ThredUp Earnings Call Transcripts
Fiscal Year 2026
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The company has built a defensible, AI-driven resale marketplace with strong infrastructure, improving profitability and expanding offerings for sellers. Industry trends favor continued growth, with technology and agentic commerce expected to drive future innovation and customer engagement.
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Revenue grew 14.6% year-over-year to $81.7M in Q1 2026, with active buyers up 25% and gross margin at 79.2%. Despite macro headwinds lowering ASPs and conversion rates, guidance for 2026 remains strong, with continued investment in AI, supply, and marketing.
Fiscal Year 2025
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Q4 and full-year 2025 saw strong revenue growth, record gross margins, and positive free cash flow, driven by U.S.-focused operations, premium supply, and AI innovation. 2026 guidance calls for continued double-digit growth and margin expansion, despite macro uncertainty.
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Q3 delivered 34% revenue growth, record new customer acquisition, and strong margin expansion, driven by AI-powered product innovation and a successful rebrand. Guidance for 2025 was raised, with continued investment in growth and new supply vectors like peer-to-peer selling.
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Accelerated growth followed a strategic exit from Europe, with U.S. operations now cash flow positive and new customer acquisition surging. AI-driven product innovation and a premium selling kit have improved both buyer and seller experiences, while financial discipline supports ongoing expansion and strong free cash flow.
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Q2 2025 saw 16.4% revenue growth, record new buyer acquisition, and strong gross margin, driven by AI-led product improvements and operational investments. Full-year guidance was raised, with continued focus on growth, cash generation, and marketplace innovation.
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A managed online resale marketplace has accelerated growth after divesting its European business, reinvesting $25 million into US operations and AI-driven product enhancements. Contribution margins have risen to the low 40s, and new customer acquisition hit record highs in Q1 2024, with further growth expected as capacity and technology scale.
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Q1 saw record revenue, margins, and customer growth, driven by AI-powered improvements in search and personalization. The second-hand market is expected to grow strongly, with industry consolidation likely and technology as a key differentiator.
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Double-digit revenue growth and record new buyer acquisition drove strong Q1 results, with improved margins and cash flow. Raised full-year guidance reflects continued momentum, supported by AI-driven product innovation and favorable market shifts.
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Exited Europe to focus on U.S. growth, achieving 9% Q4 revenue growth and 80% gross margins. AI-driven innovation and premium consignment services improved supply quality and operational efficiency. 2025 priorities include margin expansion, customer acquisition, and scaling Resale-as-a-Service.
Fiscal Year 2024
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Delivered first full year of adjusted EBITDA profitability in 2024, with Q4 revenue up 9.5% year-over-year and strong new customer growth. 2025 guidance targets 6% revenue growth, stable margins, and positive free cash flow, supported by AI-driven marketplace enhancements and disciplined capital allocation.
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Q3 results exceeded expectations, prompting raised guidance for Q4 and 2024. U.S. gross margin and Adjusted EBITDA improved, with strong cash flow and new AI-driven features boosting customer experience. EU business divestiture is on track, and 2025 is expected to be free cash flow positive.
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Q2 2024 saw revenue decline 3.5% year-over-year, with U.S. results flat and Europe down 18%. The company will exit Europe to focus on its profitable U.S. business, expects improved margins and positive adjusted EBITDA, and is launching major AI-driven product enhancements.
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The resale industry is expanding rapidly, driven by technology, automation, and a focus on higher-income, sustainability-minded consumers. Operational improvements and AI are boosting margins, while international expansion and brand partnerships are expected to drive future growth and profitability.