Group 1 - The article focuses on value investing opportunities in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - The investment strategy emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks, as well as wide moat stocks that represent high-quality businesses [1] - The author provides a range of watch lists with monthly updates to assist investors in identifying potential investment opportunities [1]

Core Insights - ThredUp reported Q2 2025 GAAP revenue of $77.7 million, exceeding analyst expectations by over $3.9 million, while still posting a net loss [1][5] - The company achieved a record increase in active buyers, with a year-over-year growth of 74%, marking the best performance in its history [6] Financial Performance - Q2 2025 GAAP revenue was $77.7 million, a 16.4% increase from $66.7 million in Q2 2024 [2] - GAAP EPS improved to $(0.04) from $(0.09) in Q2 2024 [2] - Gross margin increased to 79.5%, up from 78.8% year-over-year [2] - Adjusted EBITDA from continuing operations doubled to $3.0 million, compared to $1.5 million in Q2 2024 [2][5] - The net loss from continuing operations narrowed to $5.2 million from $9.4 million in Q2 2024 [5] Operational Highlights - Active buyers reached 1.47 million, with orders processed rising to 1.54 million, a 21% increase [6] - The company invested in AI-powered product improvements, leading to a 64% higher conversion rate for sessions using the "shop similar" feature [7] - ThredUp's scalable infrastructure processes over 100,000 unique items daily, supporting efficient operations [10] Strategic Focus - The company is focused on scaling operations and enhancing its technology-enabled marketplace through its Resale-as-a-Service (RaaS) offering [4][8] - Management emphasized the importance of data-driven personalization and automation for long-term growth and profitability [4] Financial Position - ThredUp maintained positive non-GAAP free cash flow and ended the quarter with $56.2 million in cash, securities, and equivalents [9] - Total assets were $173.6 million as of June 30, 2025, with liabilities remaining steady [9] Future Guidance - Management raised revenue expectations for the full year to between $298.0 million and $302.0 million, up from previous estimates [11] - Q3 2025 revenue is projected to be in the range of $76.0 million to $78.0 million [11] - Full-year gross margin is expected to be in the 78% to 79% range, with an adjusted EBITDA margin forecast around 4.2% [11]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 totaled $77.7 million, representing a 16.4% year-over-year increase [23] - Gross margin was 79.5%, a 70 basis point increase compared to the same quarter last year [23] - Adjusted EBITDA was $3 million, or 3.9% of revenue, doubling from the previous year [24] Business Line Data and Key Metrics Changes - New buyer acquisition increased by 74% year-over-year, marking the highest number of new customers in the company's history [7][23] - Active buyers rose to 1.5 million, up 16.5% year-over-year, while orders increased by 20.8% to 1.5 million [23] Market Data and Key Metrics Changes - The company noted that the closure of the de minimis loophole could lead to higher prices for fast fashion goods, potentially benefiting ThredUP [10] - Advertising markets remain dynamic, with fluctuations in spending from competitors impacting customer acquisition [11][82] Company Strategy and Development Direction - The company aims to maintain gross margin and bottom-line efficiency while reinvesting in acquiring new buyers and sellers [8] - ThredUP is focusing on AI-driven product experiences to enhance customer engagement and conversion rates [12][20] - The strategy includes expanding the seller experience to make ThredUP the default platform for selling secondhand clothing online [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite potential macroeconomic uncertainties [42] - The company is optimistic about the long-term potential of the resale market, expecting significant growth in the coming years [99] Other Important Information - The company has invested over $400 million in infrastructure and technology to support its marketplace operations [19] - The introduction of AI-generated images on product pages has shown positive results, particularly for new customers [13][14] Q&A Session Summary Question: What drove the Q2 revenue outperformance and new buyer growth? - Management highlighted a combination of improved product experience, strong operations, and high-quality supply as key drivers [36] Question: Why is the Q4 revenue guidance conservative? - Management noted seasonal trends and uncertainties in the macro environment as reasons for a cautious outlook [41] Question: What factors contributed to the gross margin outperformance? - The growth in premium supply and a focus on customer experience were cited as contributing factors [47] Question: What are the demographics of new buyers? - Management indicated that new buyers resemble previous customers, with a large addressable market for secondhand shoppers [57] Question: What are the dynamics of customer acquisition costs? - Management noted that improved conversion rates have significantly impacted customer acquisition costs, allowing for more effective spending [100]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 totaled $77.7 million, representing a 16.4% year-over-year increase [23] - Gross margin was 79.5%, a 70 basis point increase compared to the same quarter last year [23] - Adjusted EBITDA was $3 million, or 3.9% of revenue, doubling from the previous year [24] Business Line Data and Key Metrics Changes - New buyer acquisition increased by 74% year-over-year, marking the highest number of new customers in the company's history [6][23] - Active buyers rose to 1.5 million, up 16.5% year-over-year, while orders increased by 20.8% to 1.5 million [23] Market Data and Key Metrics Changes - The closure of the de minimis loophole is expected to increase prices for ultrafast fashion goods, potentially benefiting the company [8] - The company noted a dynamic advertising market, with fluctuations in spending from competitors impacting customer acquisition [9] Company Strategy and Development Direction - The company aims to maintain gross margin and bottom line efficiency while reinvesting in acquiring new buyers and sellers [7] - Ongoing innovation in AI-driven product experiences is a key focus, with improvements in customer engagement and conversion rates [10][11] - The company is expanding its seller experience to make it the default platform for selling secondhand clothing online [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive momentum and growth potential, despite caution regarding the current consumer environment [25][27] - The company is optimistic about the long-term success of its resale as a service (RAS) strategy, with renewed conversations with over 60 apparel brands [17][59] Other Important Information - The company generated $800,000 in cash during Q2, ending the quarter with $56.2 million in cash and securities [25] - The company plans to maintain profitability expectations while focusing on growth and cash generation [27] Q&A Session Summary Question: What drove the Q2 revenue outperformance and new buyer growth? - Management highlighted a combination of improved product experience, strong operations, and high-quality supply as key drivers [34][35] Question: Why is the Q4 guidance conservative? - Management noted seasonal downshifts in resale and increased marketing rates as factors influencing the conservative guidance [41] Question: What are the dynamics behind gross margin performance? - The growth in premium supply drove average selling prices, while new customer acquisition typically requires higher incentives [47] Question: What are the demographics of new buyers? - New buyers resemble previous customers, with a significant addressable market for female secondhand shoppers in the US [54] Question: What are the challenges in the AI journey? - The complexity of managing a large catalog and ensuring effective product recommendations were noted as challenges [87] Question: What is the long-term outlook for new buyer growth rates? - Management expects continued growth in the addressable market, with significant potential for acquiring new customers [89]

