ThredUp Announces First Quarter 2025 Results
- Record quarterly revenue of $71.3M, up 10% YoY
- Reduced operating loss by 57% YoY from $12.2M to $5.2M
- Best quarter ever for new buyer acquisition with 95% YoY growth
- Improved Adjusted EBITDA margin to 5.3% from 2.9% YoY
- Raised full-year 2025 financial outlook
- Strong cash position with $55.4M, up $2.6M from previous quarter
- Slight decline in gross margin from 80.1% to 79.1% YoY
- Continuing operations still showing net loss of $5.2M
- Marketing expenses increased by 21% YoY to $13.1M
Insights
ThredUp shows strong progress toward profitability with record revenue, significantly improved EBITDA margins, and raised 2025 guidance.
ThredUp's Q1 2025 results demonstrate significant operational progress with record quarterly revenue of
The most impressive metric is ThredUp's dramatic improvement in profitability. Loss from continuing operations narrowed substantially to
Customer metrics show encouraging momentum. Orders grew
ThredUp's balance sheet also strengthened, with cash, restricted cash, and investments reaching
Management's confidence is evident in their raised full-year guidance, now expecting revenue of
ThredUp's record new buyer growth and strategic initiatives strengthen its position in the rapidly expanding secondhand market.
ThredUp's Q1 results validate the accelerating adoption of secondhand fashion. According to their 2025 Resale Report, the U.S. secondhand market is growing 5 times faster than the broader retail clothing market and is projected to reach
The company is strategically positioning itself at the intersection of technology and sustainable fashion with two key initiatives. First, their new AI-powered "Shop Social" feature represents an innovative approach to discovery in resale, leveraging artificial intelligence to connect social media inspiration directly to purchasable secondhand items. This addresses a critical friction point in the secondhand shopping experience: finding specific styles among unique inventory.
Second, ThredUp's decision to remove fees from its branded resale platform signals a strategic pivot toward becoming an infrastructure provider for the entire resale ecosystem. By offering brands free access to their technology suite, operations expertise, and customer acquisition tools alongside their Clean Out program, ThredUp is positioning itself as the backbone of the branded resale economy.
These initiatives come at a crucial time when, according to the release, brands are increasingly interested in launching resale programs but need turnkey solutions. By removing financial barriers to entry, ThredUp could accelerate brand participation in the circular economy while strengthening its own market position through increased supply and an expanded partner network.
All results reported are for continuing operations, unless otherwise noted.
- Record quarterly revenue of
$71.3 million , representing an increase of10% year-over-year - Quarterly gross margin of
79.1% and an increase in gross profit of9% year-over-year - Active Buyers of 1.37 million, representing growth of
6% year-over-year, with new buyer growth of95% year-over-year, reflecting ThredUp’s best quarter for new buyer acquisition in its history - Ended the quarter with cash, restricted cash, and investments of
$55.4 million , up$2.6 million dollars from the previous quarter - Issued a revised full year 2025 financial outlook, raising expectations for Revenue and Adjusted EBITDA margin
OAKLAND, Calif., May 05, 2025 (GLOBE NEWSWIRE) -- ThredUp Inc. (Nasdaq: TDUP, LTSE: TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, announced today its financial results for the first quarter ended March 31, 2025 and updated full year 2025 financial outlook.
“We are proud to deliver Q1 out-performance, including a record quarter for new buyer acquisition,” said ThredUp CEO and co-founder James Reinhart. “With momentum in our marketplace, we are pleased to be raising our full year outlook while we continue to improve the product experience for both buyers and sellers.”
First Quarter 2025 Financial Highlights1
- Revenue: Revenue totaled
$71.3 million , an increase of10% year-over-year. - Gross Profit and Gross Margin: Gross profit totaled
$56.4 million , an increase of9% year-over-year. Gross margin was79.1% as compared to80.1% in the first quarter last year. - Loss from Continuing Operations: Loss from continuing operations was
$5.2 million , or a negative7.3% of revenue, for the first quarter 2025, compared to a loss from continuing operations of$12.2 million , or a negative18.9% of revenue, for the first quarter last year. - Adjusted EBITDA from Continuing Operations1: Adjusted EBITDA from continuing operations was
$3.8 million , or5.3% of revenue, for the first quarter 2025, compared to$1.9 million , or2.9% of revenue, for the first quarter last year. - Active Buyers and Orders: Active Buyers of 1.37 million and Orders of 1.37 million for the first quarter 2025, representing increases of
6% and16% , respectively, over the first quarter last year.
