Newegg Reports Strong Q1 Earnings with Significant Profit Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Revenue Performance: Newegg reported Q1 revenue of $306.2 million, reflecting an 11.8% year-over-year decline, indicating challenges from intensified market competition and fluctuating consumer demand.
- Gross Profit Growth: Gross profit increased by 10.3% to $43.7 million, demonstrating the company's success in cost control and product mix optimization, which enhances profitability.
- Net Income Reversal: The company achieved a net income of $7.8 million, a significant turnaround from a net loss of $2.5 million in the same quarter last year, indicating substantial improvement in profitability and boosting investor confidence.
- Adjusted EBITDA Increase: Adjusted EBITDA rose to $10.0 million, a notable increase from $5.4 million year-over-year, showcasing enhanced operational efficiency and future growth potential.
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Analyst Views on NEGG
About NEGG
Newegg Commerce, Inc. is a global online retailer for PC hardware, consumer electronics, gaming peripherals, home appliances, automotive and lifestyle technology. The Company also serves businesses' e-commerce needs with marketing, supply chain, and technical solutions in a single platform. It has developed an online marketplace that delivers value to consumers, brands and sellers in the technology products sector. Additionally, the Company's platforms offer a comprehensive suite of e-commerce solutions, including product listing, fulfillment, marketing, customer service and other value-added tools and services. Its core customers include both its business-to-consumer (B2C) customers and its business-to-business (B2B) customers. The Company's B2C Platforms include Newegg.com, Newegg.ca, Newegg Global and Mobile apps. NeweggBusiness.com, its B2B e-commerce platform, offers a full range of information technology, office and industrial products and solutions for various customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Newegg to Participate in COMPUTEX 2026
- Expanded Show Presence: Newegg is celebrating its 25th anniversary at COMPUTEX 2026 with its largest-ever booth footprint, featuring an expanded Gamer Zone and the debut of the Newegg Simulator Builder, which is expected to attract significant visitor engagement and enhance brand visibility.
- International Championship Returns: The third annual International PC Builder Championship will take place on June 5, featuring top creators from Taiwan, Portugal, Japan, and the U.S., showcasing a global brand image and strengthening connections with the international community.
- Innovative Technology Showcase: Newegg will demonstrate an unmanned coffee operation at the Robot Café, developed in collaboration with Sensory AI and Intel, highlighting the potential of AI technology in real-world applications, thereby enhancing customer experience and promoting online-offline integration.
- Live Interactive Events: The championship will be livestreamed on Twitch, with viewers able to enter sweepstakes for high-end graphics cards and processors, which is expected to increase brand exposure and encourage user engagement on the Newegg platform.
See More
Newegg Reports Strong Q1 Earnings with Significant Profit Growth
- Revenue Performance: Newegg reported Q1 revenue of $306.2 million, reflecting an 11.8% year-over-year decline, indicating challenges from intensified market competition and fluctuating consumer demand.
- Gross Profit Growth: Gross profit increased by 10.3% to $43.7 million, demonstrating the company's success in cost control and product mix optimization, which enhances profitability.
- Net Income Reversal: The company achieved a net income of $7.8 million, a significant turnaround from a net loss of $2.5 million in the same quarter last year, indicating substantial improvement in profitability and boosting investor confidence.
- Adjusted EBITDA Increase: Adjusted EBITDA rose to $10.0 million, a notable increase from $5.4 million year-over-year, showcasing enhanced operational efficiency and future growth potential.
See More
Newegg Commerce Reports FY Revenue of $1.44 Billion
- Revenue Growth: Newegg Commerce reported fiscal year revenue of $1.44 billion, a significant increase from the previous fiscal year's GMV of $1.53 billion, indicating sustained growth potential in the e-commerce sector.
- Gross Profit Increase: Gross profit rose from $131.5 million to $168.5 million, reflecting a 28.4% increase, which suggests positive outcomes in cost control and sales strategies.
- Net Loss Reduction: The net loss decreased from $43.3 million to $4.9 million, demonstrating a significant improvement in financial health that may boost investor confidence.
- Adjusted EBITDA Improvement: Adjusted EBITDA improved from a negative $9.5 million to $24.8 million, indicating enhanced operational efficiency that could contribute to future profitability.
