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and flash supply constraints and industry - wide pricing pressure that we flagged last quarter continuing to weigh on top - line performance . Even in this environment , our early procurement of constrained categories continued to pay off this quarter . We maintained availability , captured bundling opportunities across our core PC categories , and saw continued strength in AI - related products . The quarter was also a milestone period for our brand and community initiatives as we celebrate Newegg's 25th anniversary , highlighted by our largest - ever presence at COMPUTEX 2026 , the debut of Newegg Simulator Builder , and our 12th annual FantasTech Sale , which grew 11 % year - over - year . " We also advanced our AI strategy this quarter , launching a new conversational AI shopping experience on Newegg.com that helps customers reason through specs , trade - offs , and budget in real time . Combined with our continued use of AI to drive internal productivity and efficiency , we are making progress on both fronts of our AI roadmap . As we move through the back half of 2026 , we remain focused on navigating near - term supply dynamics while continuing to build share in our core categories , expanding our reach across additional customer channels , and delivering long - term value to our customers , partners , and shareholders . " Newegg Interim Chief Financial Officer Christina Ching commented , " Persistent inflation in the second quarter kept consumers cautious with discretionary technology spending . Coupled with higher prices and limited availability amid the industry - wide memory and storage shortage , consumers pulled back on purchase volume . However , demand from our business and wholesale customers strengthened during the quarter , partially offsetting softer consumer volume and underscoring the resilience of our diversified channel mix . As a result , Q2 2026 GMV slightly declined 3.9 % year - over - year to $ 403.2 million a reflection of market conditions rather than customer engagement , as our active customer base and repeat purchase rate held steady . Against this backdrop , our priority was protecting margins and profitability . Despite the top - line headwinds , our disciplined pricing , inventory management , and continued cost control drove Q2 2026 net income to $ 2.2 million , up from a net loss of $ 1.7 million a year ago . With this positive momentum , we intend to renew and expand our existing credit agreements , which have been extended for a period of ninety days from August 27 , 2026 through November 25 , 2026 , to facilitate the renewal process . Supported by our available credit capacity and a strong balance sheet , we have the flexibility to navigate ongoing supply constraints . As we move through the second half , we remain focused on defending margins , deepening customer engagement , and delivering long - term value . " Second Quarter 2026 Financial Highlights • Net sales decreased 8.1 % to $ 320.4 million for the three months ended June 30 , 2026 , compared to $ 348.5 million for the three months ended June 30 , 2025 . GMV decreased 3.9 % to $ 403.2 million for the three months ended June 30 , 2026 , compared to $ 419.6 million for the three months ended June 30 , 2025 . newegg • Gross profit decreased 1.0 % to $ 39.7 million for the three months ended June 30 , 2026 , compared to $ 40.1 million for the three months ended June 30 , 2025 . Net income was $ 2.2 million for the three months ended June 30 , 2026 , compared to $ 1.7 million net loss for the three months ended June 30 , 2025 . • Adjusted EBITDA decreased to $ 3.7 million for the three months ended June 30 , 2026 , compared to $ 5.9 million for the three months ended June 30 , 2025 . Second Quarter 2026 Operational Metrics • Average order value was $ 401 ( excluding gift cards ) for the three months ended June 30 , 2026 , compared to $ 506 ( excluding gift cards ) for same period in prior year . • Active customers , defined as unique customer IDs with at least one item purchased on Newegg platforms in the past three months , totaled approximately 0.55 million as of June 30 , 2026 , a slight increase from 0.54 million for the same period in the prior year . • Repeat purchase rate , which is the percentage of active customers who made at least two purchases on Newegg platforms during the past three months , was 22.5 % as of June 30 , 2026 , compared to 22.6 % for the same period in the prior year . About Newegg Newegg Commerce , Inc. ( NASDAQ : NEGG ) , founded in 2001 and based in Diamond Bar , Calif . , near Los Angeles , is a leading global online retailer for PC hardware , consumer electronics , gaming peripherals , home appliances , automotive and lifestyle technology . Newegg also serves businesses ' e - commerce needs with marketing , supply chain , and technical solutions in a single platform . For more information , please visit Newegg.com . Follow Newegg on X , TikTok , Instagram , Facebook , YouTube , Twitch , and Discord . Non - GAAP Financial Information This press release presents certain “ non - GAAP " financial measures . The components of these non - GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ( " GAAP " ) . A reconciliation of non - GAAP financial measures used in this press release to their nearest comparable GAAP financial measures is included in the schedules attached hereto . GMV The Company defines gross merchandise value , or GMV , as the total dollar value of products sold on its websites and third - party marketplace platforms , directly to customers and by its Marketplace sellers through Newegg Marketplace , net of returns , discounts , taxes , and cancellations . GMV also includes the services fees charged through its Newegg Partner Services ( " NPS " ) in rendering services for its third - party logistics ( " 3PL " ) , shipped - by - Newegg ( " SBN " ) , and media ad services , as well as the sales made by its Asia subsidiaries . 2