ThredUp (TDUP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 10.5% year-over-year to $71.3M, with gross profit rising 9% to $56.4M and gross margin at 79.1%, driven by strong new and active buyer growth after exiting Europe.

• Adjusted EBITDA improved to $3.8M (5.3% margin), up from $1.9M (2.9% margin) year-over-year, reflecting operational efficiency.

• Loss from continuing operations narrowed to $5.2M (7.3% of revenue), down from $12.2M (18.9% of revenue) in Q1 2024.

• Ended Q1 with $55.4M in cash, restricted cash, and investments, up $2.6M sequentially.

• U.S. operations are the focus following the Q4 2024 divestment of the European business.

Financial highlights

• Q1 2025 revenue was $71.3M (+10.5% YoY); gross profit $56.4M (+9% YoY); gross margin 79.1% (down 100 bps YoY).

• Adjusted EBITDA margin improved to 5.3% in Q1 2025, up from 2.9% YoY.

• Active buyers reached 1.37M–1.4M (+5.7%–6% YoY); orders up 16.1% to 1.37M–1.4M.

• Free cash flow from continuing operations was $3.9M, up from $2.2M YoY; net cash from operating activities $5.7M.

• End-of-quarter cash, restricted cash, and investments: $55.4M; debt at $21M as of March 31, 2025.

Outlook and guidance

• Q2 2025 revenue expected at $72.5M–$74.5M (+10% YoY midpoint); gross margin 77–79%; Adjusted EBITDA margin ~3.3%.

• Full-year 2025 revenue guidance raised to $281M–$291M (+10% YoY midpoint); gross margin 77–79%; Adjusted EBITDA margin ~4%.

• No tailwinds from tariffs or recession assumed in guidance; outlook based on current business trends.

• Q3 expected to be the high point for EBITDA margin (~4.5%), with Q4 margins dipping to match full-year guide.

• Long-term target model aims for 75–78% gross margin and 20–25% adjusted EBITDA margin.