Recent Business Highlights
- Launched Shop Social: In April, ThredUp launched an AI-powered social commerce experience called Shop Social, which leverages ThredUp’s AI technologies to recommend specific styles, brands and products based on the shopper’s inspiration sourced and uploaded directly from social media. The new shopping feature is currently in beta in the ThredUp iOS app.
- Announced Next Generation Branded Resale Platform: ThredUp is taking an open source approach to branded resale by leveraging its core marketplace technology advancements and removing branded resale fees. Branded resale shops will be pairs free customized branded resale shops with its successful closet Clean Out program. By offering brands free access to its full technology suite, best-in-class operations, and customer acquisition tools, ThredUp is deepening its commitment to help brands launch successful, scalable and high impact resale initiatives.
- Published 13th Annual Resale Report: In partnership with GlobalData, ThredUp released the results of its 2025 Resale Report, revealing that the U.S. secondhand market grew 5 times faster than the broader retail clothing market in 2024 and is set to reach
$74 billion by 2029. It also includes new insights about tariff and trade implications, how social commerce and AI are reshaping retail, and the government’s role in managing textile waste.
Financial Outlook
For the second quarter 2025, ThredUp expects:
- Revenue in the range of
$72.5 million to$74.5 million , +10% year-over-year at the midpoint - Gross margin in the range of
77.0% to79.0% - Adjusted EBITDA margin of approximately
3.3%
For the full fiscal year 2025, ThredUp expects:
- Revenue in the range of
$281.0 million to$291.0 million , +10% year-over-year at the midpoint - Gross margin in the range of
77.0% to79.0% - Adjusted EBITDA margin of approximately
4.0%
ThredUp is not providing a quantitative reconciliation of forward-looking guidance of the Non-GAAP measure Adjusted EBITDA margin to net loss margin, the most directly comparable financial measures under GAAP because certain items are out of ThredUp’s control or cannot be reasonably predicted. We calculate Adjusted EBITDA as net loss adjusted to exclude, where applicable in a given period, depreciation and amortization, stock-based compensation expense, gain on sale of non-marketable equity investment, severance and other reorganization costs, interest expense and provision for income taxes. Adjusted EBITDA margin represents Adjusted EBITDA divided by Revenue for the same period. Accordingly, a reconciliation for Adjusted EBITDA in order to calculate forward-looking Adjusted EBITDA margin is not available without unreasonable effort. However, for the second quarter of 2025 and full year 2025, Depreciation and amortization is expected to be
Conference Call and Webcast Information
- The live and archived webcast and all related earnings materials will be available at ThredUp’s investor relations website: ir.thredup.com/news-events/events-and-presentations.
