Financial Data and Key Metrics Changes - The company reported a net revenue of $22 million, representing a 4% year-over-year increase [19] - Adjusted EBITDA loss was approximately $240,000, a significant improvement from a loss of $3 million in the previous year, resulting in an adjusted EBITDA margin of negative 1%, compared to negative 14% a year ago [22] - Operating expenses decreased by 6% year-over-year, and down 10% when excluding severance costs, indicating a structural change in profitability [16][21] Business Line Data and Key Metrics Changes - The company achieved a GMV (Gross Merchandise Value) of $90-$96 million for the fourth quarter, reflecting a year-over-year growth in conversion and average order value (AOV) [23] - AOV was nearly $2,700, and median order value was approximately $1,300, both up 10% year-over-year [17] - The number of unique sellers decreased by 17% to approximately 5,800, while total listings grew by 1% to nearly 1.9 million [18][12] Market Data and Key Metrics Changes - The trade segment drove slightly stronger GMV growth year-over-year, indicating a broad-based growth across core buyer segments [18] - The art vertical, accounting for a low teens percentage of total GMV, was the fastest-growing vertical, up double digits [18] Company Strategy and Development Direction - The company executed a strategic realignment to prioritize high ROI technology investments and reduce costs, resulting in a significant shift in workforce composition towards product and engineering roles [6][15] - A new $12 million share repurchase program was authorized, reflecting confidence in generating free cash flow and returning capital to shareholders [4][22] - The company is focusing on maximizing employee productivity through AI integration in product development, with over 25% of new code being written by AI [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA and free cash flow in the fourth quarter and for the full year 2026, assuming low single-digit revenue growth [25] - The strategic decision to reduce performance marketing spending is expected to create a more efficient cost structure that can achieve profitability with minimal reliance on top-line growth [21][24] - The company is optimistic about its competitive position in the luxury market, anticipating a rebound and emphasizing the importance of technology investments for seller ROI [13][14] Other Important Information - The company has implemented a pricing increase effective October 1, impacting about 20% of sellers with a roughly 10% increase, without significant churn [31] - The company is developing its 2026 product roadmap and plans to share more details in the next earnings call [8] Q&A Session Summary Question: Rationale and benefits of the September strategic realignment - Management highlighted that the realignment aimed to achieve adjusted EBITDA profitability and reallocate investments from sales and marketing to higher ROI engineering and product development [29] Question: Impact of the recent pricing increase - The pricing increase was targeted, affecting about 20% of sellers with a 10% increase, and there was no meaningful increase in churn due to the proportionality between value creation and costs [31]