ThredUp(TDUP) - 2025 Q2 - Quarterly Results

Key Highlights & Outlook 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 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 ThredUp projects continued revenue growth and positive Adjusted EBITDA margins for Q3, Q4, and the full fiscal year 2025 Third Quarter 2025 Outlook 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 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 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 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] Consolidated Financial Statements 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 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 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) 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 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 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 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 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 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 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 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 This section provides background on ThredUp, clarifies forward-looking statements, and defines non-GAAP financial measures and key operating metrics About ThredUp 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] - 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] - 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] - 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] Forward-Looking Statements 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] - 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] - 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][18] Non-GAAP Financial Measures and Other Operating and Business Metrics 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] - 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] - ThredUp does not provide a quantitative reconciliation of forward-looking non-GAAP guidance due to the unpredictable nature of certain items[23] - 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] - Orders are defined as the total number of orders placed by buyers across marketplaces, net of cancellations[24]