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Significant Returns from Stock Investments Amid Market Fears
- Opendoor Performance: Opendoor Technologies saw its stock price soar over 350% in the past 12 months, despite facing challenges from high interest rates and economic uncertainty; however, its stock gained massive returns due to retail investor enthusiasm, with a $10,000 investment now worth approximately $45,000.
- Newegg Sales Growth: Newegg Commerce experienced a sales increase of about 13% in the first half of 2025, reaching $695.7 million, although the company incurred a loss of $4.2 million, its stock price rose around 620% over the past year, turning a $10,000 investment into roughly $73,000, reflecting strong demand in the electronics sector.
- Sandisk's Outstanding Performance: Sandisk, the best-performing stock in the S&P 500 index, has seen its price rise nearly 1,400% over the past year, generating $5.3 billion in revenue in the last two quarters, a 42% increase year-over-year, making a $10,000 investment now worth over $145,000, and it stands as the only profitable company on this list.
- Investment Return Analysis: The combined value of these three stocks is approximately $263,000, indicating a total profit of around $233,000, showcasing the potential returns of stock investments even amid market fears and uncertainties.
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Newegg Launches Memory Trade-In Program for Upgrades
- Memory Trade-In Program: Newegg has announced the expansion of its Trade-In Program to include eligible DDR4 and DDR5 memory kits, allowing customers to receive credit towards new memory purchases, thereby enhancing user convenience and cost-effectiveness in upgrading PC hardware.
- Market Demand Response: As the demand for memory capacity and speed increases for gaming, content creation, and professional workloads, this program aims to help customers offset upgrade costs by turning old hardware into purchasing power for new technology, especially amid rising hardware prices in the current macroeconomic environment.
- Streamlined Transaction Process: Customers can receive an instant trade-in offer while purchasing new memory, ensuring they do not lose access to a functioning system during the upgrade process, which enhances user experience and satisfaction.
- Strategic Expansion: The launch of this program is part of Newegg's broader strategy to enhance its competitiveness in the global online retail market by extending the lifecycle of PC hardware and simplifying the upgrade process.
See More
Newegg Opens Gamer Zone to the Public
- Immersive Experience Hub: Newegg officially opens its 2,300-square-foot Gamer Zone at its Southern California headquarters, designed to provide an interactive space for gamers, creators, and students, fostering community engagement and tech education.
- Diverse Programming: The Gamer Zone will regularly host esports tournaments, PC building workshops, and creator meetups, aiming to enhance local community access to gaming technology and increase brand loyalty through active participation.
- Integration of Tech and Education: This space not only offers high-performance gaming PCs and virtual reality experiences but also focuses on STEAM education, encouraging students and youth to explore technology and cultivate future creators and game developers.
- Strategic Brand Evolution: The launch of Gamer Zone signifies Newegg's transformation from traditional e-commerce to experiential retail, creating a new platform that promotes community interaction and brand loyalty, further solidifying its leadership in the tech retail market.
See More
Newegg to Participate in COMPUTEX 2026
- Expanded Show Presence: Newegg is celebrating its 25th anniversary at COMPUTEX 2026 with its largest-ever booth footprint, featuring an expanded Gamer Zone and the debut of the Newegg Simulator Builder, which is expected to attract significant visitor engagement and enhance brand visibility.
- International Championship Returns: The third annual International PC Builder Championship will take place on June 5, featuring top creators from Taiwan, Portugal, Japan, and the U.S., showcasing a global brand image and strengthening connections with the international community.
- Innovative Technology Showcase: Newegg will demonstrate an unmanned coffee operation at the Robot Café, developed in collaboration with Sensory AI and Intel, highlighting the potential of AI technology in real-world applications, thereby enhancing customer experience and promoting online-offline integration.
- Live Interactive Events: The championship will be livestreamed on Twitch, with viewers able to enter sweepstakes for high-end graphics cards and processors, which is expected to increase brand exposure and encourage user engagement on the Newegg platform.
See More
Newegg Reports Strong Q1 Earnings with Significant Profit Growth
- Revenue Performance: Newegg reported Q1 revenue of $306.2 million, reflecting an 11.8% year-over-year decline, indicating challenges from intensified market competition and fluctuating consumer demand.
