ThredUp Announces Second Quarter 2025 Results

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]