Newegg Commerce Inc
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
The business carries itself; the problem is the owners. Newegg has positive equity, $82.2 million in cash with barely any credit drawn, no going-concern doubt and a first-half 2026 profit. The open operating question is whether that profit holds without the drop in stock compensation and with falling revenue; at 1 to 2 cents of net margin per dollar, the room for error is small. The heavy findings sit with the owners — a pledged majority stake, a bankruptcy petition against the parent, an overdue $15 million loan, a 6 percent free float. They can change control of Newegg and move the stock, but according to the filings they do not threaten the retailer's existence; the loan is already deducted from equity. If you wait, check the credit renewal by Nov. 25, 2026, and the third-quarter numbers after that. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Newegg is profitable again in 2026, mainly because stock compensation fell away, and has solid cash. The stock price, however, is driven by a 6 percent free float, large holders with shares registered for resale (Tekhill is already selling) and a majority owner with pledged shares and defaulted bank loans. Not investment advice.
Business & brand
Well-known specialty retailer for PC hardware with about 2.2 million active customers (2025) and a marketplace; 2025 revenue up 16.9 percent to $1,444.5 million, but down 9.9 percent in the first half of 2026.
Earnings power
First half of 2026 with $10.0 million in net income, about $11.2 million of the improvement from lower stock compensation; adjusted EBITDA fell from $5.9 million to $3.7 million in Q2; net margin 1.6 percent.
Balance sheet & liquidity
Equity of $171.2 million, cash of $82.2 million, only $2.2 million drawn on credit (June 30, 2026); but a $19.5 million operating cash outflow in the half and credit agreements extended only until Nov. 25, 2026.
Ownership & governance
Majority owner Digital Grid (53.1 percent) has pledged its shares to Bank of China, and its parent faces a bankruptcy petition (announced March 20, 2026); a $15 million loan to Digital Grid has been overdue since June 30, 2024.
Tradability
Only 1,273,376 shares (6.1 percent) freely tradable (May 26, 2026), 7.0 million shares of large holders registered for resale; Tekhill sold 217,778 shares from Sept. 1 to Oct. 12, 2026.
Worth Noting
Newegg made our research list through the Reddit hype scan of Oct. 18, 2026. Newegg is a foreign private issuer (British Virgin Islands): annual report on Form 20-F instead of 10-K, quarterly figures as unaudited press releases on Form 6-K. The most recent periodic report is the Q2 2026 results release (6-K of Aug. 27, 2026); all filings through Oct. 16, 2026, were reviewed (6-K of Sept. 15, 2026, Schedule 13D/A of Oct. 16, 2026, Form 144 and Form 4). Newegg had not announced a date for its third-quarter results as of Oct. 18, 2026.
Price of $10.90: closing price on Oct. 16, 2026, per fundamental data; cross-checked with the weighted average price in the Form 4 filing for Oct. 15, 2026 ($11.045, a deviation of about 1 percent). Market value = 20,973,423 shares (F-3, as of May 26, 2026; balance sheet as of June 30, 2026: 20,974 thousand) × $10.90. Prices before April 7, 2025, are adjusted for the combination of every 20 shares into one ($3.50 on May 5, 2025).
Twelve-month figures through June 30, 2026 = fiscal 2025 minus first half of 2025 plus first half of 2026: revenue 1,444.5 − 695.7 + 626.7 = $1,375.5 million; net income −4.9 + 4.2 + 10.0 = $9.3 million. Share of the earnings improvement explained by stock compensation: (11.6 − 0.4) / (10.0 + 4.2) = about 79 percent. Our calculations.
Possible confusion: Digital Grid (Hong Kong) Technology Co., Limited is the subsidiary of Hangzhou Lianluo Interactive Information Technology, which was delisted from the Shenzhen exchange in 2024; Zhitao He controls both. According to Newegg, the figures on the bank debt come from Hangzhou Lianluo (as of March 31, 2026).
