ThredUp(TDUP) - 2025 Q4 - Annual Results

Financial Performance - Revenue for Q4 2025 was $79.7 million, an increase of 18.5% YoY compared to $67.3 million in Q4 2024[5] - Gross profit for Q4 2025 was $63.4 million, reflecting a 17.3% YoY increase from $54.1 million in Q4 2024[5] - For FY 2025, revenue was $310.8 million, a 19.5% increase from $260.0 million in FY 2024[5] - Gross margin for FY 2025 was 79.4%, slightly down from 79.7% in FY 2024[5] - The company expects Q1 2026 revenue to be in the range of $79.5 million to $80.5 million[6] - For FY 2026, revenue is projected to be between $349.0 million and $355.0 million[6] Operational Metrics - Total Active Buyers reached 1,650 thousand in Q4 2025, up 29.5% YoY from 1,274 thousand in Q4 2024[5] - Adjusted EBITDA from continuing operations for Q4 2025 was $2.9 million, down from $5.0 million in Q4 2024[5] - Loss from continuing operations for FY 2025 was $20.2 million, improved from a loss of $40.0 million in FY 2024[5] - Active buyers decreased to 1,248,000 in the three months ended September 30, 2024, down from 1,257,000 in the previous quarter[8] - The company expects active buyers to increase to 1,370,000 by March 31, 2025, and further to 1,650,000 by December 31, 2025[8] Expenses and Cash Flow - Total operating expenses for the three months ended March 31, 2024, were $64,108,000, with non-GAAP operating expenses at $54,466,000, representing 84.4% of revenue[9] - Stock-based compensation expense was $6,911,000 for the three months ended March 31, 2024[9] - Severance and other reorganization costs amounted to $2,731,000 for the three months ended March 31, 2024[10] - The company anticipates total operating expenses to rise to $70,113,000 by December 31, 2025[9] - Non-GAAP free cash flow from continuing operations was $(3,190) thousand for the three months ended December 31, 2025, compared to $2,377 thousand in March 2025, representing a significant decline[13] Market Presence and Strategy - The company processed over 200 million unique secondhand items from 60,000 brands, highlighting its significant market presence in the online resale sector[14] - ThredUp aims to enhance its Resale-as-a-Service (RaaS) model, focusing on expanding partnerships with leading brands and retailers to deliver customizable resale experiences[15] - The company plans to invest in technology and infrastructure, including AI technologies, to improve operational efficiency and customer engagement[15] - Future guidance includes expectations for improved free cash flow and operating results, with a focus on attracting new active buyers through innovative shopping experiences[15] Financial Position - Total current assets for ThredUp Inc. decreased to $56,676 thousand by December 31, 2025, down from $60,501 thousand in September 2025, reflecting a decline of approximately 6.1%[11] - The company reported a loss from continuing operations of $5,575 thousand for the three months ended December 31, 2025, compared to a loss of $4,248 thousand in September 2025, indicating a worsening of approximately 31.2%[12] - Cash and cash equivalents at the end of the period were $43,577 thousand, down from $51,253 thousand at the end of September 2025, a decrease of approximately 15%[12] - Total liabilities increased to $116,417 thousand by March 31, 2025, up from $113,397 thousand in September 2025, marking an increase of about 2.8%[11] - ThredUp's accumulated deficit reached $(576,075) thousand by December 31, 2025, reflecting ongoing challenges in achieving profitability[11] Non-GAAP Measures - ThredUp calculates Non-GAAP Adjusted EBITDA from continuing operations as Loss from continuing operations adjusted for various expenses, including stock-based compensation and depreciation[19] - Non-GAAP operating expenses exclude stock-based compensation and severance costs, providing a clearer view of operational efficiency[20] - Non-GAAP free cash flow from continuing operations is calculated as Net cash provided by operating activities minus Purchases of property and equipment[21] - ThredUp does not provide a quantitative reconciliation for forward-looking guidance of non-GAAP measures due to uncertainties beyond its control[23] Customer Engagement - An Active Buyer is defined as a customer who has made at least one purchase in the last twelve months, highlighting customer engagement[24] - Total orders placed by buyers across ThredUp's marketplaces are net of cancellations, indicating the volume of transactions[24]