ThredUp (TDUP) Q2 2026 earnings summary

Executive summary

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

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

• Record new buyer acquisition, with a 13% increase in new buyers, driven by a shift to Meta and Pinterest for customer acquisition.

• The business operates exclusively in the U.S. following the divestment of its European operations in Q4 2024.

• Despite strong Q2 execution, guidance for the second half was updated due to economic uncertainty impacting price-sensitive buyers.

Financial highlights

• Q2 2026 gross margin improved to 80%, with adjusted EBITDA margin at 5.3% and net loss of $5.9M (6.5% of revenue).

• Ended Q2 with $57.4M in cash and securities, up from $54.4M at the start of the quarter; $18M in debt as of Q2 2026.

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

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

• Net cash provided by operating activities for the first half of 2026 was $9.2M.

Outlook and guidance

• Q3 2026 revenue expected between $87M-$89M (+7% year-over-year at midpoint), gross margin 78%-79%, adjusted EBITDA ~4% of revenue.

• Q4 2026 revenue expected between $85M-$87M (+8% year-over-year at midpoint), gross margin 77.5%-78.5%, adjusted EBITDA ~6% of revenue.

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

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

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