SCHEDULE: Red Apple Group Takes 5.1% Stake in 1stdibs.com

Red Apple Group and its affiliates have acquired a 5.1% stake in 1stdibs.com, citing the company's strategic plan, financial inflection point, and undervaluation as key investment drivers.

Summary

• Reporting Persons, including Red Apple Group, Inc., United Acquisition Corp., United Refining, Inc., John A. Catsimatidis Jr., and John A. Catsimatidis, have acquired 1,872,035 shares of 1stdibs.com, Inc. common stock.
• This acquisition represents approximately 5.1% of 1stdibs.com, Inc.'s outstanding common shares.
• The shares were purchased for investment purposes using working capital, with an aggregate cost of approximately $9,544,332.65, including brokerage commissions.
• Reporting Persons believe 1stdibs.com is successfully executing its strategic plan, is at a financial inflection point, and remains undervalued relative to its long-term intrinsic valuation.
• They express strong support for the Issuer's management team and Board of Directors, viewing the company as a compelling long-duration investment opportunity.
• Key factors for their investment conviction include the Issuer's guidance toward positive Adjusted EBITDA and free cash flow in fiscal year 2026 and beyond, demonstrated operational discipline, and commitment to stockholder-friendly capital returns, including over $33 million in historical share repurchases and a recently authorized $12 million share repurchase program.

Sentiment

Score: 8

Explanation: The filing expresses strong confidence in the issuer's management, strategy, and future profitability, explicitly stating the belief that the company is undervalued and a compelling long-duration investment. The tone is highly supportive and optimistic regarding the issuer's prospects.

Positives

• Reporting Persons view 1stdibs.com as a compelling long-duration investment opportunity.
• Strong confidence in the Issuer's management team's articulated strategy, operational discipline, capital allocation approach, and long-term vision.
• The Issuer's September 2025 strategic realignment and clear guidance toward achieving positive Adjusted EBITDA and generating free cash flow in fiscal year 2026 and beyond.
• The Issuer has demonstrated a track record of disciplined expense management and ongoing operating efficiencies.
• The Issuer has shown commitment to stockholder-friendly capital returns, including over $33 million in historical share repurchases and a recently authorized $12 million share repurchase program.

Future Outlook

1stdibs.com, Inc. has provided clear guidance toward achieving positive Adjusted EBITDA and generating free cash flow in fiscal year 2026 and beyond, following a strategic realignment in September 2025. The Reporting Persons intend to review their investment on a continuing basis and may adjust their position through open market purchases or sales.

Management Comments

• The Reporting Persons acquired the Shares solely for investment purposes, based on the belief that the Issuer is currently successfully executing its strategic plan, is at a financial inflection point and remains undervalued relative to its long-term intrinsic valuation.
• The Reporting Persons have had constructive conversations with the Issuer during which, among other things, the Reporting Persons have made clear their strong support for, and appreciation of the efforts of, the Issuer's management team and the Board of Directors.
• The Reporting Persons view the Issuer as a compelling long duration investment opportunity and have strong confidence in the Issuer's management team's articulated strategy, operational discipline, capital allocation approach and long-term vision for the business.
• Red Apple Group is fully supportive of the Issuer's current management team, its long-term strategy, and balanced approach to capital allocation of reinvesting for organic growth, evaluation of current and future inorganic growth opportunities and returning capital to stockholders.
• No Reporting Person has any present intention to seek control of or to influence the control of the Issuer or any other plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) (j) of Item 4 of Schedule 13D.

Industry Context

This investment by Red Apple Group, a diversified holding company with interests in energy, real estate, finance, insurance, and supermarkets, signals a strategic belief in the long-term value and growth potential of 1stdibs.com, a digital marketplace. It suggests a positive outlook on the luxury e-commerce sector, particularly for companies demonstrating a clear path to profitability and shareholder returns.

Corporate Governance

Stakeholder Impact

• Shareholders: The investment by a prominent group like Red Apple Group, coupled with their stated confidence and support for management, could be seen as a positive signal, potentially boosting investor confidence and share price. Their intention to engage constructively suggests a supportive long-term shareholder.
• Management/Board: The explicit strong support from a significant new shareholder validates the current strategic direction and efforts of the management team and Board.

Next Steps

• Reporting Persons expect to continue engaging with 1stdibs.com's management team and Board regarding business, performance, and long-term opportunities.
• Reporting Persons may endeavor to increase or decrease their position in 1stdibs.com through open market purchases or sales, or private transactions, based on market conditions and other investment opportunities.

Key Dates

Recommendation

The acquisition of a 5.1% stake by Red Apple Group, a top private company, signals strong conviction in 1stdibs.com's strategic plan and long-term intrinsic value. The reporting persons explicitly state their belief that the Issuer is at a financial inflection point, undervalued, and on track for positive Adjusted EBITDA and free cash flow by fiscal year 2026. Their support for management, operational discipline, and shareholder-friendly capital allocation, including ongoing share repurchases, suggests a positive outlook and potential for capital appreciation. This filing indicates a seasoned investor sees significant upside, making it a compelling 'buy' for long-term investors.

Keywords

1stdibs.com, DIBS, Red Apple Group, John A. Catsimatidis, Schedule 13D, equity investment, share acquisition, e-commerce, luxury marketplace, investment strategy, beneficial ownership