ThredUp (TDUP) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of $82.2 million, up 34% year-over-year, with four consecutive quarters of accelerating growth and gross profit of $65.2 million at a 79.4% margin.

• Loss from continuing operations narrowed by 59% to $4.2 million (negative 5.2% margin), and Adjusted EBITDA improved to $3.8 million (4.6% margin).

• 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-powered product features, enhancing personalization and trend curation.

• Divested European business in late 2024, focusing on U.S.-only operations.

Financial highlights

• Q3 2025 revenue: $82.2 million (+34% YoY); gross profit: $65.2 million (+34% YoY); gross margin: 79.4%.

• Adjusted EBITDA: $3.8 million (4.6% margin); loss from continuing operations: $4.2 million (down from $10.4 million YoY).

• Free cash flow for Q3: $2.4 million; nine months: $3.4 million.

• Ended Q3 with $56.1 million in cash, cash equivalents, and marketable securities; $19 million in debt.

• Annual revenue for 2024 was $260 million, with a gross margin of 80% and adjusted EBITDA margin of 3%.

Outlook and guidance

• Q4 2025 revenue expected at $76–$78 million (+14% YoY at midpoint); gross margin 78–79%; Adjusted EBITDA margin ~3%.

• Full-year 2025 revenue guidance raised to $307–$309 million (+18% YoY at midpoint); gross margin 79–79.2%; Adjusted EBITDA margin ~4.2%.

• Long-term target model: gross profit margin 75–78%, non-GAAP adjusted EBITDA margin 20–25%, and significant reductions in operating expenses as a percentage of revenue.

• Operating losses expected to continue in 2025 as investments persist; capital expenditures to remain modest.

• Existing cash and equivalents expected to be sufficient for at least the next 12 months.