Does Newegg Make Money?

Newegg's financial performance has fluctuated significantly, with the company reporting a net loss in 2022 following a period of net income in 2021. This indicates that while they were profitable in some periods, they also faced challenges leading to a loss in others.

Newegg's Financial Performance Overview

In 2022, Newegg experienced a notable shift in its financial results. The company reported a net loss of $57.4 million. This contrasts directly with its performance in the prior year, 2021, when it achieved a net income of $36.3 million.

Beyond the bottom line of net income or loss, other key financial indicators also reflect this trend:

• Gross Profit: Newegg's gross profit decreased to $216.6 million in 2022, down from $326.0 million in 2021. This reduction suggests lower profitability from the sale of goods and services before accounting for operating expenses.
• Adjusted EBITDA: A key measure of a company's operational financial performance, Adjusted EBITDA also saw a substantial decline. It fell to a minimal $0.6 million in 2022, a sharp drop from $52.4 million in 2021. This metric points to a significant reduction in core operational profitability.

These figures illustrate a challenging year for the e-commerce retailer in 2022, particularly when compared to its more positive financial standing in 2021. Companies like Newegg often experience varying levels of profitability based on broader market conditions, operational efficiency, and evolving consumer demand. For a more detailed look at their financial announcements, you can refer to official reports such as the Newegg year-end results.

Key Financial Highlights (2021 vs. 2022)

To summarize Newegg's recent financial trajectory, the table below compares key metrics from 2021 to 2022:

This comparison clearly shows that while Newegg was profitable in 2021, it recorded a significant loss in 2022, indicating it did not "make money" in that specific fiscal year.