Financial Performance - Q2 2025 revenue reached $78 million, showing a year-over-year growth of 16%[8] - Q2 2025 gross profit was $62 million, resulting in a gross profit margin of 79%[8] - Q2 2025 Adjusted EBITDA was $3 million, representing 4% of revenue[8] - The company had $56 million in cash and $20 million in debt at the end of Q2 2025[8] User Engagement - ThredUp had 1.5 million active buyers in Q2 2025, a 17% increase year-over-year[8] - Total orders in Q2 2025 amounted to 1.5 million, reflecting a 21% year-over-year growth[8] Sustainability Impact - ThredUp's operations have saved 666 million pounds of carbon emissions[8] - The company has also contributed to saving 1.3 billion kWh of energy[8] - Water savings attributed to ThredUp's efforts amount to 7 billion gallons[8] Market Position and Strategy - The U S secondhand apparel market grew 14% in 2024, which is 5 times faster than the broader retail clothing market[38] - The U S throws away approximately 17 billion pounds of apparel that could be recycled and reused[39]

[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This report contains forward-looking statements subject to substantial risks and uncertainties that may cause actual results to differ materially from expectations - This report contains forward-looking statements subject to **substantial risks and uncertainties** that may cause actual results to differ materially from expectations[10](index=10&type=chunk)[11](index=11&type=chunk) - Forward-looking statements cover future financial performance, growth management, market competition, deployment of new technologies (e.g., AI/ML), economic trends, regulatory compliance, and the impact of the Remix divestiture[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Company Overview and Disclosure Channels](index=4&type=section&id=Company%20Overview%20and%20Disclosure%20Channels) ThredUp Inc. operates a large online resale platform for apparel, shoes, and accessories, disclosing material information through its investor relations website, SEC filings, and other public channels - ThredUp Inc. operates one of the **world's largest online resale platforms** for apparel, shoes, and accessories[14](index=14&type=chunk) - Material information is disclosed through the ThredUp Investor Relations website (ir.thredup.com), SEC filings, press releases, public conference calls, and webcasts, with social media also used for communication[16](index=16&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents ThredUp Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, financial instruments, debt, equity, and discontinued operations for the periods ended June 30, 2025, and December 31, 2024 [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's unaudited condensed consolidated balance sheets, detailing assets, liabilities, and stockholders' equity at specific reporting dates Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (vs. Dec 31, 2024) (in thousands) | | :--------------------------------- | :-------------- | :---------------- | :------------------------ | | Cash and cash equivalents | $40,969 | $31,851 | +$9,118 | | Marketable securities | $6,606 | $12,325 | -$5,719 | | Total current assets | $60,742 | $56,922 | +$3,820 | | Total assets | $173,603 | $171,225 | +$2,378 | | Total current liabilities | $63,173 | $61,524 | +$1,649 | | Total liabilities | $113,396 | $114,924 | -$1,528 | | Total stockholders' equity | $60,207 | $56,301 | +$3,906 | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's unaudited condensed consolidated statements of operations, outlining revenue, expenses, and net loss for the reported periods Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | YoY Change (%) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | YoY Change (%) | | :--------------------------------- | :--------------------------- | :--------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Revenue | $77,657 | $66,717 | **16.4%** | $148,948 | $131,250 | **13.5%** | | Gross profit | $61,736 | $52,558 | **17.5%** | $118,107 | $104,271 | **13.3%** | | Operating loss | $(5,245) | $(9,605) | **-45.3%** | $(10,679) | $(22,000) | **-51.4%** | | Net loss | $(5,176) | $(13,954) | **-62.9%** | $(10,391) | $(30,508) | **-65.9%** | | Loss from continuing operations per share, basic and diluted | $(0.04) | $(0.09) | **-55.6%** | $(0.09) | $(0.20) | **-55.0%** | [Unaudited Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents the company's unaudited condensed consolidated statements of comprehensive loss, including net loss and other comprehensive income or loss components Condensed Consolidated Statements of Comprehensive Loss Highlights (in thousands) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss | $(5,176) | $(13,954) | $(10,391) | $(30,508) | | Foreign currency translation adjustments | $0 | $(231) | $0 | $(1,095) | | Unrealized gain (loss) on available-for-sale securities | $0 | $4 | $(5) | $(2) | | Total other comprehensive loss | $0 | $(227) | $(5) | $(1,097) | | Total comprehensive loss | $(5,176) | $(14,181) | $(10,396) | $(31,605) | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section presents the company's unaudited condensed consolidated statements of stockholders' equity, detailing changes in capital, accumulated deficit, and other comprehensive income Condensed Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Metric | Balance as of Dec 31, 2024 (in thousands) | Balance as of June 30, 2025 (in thousands) | Change (in thousands) | | :--------------------------------- | :------------------------- | :------------------------ | :----- | | Class A and B common stock | $11 | $12 | +$1 | | Additional paid-in capital | $612,148 | $626,449 | +$14,301 | | Accumulated other comprehensive income (loss) | $3 | $(2) | -$5 | | Accumulated deficit | $(555,861) | $(566,252) | -$10,391 | | Total stockholders' equity | $56,301 | $60,207 | +$3,906 | - Issuance of common stock from exercise of stock options, restricted stock units, and employee stock purchase plan contributed **$6,854 thousand** to additional paid-in capital for the three months ended June 30, 2025[27](index=27&type=chunk) - Stock-based compensation added **$4,624 thousand** to additional paid-in capital for the three months ended June 30, 2025[27](index=27&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's unaudited condensed consolidated statements of cash flows, categorizing cash movements from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :----------------------------------------- | :------- | :------- | :------- | | Net cash provided by continuing operating activities | $6,087 | $253 | +$5,834 | | Net cash provided by (used in) continuing investing activities | $971 | $(4,127) | +$5,098 | | Net cash provided by (used in) continuing financing activities | $2,083 | $(2,662) | +$4,745 | | Net change in cash, cash equivalents and restricted cash from continuing operations | $9,141 | $(6,536) | +$15,677 | | Net change in cash, cash equivalents, and restricted cash | $9,141 | $(11,344) | +$20,485 | | Cash, cash equivalents, and restricted cash, end of period | $49,629 | $50,125 | -$496 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining significant accounting policies, financial instruments, debt, equity, and discontinued operations relevant to the financial statements [Note 1. Organization and Description of Business](index=10&type=section&id=Note%201.%20Organization%20and%20Description%20of%20Business) This note describes ThredUp Inc.'s formation and its primary business as an online resale platform for secondhand apparel, shoes, and accessories - ThredUp Inc. was formed in January 2009 and operates a large resale platform for primarily secondhand apparel, shoes, and accessories[31](index=31&type=chunk) [Note 2. Significant Accounting Policies](index=10&type=section&id=Note%202.