ThredUp (TDUP) Q4 2025 earnings summary

Executive summary

• Full-year 2025 revenue reached $311 million, up 20% year-over-year, following the divestment of European operations and driven by investments in customer acquisition, new listings, and a U.S.-focused, consignment-based model.

• Gross margin for 2025 was 79.4%, with gross profit of $247 million and record quarterly gross margin of 79.6%.

• Achieved positive adjusted EBITDA every quarter for two years, with full-year 2025 adjusted EBITDA of $14 million (4.4% margin), and first annual positive free cash flow.

• Active buyers reached a record 1.65 million–1.7 million, up 30% year-over-year, and orders grew 25% to 6.1 million.

• Innovations included premium and direct listings, AI-driven product enhancements, and a successful rebrand.

Financial highlights

• Q4 2025 revenue was $79.7 million, up 18–18.5% year-over-year, with gross margin at 79.6%.

• Q4 adjusted EBITDA was $2.9 million (3.7% of revenue), outperforming internal expectations.

• Full-year 2025 adjusted EBITDA was $14 million (4.4% margin), up from 3.3% in 2024.

• Ended 2025 with $53.1 million in cash and equivalents, and $18 million in debt.

• Free cash flow for 2025 was $0.18 million, a turnaround from negative $1.68 million last year.

Outlook and guidance

• Q1 2026 revenue expected between $79.5 million and $80.5 million, up 12% year-over-year at midpoint.

• Full-year 2026 revenue guidance is $349 million–$355 million, up 13% at midpoint.

• Gross margin expected between 78% and 79% for both Q1 and full year 2026.

• Adjusted EBITDA margin guidance: ~3% for Q1 2026 and ~6% for full year 2026, over 150 basis points expansion.

• Seasonality expected: Q1 smallest, Q2 and Q3 largest, Q4 seasonal step down.