After executing a 20-to-1 reverse stock split of its common shares and regaining compliance with the NASDAQ exchange, Newegg Commerce has released its financial results for the latest full fiscal year.
Net loss in fiscal 2024 was $43.3 million versus $59 million in fiscal 2023. Net sales were $1.24 billion versus $1.5 billion in the year earlier. Loss from operations was $51.6 million, compared to $71.1 million in the prior year, the tech and electronics e-tailer stated.
In announcing the fiscal 2024 results, Newegg CEO Anthony Chow announced, “2024 was a year defined by operational discipline and strategic focus. Throughout the year, we executed a broad range of SG&A reduction initiatives, including warehouse consolidation, subleasing unused property and aligning our workforce to match business needs. These actions improved our bottom line, strengthened our foundation, and we believe position us for future growth. Notably, we closed the year with a strong fourth-quarter performance. Sales momentum accelerated, driven by a month-long Black Friday campaign that delivered impressive results, highlighting the effectiveness of our promotional strategy and our ability to drive engagement and conversion in a highly competitive environment.”
Chow maintained that, in the first quarter of 2025, Newegg experienced positive results from new tech launches and is exploring B2B software opportunities.
He added, “While we’ve benefited from a pull forward in sales due to tariff warnings, we are actively monitoring the impact on sales on a post-tariff basis and are working closely with our partners to optimize under current conditions.
Christina Ching, Newegg’s chief accounting officer, noted, “We are pleased to report significant progress following the implementation of various cost optimization measures throughout 2023 and 2024, including our real estate consolidation efforts. These actions have resulted in a notable reduction in SG&A expenses, which is reflected in improved adjusted EBITDA. We have also maintained a strong focus on efficient inventory management, leading to a decrease in inventory from $136.2 million as of December 31, 2023, to $98.5 million as of December 31, 2024. This reduction was largely driven by a strong sales surge during the Black Friday and Christmas holiday sales periods. We have already seen the increased demand that began with the holiday season carry over into the first quarter of 2025. This increase in sales, combined with our SG&A reduction efforts, has begun to result in positive profitability momentum, with our adjusted EBITDA notably moving to the positive in Q1 2025. As of December 31, 2024, our $50 million credit facility remained fully undrawn. We effected a 20-to-one share combination on April 7, 2025, in order to regain compliance with Nasdaq’s minimum bid price requirement, which we achieved on April 22, 2025.”
She pointed out that “a key challenge for the remainder of 2025 will be the impact of tariff policy on consumer confidence and purchasing behavior. As a result of this uncertainty, we are not prepared to deliver full year 2025 guidance at this time.”
