ThredUp (TDUP 14.29%), an online secondhand fashion marketplace, released its second quarter 2025 results on August 4, 2025. The company reported GAAP revenue of $77.7 million, surpassing analyst expectations by more than $3.9 million (GAAP). The period also saw a record increase in active buyers and advances in operational efficiency, while the company continued to post a net loss under generally accepted accounting principles.
Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
---|---|---|---|---|
EPS (GAAP) | $(0.04) | $(0.05) | $(0.09) | Improved |
Revenue (GAAP) | $77.7 million | N/A | $66.7 million | 16.4 % |
Gross Margin | 79.5 % | 78.8 % | 0.7 pp | |
Adjusted EBITDA from Continuing Operations | $3.0 million | $1.5 million | 100.0 % | |
Active Buyers | 1.47 million | N/A | N/A |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Strategic Focus
ThredUp operates a digital platform for buying and selling used fashion. It handles millions of unique items, primarily apparel, serving both individual consumers and other retailers. Its business model is based on facilitating secondhand transactions, charging service fees, and supporting partner retailers with technology and logistics through its proprietary infrastructure.
The company’s recent direction centers on scaling operations, technology-enabled marketplace enhancements, and strategic partnerships through its Resale-as-a-Service offering. ThredUp’s ability to attract both new buyers and sellers, coupled with its emphasis on data-driven personalization and automation, are key factors for its long-term growth and profitability in the competitive online resale market.
Quarter Highlights: Growth, Profitability, and Product Initiatives
The quarter saw revenue (GAAP) reach $77.7 million, exceeding consensus by about 5% (GAAP). This growth came alongside a reduction in net loss—loss from continuing operations (GAAP) narrowed to $5.2 million, improving from $9.4 million in Q2 2024. Adjusted EBITDA from continuing operations doubled to $3.0 million. Gross margin (GAAP) improved to 79.5%, up slightly from the prior year.
Active buyers climbed to 1.47 million in Q2 2025, with new buyer growth strongly outpacing historical trends. The company highlighted new buyer growth of 74% year-over-year, the best performance in its history. Orders processed rose to 1.54 million, a 21% jump.
ThredUp continued to invest in AI-powered product improvements. New features included personalized recommendations, visual search, and the integration of a "Shop Social" tool in the mobile app. These tools help buyers find similar items from images or inspiration found online, which the company says has led to materially higher conversion rates. Sessions in which a customer uses the updated "shop similar" feature have a 64% higher conversion rate.
The Resale-as-a-Service (RaaS) platform, which allows other retailers and brands to use ThredUp’s technology and operational expertise for their own secondhand offerings, remained a strategic priority. While the company did not disclose a new client count for RaaS during the quarter, management reaffirmed its commitment to growing this channel and highlighted operational improvements that help partners expand their own circular fashion programs.
Financial Position and Key Developments
ThredUp maintained positive non-GAAP free cash flow from continuing operations in the first half of 2025 and finished the quarter with $56.2 million in cash, securities, and equivalents, up modestly from the prior period. The company kept its operations self-sustaining, balancing growth investments with liquidity needs. Total assets (GAAP) were $173.6 million as of June 30, 2025, while liabilities held steady.
The company’s largest expense category was operations, product, and technology, at $37.5 million. Marketing spend rose to $16.2 million, but delivered strong new customer growth and efficiency.
ThredUp’s scalable infrastructure processes over 100,000 unique items daily and leverages AI-driven tools to match buyers and sellers, supporting efficient operations even as product assortment grows.
Looking Ahead: Guidance and Watch Areas
Management raised expectations for both revenue and adjusted EBITDA margin (non-GAAP), reflecting confidence in the sustainability of recent momentum. Guidance now calls for GAAP revenue between $298.0 million and $302.0 million, up from $281.0 million to $291.0 million previously. Full-year gross margin is expected in the 78% to 79% range, and adjusted EBITDA margin (non-GAAP) is forecast around 4.2%. For Q3 2025, revenue (GAAP) is projected in the $76.0 million to $78.0 million range with similar gross margin and a slightly higher projected adjusted EBITDA margin (non-GAAP). These targets assume no material benefits from tariffs or broader macroeconomic factors.
ThredUp’s outlook also depends on its ability to keep marketing spend efficient and expand its premium product mix. No additional guidance on dividends was provided.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.