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1. Amazon for PC parts and electronics.

2. An online-only Best Buy specializing in components for PC builders.

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• PC Components: Individual parts such as CPUs, GPUs, motherboards, memory, and storage drives for building or upgrading personal computers.
• Complete Computer Systems: Pre-built desktop computers, laptops, and workstations from various manufacturers.
• Peripherals & Accessories: External devices including monitors, keyboards, mice, webcams, and other computer-related accessories.
• Consumer Electronics: A diverse range of electronics like televisions, cameras, drones, smart home devices, and audio equipment.
• Software & Gaming: Operating systems, productivity applications, antivirus programs, and video games for multiple platforms.

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Newegg Commerce (NEGG) primarily sells to individuals and small businesses rather than large corporate customers. As an online retailer, its business model is primarily direct-to-consumer (B2C) and small business (B2SB).

Here are up to three categories of customers that Newegg serves:

• 1. PC Builders, Enthusiasts, and Gamers

  This is arguably Newegg's core customer base. These individuals are typically looking to build custom PCs, upgrade existing systems, or purchase high-performance components for gaming, overclocking, or specialized tasks. Newegg is well-known for its extensive selection of CPUs, GPUs, motherboards, RAM, storage, cases, and other PC hardware.

• 2. General Consumers and Home Users

  This category includes individuals seeking a wide range of consumer electronics beyond just PC components. They might be purchasing laptops, pre-built desktop computers, monitors, networking equipment, peripherals (keyboards, mice), smart home devices, home entertainment systems, or general office supplies for personal or home use.

• 3. Small Businesses and IT Professionals

  Through its "NeweggBusiness" division and general offerings, Newegg caters to small and medium-sized businesses, as well as individual IT professionals and content creators. These customers often procure bulk orders of IT equipment, servers, workstations, software, and networking solutions for their operational needs, or high-performance components for professional video editing, graphic design, and other demanding applications.

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Anthony Chow, Chief Executive Officer

Anthony Chow has served as the CEO and a board member of Newegg Commerce, Inc. since 2020. An e-commerce pioneer with a focus on cross-border business operations, he previously held executive positions at several global e-commerce corporations. Prior to his current role, Mr. Chow was Vice President of Newegg's North American business from 2006 to 2008, then President of Newegg's China operation and OZZO Logistics, China, a Newegg subsidiary, starting in 2008. In 2011, he became CEO of OTTO Group China, serving until 2015, and subsequently held the position of Vice President at Haier Group Corporation from 2015 to 2019. He is credited with leading a significant cultural transformation and financial turnaround at Newegg, culminating in its Nasdaq listing in May 2021. Mr. Chow's management philosophy emphasizes execution, processes, and automation.

Christina Ching, Interim Chief Financial Officer and Chief Accounting Officer

Christina Ching has served as Newegg's Interim Chief Financial Officer since May 2024 and as Chief Accounting Officer since September 2022. Before her current appointment, she was the Chief Financial Officer for North America and Asia regions for Kriss USA Inc., a Swiss defense manufacturing company, from 2013 to 2022. Ms. Ching also previously served as Newegg's Senior Director of Accounting from 2004 to 2013. Earlier in her career, from 2001 to 2004, she was the Accounting Manager at GVision USA Inc., a U.S. division of a Taiwan manufacturing company specializing in liquid-crystal display (LCD) products. She holds a Bachelor's degree of Science in Accounting from the University of Phoenix, Arizona.

Michael Chen, Chief Legal Officer

Michael Chen has served as Newegg's Chief Legal Officer since October 2022. In this role, he is responsible for all aspects of the company's legal and corporate affairs, including securities, corporate governance, commercial transactions, employment, litigation, intellectual property, and data privacy, as well as Newegg's risk management program. Mr. Chen has over a decade of legal experience, advising both public and private companies on various corporate matters. Prior to joining Newegg, he served as in-house counsel at Emerald Holding, Inc. (NYSE: EEX) from May 2017 to October 2022. He also worked as an attorney at prominent international law firms in New York and Hong Kong, specializing in securities and capital markets transactions. Mr. Chen holds a Juris Doctor degree from Northwestern University Pritzker School of Law and a Bachelor's degree in International Political Economy from the University of California, Berkeley.

