ThredUp (TDUP) Q4 2025 earnings summary

Executive summary

• Full-year 2025 revenue reached $311 million, up 20% year-over-year, with gross margin at 79–79.4% and adjusted EBITDA of $14 million (4.4% margin), following the divestment of European operations and a transition to a U.S.-focused, consignment-based model.

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

• Achieved positive adjusted EBITDA every quarter for two years and first annual positive free cash flow in 2025.

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

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

Financial highlights

• Q4 2025 revenue: $79.7 million, up 18–18.5% year-over-year.

• Q4 gross margin: 79.6%, a slight decrease year-over-year.

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

• Full-year 2025 adjusted EBITDA: $14 million (4.4% of revenue).

• Ended 2025 with $53.1 million in cash and equivalents, after $10.5 million in CapEx.

Outlook and guidance

• Q1 2026 revenue expected at $79.5–$80.5 million, 12% year-over-year growth at midpoint.

• Q1 2026 gross margin expected at 78–79%; adjusted EBITDA at ~3% of revenue.

• Full-year 2026 revenue guidance: $349–$355 million, 13% year-over-year growth at midpoint.

• Full-year 2026 gross margin: 78–79%; adjusted EBITDA: ~6% of revenue, 150 basis points expansion.

• Long-term target model aims for 75–78% gross margin and 20–25% adjusted EBITDA margin.