Newegg Commerce Inc. (NEGG) stock surged 7.80% in pre-market trading on Friday, 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, exciting investors and driving the stock's upward movement.
According to the company's report released on Thursday, 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. The company's Gross Merchandise Value (GMV) also saw a notable rise of 13.7%, reaching $849.1 million. Perhaps most impressive was the turnaround in profitability, with adjusted EBITDA improving to $11.3 million, a significant leap from a $7.3 million loss in the first half of 2024.
The strong performance was primarily driven by increased demand for GPUs and other core PC components. Newegg CEO Anthony Chow highlighted the successful launches of new products, including the NVIDIA GeForce RTX 50 Series and AMD Radeon RX 9000 Series graphics cards, as well as AMD Ryzen 9000X3D Series CPUs. These product releases not only boosted organic traffic but also enhanced cross-category purchasing, leading to improved gross margins. Additionally, the company's strategic cost optimization measures implemented throughout 2024 and 2025 contributed to the significant improvement in adjusted EBITDA. The average order value also increased to $467, up from $401 in the prior year, indicating stronger customer engagement and higher-value purchases.
Looking ahead, Newegg plans to expand its ABS line of PCs to include high-performance workstations and tower servers, powered by NVIDIA RTX PRO 6000 Blackwell graphic cards. The company also announced the upcoming launch of its Gamer Community and Gamer Zone initiatives, further solidifying its commitment to the gaming ecosystem. These forward-looking strategies, combined with the company's demonstrated ability to navigate the ongoing tariff environment and other macroeconomic factors, appear to have bolstered investor confidence, contributing to the pre-market stock surge.