| ThredUp Inc. Condensed Consolidated Balance Sheets (unaudited) | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| (in thousands) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 41,057 | $ | 31,851 | ||||
| Marketable securities | 5,719 | 12,325 | ||||||
| Accounts receivable, net | 4,234 | 3,567 | ||||||
| Other current assets | 9,450 | 9,179 | ||||||
| Total current assets | 60,460 | 56,922 | ||||||
| Operating lease right-of-use assets | 27,773 | 28,853 | ||||||
| Property and equipment, net | 67,517 | 68,480 | ||||||
| Goodwill | 10,746 | 10,746 | ||||||
| Other assets | 6,004 | 6,224 | ||||||
| Total assets | $ | 172,500 | $ | 171,225 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 13,000 | $ | 8,326 | ||||
| Accrued and other current liabilities | 28,381 | 29,856 | ||||||
| Seller payable | 15,758 | 15,142 | ||||||
| Operating lease liabilities, current | 4,606 | 4,345 | ||||||
| Current portion of long-term debt | 3,860 | 3,855 | ||||||
| Total current liabilities | 65,605 | 61,524 | ||||||
| Operating lease liabilities, non-current | 31,140 | 32,489 | ||||||
| Long-term debt, net of current portion | 17,184 | 18,151 | ||||||
| Other non-current liabilities | 2,488 | 2,760 | ||||||
| Total liabilities | 116,417 | 114,924 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Class A and B common stock, | 11 | 11 | ||||||
| Additional paid-in capital | 617,150 | 612,148 | ||||||
| Accumulated other comprehensive income (loss) | (2 | ) | 3 | |||||
| Accumulated deficit | (561,076 | ) | (555,861 | ) | ||||
| Total stockholders’ equity | 56,083 | 56,301 | ||||||
| Total liabilities and stockholders’ equity | $ | 172,500 | $ | 171,225 | ||||
| ThredUp Inc. Condensed Consolidated Statements of Operations (unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, 2025 | March 31, 2024 | |||||||
| (in thousands, except per share amounts) | ||||||||
| Revenue | $ | 71,291 | $ | 64,533 | ||||
| Cost of revenue | 14,920 | 12,820 | ||||||
| Gross profit | 56,371 | 51,713 | ||||||
| Operating expenses: | ||||||||
| Operations, product, and technology | 35,126 | 37,125 | ||||||
| Marketing | 13,143 | 10,851 | ||||||
| Sales, general, and administrative | 13,536 | 16,132 | ||||||
| Total operating expenses | 61,805 | 64,108 | ||||||
| Operating loss | (5,434 | ) | (12,395 | ) | ||||
| Interest expense | (514 | ) | (677 | ) | ||||
| Other income, net | 790 | 893 | ||||||
| Loss before provision for income taxes | (5,158 | ) | (12,179 | ) | ||||
| Provision for income taxes | 57 | 11 | ||||||
| Loss from continuing operations | (5,215 | ) | (12,190 | ) | ||||
| Loss from discontinued operations, net of tax | — | (4,364 | ) | |||||
| Net loss | $ | (5,215 | ) | $ | (16,554 | ) | ||
| Weighted-average shares used to compute loss per share, basic and diluted | 116,698 | 109,292 | ||||||
| Loss from continuing operations per share, basic and diluted | $ | (0.04 | ) | $ | (0.11 | ) | ||
| Loss from discontinued operations per share, basic and diluted | — | (0.04 | ) | |||||
| Total loss per share, basic and diluted | $ | (0.04 | ) | $ | (0.15 | ) | ||
| ThredUp Inc. Condensed Consolidated Statements of Comprehensive Loss (unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, 2025 | March 31, 2024 | |||||||
| (in thousands) | ||||||||
| Net loss | $ | (5,215 | ) | $ | (16,554 | ) | ||
| Other comprehensive loss, net of tax: | ||||||||
| Foreign currency translation adjustments | — | (864 | ) | |||||
| Unrealized loss on available-for-sale securities | (5 | ) | (6 | ) | ||||
| Total other comprehensive loss | (5 | ) | (870 | ) | ||||
| Total comprehensive loss | $ | (5,220 | ) | $ | (17,424 | ) | ||
| ThredUp Inc. Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, 2025 | March 31, 2024 | |||||||
| (in thousands) | ||||||||
| Cash flows from continuing operating activities: | ||||||||
| Loss from continuing operations | $ | (5,215 | ) | $ | (12,190 | ) | ||
| Adjustments to reconcile loss from continuing operations to net cash provided by continuing operating activities: | ||||||||
| Stock-based compensation expense | 5,520 | 6,911 | ||||||
| Depreciation and amortization | 3,169 | 3,748 | ||||||
| Reduction in carrying amount of right-of-use assets | 1,080 | 1,273 | ||||||
| Other | (183 | ) | 39 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (667 | ) | 709 | |||||
| Other current and non-current assets | (29 | ) | 1,233 | |||||
| Accounts payable | 4,719 | 1,241 | ||||||
| Accrued and other current liabilities | (1,863 | ) | 2,474 | |||||
| Seller payable | 617 | (560 | ) | |||||
