Financial Data and Key Metrics Changes - In Q4 2025, the company achieved $616 million in GMV, representing a 22% growth year-over-year, with an adjusted EBITDA margin of 11% [5][16] - For the full year 2025, GMV reached $2.13 billion, a 16% increase compared to the previous year, while revenue grew by 15% to $693 million [20][21] - The adjusted EBITDA for the full year was $42 million, reflecting a 450 basis points increase in margin year-over-year [21][24] Business Line Data and Key Metrics Changes - Q4 total revenue was $194 million, an 18% increase year-over-year, with consignment revenue up 16% and direct revenue up 39% [17][18] - Active buyer growth accelerated to 9% on a trailing 12-month basis, with orders up 10% and average order value increasing by 11% [17][19] - The take rate in Q4 was 36.5%, a decline of 120 basis points year-over-year, attributed to a favorable mix shift towards higher value items [18] Market Data and Key Metrics Changes - The company noted that 47% of consumers consider resale value when making purchases in the primary market, indicating a shift in consumer behavior towards luxury resale [6] - The luxury resale market is experiencing a fundamental shift, with younger consumers increasingly preferring resale options [6][81] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth playbook, operational excellence, and obsessing over service [7][10] - The growth playbook includes leveraging AI tools like Smart Sales to enhance sales team productivity and improve customer engagement [8][10] - The company aims to expand its capabilities in AI-driven recommendations and enhance customer experience through features like My Closet [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of buyers and sellers, with expectations of continued double-digit growth in both segments [39][41] - The company projects full-year GMV growth of 12%-15% and revenue growth of 10%-13% for 2026, with adjusted EBITDA expected to reach $57 million-$65 million [23][24] Other Important Information - The company ended Q4 with $166 million in cash equivalents and restricted cash, demonstrating strong cash flow dynamics [20] - The company has reduced total indebtedness by over $80 million in the past two years, reinforcing its commitment to a strong balance sheet [22] Q&A Session Summary Question: Can you provide an update on Athena's impact on operational efficiency? - Management confirmed that 35% of units are processed through Athena, contributing to operating leverage and efficiency improvements [30][31] Question: What factors contribute to the Q1 guidance of 19%-22% GMV growth? - Management highlighted the effectiveness of their sales and marketing strategies, with strong buyer engagement and supply growth [38][39] Question: How is the testing of dropshipping progressing? - Management reported healthy growth in dropshipping, particularly in watches and handbags, while continuing to expand into international markets [47] Question: What initiatives are in place to drive incremental supply? - Management mentioned several initiatives, including Smart Sales and referral programs, aimed at unlocking more supply [49] Question: What is the outlook for Athena's contribution in 2026? - Management expects Athena's processing percentage to continue increasing, enhancing operational efficiency [56] Question: How does the company plan to control expenses while growing revenue? - Management emphasized leveraging AI and automation to drive operational efficiencies and control costs [89][90]