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Dec 31, 2025
ThredUp Q4 2025 Earnings Report
ThredUp Q4 2025 Earnings Report
Key Takeaways
ThredUp delivered a strong fourth quarter with revenue growing 18% year-over-year to $79.7 million and reaching a record 1.65 million active buyers. While the company reported a net loss, it achieved positive annual total cash flows for the first time in its history and maintained high gross margins near 80%.
Quarterly revenue increased 18% year-over-year to $79.7 million.
Active Buyers reached a record 1.65 million, a 30% increase over the previous year.
Achieved positive annual total cash flows of $3.1 million for the first time in company history.
Gross margin remained strong at 79.6%, though slightly down from 80.4% in the prior year period.
Forward Guidance
ThredUp expects continued revenue growth and stable margins for the first quarter and full year of 2026, focusing on AI-driven innovation and buyer growth.
Positive Outlook
- Q1 2026 revenue expected to grow 12% year-over-year at the midpoint.
- Full year 2026 revenue projected between $349 million and $355 million.
- Full year Adjusted EBITDA margin expected to expand to approximately 6.0%.
- Focus on enhancing structural drivers like high-quality supply and AI innovation.
- Anticipated full year gross margin remains healthy between 78% and 79%.
Challenges Ahead
- Q1 2026 Adjusted EBITDA margin expected to be lower at 3.0% compared to full year targets.
- Gross margin guidance for 2026 (78-79%) is slightly lower than Q4 2025 levels.
- Stock-based compensation expense expected to remain high at $24.4 million for FY 2026.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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