Shares of ThredUp (TDUP 7.25%) were falling today after a seemingly solid fourth-quarter earnings report wasn't enough to stem the recent sell-off in the stock.
The company is still operating at a net loss on a generally accepted accounting principles (GAAP) basis, and expects top-line growth to slow in 2026 with flat margins.
As a result, the stock was down 19.1% as of 1:53 p.m. ET.
Image source: Getty Images.
Why ThredUp's results weren't enough
ThredUp emerged as a big winner following the announcement of the "Liberation Day" tariffs last April, as investors saw the resale market as protected from import taxes.
At one point last year, the stock was up more than 1,000% from its 2024 bottom, but since its peak last August, the stock has fallen sharply, now down by roughly 70% as it hasn't lived up to expectations, and that seemed to be the case this time as well.
Revenue in the fourth quarter was up 18% to $79.7 million, which was well ahead of estimates at $77.2 million. Active buyers jumped 30% to 1.65 million, a new record.
However, profit-based figures were less impressive. Gross margin fell from 80.4% to 79.6%, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell from $5 million to $2.9 million.
On a GAAP per share basis, it reported a loss of $0.04, which matched the consensus.
CEO James Reinhart said, "For the full year 2025, our performance was a testament to the scalability of our infrastructure and the fundamental strength of our marketplace model."
NASDAQ: TDUP
Key Data Points
What's next for ThredUp
In its guidance, ThredUp called for revenue growth of 12% to $79.5 million-$80.5 million, in line with guidance, while it expected full-year revenue of $349 million-$355 million, up 13% from 2025, and called for adjusted EBITDA margin of 6%, which compared to 4.4% in 2025.
Overall, the numbers were solid, but the slowing growth rate is going to make it difficult for the company to become meaningfully profitable over the long term.
