ThredUp (TDUP) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of $82.2 million, up 34% year-over-year, marking the fourth consecutive quarter of accelerating growth.

• Gross profit rose 34% to $65.2 million, with gross margin stable at 79.4%.

• Loss from continuing operations narrowed to $4.2 million (negative 5.2% of revenue), compared to $10.4 million (negative 16.8%) a year ago.

• Active buyers reached 1.57 million, up 26% year-over-year, with new buyer growth of 54% and orders up 37%.

• Launched a major rebrand and new AI-driven product features, including Daily Edit and Trend Report, to enhance personalization and trend curation.

Financial highlights

• Q3 2025 revenue totaled $82.2 million, up 33.6% year-over-year.

• Gross margin reached 79.4%, a 10 basis point increase year-over-year.

• Adjusted EBITDA was $3.8 million (4.6% of revenue), a 410 basis point improvement over last year.

• Free cash flow for nine months: $3.4 million.

• Ended Q3 with $56.1 million in cash, cash equivalents, and marketable securities.

Outlook and guidance

• Q4 2025 revenue expected at $76–$78 million (14% year-over-year growth at midpoint), with gross margin 78–79% and Adjusted EBITDA ~3% of revenue.

• Full-year 2025 revenue guidance raised to $307–$309 million (18% year-over-year growth at midpoint), gross margin 79–79.2%, and Adjusted EBITDA ~4.2% of revenue.

• 2026 planning for revenue growth in low double digits, with slightly better EBITDA margin expansion than 2025.

• Long-term target model aims for gross profit margin of 75-78% and non-GAAP adjusted EBITDA margin of 20-25%.

• Operating losses are expected to continue in 2025 as investments in business and infrastructure persist.