ThredUp(US:TDUP)2025-11-03 21:16Revenue and Profitability - Revenue for Q3 2025 totaled $82.2 million, a 33.6% increase from $61.5 million in Q3 2024[89] - Gross profit for Q3 2025 was $65.2 million, up 33.8% year over year from $48.8 million in Q3 2024, with a gross margin of 79.4%[89] - Revenue for the nine months ended September 30, 2025, was $231.1 million, a 19.9% increase from $192.8 million in the same period of 2024[100] - Non-GAAP Adjusted EBITDA from continuing operations was $3.8 million, a significant increase of 1101.3% year over year from $0.3 million in Q3 2024[91] - Gross margin for the three months ended September 30, 2025, was 79.4%, a slight increase of 10 basis points from 79.3% in the same period in 2024[101] Operational Performance - Loss from continuing operations decreased to $4.2 million in Q3 2025, representing a 59.0% improvement compared to a loss of $10.4 million in Q3 2024[90] - Active Buyers reached 1.568 million in Q3 2025, a 25.6% increase from 1.248 million in Q3 2024[91] - Total Orders in Q3 2025 were 1.608 million, reflecting a 37.2% increase from 1.172 million in Q3 2024[91] - The average order value decreased by 4.2% in Q3 2025, attributed to a higher mix of orders from new buyers[99] Expenses and Costs - Operations, product, and technology expenses increased by $5.2 million, or 15.8%, for the three months ended September 30, 2025, primarily due to a $3.0 million increase in personnel-related costs[102] - Marketing expenses increased by $3.3 million, or 25.4%, for the three months ended September 30, 2025, primarily due to a $3.4 million increase in advertising costs[104] - Sales, general, and administrative expenses increased by $1.9 million, or 14.3%, for the three months ended September 30, 2025, mainly due to a $0.8 million increase in payment processing fees[106] Cash Flow and Liquidity - The company generated positive cash flows from continuing operations of $12.1 million for the nine months ended September 30, 2025[112] - As of September 30, 2025, the company had cash, cash equivalents, restricted cash, and short-term marketable securities totaling $56.1 million[112] - Net cash provided by continuing operating activities increased to $12.1 million for the nine months ended September 30, 2025, up 185.7% from $4.2 million in the same period of 2024[116] - Net cash used in continuing investing activities decreased to $0.9 million for the nine months ended September 30, 2025, compared to $7.2 million in the same period of 2024, reflecting a $6.3 million increase in cash inflows[117] - Net cash used in continuing financing activities was $0.4 million for the nine months ended September 30, 2025, down from $3.9 million in the same period of 2024, indicating a $3.5 million increase in cash inflows[118] - As of September 30, 2025, the company had non-restricted cash and cash equivalents of $46.2 million and marketable securities of $4.9 million, indicating a strong liquidity position[123] Strategic Initiatives and Future Outlook - The company’s Resale-as-a-Service (RaaS) offering is expected to accelerate growth in the resale category and enhance overall supply strategy[86] - The company expects operating losses to continue in 2025 as it invests in growing its business and infrastructure[113] - Future capital requirements will depend on factors including distribution center automation and expansion plans to support revenue growth[114] Risks and Accounting - The company is exposed to inflation risk, which has negatively impacted gross margin and operating expenses, potentially affecting revenue and order growth[125] - The Term Loan carries variable interest rates tied to the prime rate, with a floor of 4.75%, indicating exposure to interest rate risk[124] - The company has not made material changes to its critical accounting policies since the 2024 10-K, ensuring consistency in financial reporting[120]