasn't in Q2, and it won't be for the next few quarters, I don't think our ability to grow is dependent on a recovery in that market. But obviously, you know, at some point, this market will recover. And when it does, we'll obviously be a beneficiary of that. But again, I don't think it's required in order for us to sustain growth beyond 26.

Awesome.

Thank you, guys. this concludes today's call thank you for attending you may now disconnect