| Operating lease liabilities | (1,088 | ) | (1,590 | ) | ||||
| Other non-current liabilities | (317 | ) | — | |||||
| Net cash provided by continuing operating activities | 5,743 | 3,288 | ||||||
| Cash flows from continuing investing activities: | ||||||||
| Purchases of marketable securities | (3,214 | ) | (8,665 | ) | ||||
| Sale and maturities of marketable securities | 10,104 | 4,500 | ||||||
| Purchases of property and equipment | (1,815 | ) | (1,126 | ) | ||||
| Net cash provided by (used in) continuing investing activities | 5,075 | (5,291 | ) | |||||
| Cash flows from continuing financing activities: | ||||||||
| Repayment of debt | (1,000 | ) | (1,000 | ) | ||||
| Proceeds from issuance of stock-based awards | 1,151 | 727 | ||||||
| Payments of withholding taxes on stock-based awards | (1,740 | ) | (1,207 | ) | ||||
| Net cash used in continuing financing activities | (1,589 | ) | (1,480 | ) | ||||
| Net change in cash, cash equivalents and restricted cash from continuing operations | 9,229 | (3,483 | ) | |||||
| Net cash flow used in discontinued operating activities | — | (1,895 | ) | |||||
| Net cash flow used in discontinued investing activities | — | (494 | ) | |||||
| Net change in cash, cash equivalents and restricted cash from discontinued operations | — | (2,389 | ) | |||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | — | (115 | ) | |||||
| Net change in cash, cash equivalents, and restricted cash | 9,229 | (5,987 | ) | |||||
| Cash, cash equivalents, and restricted cash, beginning of period | 40,488 | 61,469 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 49,717 | $ | 55,482 | ||||
| ThredUp Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) | ||||||||
| Adjusted EBITDA Reconciliation | ||||||||
| Three Months Ended | ||||||||
| March 31, 2025 | March 31, 2024 | |||||||
| (in thousands) | ||||||||
| Loss from continuing operations | $ | (5,215 | ) | $ | (12,190 | ) | ||
| Stock-based compensation expense | 5,520 | 6,911 | ||||||
| Depreciation and amortization | 3,169 | 3,748 | ||||||
| Interest expense | 514 | 677 | ||||||
| Provision for income taxes | 57 | 11 | ||||||
| Gain on sale of non-marketable equity investment | (234 | ) | — | |||||
| Severance and other reorganization costs | (3 | ) | 2,731 | |||||
| Non-GAAP Adjusted EBITDA from continuing operations | $ | 3,808 | $ | 1,888 | ||||
| Revenue | $ | 71,291 | $ | 64,533 | ||||
| Non-GAAP Adjusted EBITDA from continuing operations margin | 5.3 | % | 2.9 | % | ||||
| Free Cash Flow Reconciliation | ||||||||
| Three Months Ended | ||||||||
| March 31, 2025 | March 31, 2024 | |||||||
| (in thousands) | ||||||||
| Net cash provided by continuing operating activities | $ | 5,743 | $ | 3,288 | ||||
| Less: Purchases of property and equipment | (1,815 | ) | (1,126 | ) | ||||
| Non-GAAP free cash flow from continuing operations | $ | 3,928 | $ | 2,162 | ||||
Investors
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About ThredUp
ThredUp is transforming resale with technology and a mission to inspire the world to think secondhand first. By making it easy to buy and sell secondhand, ThredUp has become one of the world's largest online resale platforms for apparel, shoes and accessories. Sellers enjoy ThredUp because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet. Buyers enjoy shopping value, premium and luxury brands all in one place, at up to
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential”, “looking ahead”, “looking forward,” “seeking” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, guidance on financial results for the second quarter and full year of 2025; statements about future operating results, capital expenditures and other developments in our business and our long term growth; trends, consumer demand and growth in the online resale markets; the momentum of our business; our investments in technology and infrastructure, including with respect to AI technologies such as AI enabled search features and image search; the impact of tariffs and other changes to global trade on our business, including the closure of the de minimis loophole for goods shipped from China to the U.S. and the resulting impact on advertising expenditures of Chinese fast fashion companies; the success and expansion of our RaaS® model and the timing and plans for future RaaS® clients; our ability to attract new Active Buyers, including our efforts to make resale more engaging and accessible to a wider audience through innovative shopping experiences; and legal and regulatory developments.
Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that we expect. These risks and uncertainties include, but are not limited to: our ability to attract new users and convert users into buyers and Active Buyers; our ability to achieve profitability; the sufficiency of our cash, cash equivalents and capital resources to meet our liquidity needs; our ability to effectively manage or sustain our growth and to effectively expand our operations; our ability to continue to generate revenue from new RaaS® offerings as sources of revenue; risks from an intensely competitive market; our ability to effectively deploy new and evolving technologies, such as artificial intelligence and machine learning, in our offerings; risks arising from economic and industry trends, including inflationary pressures, increased interest rates, changing consumer habits, climate change and general global economic uncertainty; our ability to comply with applicable laws and regulations; and our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The forward-looking statements in this release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing ThredUp’s views as of any date subsequent to the date of this press release.
Additional information regarding these and other factors that could affect ThredUp's results is included in ThredUp’s SEC filings, which may be obtained by visiting our Investor Relations website at ir.thredup.com or the SEC's website at www.sec.gov.
Channels for Disclosure of Information
ThredUp intends to announce material information to the public through the ThredUp Investor Relations website ir.thredup.com, SEC filings, press releases, public conference calls, and public webcasts. ThredUp uses these channels, as well as social media, to communicate with its investors, customers, and the public about the company, its offerings, and other issues. It is possible that the information ThredUp posts on social media could be deemed to be material information. As such, ThredUp encourages investors, the media, and others to follow the channels listed above, including the social media channels listed on ThredUp’s investor relations website, and to review the information disclosed through such channels.
Non-GAAP Financial Measures and Other Operating and Business Metrics
This press release and the accompanying tables contain non-GAAP financial measures, including: Adjusted EBITDA from continuing operations, Adjusted EBITDA from continuing operations margin, free cash flow and other operating and business metrics. In addition to our results determined in accordance with GAAP, we believe that these non-GAAP measures and other operating and business metrics, are useful in evaluating our operating performance and enhancing an overall understanding of our financial position. We use these measures and metrics to evaluate and assess our operating performance, and for internal planning and forecasting purposes. We believe that these non-GAAP measures, when taken collectively with our GAAP results, may be helpful to investors because they provide consistency and comparability with past financial performance and assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. Our non-GAAP measures and other operating and business metrics are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly-titled non-GAAP measures and other operating and business metrics used by other companies.
We encourage investors to review our results determined in accordance with GAAP and the accompanying reconciliations for more information.
A reconciliation is provided above for Non-GAAP Adjusted EBITDA from continuing operations to loss from continuing operations, the most directly comparable financial measure stated in accordance with GAAP. We calculate Non-GAAP Adjusted EBITDA from continuing operations as loss from continuing operations adjusted to exclude, where applicable in a given period, stock-based compensation expense, depreciation and amortization, severance and other reorganization costs, gain on sale of non-marketable equity investment, interest expense and provision for income taxes. Non-GAAP Adjusted EBITDA from continuing operations margin represents Non-GAAP Adjusted EBITDA from continuing operations divided by Revenue for the same period.
A reconciliation is provided above for Non-GAAP free cash flow from continuing operations to Net cash provided by continuing operating activities, the most directly comparable financial measure stated in accordance with GAAP. We calculate Non-GAAP free cash flow as Net cash provided by continuing operating activities adjusted to exclude Purchases of property and equipment.
An Active Buyer is a ThredUp buyer who has made at least one purchase in the last twelve months. A ThredUp buyer is a customer who has created an account and purchased in our marketplaces, including through our RaaS® clients, and is identified by a unique email address. A single person could have multiple ThredUp accounts and count as multiple Active Buyers.
Orders are defined as the total number of orders placed by buyers across our marketplaces, including through our RaaS® clients, in a given period, net of cancellations.
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1 Adjusted EBITDA from continuing operations and Adjusted EBITDA from continuing operations margin are non-GAAP measures. See “Reconciliation of GAAP to Non-GAAP Financial Measures” for a detailed reconciliation of these non-GAAP measures to the most directly comparable GAAP measures and “Non-GAAP Financial Measures” for a discussion of why we believe these non-GAAP measures are useful.
FAQ
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