Newegg Commerce, Inc. (NASDAQ:NEGG) posted strong first-half 2025 results, highlighted by robust year-over-year gains in sales and gross merchandise value, sending shares higher following the announcement.
Net sales rose 12.6% year-over-year to $695.7 million from $618.1 million, while GMV increased 13.7% to $849.1 million from $746.7 million.
Gross profit grew 26.5% to $79.8 million. The company posted a net loss of $4.2 million, narrowing from $25.0 million a year earlier.
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Adjusted EBITDA improved to $11.3 million, compared with a $7.3 million loss in the prior year.
Chief Executive Officer Anthony Chow said, “Newegg experienced strong year-over-year growth in the first half of 2025, driven primarily by increased demand for GPUs and other core PC components, including the highly successful launch of the NVIDIA GeForce RTX 50 Series and AMD Radeon RX 9000 Series graphics cards, and AMD Ryzen 9000X3D Series CPUs.”
He added, “These new product launches further boosted organic traffic and spurred robust cross-category purchasing, driving both topline growth and improved gross margins. We also benefited from pull-forward spending due to tariff uncertainty while simultaneously minimizing tariff impact on supply chain and customer experience through close collaboration with our key partners and suppliers.”
Interim Chief Financial Officer Christina Ching said, “This strong consumer demand led to a 14% year-over-year increase in GMV and a 13% rise in net sales. Along with SG&A expense reductions following various strategic cost optimization measures throughout 2024 and 2025, our adjusted EBITDA improved substantially to $11.3 million for the six months ended June 30, 2025, up from a $7.3 million loss for the same period in 2024.”
The average order value rose to $467 from $401. Active customers increased to 1.13 million from 1.09 million, while the repeat purchase rate climbed to 25.2% from 23.0%.
Cash and cash equivalents were $59.1 million at June 30, down from $96.3 million at year-end 2024.
Total debt under the line of credit rose to $15.8 million from $7.1 million. Operating cash flow used was $50.0 million compared with $63.2 million a year earlier.
Looking ahead, Chow said Newegg plans several launches in the second half, including expanding its ABS line of PCs with NVIDIA RTX PRO 6000 Blackwell cards and introducing a Gamer Community and Gamer Zone.
“We will also be debuting our Gamer Community and Gamer Zone, which underscores our commitment to growing and supporting the gaming ecosystem, giving back to the very community that has fueled our success. We remain energized by our momentum, steadfast in optimizing our supply chain strategies to minimize any macroeconomic impacts, and confident in what lies ahead,” he said.
Newegg shares jumped over 4% Thursday, extending a 300% rally this month on heavy retail investor momentum and short interest.
The stock hit a new 52-week high of $137.83, with the RSI at 70.12 signaling overbought territory and a possible near-term pullback.
Price Action: NEGG shares are trading higher by 7.45% to $124.40 premarket at last check Friday.
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