Press Release: ThredUp Announces Fourth Quarter and Full Year 2025 Results

Dow Jones03-03

All results reported are for continuing operations, unless otherwise noted.

   -- Quarterly revenue of $79.7 million, representing an increase of 18% 
      year-over-year 
 
   -- Quarterly gross margin of 79.6% and an increase in gross profit of 17% 
      year-over-year 
 
   -- Record Active Buyers of 1.65 million, representing an increase of 30% 
      year-over-year 
 
   -- Ended the quarter with cash and cash equivalents, restricted cash, and 
      marketable securities of $53.1 million, achieving positive annual total 
      cash flows of $3.1 million for the first time in company history 

OAKLAND, Calif., March 02, 2026 (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 fourth quarter and full year ended December 31, 2025.

"For the full year 2025, our performance was a testament to the scalability of our infrastructure and the fundamental strength of our marketplace model," said ThredUp CEO and co-founder James Reinhart. "As we enter 2026, our focus is to build toward sustained, profitable growth by enhancing the structural drivers of our flywheel: full-funnel buyer growth, high-quality supply, and AI-driven innovation."

Fourth Quarter 2025 Financial Highlights

   -- Revenue: Revenue totaled $79.7 million, an increase of 18% 
      year-over-year. 
 
   -- Gross Profit and Gross Margin: Gross profit totaled $63.4 million, an 
      increase of 17% year-over-year. Gross margin was 79.6% as compared to 
      80.4% in the fourth quarter last year. 
 
   -- Loss from Continuing Operations: Loss from continuing operations was 
      $5.6 million, or a negative 7.0% of revenue, for the fourth quarter 2025, 
      compared to a loss from continuing operations of $8.1 million, or a 
      negative 12.0% of revenue, for the fourth quarter last year. 
 
   -- Adjusted EBITDA from Continuing Operations1: Adjusted EBITDA from 
      continuing operations was $2.9 million, or 3.7% of revenue, for the 
      fourth quarter 2025, compared to $5.0 million, or 7.4% of revenue, for 
      the fourth quarter last year. 
 
   -- Active Buyers and Orders: Active Buyers of 1.65 million and Orders of 
      1.56 million for the fourth quarter 2025, representing increases of 30% 
      and 27%, respectively, over the fourth quarter last year. 

Full Year 2025 Financial Highlights

   -- Revenue: Revenue totaled $310.8 million, an increase of 20% 
      year-over-year. 
 
   -- Gross Profit and Gross Margin: Gross profit totaled $246.8 million, an 
      increase of 19% year-over-year. Gross margin was 79.4% compared to 79.7% 
      last year. 
 
   -- Loss from Continuing Operations: Loss from continuing operations was 
      $20.2 million, or a negative 6.5% of revenue, for the full year 2025, 
      compared to a loss from continuing operations of $40.0 million, or a 
      negative 15.4% of revenue, last year. 
 
   -- Adjusted EBITDA from Continuing Operations1: Adjusted EBITDA from 
      continuing operations was $13.5 million, or 4.4% of revenue, for the full 
      year 2025, compared to $8.7 million, or 3.3% of revenue, last year. 
 
   -- Active Buyers and Orders: Active Buyers of 1.65 million and Orders of 
      6.08 million for the full year 2025, representing increases of 30% and 
      25%, respectively, over last year. 

Financial Outlook(1)

For the first quarter 2026, ThredUp expects:

   -- Revenue in the range of $79.5 million to $80.5 million, +12% 
      year-over-year at the midpoint 
 
   -- Gross margin in the range of 78.0% to 79.0% 
 
   -- Adjusted EBITDA margin of approximately 3.0% 

For the full fiscal year 2026, ThredUp expects:

   -- Revenue in the range of $349.0 million to $355.0 million, +13% 
      year-over-year at the midpoint 
 
   -- Gross margin in the range of 78.0% to 79.0% 
 
   -- Adjusted EBITDA margin of approximately 6.0% 

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, stock-based compensation expense, depreciation and amortization, interest expense, impairment of long-lived assets, legal settlement and fees, provision for income taxes, severance and other reorganization costs, and gains related to non-marketable equity investment. 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 first quarter of 2026 and full year 2026, Depreciation and amortization is expected to be $3.4 million and $13.7 million, respectively. In addition, for the first quarter of 2026 and full year 2026, Stock-based compensation expense is expected to be $6.0 million and $24.4 million, respectively. These items are uncertain, depend on various factors, and could result in projected net loss being materially greater than is indicated by the currently estimated Adjusted EBITDA margin.

ThredUp is not providing a quantitative reconciliation for free cash flow estimates on a forward-looking basis because it is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of net cash provided by operating activities and certain reconciling items on a forward-looking basis, which could be significant to the Company's results.

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) 
 
                                         December 31,     December 31, 
                                             2025             2024 
                                        --------------  ---------------- 
                                                 (in thousands) 
                                 ASSETS 
Current assets: 
   Cash and cash equivalents             $     38,629    $     31,851 
   Marketable securities                        9,498          12,325 
   Accounts receivable, net                     2,437           3,567 
   Other current assets                         6,112           9,179 
                                            ---------       --------- 
Total current assets                           56,676          56,922 
Operating lease right-of-use assets            25,376          28,853 
Property and equipment, net                    67,243          68,480 
Goodwill                                       10,746          10,746 
Other assets                                    7,204           6,224 
                                            ---------       --------- 
Total assets                             $    167,245    $    171,225 
                                            =========       ========= 
                  LIABILITIES AND STOCKHOLDERS' EQUITY 
Current liabilities: 
   Accounts payable                      $     10,329    $      8,326 
   Accrued and other current 
    liabilities                                24,511          29,856 
   Seller payable                              18,264          15,142 
   Operating lease liabilities, 
    current                                     5,401           4,345 
   Current portion of long-term debt            3,875           3,855 
                                            ---------       --------- 
Total current liabilities                      62,380          61,524 
Operating lease liabilities, 
 non-current                                   28,580          32,489 
Long-term debt, net of current portion         14,276          18,151 
Other non-current liabilities                   2,816           2,760 
                                            ---------       --------- 
Total liabilities                             108,052         114,924 
Commitments and contingencies 
Stockholders' equity: 
   Class A and B common stock, $0.0001 
    par value; 1,120,000 shares 
    authorized as of December 31, 2025 
    and December 31, 2024; 127,027 and 
    116,134 shares issued and 
    outstanding as of December 31, 
    2025 and December 31, 2024, 
    respectively                                   12              11 
   Additional paid-in capital                 635,253         612,148 
   Accumulated other comprehensive 
    income                                          3               3 
   Accumulated deficit                       (576,075)       (555,861) 
                                            ---------       --------- 
Total stockholders' equity                     59,193          56,301 
                                            ---------       --------- 
Total liabilities and stockholders' 
 equity                                  $    167,245    $    171,225 
                                            =========       ========= 
 
 
                          ThredUp Inc. 
         Condensed Consolidated Statements of Operations 
                           (unaudited) 
 
                      Three Months Ended         Year Ended 
                     -------------------- 
                     December   December   December    December 
                     31, 2025   31, 2024   31, 2025    31, 2024 
                     ---------  ---------  ---------  ----------- 
                       (in thousands, except per share amounts) 
Revenue              $ 79,704   $ 67,267   $310,813   $260,031 
Cost of revenue        16,270     13,167     64,060     52,906 

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March 02, 2026 16:04 ET (21:04 GMT)

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