Newegg(US:NEGG)2025-08-21 21:29Financial Performance - Newegg's net sales increased by 12.6% to $695.7 million for the six months ended June 30, 2025, compared to $618.1 million for the same period in 2024[4] - Adjusted EBITDA improved significantly to $11.3 million for the six months ended June 30, 2025, compared to a loss of $7.3 million for the same period in 2024[4] - Newegg reported a net loss of $4.2 million for the first half of 2025, significantly reduced from a net loss of $25.0 million for the same period in 2024[4] - The company's net loss for the six months ended June 30, 2025, was $4.2 million, a significant improvement compared to a net loss of $25.0 million in the same period of 2024[27] - Adjusted EBITDA for the six months ended June 30, 2025, was $11.3 million, compared to an adjusted EBITDA loss of $7.3 million in the same period of 2024, indicating a positive turnaround[27] Sales and Customer Metrics - Gross merchandise value (GMV) rose by 13.7% to $849.1 million for the first half of 2025, up from $746.7 million in the prior year[4] - The total Gross Merchandise Value (GMV) for the six months ended June 30, 2025, was $849.1 million, an increase from $746.7 million in the same period of 2024, reflecting a growth of approximately 13.8%[25] - The average order value increased to $467 for the first half of 2025, compared to $401 for the same period in the previous year[12] - Active customers reached approximately 1.13 million as of June 30, 2025, up from 1.09 million a year earlier[12] - The repeat purchase rate increased to 25.2% as of June 30, 2025, compared to 23.0% for the same period in 2024[12] Cash Flow and Financial Position - Cash flows used in operating activities for the six months ended June 30, 2025, were $49.95 million, an improvement from $63.20 million in the same period of 2024[23] - The company reported a net cash provided by investing activities of $1.475 million for the six months ended June 30, 2025, compared to $879,000 in the same period of 2024[23] - Cash, cash equivalents, and restricted cash at the end of the period were $59.91 million, up from $53.11 million at the end of the same period in 2024[23] - The company recorded a significant decrease in accounts payable, which was $30.60 million for the six months ended June 30, 2025, compared to $95.39 million in the same period of 2024[23] - The company made borrowings under the line of credit amounting to $10 million during the six months ended June 30, 2025, compared to $41.10 million in the same period of 2024[23] - The company experienced a foreign currency effect on cash of $481,000 for the six months ended June 30, 2025, contrasting with a negative effect of $886,000 in the same period of 2024[23] Strategic Initiatives - The company plans to expand its ABS line of PCs to include high-performance workstations and tower servers in the second half of 2025[6] - Newegg launched an "at the market" (ATM) offering program for general corporate purposes and working capital[3] - The company aims to navigate ongoing tariff uncertainties while optimizing supply chain strategies to minimize macroeconomic impacts[6]