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][15] - Full year GMV reached $2.13 billion, a 16% increase compared to the previous year, with revenue of $693 million, up 15% [18][19] - Adjusted EBITDA for the full year was $42 million, or 6.1% of total revenue, reflecting a 450 basis points increase year-over-year [19][20] Business Line Data and Key Metrics Changes - Q4 total revenue was $194 million, an 18% increase, with consignment revenue up 16% and direct revenue up 39% year-over-year [15][16] - Active buyer growth accelerated to 9% on a trailing 12-month basis, with orders up 10% and average order value increasing by 11% [16] 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 company is capitalizing on trends in high-value categories like fine jewelry and watches, which have shown strong growth [16][61] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth playbook, operational excellence, and obsessing over service [8] - The growth playbook aims to unlock supply by meeting customers where they are, while operational excellence focuses on profitability through technology and automation [10][11] - The company is evolving its My Closet feature to provide customers with tools to track and capitalize on the value of their closet [12][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, projecting full year GMV growth of 12%-15% and revenue growth of 10%-13% for 2026 [20][21] - The company anticipates continued margin expansion, with Adjusted EBITDA expected to be in the range of $57 million-$65 million for 2026 [20][21] Other Important Information - The company ended Q4 with $166 million in cash equivalents and restricted cash, with free cash flow of $43 million, up $23 million year-over-year [18][19] - The company has reduced total indebtedness by over $80 million over the past two years, strengthening its balance sheet [19] Q&A Session Summary Question: Can you provide an update on Athena and its impact on operational efficiency? - Management confirmed that 35% of units are processed through Athena, which has driven operating leverage and will be extended to mid-value items in 2026 [27][28] Question: What gives confidence in the Q1 guidance of 19%-22% GMV growth? - Management noted resilience in buyer and seller engagement, with improvements in sales team efficiency and marketing strategies contributing to growth [35][36] Question: How is the testing of dropshipping progressing? - Management indicated that dropshipping is expanding into new categories and international markets, though it is not the main driver of growth [44] Question: What initiatives are in place to drive incremental supply? - Management highlighted several initiatives, including Smart Sales, referrals, and affiliate programs, which are expected to scale up [46] Question: What is the outlook for Athena's contribution in 2026? - Management expects Athena's processing percentage to continue increasing, leveraging AI and data to enhance efficiency [53][54] Question: How is the company managing operating expenses to achieve margin expansion? - Management emphasized the importance of operational efficiencies and fixed cost leverage as key drivers for margin expansion [82][83]