Stock Watch
This analysis is as of October 18, 2026. Stock Watch will tell you what's changed at NEGG since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 9.50 $ to 92.60 $ · Last price: 9.70 $ (As of: November 2, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 11/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Internet Retail
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Newegg Commerce Inc NEGG | 0.2 | 40.1 | 9.3 | 12.5 | – | 16.9 | -88.6 |
| Amazon.com Inc AMZN | 2,627.1 | 34.8 | 10.7 | 50.8 | 13.1 | 12.4 | 0.6 |
| Alibaba Group Holding Ltd BABA | 243.2 | 16.1 | 13.3 | 38.2 | 1.0 | 2.7 | -43.1 |
| PDD Holdings Inc. PDD | 116.3 | 8.5 | 2.3 | 56.3 | 18.4 | 9.7 | -42.2 |
| MercadoLibre Inc. MELI | 85.0 | 43.0 | 24.4 | 47.8 | 6.7 | 39.1 | -31.2 |
| DoorDash, Inc. DASH | 83.1 | 92.7 | 35.8 | 52.7 | 5.3 | 27.9 | -29.6 |
| eBay Inc EBAY | 51.7 | 28.0 | 18.0 | 72.1 | 23.2 | 8.0 | 47.1 |
| Sea Ltd SE | 37.5 | 25.9 | 16.0 | 44.3 | 8.4 | 36.4 | -52.4 |
| Coupang LLC CPNG | 26.1 | – | 765.9 | 28.3 | -2.9 | 14.1 | -55.0 |
| Median of companies shown | 83.1 | 31.4 | 16.0 | 47.8 | 7.5 | 14.1 | -42.2 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 13 | -9 | -10 | -0.93 | -3 | 14 | 17 |
| 2017 | 1 | -5 | -5 | -0.30 | -21 | 11 | 16 |
| 2018 | 1 | -6 | -9 | -0.51 | -4 | 3 | 6 |
| 2019 | 1,534 | -4 | -17 | -1.00 | -10 | -1 | 2 |
| 2020 | 2,115 | 23 | 30 | 1.58 | 85 | 128 | 557 |
| 2021 | 2,376 | 34 | 36 | 1.68 | -53 | 182 | 627 |
| 2022 | 1,720 | -50 | -57 | -3.08 | 20 | 155 | 542 |
| 2023 | 1,497 | -71 | -59 | -3.12 | -4 | 129 | 499 |
| 2024 | 1,236 | -52 | -43 | -2.25 | -1 | 106 | 407 |
| 2025 | 1,444 | -10 | -5 | -0.24 | -27 | 161 | 469 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q3 | -0.44 | – | 309 | -2.80 | -3.00 | 31 | 30 |
| 2024: Q4 | – | – | – | – | – | – | – |
| 2025: Q1 | -0.12 | – | 347 | 12.30 | -0.70 | -25 | -26 |
| 2025: Q2 | -0.08 | – | 349 | 12.80 | -0.50 | -25 | -26 |
| 2025: Q4 | – | – | – | – | – | – | – |
| 2026: Q1 | 0.37 | – | 306 | – | 2.50 | -46 | -46 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 10 of our scanner strategies — each hit links to the scanner.
Quality & Balance Sheet
Research
Risk & Weakness
- Below the 50- & 200-SMA
- Downward Momentum
- RS Weakness (≤10)
- Stage 4 (Downtrend)
- Stan Weinstein: Stage 4
- Stan Weinstein: Stage 4B-
- Weakness Cluster
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. Scanners marked in red are red-flag signals (risk/short scanners) — appearing there is not a seal of approval. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Valuation
What is priced in?
Free cash flow over the past twelve months is negative, which rules out a serious reverse calculation. Any growth rate only makes a negative cash flow more negative; no present value comes out of it. What the price reflects here is therefore not a stream of cash flows, but the expectation that there will be one at all.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Der Jahresbericht (20-F) für 2025 benennt KI als konkretes Risiko für das eigene Geschäftsmodell: Weil die Speicherhersteller ihre Fertigung auf Hochleistungsspeicher für KI-Rechenzentren umlenken, stiegen die DRAM-Preise laut Newegg bis Ende 2025 um rund 172 Prozent; die Knappheit hat den Markt für die PC-Hardware, die Newegg verkauft, laut Bericht wesentlich beeinträchtigt, verteuert die Geräte für Verbraucher und erhöht das Lagerrisiko. Dazu kommt Betrug durch KI-Einkaufsagenten, die die eigenen Betrugsabwehrsysteme womöglich nicht erkennen. KI ist bei Newegg keine belegte eigene Umsatzquelle: Der Bericht nennt KI-gestützte Angebote nur als geplante Erweiterung, die Ergebnismitteilung vom 27.08.2026 einen neuen KI-Einkaufsberater auf Newegg.com und KI für interne Effizienz (operativer Einsatz). Nach der Vorrang-Regel (bedroht vor nutzt, konkreter Bezug zum eigenen Geschäft, keine KI-Umsatzquelle) lautet die Einstufung „bedroht“.
View the full file — quotes, sources, reviewed filings
„A global memory chip shortage that began in 2024 and has intensified through the first quarter of 2026 has materially affected the market for IT/CE products we sell. Driven by the concentration of manufacturing capacity — particularly for high-bandwidth memory used in artificial intelligence systems — among a limited number of manufacturers (principally Samsung Electronics, SK Hynix, and Micron Technology), DRAM prices increased approximately 172% year-over-year by late 2025, and DDR5 prices increased significantly."