%20Significant%20Accounting%20Policies) This note outlines the company's significant accounting policies, including revenue recognition, segment reporting, and the treatment of discontinued operations - The company reclassified consignment and product revenue into a single 'revenue' line item in Q1 2025, reflecting its transition to a primarily consignment model[36](index=36&type=chunk) - The European business, Remix, was divested on November 30, 2024, and is reported as a discontinued operation, with its results excluded from continuing operations for 2024 periods[37](index=37&type=chunk)[82](index=82&type=chunk) - The company operates under **one operating and reportable segment**, with the CEO reviewing financial information on a consolidated basis[42](index=42&type=chunk) Revenue from Loyalty Reward Redemptions and Expirations (in thousands) | Period | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenue from loyalty reward redemptions and expirations | $0 | $3,800 | $1,500 | $7,400 | Gift Card and Site Credit Liabilities & Revenue (in thousands) | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | 3 Months Ended June 30, 2025 (Revenue, in thousands) | 3 Months Ended June 30, 2024 (Revenue, in thousands) | 6 Months Ended June 30, 2025 (Revenue, in thousands) | 6 Months Ended June 30, 2024 (Revenue, in thousands) | | :--------------------------------- | :------------ | :----------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Gift card liabilities | $6,900 | $8,500 | N/A (not material) | $300 | N/A (not material) | $600 | | Breakage revenue (gift cards) | N/A | N/A | $1,700 | $1,300 | $3,900 | $2,600 | | Customer site credits | $4,000 | $3,800 | $12,900 | $11,400 | $23,900 | $22,100 | Seller Payable and Revenue from Redemption (in thousands) | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | 3 Months Ended June 30, 2025 (Revenue, in thousands) | 3 Months Ended June 30, 2024 (Revenue, in thousands) | 6 Months Ended June 30, 2025 (Revenue, in thousands) | 6 Months Ended June 30, 2024 (Revenue, in thousands) | | :--------------------------------- | :------------ | :----------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Seller payable | $16,300 | $15,100 | $7,400 | $6,300 | $13,500 | $11,400 | [Note 3. Financial Instruments and Fair Value Measurements](index=15&type=section&id=Note%203.%20Financial%20Instruments%20and%20Fair%20Value%20Measurements) This note details the company's financial instruments and their fair value measurements, including cash equivalents and marketable securities Assets at Fair Value (June 30, 2025, in thousands) | Asset Category | Level 1 (in thousands) | Level 2 (in thousands) | Total (in thousands) | | :----------------------- | :------ | :------ | :------ | | Money market funds | $5,020 | $0 | $5,020 | | Commercial paper | $0 | $8,814 | $8,814 | | U.S. treasury securities | $0 | $1,840 | $1,840 | | **Total cash equivalents** | **$5,020** | **$10,654** | **$15,674** | | U.S. treasury securities | $0 | $5,166 | $5,166 | | Commercial paper | $0 | $1,440 | $1,440 | | **Total marketable securities** | **$0** | **$6,606** | **$6,606** | | **Total assets at fair value** | **$5,020** | **$17,260** | **$22,280** | - As of June 30, 2025, all **$6.6 million of marketable securities** had a contractual maturity date of less than one year[59](index=59&type=chunk) [Note 4. Property and Equipment, Net](index=17&type=section&id=Note%204.%20Property%20and%20Equipment%2C%20Net) This note provides a breakdown of the company's property and equipment, net of accumulated depreciation and amortization Property and Equipment, Net (in thousands) | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :-------------- | :---------------- | | Machinery and equipment | $81,935 | $78,908 | | Leasehold improvements | $23,997 | $23,901 | | Internal-use software | $11,699 | $11,681 | | Computers and software | $7,740 | $7,396 | | Construction in progress | $6,365 | $5,583 | | Furniture and fixtures | $2,220 | $2,128 | | **Total property and equipment, at cost** | **$133,956** | **$129,598** | | Less: accumulated depreciation and amortization | $(66,302) | $(61,118) | | **Property and equipment, net** | **$67,654** | **$68,480** | - Depreciation and amortization expense was **$3.2 million** for the three months ended June 30, 2025 (down from $3.6 million in 2024) and **$6.3 million** for the six months ended June 30, 2025 (down from $7.4 million in 2024)[62](index=62&type=chunk) [Note 5. Balance Sheet Components (Accrued and other current liabilities)](index=17&type=section&id=Note%205.%20Balance%20Sheet%20Components%20%28Accrued%20and%20other%20current%20liabilities%29) This note details the components of accrued and other current liabilities on the company's balance sheet Accrued and Other Current Liabilities (in thousands) | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :-------------- | :---------------- | | Gift card and site credit liabilities | $10,868 | $12,234 | | Accrued vendor liabilities | $4,056 | $3,916 | | Allowance for returns | $3,533 | $3,052 | | Accrued compensation | $3,205 | $3,438 | | Accrued taxes | $2,711 | $2,608 | | Deferred revenue | $1,524 | $3,328 | | Accrued other | $1,037 | $1,280 | | **Total** | **$26,934** | **$29,856** | [Note 6. Long-Term Debt](index=17&type=section&id=Note%206.%20Long-Term%20Debt) This note provides information on the company's long-term debt, including the Term Loan's maturity, interest rate, and future principal payments - The Term Loan matures on **July 14, 2027**, with **$22.5 million** remaining available for equipment purchases as of June 30, 2025[65](index=65&type=chunk)[114](index=114&type=chunk) - The effective interest rate for borrowings under the Term Loan was **9.71%** as of June 30, 2025, and December 31, 2024[67](index=67&type=chunk) Term Loan Outstanding Amounts and Repayments (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Six Months Ended June 30, 2025 (Repaid, in thousands) | Six Months Ended June 30, 2024 (Repaid, in thousands) | | :--------------------------------- | :-------------- | :---------------- | :--------------------------------------- | :--------------------------------------- | | Amounts outstanding under Term Loan | $20,300 | $22,300 | $2,000 | $2,000 | Future Annual Principal Payments of Term Loan (as of June 30, 2025, in thousands) | Year | Amount (in thousands) | | :--------------------------------- | :----- | | 2025 (Remaining six months) | $2,000 | | 2026 | $4,000 | | 2027 | $14,333 | | **Total principal payments** | **$20,333** | [Note 7. Common Stock and Stockholders' Equity](index=18&type=section&id=Note%207.%20Common%20Stock%20and%20Stockholders%27%20Equity) This note details the company's common stock structure, including authorized, issued, and outstanding shares for Class A and Class B common stock - Each Class A common stock share is entitled to **one vote**, while each Class B common stock share is entitled to **ten votes** and is convertible into one Class A share[71](index=71&type=chunk) Common Stock Shares (in thousands) | Class | Authorized (June 30, 2025, in thousands) | Issued and Outstanding (June 30, 2025, in thousands) | Issued and Outstanding (Dec 31, 2024, in thousands) | | :--------------------------------- | :------------------------- | :------------------------------------- | :------------------------------------ | | Class A common stock | 1,000,000 | 102,071 | 88,061 | | Class B common stock | 120,000 | 20,977 | 28,073 | | **Total** | **1,120,000** | **123,048** | **116,134** | [Note 8. Stock-Based Compensation](index=18&type=section&id=Note%208.%20Stock-Based%20Compensation) This note provides details on the company's stock-based compensation expense, including activity for stock options and restricted stock units Stock-Based Compensation Expense (in thousands) | Line Item | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Operations, product, and technology | $2,306 | $2,821 | $4,951 | $5,334 | | Marketing | $112 | $107 | $226 | $259 | | Sales, general, and administrative | $2,082 | $3,791 | $4,843 | $8,037 | | **Total stock-based compensation expense** | **$4,500** | **$6,719** | **$10,020** | **$13,630** | Stock Options Activity (Six Months Ended June 30, 2025, in thousands) | Metric | Number of Options Outstanding (in thousands) | Weighted-Average Exercise Price Per Share | | :--------------------------------- | :---------------------------- | :-------------------------------------- | | Outstanding as of Dec 31, 2024 | 13,742 | $2.16 | | Exercised | (3,228) | $2.11 | | Forfeited or expired | (69) | $2.31 | | **Outstanding as of June 30, 2025** | **10,445** | **$2.18** | | Exercisable as of June 30, 2025 | 10,213 | $2.18 | Restricted Stock Units (RSUs) Activity (Six Months Ended June 30, 2025, in thousands) | Metric | Number of Shares (in thousands) | Weighted-Average Grant Date Fair Value Per Share | | :--------------------------------- | :--------------- | :--------------------------------------------- | | Outstanding and nonvested as of Dec 31, 2024 | 9,288 | $2.26 | | Granted | 5,128 | $2.93 | | Vested | (4,130) | $2.65 | | Forfeited | (192) | $2.31 | | **Outstanding and nonvested as of June 30, 2025** | **10,094** | **$2.44** | - Total unrecognized compensation cost related to nonvested RSUs was **$23.1 million** as of June 30, 2025, expected to be recognized over approximately two years[77](index=77&type=chunk) [Note 9. Commitments and Contingencies](index=20&type=section&id=Note%209.