Montaque Hou, Chief Information Security Officer

Montaque Hou has served as Newegg's Chief Information Security Officer since December 2022. His responsibilities include overseeing the identification and mitigation of cyber threats, developing security policies, and ensuring compliance with industry regulations. He works with other executives to integrate security into all organizational operations. Before this role, Mr. Hou was Newegg's Chief Technology Officer from January 2016 to November 2022. As CTO, he was responsible for all technical aspects of the Newegg shopping experience, including the website, mobile app, and other customer interaction points. His global technology team develops and deploys the technology for site design, customer service, Newegg's Marketplace, resource planning, logistics, and inventory management, incorporating data science, machine learning, and artificial intelligence. Earlier in his career at Newegg, he held positions such as Solutions Architect, Director of Technology Strategy, and Chief Architecture Engineer. Mr. Hou holds a Master of Science in analytical chemistry from Tongji University in Shanghai.

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The key risks to Newegg Commerce (NEGG) include:

1. Declining Revenue and Profitability amid Macroeconomic Headwinds: Newegg has experienced a persistent decline in revenue and is currently operating at a loss. This downturn is largely attributed to the prevailing macroeconomic environment, characterized by high inflation, increased interest rates, and reduced discretionary spending, which significantly impacts its target market for consumer electronics.
2. Intense Competition and Loss of Market Share: Newegg operates in a highly competitive e-commerce landscape, facing significant challenges from larger rivals such as Amazon and Best Buy. The company has seen a decline in market share, lower growth, and reduced margins compared to its peers, as its former competitive advantages in pricing and product variety diminish.
3. Eroding Customer Trust due to Service Issues: Newegg's reputation has been significantly impacted by widespread reports of poor customer service, particularly concerning return policies and order fulfillment. This has resulted in negative customer reviews, decreased customer loyalty, and a tarnished brand image, further contributing to declining sales and profitability.

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• Increasing Adoption of Direct-to-Consumer (DtC) Sales by Component Manufacturers: Major manufacturers of PC hardware and consumer electronics, such as NVIDIA, AMD, Intel, ASUS, MSI, Corsair, and Logitech, are increasingly investing in and improving their own direct-to-consumer e-commerce platforms. This allows them to sell products directly to end-users, bypassing traditional retailers like Newegg. This trend gives manufacturers greater control over branding, pricing, customer data, and profit margins. As these DtC channels mature and become more sophisticated, Newegg's role as an intermediary and its sales volume, particularly for high-demand or premium items, face significant erosion.

• Proliferation and Enhanced Competitiveness of Pre-Built Gaming PCs and System Integrators: The market for pre-built gaming PCs and workstations has seen substantial growth and improved value. Large OEMs (e.g., Dell/Alienware, HP/Omen, Lenovo/Legion) and dedicated system integrators (e.g., CyberPowerPC, iBuyPower, NZXT BLD) are offering increasingly powerful, customizable, and competitively priced systems. These solutions often come with integrated warranties, technical support, and the convenience of a ready-to-use product, making them more attractive to a wider segment of consumers, including those who previously might have built their own PCs by sourcing individual components from retailers like Newegg. This trend directly diminishes the demand for individual components that form the core of Newegg's business.

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Newegg Commerce Inc. (NEGG) operates as a leading online retailer specializing in technology products and consumer electronics, with a business model that includes direct product sales, third-party marketplace services, and value-added offerings such as logistics.

