Company: NEGG
Filing Date: 2025-07-15
Form Type: 6-K
Source: 0001213900-25-063935
Chunk: 3

Company: Newegg Commerce, Inc.
Filing Date: 2025-07-15
Form: 6-K
Chunk 3
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   |     |            |       |   |
| GMV - Marketplace      |     |                          | 168.6 |   |     |            | 177.3 |   |
| Marketplace Commission |     |                          | (13.9 | ) |     |            | (14.7 | ) |
| Deferred Revenue       |     |                          |  (4.6 | ) |     |            |  (4.6 | ) |
| Other                  |     |                          |  (0.7 | ) |     |            |  (1.0 | ) |
| GMV                    |     | $                        | 827.7 |   |     | $          | 870.1 |   |

Adjusted EBITDA

Newegg calculates Adjusted EBITDA as net income/loss, excluding stock-based
compensation expense, depreciation and amortization expense, interest income, net, income tax (benefit) provision, gain/loss from warrants
liabilities, and gain/loss from sales of investment.

Newegg believes that exclusion of certain expenses in calculating Adjusted
EBITDA facilitates operating performance comparisons on a period-to-period basis and excludes items that it does not consider to be indicative
of its core operating performance. Accordingly, Newegg believes that Adjusted EBITDA provides useful information to investors and others
in understanding and evaluating its operating results in the same manner as its management and board of directors.

Adjusted EBITDA has limitations as an analytical tool, and it should
not be considered in isolation or as a substitute for analysis of Newegg’s results as reported under GAAP. Some of these limitations
are: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in
the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure
requirements; Adjusted EBITDA does not reflect changes in, or cash requirements for, the working capital needs; Adjusted EBITDA does not
consider the potentially dilutive impact of stock-based compensation; Adjusted EBITDA does not reflect tax payments that may represent
reduction in cash available to Newegg; and other companies, including companies in our industry, may calculate Adjusted EBITDA differently,
which reduces its usefulness as a comparative measure. Because of these limitations, Adjusted EBITDA should be considered alongside other
financial performance measures, including various cash flow metrics, operating