%20Commitments%20and%20Contingencies) This note discusses the company's commitments and contingencies, including potential litigation claims in the ordinary course of business - The company is subject to litigation claims in the ordinary course of business, but management does not believe they will have a **material adverse effect**[78](index=78&type=chunk) [Note 10. Income Taxes](index=20&type=section&id=Note%2010.%20Income%20Taxes) This note explains the company's income tax provision, noting its full valuation allowance position due to accumulated losses - The company is in a **full valuation allowance position** due to losses incurred since inception, so the provision for income taxes consists solely of certain state income taxes[80](index=80&type=chunk) [Note 11. Loss Per Share](index=20&type=section&id=Note%2011.%20Loss%20Per%20Share) This note provides information on the calculation of loss per share, including anti-dilutive participating securities Anti-Dilutive Participating Securities (in thousands) | Security Type | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :--------------------------------- | :------------ | :------------ | | Stock options | 10,445 | 16,013 | | Restricted stock units | 10,094 | 13,215 | | Employee stock purchase plan | 9 | 32 | | **Total** | **20,548** | **29,260** | [Note 12. Discontinued Operations](index=20&type=section&id=Note%2012.%20Discontinued%20Operations) This note details the financial results and impact of the company's divested European subsidiary, Remix, reported as a discontinued operation - The company completed the sale of its European subsidiary, Remix, on **November 30, 2024**, which is now reported as a discontinued operation[82](index=82&type=chunk) Remix Financial Results (Discontinued Operations, Six Months Ended June 30, 2024, in thousands) | Metric | Amount (in thousands) | | :--------------------------------- | :----- | | Revenue | $28,093 | | Cost of revenue | $20,918 | | Operating expenses | $16,180 | | Other income (expense), net | $79 | | **Loss from discontinued operations** | **$(8,926)** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on ThredUp's financial condition and results of operations for the three and six months ended June 30, 2025, highlighting revenue growth, improved profitability metrics, and changes in operating expenses, liquidity, and cash flows, all reflecting the company's focus on its core consignment model and operational efficiency [Overview](index=22&type=section&id=Overview) This overview describes ThredUp's business as a leading online resale platform and its proprietary operating platform supporting a managed marketplace and Resale-as-a-Service offering - ThredUp operates one of the **world's largest online resale platforms** for apparel, shoes, and accessories, aiming to inspire thinking secondhand first and promoting a sustainable fashion future[86](index=86&type=chunk) - The company's proprietary operating platform supports a managed marketplace and a Resale-as-a-Service (RaaS) offering for brands and retailers, making buying and selling secondhand items easy[87](index=87&type=chunk) [Recent Business Developments](index=22&type=section&id=Recent%20Business%20Developments) This section highlights the divestiture of the European business (Remix) and its reclassification as a discontinued operation, impacting historical financial reporting - The divestiture of the European business (Remix) on **November 30, 2024**, led to its reporting as a discontinued operation, with all historical discussions in this section reflecting continuing operations[88](index=88&type=chunk) [Overview of Second Quarter Results](index=23&type=section&id=Overview%20of%20Second%20Quarter%20Results) This section provides a high-level summary of the company's financial and operating performance for the second quarter, including revenue, gross profit, and key profitability metrics Second Quarter 2025 Financial Highlights (in millions, except percentages) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :--------------------------------- | :------ | :------ | :--------- | | Revenue | $77.7 | $66.7 | **+16.4%** | | Gross profit | $61.7 | $52.6 | **+17.5%** | | Gross margin | **79.5%** | 78.8% | **+70 bps** | | Loss from continuing operations | $(5.2) | $(9.4) | **-44.9%** | | Loss from continuing operations margin | **-6.7%** | -14.1% | **+740 bps** | | Non-GAAP Adjusted EBITDA from continuing operations | $3.0 | $1.5 | **+102.8%** | | Non-GAAP Adjusted EBITDA from continuing operations margin | **3.9%** | 2.2% | **+170 bps** | Second Quarter 2025 Operating Metrics (in millions, except percentages) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :--------------------------------- | :------ | :------ | :--------- | | Active Buyers | **1.5** | 1.3 | **+16.5%** | | Orders | **1.5** | 1.3 | **+20.8%** | [Key Financial and Operating Metrics](index=24&type=section&id=Key%20Financial%20and%20Operating%20Metrics) This section presents a detailed table of key financial and operating metrics, including active buyers, orders, revenue, gross margin, and Non-GAAP Adjusted EBITDA Key Financial and Operating Metrics (in thousands, except percentages) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (%) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (%) | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Active Buyers (as of period end) | 1,465 | 1,257 | **16.5%** | 1,465 | 1,257 | **16.5%** | | Orders | 1,535 | 1,271 | **20.8%** | 2,906 | 2,452 | **18.5%** | | Revenue | $77,657 | $66,717 | **16.4%** | $148,948 | $131,250 | **13.5%** | | Gross profit | $61,736 | $52,558 | **17.5%** | $118,107 | $104,271 | **13.3%** | | Gross margin | **79.5%** | 78.8% | **70 bps** | **79.3%** | 79.4% | **(10) bps** | | Loss from continuing operations | $(5,176) | $(9,392) | **(44.9)%** | $(10,391) | $(21,582) | **(51.9)%** | | Loss from continuing operations margin | **(6.7)%** | (14.1)% | **740 bps** | **(7.0)%** | (16.4)% | **940 bps** | | Non-GAAP Adjusted EBITDA from continuing operations | $3,017 | $1,488 | **102.8%** | $6,825 | $3,376 | **102.2%** | | Non-GAAP Adjusted EBITDA from continuing operations margin | **3.9%** | 2.2% | **170 bps** | **4.6%** | 2.6% | **200 bps** | - An Active Buyer is a ThredUp buyer who has made at least one purchase in the last twelve months, identified by a unique email address[95](index=95&type=chunk) - Non-GAAP Adjusted EBITDA from continuing operations is a non-GAAP measure used to evaluate operating performance, excluding stock-based compensation, depreciation, interest, taxes, gain on sale of non-marketable equity investment, and severance/reorganization costs[97](index=97&type=chunk) [Comparison of the Three and Six Months Ended June 30, 2025 and 2024](index=24&type=section&id=Comparison%20of%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section provides a detailed comparative analysis of the company's financial performance for the three and six months ended June 30, 2025, versus 2024 [Revenue](index=24&type=section&id=Revenue) This subsection analyzes revenue performance, highlighting growth drivers such as increased orders and changes in average order value Revenue Performance (in thousands, except percentages) | Period | 2025 (in thousands) | 2024 (in thousands) | Amount Change (in thousands) | % Change | | :--------------------------------- | :----- | :----- | :------------ | :------- | | 3 Months Ended June 30 | $77,657 | $66,717 | $10,940 | **16.4%** | | 6 Months Ended June 30 | $148,948 | $131,250 | $17,698 | **13.5%** | - Revenue growth for the three months was mainly driven by a **20.8% increase in Orders**, partially offset by a **2.4% decrease in average order value**[100](index=100&type=chunk) - Revenue growth for the six months was mainly driven by an **18.5% increase in Orders**, partially offset by a modest **0.7% increase in average order value**[101](index=101&type=chunk) [Gross Margin](index=25&type=section&id=Gross%20Margin) This subsection examines gross margin performance, detailing changes in cost of revenue and their impact on profitability Gross Margin Performance (in thousands, except