Newegg Commerce Inc. (NEGG) saw its stock price surge 7.80% in Friday's pre-market trading session, following the release of its impressive financial results for the first half of 2025. The e-commerce retailer, specializing in PC hardware and consumer electronics, reported significant growth and a substantial improvement in profitability.
According to the company's report, Newegg's net sales increased by 12.6% to $695.7 million for the six months ended June 30, 2025, compared to $618.1 million in the same period last year. This growth was primarily driven by increased demand for GPUs and other core PC components, particularly boosted by the successful launches of new products such as the NVIDIA GeForce RTX 50 Series and AMD Radeon RX 9000 Series graphics cards, as well as AMD Ryzen 9000X3D Series CPUs.
Notably, Newegg's profitability showed substantial improvement. The company reported an adjusted EBITDA of $11.3 million for the first half of 2025, a significant turnaround from a $7.3 million loss in the same period of 2024. This improvement was attributed to both top-line growth and strategic cost optimization measures implemented throughout 2024 and 2025. The company also saw increases in average order value, active customer base, and repeat purchase rates, further indicating strong operational performance. Investors seem encouraged by Newegg's ability to navigate the ongoing tariff environment and other macroeconomic factors while delivering strong results, as reflected in the positive stock movement.