Eine weltweite Knappheit an Speicherchips, die 2024 begann und sich bis zum ersten Quartal 2026 verschärft hat, hat den Markt für die IT- und Unterhaltungselektronik-Produkte, die wir verkaufen, wesentlich beeinträchtigt. Getrieben von der Konzentration der Fertigungskapazität — insbesondere für Hochleistungsspeicher, der in Systemen der künstlichen Intelligenz eingesetzt wird — auf eine kleine Zahl von Herstellern (vor allem Samsung Electronics, SK Hynix und Micron Technology) stiegen die DRAM-Preise bis Ende 2025 im Jahresvergleich um rund 172 %, und die Preise für DDR5 stiegen deutlich.
20-F · 2026-04-28 · View SEC filing
„AI agent activities may not be detectable by our existing fraud prevention systems, which were designed for human-initiated transactions."
Aktivitäten von KI-Agenten werden von unseren bestehenden Systemen zur Betrugsabwehr, die für von Menschen ausgelöste Transaktionen entwickelt wurden, möglicherweise nicht erkannt.
20-F · 2026-04-28 · View SEC filing
„launching a new conversational AI shopping experience on Newegg.com that helps customers reason through specs, trade-offs, and budget in real time. Combined with our continued use of AI to drive internal productivity and efficiency, we are making progress on both fronts of our AI roadmap."
Wir haben auf Newegg.com ein neues dialogbasiertes KI-Einkaufserlebnis gestartet, das Kunden hilft, technische Daten, Abwägungen und Budget in Echtzeit zu durchdenken. Zusammen mit unserem fortgesetzten Einsatz von KI zur Steigerung der internen Produktivität und Effizienz machen wir an beiden Fronten unseres KI-Fahrplans Fortschritte.
6-K · 2026-08-27 · View SEC filing
Filings Reviewed: 6-K 2026-08-27 · 6-K 2026-05-28 · 20-F 2026-04-28 · 20-F 2025-04-28
Rated on October 18, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -5.7%
- More than 10% revenue growth is expected for the coming year -100.0%
- Share count grows by less than 3% a year 2.5%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 14.9%
- Gross margin at 40% or higher and without meaningful erosion 11.7%
- Goodwill from acquisitions does not grow faster than revenue 0.0%
- Net debt below twice EBITDA 45 m net cash
- Operating cash flow covers the profits of the last three years 76 m
- Return on capital at 15% or higher, or up versus two years ago -4.5%
- Insiders hold at least 10% or are net buyers 96.2%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
2/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 68.7%
- Exp. sales growth 3Y > 5% –
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% –
- Net debt < 4x EBIT –
- EBIT positive, 10Y straight 2
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% -3.0%
- ROCE > 15% -4.5%
- Expected return > 10% –
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Oct 29, 2026 | Chang Fred Faching | Director | Sell | 3,582 | 9.91 | 35,508 |
| Oct 28, 2026 | Chang Fred Faching | Director | Sell | 3,582 | 9.78 | 35,027 |
| Oct 27, 2026 | Chang Fred Faching | Director | Sell | 3,582 | 9.69 | 34,695 |
| Oct 26, 2026 | Chang Fred Faching | Director | Sell | 3,582 | 9.49 | 33,993 |
| Oct 23, 2026 | Chang Fred Faching | Director | Sell | 3,582 | 9.85 | 35,279 |
| Oct 22, 2026 | Chang Fred Faching | Director | Sell | 3,582 | 10.25 | 36,716 |
| Oct 21, 2026 | Chang Fred Faching | Director | Sell | 3,582 | 10.65 | 38,130 |
| Oct 20, 2026 | Chang Fred Faching | Director | Sell | 3,582 | 10.67 | 38,224 |
| Oct 19, 2026 | Chang Fred Faching | Director | Sell | 3,582 | 10.71 | 38,363 |
| Oct 16, 2026 | Chang Fred Faching | Director | Sell | 3,582 | 11.13 | 39,861 |
The company
About the Company
Newegg Commerce, Inc. ist ein elektronikfokussierter E-Retailer in den USA, Kanada und international.
- Employees
- 714
- Headquarters
- Diamond Bar, CA
- Address
- 21688 Gateway Center Drive, 91765 Diamond Bar, United States
- Phone
- 626 271 9700
- Website
- newegg.com
- IPO Date
- 04/22/2010
- ISIN
- VGG6483G2099
- Stock Split
- 1:20 on 04/07/2025
- Stock Split
- 1:8 on 10/26/2020
Management
| Name | Title | Birth Year |
|---|---|---|
| Anthony K. Chow | CEO & Director | 1966 |
| Faching Chang | Founder & Director | 1956 |
| Christina S. Ching | Chief Financial Officer & Chief Accounting Officer | 1968 |
| Ivan McClain | B2B Marketing & Event Manager | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Data as of: November 2, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.