percentages) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | | :--------------------------------- | :--------------------------- | :--------------------------- | :----- | :--------------------------- | :--------------------------- | :------- | | Cost of revenue | $15,921 | $14,159 | +12.4% | $30,841 | $26,979 | +14.3% | | Gross profit | $61,736 | $52,558 | +17.5% | $118,107 | $104,271 | +13.3% | | Gross margin | **79.5%** | 78.8% | **+70 bps** | **79.3%** | 79.4% | **(10) bps** | - The increase in gross margin for the three months was primarily driven by **lower cost of goods as a percentage of revenue**[102](index=102&type=chunk) [Operations, Product, and Technology Expenses](index=25&type=section&id=Operations%2C%20Product%2C%20and%20Technology%20Expenses) This subsection analyzes trends in operations, product, and technology expenses, including personnel-related costs and inbound shipping Operations, Product, and Technology Expenses (in thousands, except percentages) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (%) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (%) | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Expenses | $37,525 | $34,975 | **7.3%** | $72,651 | $72,100 | **0.8%** | | As a percentage of revenue | **48.3%** | 52.4% | **-410 bps** | **48.8%** | 54.9% | **-610 bps** | - Increase in expenses primarily due to a **$3.1 million** (3 months) and **$3.6 million** (6 months) increase in personnel-related costs from higher headcount at distribution centers[104](index=104&type=chunk)[105](index=105&type=chunk) - Partially offset by decreases in inbound shipping costs (**$0.9 million** for 3 months, **$1.2 million** for 6 months) and severance costs (**$1.0 million** for 6 months)[104](index=104&type=chunk)[105](index=105&type=chunk) [Marketing Expenses](index=26&type=section&id=Marketing%20Expenses) This subsection details changes in marketing expenses, primarily driven by increases in advertising and professional services costs Marketing Expenses (in thousands, except percentages) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (%) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (%) | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Expenses | $16,206 | $13,258 | **22.2%** | $29,349 | $24,109 | **21.7%** | | As a percentage of revenue | **20.9%** | 19.9% | **+100 bps** | **19.7%** | 18.4% | **+130 bps** | - Increase primarily due to a **$2.1 million** (3 months) and **$4.6 million** (6 months) increase in advertising costs[106](index=106&type=chunk)[107](index=107&type=chunk) - Also, a **$0.5 million** (3 months) and **$1.1 million** (6 months) increase in professional services[106](index=106&type=chunk)[107](index=107&type=chunk) [Sales, General and Administrative Expenses](index=26&type=section&id=Sales%2C%20General%20and%20Administrative%20Expenses) This subsection analyzes the decrease in sales, general, and administrative expenses, primarily due to lower personnel-related costs and stock-based compensation Sales, General and Administrative Expenses (in thousands, except percentages) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (%) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (%) | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Expenses | $13,250 | $13,930 | **(4.9)%** | $26,786 | $30,062 | **(10.9)%** | | As a percentage of revenue | **17.1%** | 20.9% | **-380 bps** | **18.0%** | 22.9% | **-490 bps** | - Decrease primarily due to a **$1.5 million** (3 months) and **$5.0 million** (6 months) decrease in personnel-related costs, including lower stock-based compensation and severance[108](index=108&type=chunk)[109](index=109&type=chunk) [Interest Expense](index=27&type=section&id=Interest%20Expense) This subsection discusses the decrease in interest expense, attributed to a lower interest rate environment and reduced outstanding debt balances Interest Expense (in thousands, except percentages) | Period | 2025 (in thousands) | 2024 (in thousands) | Amount Change (in thousands) | % Change | | :--------------------------------- | :----- | :----- | :------------ | :------- | | 3 Months Ended June 30 | $(496) | $(652) | $156 | **(23.9)%** | | 6 Months Ended June 30 | $(1,010) | $(1,329) | $319 | **(24.0)%** | - Decrease primarily due to a **lower interest rate environment** and **reduced outstanding debt balances**[110](index=110&type=chunk)[111](index=111&type=chunk) [Other Income, Net](index=27&type=section&id=Other%20Income%2C%20Net) This subsection examines the decrease in other income, net, primarily due to lower interest income from declining interest rates and reduced average cash balances Other Income, Net (in thousands, except percentages) | Period | 2025 (in thousands) | 2024 (in thousands) | Amount Change (in thousands) | % Change | | :--------------------------------- | :----- | :----- | :------------ | :------- | | 3 Months Ended June 30 | $596 | $871 | $(275) | **(31.6)%** | | 6 Months Ended June 30 | $1,386 | $1,764 | $(378) | **(21.4)%** | - Decrease primarily due to **lower interest income** from a decline in interest rates and a reduced average cash balance[112](index=112&type=chunk)[113](index=113&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's liquidity position, highlighting positive cash flows from operations and sufficient capital resources for future needs - The company generated **positive cash flows from continuing operations of $6.1 million** for the six months ended June 30, 2025, despite a history of negative cash flows[114](index=114&type=chunk) - As of June 30, 2025, the company had **$56.2 million in cash, cash equivalents, restricted cash, and short-term marketable securities**, with an additional **$22.5 million available** under the Term Loan[114](index=114&type=chunk) - Existing liquidity is expected to be **sufficient for at least the next 12 months and beyond**, with capital expenditures projected to remain modest for the remainder of 2025[115](index=115&type=chunk)[116](index=116&type=chunk) [Cash Flows](index=28&type=section&id=Cash%20Flows) This section provides a summary of cash flow activities, detailing changes in operating, investing, and financing cash flows for the reported periods Summary of Cash Flows (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | Amount Change (in thousands) | % Change | | :----------------------------------------- | :------- | :------- | :------------ | :--------- | | Net cash provided by (used in) continuing operating activities | $6,087 | $253 | $5,834 | **2305.9%** | | Net cash provided by (used in) continuing investing activities | $971 | $(4,127) | $5,098 | **(123.5)%** | | Net cash provided by (used in) continuing financing activities | $2,083 | $(2,662) | $4,745 | **(178.2)%** | - The **$5.8 million increase** in continuing operating cash inflows was primarily due to an **$11.2 million decrease in loss from continuing operations**[118](index=118&type=chunk) - The **$5.1 million increase** in investing cash inflows was primarily due to a **$6.1 million decrease in purchases of marketable securities** and a **$2.2 million increase in sales/maturities of marketable securities**[119](index=119&type=chunk) - The **$4.7 million increase** in financing cash inflows was primarily due to a **$13.1 million increase in proceeds from issuance of stock-based awards**, partially offset by an **$8.3 million increase in payroll taxes**[120](index=120&type=chunk) [Critical Accounting Policies and Estimates](index=29&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no material changes to the company's critical accounting policies since the previous fiscal year's report - There have been **no material changes** to the company's critical accounting policies since the 2024 10-K[122](index=122&type=chunk) [JOBS Act Accounting Election](index=29&type=section&id=JOBS%20Act%20Accounting%20Election) This section explains the company's election to use the extended transition period for new accounting standards as an 'emerging growth company' under the JOBS Act - As an 'emerging growth company' under the JOBS Act, ThredUp has elected to use the **extended transition period** for adopting new accounting standards, which may affect comparability with other public companies[123](index=123&type=chunk) [New Accounting Pronouncements](index=29&type=section&id=New%20Accounting%20Pronouncements) This section discusses the company's evaluation of new accounting pronouncements, including ASU 2024-03 and ASU 2023-09 - No accounting pronouncements were adopted during the three and six months ended June 30, 