ThredUp (TDUP) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew to $81.7–$82 million, up 14.6–15% year-over-year, with gross margin at 79–79.2% and Adjusted EBITDA margin at 3–3.4% of revenue.

• Active buyers reached a record 1.7–1.71 million, up 25% year-over-year, and orders increased 19–19.3% to 1.6–1.64 million.

• Net loss widened to $6.5 million (7.9% of revenue), compared to $5.2 million (7.3%) last year.

• March marked the best month for new buyer acquisition, despite macroeconomic headwinds.

• Strategic focus includes AI-driven personalization, scaling supply, and leveraging a managed marketplace model.

Financial highlights

• Q1 2026 revenue: $81.7–$82 million (+14.6–15% YoY); gross profit: $64.7–$65 million; gross margin: 79–79.2%.

• Adjusted EBITDA: $2.7–$3 million (3–3.4% margin), down from $3.8 million (5.3%) YoY.

• Net loss: $6.5 million, up 24.1% YoY; net loss margin: -7.9%.

• Cash and equivalents at quarter end: $54–$54.4 million; $18 million in debt.

• CapEx for Q1: $4.1 million; free cash flow: $0.6 million.

Outlook and guidance

• Q2 2026 revenue expected between $89–$91 million, up 16% YoY at midpoint.

• Q2 gross margin guidance: 78.5–79.5%; Adjusted EBITDA margin ~5.2%.

• Full-year 2026 revenue expected between $351.2–$356.2 million, 14% growth at midpoint.

• Full-year gross margin guidance: 78.5–79.5%; Adjusted EBITDA margin ~6.1%.

• Long-term targets: gross margin 75–78%, adjusted EBITDA margin 20–25%, with reduced OpEx as a percentage of revenue.