ThredUp Q4 Earnings In Line With Estimates, Revenues Up 18% Y/Y

Core Insights - ThredUp Inc. (TDUP) reported a year-over-year increase in both revenue and earnings for the fourth quarter of 2025, with earnings meeting the Zacks Consensus Estimate and revenues exceeding it [1] Quarterly Performance: Key Metrics & Insights - The company reported a quarterly loss of 4 cents per share, which improved by 42.9% year over year from a loss of 7 cents per share in the previous year [2] - Quarterly revenues reached $79.7 million, reflecting an 18.5% increase from $67.3 million a year ago, surpassing the Zacks Consensus Estimate of $79.6 million [3] - The number of active buyers increased to a record 1.65 million, up 29.5% year over year, exceeding the Zacks Consensus Estimate of 1.5 million [3] Order and Customer Engagement - The company processed 1.56 million orders in the fourth quarter, marking a 27.3% increase year over year and surpassing the Zacks Consensus Estimate of 1.36 million [4] Margin & Cost Performance - Adjusted gross profit rose by 17.3% to $63.4 million from $54.1 million in the prior year, driven by higher average selling prices [5] - Adjusted gross margin declined by 80 basis points to 79.6% from 80.4% [5] - Adjusted SG&A expenses increased by 8.5% year over year to $15 million from $13.8 million [5] Financial Health Snapshot - The company ended the year with $53.1 million in cash and securities, achieving its first full year of positive free cash flow [7] - Capital expenditures for the year totaled $10.5 million, indicating a balance between growth investments and positive cash flow generation [7] Future Expectations - For the first quarter of 2026, TDUP expects revenues between $79.5 million and $80.5 million, representing a 12% year-over-year growth at the midpoint [11] - For the full year 2026, the company anticipates revenues ranging from $349 million to $355 million, reflecting a 13% year-over-year growth at the midpoint [12] - Gross margin is projected to remain between 78.0% and 79.0%, with an adjusted EBITDA margin of about 6.0% for 2026 [12]