The addressable markets for Newegg's main products and services are substantial:

• Global E-commerce Market: The global e-commerce market size was estimated at approximately USD 25.93 trillion in 2023 and is projected to reach USD 83.26 trillion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 18.9% from 2024 to 2030. Another estimate places the global e-commerce market at USD 21.3 trillion in 2023, poised to grow to USD 98.89 trillion by 2032 with a CAGR of 18.6% during the forecast period of 2025-2032.
• U.S. E-commerce Market: The United States e-commerce market reached approximately USD 1.11 trillion in 2024. It is further projected to grow at a CAGR of 14.70% between 2025 and 2034, reaching an estimated value of USD 4.37 trillion by 2034. Other reports indicate the U.S. e-commerce market size at USD 1.25 trillion in 2025, forecast to reach USD 2.08 trillion by 2030 with a 10.71% CAGR.
• Global Online Electronics Retailing Market: This market was valued at approximately USD 998.2 billion in 2023 and is expected to reach USD 2,456.8 billion by 2033, demonstrating a CAGR of 9.4% during the forecast period of 2025-2033. Another assessment puts the global online electronics retailing market at about USD 320 billion in 2023, projected to reach around USD 590 billion by 2032 with a CAGR of 7.1%.
• U.S. Online Electronics Sales: Online electronics sales in the United States were reported to be USD 325 billion in 2023.
• Global Computer Hardware and Components Market: The global computer components market size was estimated at USD 230 billion in 2023 and is projected to reach approximately USD 390 billion by 2032, with a CAGR of 6%. The broader computer hardware market size is expected to grow from $705.0 billion in 2024 to $740.54 billion in 2025 at a CAGR of 5.0%, and further to $928.61 billion in 2029 at a CAGR of 5.8%.
• Global PC Market: The PC market is valued at USD 222.64 billion in 2025 and is forecast to reach USD 344.13 billion by 2030, advancing at a CAGR of 9.10%.
• Global Computer Accessories Market: This market is valued at 30.9 USD billion in 2024 and is expected to expand to 92.3 USD billion by 2035, growing at a CAGR of 10.48% from 2025 to 2035.

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Newegg Commerce (NEGG) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market trends:

1. Sustained Demand for High-Performance PC Gaming Components: Newegg anticipates continued robust demand for PC gaming hardware, particularly high-performance graphics processing units (GPUs) and central processing units (CPUs) from leading manufacturers like NVIDIA and AMD. New product launches in these categories, such as the NVIDIA GeForce RTX 50 Series and AMD Radeon RX 9000 Series graphics cards, and AMD Ryzen 9000X3D Series CPUs, are expected to fuel sales and organic traffic.
2. Expansion into AI-Powered Workstations and PCs: The company is strategically pivoting towards high-growth areas, including the increasing availability and capabilities of AI-powered workstations and AI PCs. This expansion contributed to growth in the first half of 2025 and is seen as a long-term growth driver.
3. Growth in Active Customer Base and Enhanced Customer Engagement: Newegg is focused on expanding its active customer base and improving customer retention through initiatives like its Gamer Community platform, launched in Q2 2025. An increase in active customers, which reached approximately 1.13 million with a 25.2% repeat purchase rate in H1 2025, directly contributes to higher sales volumes.
4. Venturing into Business-to-Business (B2B) Software as a Service (SaaS): Newegg is actively exploring and venturing into B2B software as a service, identifying it as a new opportunity within high-growth segments to expand its market footprint.

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Share Repurchases

• Newegg Commerce announced a share repurchase program to purchase up to $10.0 million of its outstanding common shares, effective from November 9, 2023, to November 8, 2025.
• The company made payments of $3.503 million for share buybacks in the first half of 2025.

Share Issuance

• In July 2025, Newegg completed the sale of 1,000,000 common shares, generating $29.3 million in gross proceeds.
• On August 17, 2025, the company authorized the sale of an additional 500,000 common shares.
• As of September 30, 2025, Newegg sold 1,084,290 common shares for $37.4 million gross ($35.7 million net) under its At-The-Market (ATM) program of up to $65.0 million, with 415,710 shares remaining authorized for future sale.

Inbound Investments

• In 2025, significant investor Vladimir Galkin, a 10% owner, made notable share purchases, including acquiring 416,799 shares for $12.37 million and over 222,222 shares for approximately $6.4 million.
• Insiders, including Vladimir and Angelica Galkin, purchased shares totaling approximately $2.42 million in July 2025.

Capital Expenditures

• Capital expenditures for the last 12 months were reported as -$3.65 million.
• Operating cash flow for the same period was $12.42 million, resulting in a free cash flow of $8.77 million.