ThredUp (TDUP) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $91 million, up 17% year-over-year, with gross margin at 80% and adjusted EBITDA of $5 million (5.3% of revenue).

• Active buyers grew 21% year-over-year to 1.8 million, and orders increased 22% to 1.9 million, both exceeding expectations.

• Gross profit rose 17% to $73 million, with net loss at $5.9 million (6.5% of revenue), compared to $5.2 million in Q2 2025.

• Cash and securities totaled $57.4 million at quarter-end, up from $54.4 million at the start of the quarter.

• Guidance for H2 2026 was revised downward due to economic uncertainty and increased promotions for price-sensitive buyers.

Financial highlights

• Q2 2026 revenue: $91 million (+17% YoY); gross margin: 80% (+40 bps YoY); adjusted EBITDA: $5 million (5.3% of revenue, +140 bps YoY).

• Net loss was $5.9 million, compared to $5.2 million in Q2 2025.

• Ended Q2 with $57.4 million in cash and securities, with $18 million in debt.

• CapEx investment was $2.7 million, with $3 million in cash generated during Q2.

• Free cash flow for the first half of 2026 was $2.4 million, up from $1.0 million in the prior year period.

Outlook and guidance

• Q3 2026 revenue expected at $87–$89 million (7% YoY growth at midpoint), gross margin 78–79%, adjusted EBITDA ~4% of revenue.

• Q4 2026 revenue expected at $85–$87 million (8% YoY growth at midpoint), gross margin 77.5–78.5%, adjusted EBITDA ~6% of revenue.

• Full-year 2026 revenue guidance: $344.4–$348.4 million (11% YoY growth at midpoint), gross margin 78.7–79.1%, adjusted EBITDA ~4.7% of revenue.

• Guidance reflects a $7 million revenue headwind in H2 due to elevated promotions to protect buyer engagement.

• Company expects to remain cash flow positive for the full year.