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Jun 30
ThredUp Q2 2025 Earnings Report
ThredUp reported record quarterly revenue and strong growth in active buyers and orders for the second quarter of 2025.
Key Takeaways
ThredUp achieved record quarterly revenue of $77.7 million, a 16% increase year-over-year, driven by significant growth in active buyers and orders. The company also improved its gross margin and adjusted EBITDA from continuing operations, ending the quarter with a healthy cash position.
Record quarterly revenue reached $77.7 million, marking a 16% increase year-over-year.
Gross profit increased by 17% year-over-year, with gross margin improving to 79.5%.
Active Buyers grew by 17% to 1.47 million, with new buyer acquisition being the best in company history.
Adjusted EBITDA from continuing operations was $3.0 million, representing a 3.9% margin, up from 2.2% in the prior year.
ThredUp
ThredUp
Forward Guidance
ThredUp provided an updated financial outlook for the third and fourth quarters, and the full fiscal year 2025, raising expectations for Revenue and Adjusted EBITDA margin.
Positive Outlook
- Third quarter 2025 revenue expected to be between $76.0 million and $78.0 million, representing +25% year-over-year at the midpoint.
- Third quarter 2025 gross margin expected to be in the range of 77.0% to 79.0%.
- Third quarter 2025 Adjusted EBITDA margin expected to be approximately 4.5%.
- Full fiscal year 2025 revenue expected to be in the range of $298.0 million to $302.0 million, representing +15% year-over-year at the midpoint.
- Full fiscal year 2025 Adjusted EBITDA margin expected to be approximately 4.2%.
Challenges Ahead
- Fourth quarter 2025 revenue expected to be lower than Q3, in the range of $73.0 million to $75.0 million.
- Fourth quarter 2025 Adjusted EBITDA margin expected to decrease to approximately 3.0%.
- Quantitative reconciliation of forward-looking Adjusted EBITDA margin to net loss margin is not provided due to certain uncontrollable or unpredictable items.
- Quantitative reconciliation for free cash flow estimates on a forward-looking basis is not provided due to inability to provide a meaningful or reasonably accurate calculation.
- Projected net loss could be materially greater than indicated by estimated Adjusted EBITDA margin due to uncertain items like stock-based compensation and depreciation.