NEGG Newegg Commerce, Inc.
Price Chart
Executive Summary
Newegg reported Q1 2026 results: net sales declined 11.8% YoY to $306.2M, but net income swung to a $7.8M profit from a $2.5M loss a year ago, with adjusted EBITDA nearly doubling to $10M. The top-line decline reflects memory supply constraints and consumer price sensitivity, while profitability improved through cost discipline and gross margin expansion.
Actionable Insight
Revenue decline signals ongoing demand softness in discretionary tech spending, but the profitability turnaround is notable. The sharp cash burn (cash halved to $57M) warrants monitoring for working capital management. Both top-line contraction and margin expansion are at play — watch for guidance on whether revenue stabilization or further erosion occurs in Q2.
Key Facts
- Net sales down 11.8% YoY to $306.2M from $347.2M
- Gross profit up 10.3% to $43.7M from $39.7M
- Net income of $7.8M vs net loss of $2.5M in Q1 2025
- Adjusted EBITDA improved to $10.0M from $5.4M
- GMV decreased 12.1% to $377.5M from $429.5M
- Active customers fell to ~0.57M from 0.67M; repeat purchase rate declined to 17.59% from 22.12%
- Cash and cash equivalents dropped to $57.1M from $107.8M at year-end 2025, partly due to working capital use
- Operating cash flow was negative $45.6M for the quarter
Financial Impact
Net sales declined $41.0M (-11.8%) YoY while net income improved by $10.3M; gross profit rose $4.0M (+10.3%)
Risk Factors
- Continued top-line contraction as memory supply constraints and consumer price sensitivity persist
- Active customer base and repeat purchase rates declining suggest weakening customer engagement
- Large negative operating cash flow may pressure liquidity if trend continues
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001213900-26-061809 |
| Document: ea0290428-6k_newegg.htm | 0001213900-26-061809 |
| Document: 0001213900-26-061809-index-headers.html | 0001213900-26-061809 |
| Document: 0001213900-26-061809-index.html | 0001213900-26-061809 |
| Document: 0001213900-26-061809.txt | 0001213900-26-061809 |
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Jun 15, 2026
today
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EFFECT
| — | awaiting T+1 | — | — |
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Jun 4, 2026
11d ago
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Insider Cluster
| $19.95 awaiting T+1 | awaiting T+1 | — | $18.53 (−7.12%) |
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Jun 4, 2026
11d ago
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Insider Cluster
| $18.45 $17.34 | ▼ −6.02% | ▼ −3.42% | $18.53 (+0.43%) |
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Jun 2, 2026
12d ago
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Insider Cluster
| $18.21 $18.45 | ▲ +1.32% | ▲ +0.92% | $18.53 (+1.76%) |
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May 28, 2026
17d ago
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6-K
| $18.61 $18.57 | ▼ −0.21% | ▼ −0.45% | $18.53 (−0.43%) |
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May 20, 2026
25d ago
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Insider Cluster
| $20.21 $20.27 | ▲ +0.30% | ▼ −0.15% | $18.53 (−8.31%) |
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May 1, 2026
6w ago
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Insider Cluster
| $34.11 $30.58 | ▲ +10.35% | ▲ +10.01% | $18.53 (+45.68%) |
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May 1, 2026
6w ago
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Insider Cluster
| $34.11 $30.58 | ▲ +10.35% | ▲ +10.01% | $18.53 (+45.68%) |
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