2025[38](index=38&type=chunk)[124](index=124&type=chunk) - The company is evaluating the potential impact of ASU 2024-03 (Expense Disaggregation Disclosures) and expects ASU 2023-09 (Income Tax Disclosures) to enhance disclosures[39](index=39&type=chunk)[40](index=40&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, specifically interest rate risk and inflation risk, and their potential impact on financial performance - The company is exposed to interest rate risk due to variable-rate debt (Term Loan) and investments in cash equivalents/marketable securities, but does not anticipate **material risks** from fluctuations due to the short-term nature of investments[125](index=125&type=chunk)[126](index=126&type=chunk) - Elevated inflation in the U.S. has negatively impacted gross margin and operating expenses, and could adversely affect customer purchasing ability, potentially impacting profitability if price increases cannot sufficiently offset rising costs[127](index=127&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, and reported no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were **effective** as of June 30, 2025[129](index=129&type=chunk) - There were **no material changes** in internal control over financial reporting during the quarter ended June 30, 2025[130](index=130&type=chunk) - Management acknowledges the inherent limitations of control systems, which can only provide reasonable, not absolute, assurance against errors and fraud[131](index=131&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any material pending legal proceedings, though it may be subject to ordinary course claims from time to time - The company is **not a party to any material pending legal proceedings**[134](index=134&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, for a discussion of risk factors, stating that there have been no material changes to these risks - **No material changes** to the risk factors previously disclosed in the Fiscal 2024 10-K[135](index=135&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item states that there were no unregistered sales of equity securities or use of proceeds to report - **No unregistered sales of equity securities or use of proceeds** to report[136](index=136&type=chunk) [Item 3. Defaults Upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item indicates that there were no defaults upon senior securities - **No defaults upon senior securities**[136](index=136&type=chunk) [Item 4. Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item states that mine safety disclosures are not applicable to the company - Mine safety disclosures are **not applicable**[137](index=137&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) This item discloses that Chris Homer, Chief Operating Officer, adopted a Rule 10b5-1 trading arrangement on June 13, 2025, for the sale of up to 510,000 shares of Class A common stock until September 17, 2026, with no other such arrangements adopted, modified, or terminated by directors or officers during the quarter - Chris Homer, COO, adopted a Rule 10b5-1 trading arrangement on **June 13, 2025**, to sell up to **510,000 shares of Class A common stock** by September 17, 2026[138](index=138&type=chunk) - No other Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the three months ended June 30, 2025[138](index=138&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including corporate governance documents, equity-related agreements, and various certifications and XBRL documents - The exhibit index includes corporate governance documents (Restated Certificate of Incorporation, Amended and Restated Bylaws), equity-related agreements (Form of Class A common stock certificate, Investors' Rights Agreement), and various certifications (CEO/CFO certifications under Sections 302 and 906 of Sarbanes-Oxley Act) and XBRL documents[142](index=142&type=chunk) [Signatures](index=33&type=section&id=Signatures) This section confirms the report's official signing by the Chief Financial Officer on behalf of ThredUp Inc. on August 4, 2025 - The report is signed by **Sean Sobers, Chief Financial Officer** (Principal Financial and Accounting Officer), on behalf of ThredUp Inc. on **August 4, 2025**[146](index=146&type=chunk)

[Key Highlights & Outlook](index=1&type=section&id=Key%20Highlights%20%26%20Outlook) ThredUp's Q2 2025 performance shows strong growth and improved profitability, with a positive financial outlook for the remainder of fiscal year 2025 [Key Financial Metrics for Q2 2025](index=1&type=section&id=Key%20Financial%20Metrics%20for%20the%20Quarter) ThredUp achieved significant Q2 2025 growth with revenue up 16.4% to $77.7 million, improved profitability, and increased active buyers and orders Q2 2025 Key Financial Metrics (YoY Comparison) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | | :---------------------------------------------- | :--------------------- | :--------------------- | :------------- | | Revenue | 77.7 | 66.7 | +16.4 | | Gross profit | 61.7 | 52.6 | +17.5 | | Gross margin (%) | 79.5 | 78.8 | +0.7 pp | | Loss from continuing operations | 5.2 | 9.4 | -44.8 | | Adjusted EBITDA from continuing operations | 3.0 | 1.5 | +100.0 | | Adjusted EBITDA from continuing operations margin (%) | 3.9 | 2.2 | +1.7 pp | | Cash, cash equivalents, restricted cash and short-term marketable securities (at quarter end) | 56.2 | N/A | N/A | Q2 2025 Key Operational Metrics (YoY Comparison) | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | YoY Change (%) | | :------------ | :------------------ | :------------------ | :------------- | | Active Buyers | 1,465 | 1,257 | +16.5 | | Orders | 1,535 | 1,271 | +20.8 | [Financial Outlook](index=1&type=section&id=Financial%20Outlook) ThredUp projects continued revenue growth and positive Adjusted EBITDA margins for Q3, Q4, and the full fiscal year 2025 [Third Quarter 2025 Outlook](index=1&type=section&id=Third%20Quarter%202025%20Outlook) ThredUp forecasts Q3 2025 revenue between $76.0 million and $78.0 million with an Adjusted EBITDA margin of approximately 4.5% Q3 2025 Financial Outlook | Metric | Q3 2025 Expectation | | :-------------------------- | :------------------ | | Revenue (Millions USD) | $76.0 to $78.0 | | Gross margin (%) | 77.0 to 79.0 | | Adjusted EBITDA margin (%) | Approximately 4.5 | | Depreciation and amortization (Millions USD) | Approximately 3.2 | | Stock-based compensation (Millions USD) | Approximately 4.2 | | Weighted-average shares (Millions) | Approximately 125 | [Fourth Quarter 2025 Outlook](index=1&type=section&id=Fourth%20Quarter%202025%20Outlook) ThredUp anticipates Q4 2025 revenue between $73.0 million and $75.0 million, targeting an Adjusted EBITDA margin of approximately 3.0% Q4 2025 Financial Outlook | Metric | Q4 2025 Expectation | | :-------------------------- | :------------------ | | Revenue (Millions USD) | $73.0 to $75.0 | | Gross margin (%) | 77.0 to 79.0 | | Adjusted EBITDA margin (%) | Approximately 3.0 | | Depreciation and amortization (Millions USD) | Approximately 3.2 | | Stock-based compensation (Millions USD) | Approximately 3.6 | | Weighted-average shares (Millions) | Approximately 129 | [Fiscal Year 2025 Outlook](index=1&type=section&id=Fiscal%20Year%202025%20Outlook) ThredUp expects full fiscal year 2025 revenue between $298.0 million and $302.0 million, with an Adjusted EBITDA margin of approximately 4.2% FY 2025 Financial Outlook | Metric | FY 2025 Expectation | | :-------------------------- | :------------------ | | Revenue (Millions USD) | $298.0 to $302.0 | | Gross margin (%) | 78.0 to 79.0 | | Adjusted EBITDA margin (%) | Approximately 4.2 | | Depreciation and amortization (Millions USD) | Approximately 12.6 | | Stock-based compensation (Millions USD) | Approximately 17.8 | | Weighted-average shares (Millions) | Approximately 123 | [Conference Call and Webcast Information](index=2&type=section&id=Conference%20Call%20and%20Webcast) Information regarding the live and archived webcast of ThredUp's conference call and related earnings materials is available on the company's investor relations website - The live and archived webcast and all related earnings materials are available at ThredUp's investor relations website: ir.thredup.com/news-events/events-and-presentations[5](index=5&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents ThredUp's condensed consolidated statements of operations, balance sheets, and cash flows, along with non-GAAP reconciliations [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements of operations reveal ThredUp's quarterly financial performance, showing consistent revenue growth and improving profitability trends Key Operating Results (in thousands) | Metric | June 30, 2025 (Thousands USD) | March 31, 2025 (Thousands USD) | Dec 31, 2024 (Thousands USD) | Sept 30, 2024 (Thousands USD) | June 30, 2024 (Thousands USD) | | :--------------------------- | :------------------------------ | :----------------------------- | :--------------------------- | :---------------------------- | :---------------------------- | | Revenue | 77,657 | 71,291 | 67,267 | 61,514 | 66,717 | | Cost of revenue | 15,921 | 14,920 | 13,167 | 12,760 | 14,159 | | Gross profit | 61,736 | 56,371 | 54,100 | 48,754 | 52,558 | | Gross margin (%) | 79.5 | 79.1 | 80.4 | 79.3 | 78.8 | | Total operating expenses | 66,981 | 61,805 | 62,255 | 59,218 | 62,163 | | Operating loss | (5,245) | (5,434) | (8,155) | (10,464) | (9,605) | | Loss from continuing operations | (5,176) | (5,215) | (8,059) | (10,358) | (9,392) | | Net loss | (5,176) | (5,215) | (21,707) | (24,771) | (13,954) | [Reconciliation of Non-GAAP Financial Measures](index=4&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section details reconciliations of GAAP to non-GAAP financial measures, providing insights into underlying operational performance by adjusting for specific expenses [Reconciliation of Loss from Continuing Operations to Adjusted EBITDA (Loss)](index=4&type=section&id=Reconciliation%20of%20Loss%20from%20Continuing%20Operations%20to%20Adjusted%20EBITDA%20(Loss)) This reconciliation details the adjustments from loss from continuing operations to arrive at Adjusted EBITDA, highlighting non-cash and non-recurring items Adjusted EBITDA Reconciliation (in thousands) | Metric | June 30, 2025 (Thousands USD) | March 31, 2025 (Thousands USD) | Dec 31, 2024 (Thousands USD) | Sept 30, 2024 (Thousands USD) | June 30, 2024 (Thousands USD) | | :----------------------------------- | :------------------------------ | :----------------------------- | :--------------------------- | :---------------------------- | :---------------------------- | | Loss from continuing operations | (5,176) | (5,215) | (8,059) | (10,358) | (9,392) | | Stock-based compensation expense | 4,500 | 5,520 | 6,055 | 6,162 | 6,719 | | Depreciation and amortization | 3,166 | 3,169 | 6,432 | 3,526 | 3,622 | | Interest expense | 496 | 514 | 567 | 629 | 652 | | Provision (benefit) for income taxes | 31 | 57 | 8 | 4 | 6 | | Gain on sale of non-marketable equity investment | — | (234) | — | — | — | | Severance and other reorganization costs | — | (3) | (14) | 351 | (119) | | **Adjusted EBITDA** | **3,017** | **3,808** | **4,989** | **314** | **1,488** | | Adjusted EBITDA margin (%) | 3.9 | 5.3 | 7.4 | 0.5 | 2.2 | [Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses](index=5&type=section&id=Reconciliation%20of%20GAAP%20Operating%20Expenses%20to%20Non-GAAP%20Operating%20Expenses) This reconciliation adjusts total GAAP operating expenses to non-GAAP operating expenses by excluding stock-based compensation and reorganization costs Non-GAAP Operating Expenses Reconciliation (in thousands) | Metric | June 30, 2025 (Thousands USD) | March 31, 2025 (Thousands USD) | Dec 31, 2024 (Thousands USD) | Sept 30, 2024 (Thousands USD) | June 30, 2024 (Thousands USD) | | :----------------------------------- | :------------------------------ | :----------------------------- | :--------------------------- | :---------------------------- | :---------------------------- | | Total operating expenses | 66,981 | 61,805 | 62,255 | 59,218 | 62,163 | | Less: Stock-based compensation expense | (4,500) | (5,520) | (6,055) | (6,162) | (6,719) | | Less: Severance and other reorganization costs | — | (3) | (14) | (351) | 119 | | **Total non-GAAP operating expenses**| **62,481** | **56,288** | **56,214** | **52,705** | **55,563** | | Non-GAAP operating expenses % of revenue (%) | 80.5 | 79.0 | 83.6 | 85.7 | 83.3 | [Stock-Based Compensation Expense Details](index=5&type=section&id=Stock-Based%20Compensation%20Expense%20Details) This section provides a detailed breakdown of stock-based compensation expenses across various operational categories Stock-Based Compensation Expense by Category (in thousands) | Category | June 30, 2025 (Thousands USD) | March 31, 2025 (Thousands USD) | Dec 31, 2024 (Thousands USD) | Sept 30, 2024 (Thousands USD) | June 30, 2024 (Thousands USD) | | :--------------------------------- | :------------------------------ | :----------------------------- | :--------------------------- | :---------------------------- | :---------------------------- | | Operations, product, and technology | 2,306 | 2,645 | 3,002 | 3,046 | 2,821 | | Marketing | 112 | 114 | 116 | 112 | 107 | | Sales, general, and administrative | 2,082 | 2,761 | 2,937 | 3,004 | 3,791 | | **Total stock-based compensation expense** | **4,500** | **5,520** | **6,055** | **6,162** | **6,719** | [Severance and Other Reorganization Costs Details](index=6&type=section&id=Severance%20and%20Other%20Reorganization%20Costs%20Details) This section details severance and other reorganization costs categorized by operational area Severance and Other Reorganization Costs by Category (in thousands) | Category | June 30, 2025 (Thousands USD) | March 31, 2025 (Thousands USD) | Dec 31, 2024 (Thousands USD) | Sept 30, 2024 (Thousands USD) | June 30, 2024 (Thousands USD) | | :--------------------------------- | :------------------------------ | :----------------------------- | :--------------------------- | :---------------------------- | :---------------------------- | | Operations, product, and technology | — | — | — | — | (94) | | Marketing | — | — | — | — | — | | Sales, general, and administrative | — | (3) | (14) | 351 | (25) | | **Total severance and other reorganization costs** | **—** | **(3)** | **(14)** | **351** | **(119)** | [Active Buyers and Orders](index=4&type=section&id=Active%20Buyers%20and%20Orders) ThredUp showed strong Q2 2025 customer engagement with Active Buyers increasing 16.5% and Orders growing 20.8% year-over-year Active Buyers and Orders (in thousands) | Metric | June 30, 2025 (Thousands) | March 31, 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sept 30, 2024 (Thousands) | June 30, 2024 (Thousands) | | :------------ | :------------------------ | :------------------------- | :----------------------- | :------------------------ | :------------------------ | | Active Buyers | 1,465 | 1,370 | 1,274 | 1,248 | 1,257 | | Orders | 1,535 | 1,371 | 1,226 | 1,172 | 1,271 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) ThredUp's Q2 2025 balance sheet reflects a slight increase in total assets and stockholders' equity, with stable current assets and decreased total liabilities Key Balance Sheet Items (in thousands) | Metric | June 30, 2025 (Thousands USD) | March 31, 2025 (Thousands USD) | Dec 31, 2024 (Thousands USD) | Sept 30, 2024 (Thousands USD) | | :--------------------------- | :------------------------------ | :----------------------------- | :--------------------------- | :---------------------------- | | Cash and cash equivalents | 40,969 | 41,057 | 31,851 | 40,197 | | Total current assets | 60,742 | 60,460 | 56,922 | 73,365 | | Total assets | 173,603 | 172,500 | 171,225 | 214,944 | | Total current liabilities | 63,173 | 65,605 | 61,524 | 76,403 | | Total liabilities | 113,396 | 116,417 | 114,924 | 145,672 | | Total stockholders' equity | 60,207 | 56,083 | 56,301 | 69,272 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) ThredUp's Q2 2025 cash flow shows positive operating activities, significant investing outflows, and financing inflows, resulting in a minor net cash decrease Cash Flows from Continuing Operations (in thousands) | Cash Flow Activity | June 30, 2025 (Thousands USD) | March 31, 2025 (Thousands USD) | Dec 31, 2024 (Thousands USD) | Sept 30, 2024 (Thousands USD) | | :----------------------------------------------- | :------------------------------ | :----------------------------- | :--------------------------- | :---------------------------- | | Net cash provided by continuing operating activities | 344 | 5,743 | 663 | 3,987 | | Net cash provided by (used in) continuing investing activities | (4,104) | 5,075 | (3,066) | (3,067) | | Net cash provided by (used in) continuing financing activities | 3,672 | (1,589) | (467) | (1,263) | | Net change in cash, cash equivalents and restricted cash from continuing