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Dec 30, 2024
ThredUp Q1 2025 Earnings Report
ThredUp reported a record quarterly revenue of $71.3 million, a 10% increase year-over-year, with strong gross profit and significant growth in active buyers.
Key Takeaways
ThredUp Inc. announced strong first quarter 2025 financial results, exceeding expectations with record revenue and significant growth in active buyers. The company also raised its full-year 2025 financial outlook, reflecting positive momentum in its marketplace.
Record quarterly revenue of $71.3 million, up 10% year-over-year.
Gross margin of 79.1% and a 9% increase in gross profit year-over-year.
Active Buyers reached 1.37 million, a 6% year-over-year increase, with new buyer growth of 95%.
Adjusted EBITDA from continuing operations was $3.8 million, or 5.3% of revenue, compared to $1.9 million, or 2.9% of revenue, in the prior year.
ThredUp
ThredUp
Forward Guidance
For the second quarter of 2025, ThredUp expects revenue between $72.5 million and $74.5 million, gross margin between 77.0% and 79.0%, and Adjusted EBITDA margin of approximately 3.3%. For the full fiscal year 2025, revenue is expected to be between $281.0 million and $291.0 million, gross margin between 77.0% and 79.0%, and Adjusted EBITDA margin of approximately 4.0%.
Positive Outlook
- Revenue expected to increase by 10% year-over-year at the midpoint for Q2 2025.
- Revenue expected to increase by 10% year-over-year at the midpoint for full fiscal year 2025.
- Adjusted EBITDA margin expected to be positive at approximately 3.3% for Q2 2025.
- Adjusted EBITDA margin expected to be positive at approximately 4.0% for full fiscal year 2025.
- Continued focus on improving product experience for buyers and sellers.
Challenges Ahead
- Gross margin for Q2 2025 expected to be slightly lower than Q1 2025.
- Gross margin for full fiscal year 2025 expected to be slightly lower than Q1 2025.
- Depreciation and amortization expected to be $3.2 million for Q2 2025 and $12.6 million for full year 2025.
- Stock-based compensation expense expected to be $3.7 million for Q2 2025 and $16.0 million for full year 2025.
- Reconciliation of Non-GAAP Adjusted EBITDA margin to net loss margin is not provided due to certain uncontrollable or unpredictable items.