ThredUp Earnings Call Transcripts
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 2025 saw 34% revenue growth, record new customer acquisition, and strong margin expansion. Guidance for 2025 was raised, with continued investment in AI, marketing, and new supply vectors like peer-to-peer selling. Economic caution remains, but growth momentum is strong.
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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 refocused on US operations after divesting its European business, driving record new customer growth and improved margins through automation and AI-driven product enhancements. Premium services and operational efficiencies have boosted contribution margin to the low 40s, with further growth expected as capacity utilization increases.
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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.