- Gross Profit Growth: Gross profit increased by 10.3% to $43.7 million, demonstrating the company's success in cost control and product mix optimization, which enhances profitability.
- Net Income Reversal: The company achieved a net income of $7.8 million, a significant turnaround from a net loss of $2.5 million in the same quarter last year, indicating substantial improvement in profitability and boosting investor confidence.
- Adjusted EBITDA Increase: Adjusted EBITDA rose to $10.0 million, a notable increase from $5.4 million year-over-year, showcasing enhanced operational efficiency and future growth potential.
See More
Newegg Commerce Reports FY Revenue of $1.44 Billion
- Revenue Growth: Newegg Commerce reported fiscal year revenue of $1.44 billion, a significant increase from the previous fiscal year's GMV of $1.53 billion, indicating sustained growth potential in the e-commerce sector.
- Gross Profit Increase: Gross profit rose from $131.5 million to $168.5 million, reflecting a 28.4% increase, which suggests positive outcomes in cost control and sales strategies.
- Net Loss Reduction: The net loss decreased from $43.3 million to $4.9 million, demonstrating a significant improvement in financial health that may boost investor confidence.
- Adjusted EBITDA Improvement: Adjusted EBITDA improved from a negative $9.5 million to $24.8 million, indicating enhanced operational efficiency that could contribute to future profitability.
See More
Significant Returns from Stock Investments Amid Market Fears
- Opendoor Performance: Opendoor Technologies saw its stock price soar over 350% in the past 12 months, despite facing challenges from high interest rates and economic uncertainty; however, its stock gained massive returns due to retail investor enthusiasm, with a $10,000 investment now worth approximately $45,000.
- Newegg Sales Growth: Newegg Commerce experienced a sales increase of about 13% in the first half of 2025, reaching $695.7 million, although the company incurred a loss of $4.2 million, its stock price rose around 620% over the past year, turning a $10,000 investment into roughly $73,000, reflecting strong demand in the electronics sector.
- Sandisk's Outstanding Performance: Sandisk, the best-performing stock in the S&P 500 index, has seen its price rise nearly 1,400% over the past year, generating $5.3 billion in revenue in the last two quarters, a 42% increase year-over-year, making a $10,000 investment now worth over $145,000, and it stands as the only profitable company on this list.
- Investment Return Analysis: The combined value of these three stocks is approximately $263,000, indicating a total profit of around $233,000, showcasing the potential returns of stock investments even amid market fears and uncertainties.
See More
Newegg Launches Memory Trade-In Program for Upgrades
- Memory Trade-In Program: Newegg has announced the expansion of its Trade-In Program to include eligible DDR4 and DDR5 memory kits, allowing customers to receive credit towards new memory purchases, thereby enhancing user convenience and cost-effectiveness in upgrading PC hardware.
- Market Demand Response: As the demand for memory capacity and speed increases for gaming, content creation, and professional workloads, this program aims to help customers offset upgrade costs by turning old hardware into purchasing power for new technology, especially amid rising hardware prices in the current macroeconomic environment.
- Streamlined Transaction Process: Customers can receive an instant trade-in offer while purchasing new memory, ensuring they do not lose access to a functioning system during the upgrade process, which enhances user experience and satisfaction.
- Strategic Expansion: The launch of this program is part of Newegg's broader strategy to enhance its competitiveness in the global online retail market by extending the lifecycle of PC hardware and simplifying the upgrade process.
See More
Newegg Opens Gamer Zone to the Public
- Immersive Experience Hub: Newegg officially opens its 2,300-square-foot Gamer Zone at its Southern California headquarters, designed to provide an interactive space for gamers, creators, and students, fostering community engagement and tech education.
- Diverse Programming: The Gamer Zone will regularly host esports tournaments, PC building workshops, and creator meetups, aiming to enhance local community access to gaming technology and increase brand loyalty through active participation.
- Integration of Tech and Education: This space not only offers high-performance gaming PCs and virtual reality experiences but also focuses on STEAM education, encouraging students and youth to explore technology and cultivate future creators and game developers.
- Strategic Brand Evolution: The launch of Gamer Zone signifies Newegg's transformation from traditional e-commerce to experiential retail, creating a new platform that promotes community interaction and brand loyalty, further solidifying its leadership in the tech retail market.
See More