operations | (88) | 9,229 | (2,870) | (343) | | Cash, cash equivalents, and restricted cash, end of period | 49,629 | 49,717 | 40,488 | 48,997 | [Reconciliation of Non-GAAP Free Cash Flow from Continuing Operations](index=9&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20By%20(Used%20In)%20Operating%20Activities%20to%20Non-GAAP%20Free%20Cash%20Flow%20from%20Continuing%20Operations) In Q2 2025, ThredUp reported a non-GAAP free cash flow from continuing operations of $(2.94) million, primarily due to significant purchases of property and equipment exceeding the net cash provided by continuing operating activities Non-GAAP Free Cash Flow Reconciliation (in thousands) | Metric | June 30, 2025 (Thousands USD) | March 31, 2025 (Thousands USD) | Dec 31, 2024 (Thousands USD) | Sept 30, 2024 (Thousands USD) | | :------------------------------------------------------------------------ | :------------------------------ | :----------------------------- | :--------------------------- | :---------------------------- | | Net cash provided by continuing operating activities | 344 | 5,743 | 663 | 3,987 | | Less: Purchases of property and equipment | (3,279) | (1,815) | (2,463) | (2,147) | | **Non-GAAP free cash flow from continuing operations** | **(2,935)** | **3,928** | **(1,800)** | **1,840** | [Additional Information and Disclosures](index=10&type=section&id=Additional%20Information%20and%20Disclosures) This section provides background on ThredUp, clarifies forward-looking statements, and defines non-GAAP financial measures and key operating metrics [About ThredUp](index=10&type=section&id=About%20ThredUp) ThredUp is a leading online resale platform utilizing technology to promote secondhand fashion through its managed marketplace and Resale-as-a-Service model - ThredUp is transforming resale with technology and a mission to inspire the world to think secondhand first[15](index=15&type=chunk) - The company operates one of the world's largest online resale platforms for apparel, shoes, and accessories, making it easy to buy and sell secondhand items[15](index=15&type=chunk) - ThredUp's proprietary operating platform supports its managed marketplace and Resale-as-a-Service (RaaS) model, enabling brands and retailers to offer customizable resale experiences[15](index=15&type=chunk) - ThredUp has processed over **200 million** unique secondhand items from **60,000** brands across **100** categories, contributing to a more sustainable future for the fashion industry[15](index=15&type=chunk) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This section details the inherent risks and uncertainties of forward-looking statements, including financial guidance and strategic investments, directing investors to SEC filings for comprehensive risk factors - Forward-looking statements in this supplement relate to future events, financial or operating performance, and involve substantial risks and uncertainties[16](index=16&type=chunk) - These statements include guidance on financial results for Q3, Q4, and FY 2025, future operating results, capital expenditures, AI technology investments, RaaS model expansion, and active buyer acquisition[16](index=16&type=chunk) - Investors are advised to review the Company's SEC filings, including Form 10-K and 10-Q, for more information on risks and factors affecting the business[17](index=17&type=chunk)[18](index=18&type=chunk) [Non-GAAP Financial Measures and Other Operating and Business Metrics](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Other%20Operating%20and%20Business%20Metrics) This section defines non-GAAP financial measures and key operating metrics, explaining their utility for performance evaluation and the absence of forward-looking reconciliations - Non-GAAP financial measures (**Adjusted EBITDA**, **Adjusted EBITDA margin**, **Non-GAAP operating expenses**, **Non-GAAP free cash flow**) are used to evaluate operating performance and provide consistency and comparability with past financial performance and other companies[19](index=19&type=chunk) - **Adjusted EBITDA** from continuing operations excludes stock-based compensation, depreciation and amortization, interest expense, income taxes, gain on sale of non-marketable equity investment, and severance/reorganization costs[20](index=20&type=chunk) - ThredUp does not provide a quantitative reconciliation of forward-looking non-GAAP guidance due to the unpredictable nature of certain items[23](index=23&type=chunk) - An **Active Buyer** is defined as a ThredUp buyer who has made at least one purchase in the last twelve months, identified by a unique email address[24](index=24&type=chunk) - **Orders** are defined as the total number of orders placed by buyers across marketplaces, net of cancellations[24](index=24&type=chunk)

Core Insights - ThredUp Inc. reported strong second quarter performance driven by significant customer and order growth, with a notable increase in new buyer acquisition [3][4] - The company raised its full year 2025 financial outlook, expecting record revenue and improved adjusted EBITDA margins [4][5] Financial Highlights - Revenue for Q2 2025 reached $77.7 million, a 16% increase year-over-year [5] - Gross profit was $61.7 million, reflecting a 17% year-over-year increase, with a gross margin of 79.5% compared to 78.8% in Q2 2024 [5] - Active buyers increased to 1.47 million, a 17% growth year-over-year, with new buyer growth at 74%, marking the best quarter for new buyer acquisition in ThredUp's history [4][5] Financial Outlook - For Q3 2025, ThredUp anticipates revenue between $76.0 million and $78.0 million, representing a 25% year-over-year increase at the midpoint [5] - The company expects a gross margin between 77.0% and 79.0% and an adjusted EBITDA margin of approximately 4.5% for Q3 2025 [5] - For the full fiscal year 2025, revenue is projected to be between $298.0 million and $302.0 million, a 15% year-over-year increase at the midpoint [5] Operational Metrics - ThredUp recorded 1.54 million orders in Q2 2025, a 21% increase year-over-year [5] - The company ended the quarter with cash and cash equivalents, restricted cash, and marketable securities totaling $56.2 million, up $0.8 million from the previous quarter [4][5] Balance Sheet Overview - As of June 30, 2025, total assets were $173.6 million, with total liabilities at $113.4 million, resulting in stockholders' equity of $60.2 million [10][11] - Current assets included cash and cash equivalents of $40.97 million and marketable securities of $6.61 million [10] Cash Flow Insights - For the first half of 2025, net cash provided by continuing operating activities was $6.1 million, compared to $0.25 million in the same period of 2024 [17][21] - Non-GAAP free cash flow from continuing operations for the first half of 2025 was $993,000, a significant improvement from a negative $1.72 million in the prior year [21] Business Model and Strategy - ThredUp is focused on transforming the resale market through technology, aiming to inspire consumers to consider secondhand options first [22][23] - The company has processed over 200 million unique secondhand items, emphasizing sustainability in the fashion industry [23]

Company Overview - ThredUp is one of the largest online resale platforms for apparel, shoes, and accessories, transforming resale with technology and a mission to inspire the world to think secondhand first [3] - The company has processed over 200 million unique secondhand items from 60,000 brands across 100 categories, promoting a more sustainable future for the fashion industry [3] Financial Results Announcement - ThredUp will release its financial results for the second quarter ended June 30, 2025, on August 4, 2025, after the close of U.S. markets [1] - A conference call and live webcast will be held on the same day at 1:30 p.m. PT / 4:30 p.m. ET [1] Investor Relations - Live and archived webcasts, along with all related earnings materials, will be available on ThredUp's investor relations website [2]

Core Viewpoint - Purcell & Lefkowitz LLP is investigating ThredUp Inc. to determine if its directors breached fiduciary duties related to recent corporate actions [1] Group 1 - The investigation is on behalf of ThredUp Inc.'s shareholders [1] - Shareholders interested in their rights and options can contact Purcell & Lefkowitz LLP for more information [1] - The law firm specializes in representing shareholders affected by securities fraud and corporate misconduct [2]