Financial Data and Key Metrics Changes - In Q4 2025, revenue reached $363 million, a 23% increase year-over-year, while full-year revenue rose 11% to $1.3 billion [16] - Quarterly diluted EPS grew 37% to $1.04 per share, and full-year diluted EPS increased 18% to $3.59 per share [16] - Service revenue for Q4 increased 21% year-over-year to $129 million, driven by strong demand from marketplace participants [17] - Product revenue in Q4 increased 24% year-over-year to $234 million, with U.S. product revenue totaling $121 million, up 3% year-over-year [18] Business Line Data and Key Metrics Changes - Marketplace GMV increased approximately 18% year-over-year, reaching nearly $1.6 billion, with a 17% year-over-year growth in the 3P seller base [7] - GMV from the 3P seller space grew by 23% to $851 million [7] - Noble House portfolio saw over 40% year-over-year growth in Q4, driven by new products and SKUs introduced [18][26] Market Data and Key Metrics Changes - Europe experienced a 68% revenue growth from 2024 to 2025, contributing significantly to global growth [5][8] - Product revenue for Europe increased by 64% year-over-year to $98 million, with product margins rising 220 basis points sequentially to 32.1% [19] Company Strategy and Development Direction - The company is focused on building new growth vectors for sustainable long-term value creation through geographic expansion and targeted acquisitions [3][4] - The acquisition of New Classic Home Furnishing is expected to broaden product offerings and deepen brick-and-mortar distribution [12] - The company emphasizes a disciplined approach to capital allocation, including strategic M&A and returning capital to shareholders through buybacks [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to perform across cycles, supported by strong execution and a portfolio of durable growth vectors [5] - The company anticipates continued strong performance in Europe, although growth rates are expected to gradually slow down [25] - Management highlighted the importance of agility and responsiveness in adapting to changing market conditions [8] Other Important Information - The company ended Q4 with total liquidity of $417 million and remains debt-free [21] - A share repurchase program of $111 million was announced, with $33 million executed at a weighted average price of $31.60 per share [22] Q&A Session Summary Question: What were the sources of upside in revenue? - Management identified strong performance in Europe and the turnaround of the Noble House portfolio as key contributors to revenue growth [25][26] Question: What were the main drivers of gross margin changes? - Management noted that lower ocean spot rates impacted service margins, while product margins benefited from strong performance in Europe and higher off-platform sales [27][28] Question: Can you break out service versus product growth for Q1? - Management indicated that both service and product are expected to grow at similar speeds, with contributions from New Classic included in the guidance [32] Question: What are the preliminary thoughts on ocean freight and its impact on gross margin? - Management stated that ocean spot rates are currently stable but could not predict future trends [35]

Financial Data and Key Metrics Changes - In Q4 2025, revenue reached $363 million, a 23% increase year-over-year, while full-year revenue rose 11% to $1.3 billion [16] - Quarterly diluted EPS grew 37% to $1.04 per share, and full-year diluted EPS increased 18% to $3.59 per share [16] - Service revenue for Q4 increased 21% year-over-year to $129 million, driven by strong demand from marketplace participants [17] - Product revenue increased by 24% year-over-year in Q4 to $234 million, with U.S. product revenue totaling $121 million, up 3% year-over-year [18] Business Line Data and Key Metrics Changes - Marketplace GMV increased approximately 18% year-over-year, reaching nearly $1.6 billion, with 3P seller base expanding 17% year-over-year [7] - Noble House portfolio saw over 40% year-over-year growth in Q4, driven by new products and SKUs introduced [18][26] - Europe product revenue increased by 64% year-over-year to $98 million, contributing significantly to overall growth [19] Market Data and Key Metrics Changes - Europe experienced 68% revenue growth from 2024 to 2025, reflecting successful strategic positioning and resource allocation [5][8] - The company added nearly 2,800 new buyers in 2025, bringing the total buyer base to 12,089 [7] Company Strategy and Development Direction - The company is focused on building new growth vectors for sustainable long-term value creation through geographic expansion and targeted acquisitions [3] - The acquisition of New Classic Home Furnishings is expected to deepen the company's foothold in brick-and-mortar distribution, with integration planned over six quarters [12][14] - The company emphasizes operational discipline and agility to adapt to changing market conditions, particularly in Europe [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to perform across cycles, supported by strong execution and a portfolio of durable growth vectors [5] - The company anticipates continued strong performance in Europe, although growth rates may gradually slow [25] - Management highlighted the importance of maintaining profitability over volume in a volatile environment [18] Other Important Information - The company remains debt-free and has a total liquidity of $417 million, including cash equivalents and short-term investments [21] - A share repurchase program of $111 million was announced, with $33 million executed at a weighted average price of $31.60 per share [22] Q&A Session Summary Question: What were the sources of upside in revenue? - Management identified strong performance in Europe and the turnaround of the Noble House portfolio as key contributors to revenue exceeding guidance [25][26] Question: What were the main drivers of gross margin changes? - Management noted that lower ocean spot rates negatively impacted service margins, while product margins benefited from strong performance in Europe and higher off-platform sales [27][28] Question: Can you break out service versus product growth for Q1? - Management indicated that both service and product are expected to grow at similar speeds, with contributions from New Classic included in the guidance [32]