Shares of ThredUp Inc. (TDUP), the online resale platforms for apparel, shoes, and accessories, are on the move again on Tuesday, August 5 after posting a 14 percent increase on Monday in anticipation of the company’s earnings report after the market close. TDUP shares were up in double digits again on Tuesday morning in pre-market trading after the company announced a double-digit increase in sales in the second quarter and doubled its Adjusted EBITDA from continuing operations for the period. Dropping a mention of AI never hurts these days on Wall Street either.

And unlike many other companies that are trying to find their way through the tariff jungle (or jumble) these days, ThredUp was able to provide solid guidance by quarter for the rest of the year. That should please any analyst.

“Driven by strong customer and order growth, we are extremely pleased with our second quarter performance,” said ThredUp CEO and Co-Founder James Reinhart. “We are now more than 18-months into our AI-led product journey, and are proud to see positive results compound in new buyer and seller growth.”

The Wall Street Journal even noted that the company “saw a surge in new shoppers as consumers are looking to buy second-hand clothing amid economic uncertainty.”

Second quarter revenue totaled $77.7 million, an increase of 16 percent year-over-year (y/y).
Active Buyers increased 17 percent y/y to 1.47 million users and Orders increased 21 percent y/y to 1.54 million for the second quarter 2025.

Gross profit totaled $61.7 million, an increase of 17 percent y/y. Gross margin was 79.5 percent of sales, compared to 78.8 percent in the second quarter last year.

The company’s loss from continuing operations was $5.2 million, or a negative 6.7 percent of revenue, for the second quarter 2025, compared to a loss from continuing operations of $9.4 million, or a negative 14.1 percent of revenue, for the second quarter last year.

Adjusted EBITDA from continuing operations was $3.0 million, or 3.9 percent of revenue, for the second quarter 2025, compared to $1.5 million, or 2.2 percent of revenue, for the second quarter last year.

Outlook

For the third quarter 2025, ThredUp expects:

  • Revenue in the range of $76.0 million to $78.0 million, +25 percent year-over-year at the midpoint;
  • Gross margin in the range of 77.0 percent to 79.0 percent; and
  • Adjusted EBITDA margin of approximately 4.5 percent.

For the fourth quarter 2025, ThredUp expects:

  • Revenue in the range of $73.0 million to $75.0 million, +10 percent year-over-year at the midpoint;
  • Gross margin in the range of 77.0 percent to 79.0 percent; and
  • Adjusted EBITDA margin of approximately 3.0 percent.

For the full fiscal year 2025, ThredUp expects:

  • Revenue in the range of $298.0 million to $302.0 million, +15 percent year-over-year at the midpoint;
  • Gross margin in the range of 78.0 percent to 79.0 percent; and
  • Adjusted EBITDA margin of approximately 4.2 percent

ThredUp said it is not providing a quantitative reconciliation of forward-looking guidance of the Non-GAAP measure Adjusted EBITDA margin to net loss margin, the most directly comparable financial measures under GAAP because certain items are out of ThredUp’s control or cannot be reasonably predicted.

The company said it calculatea Adjusted EBITDA as net loss adjusted to exclude, where applicable in a given period, stock-based compensation expense, depreciation and amortization, interest expense, provision for income taxes, gain on sale of non-marketable equity investment, and severance and other reorganization costs.

Adjusted EBITDA margin represents Adjusted EBITDA divided by Revenue for the same period. Accordingly, a reconciliation for Adjusted EBITDA in order to calculate forward-looking Adjusted EBITDA margin is not available without unreasonable effort.

However, for the third quarter of 2025, fourth quarter of 2025 and full year 2025, Depreciation and amortization is expected to be $3.2 million, $3.2 million and $12.6 million, respectively. In addition, for the third quarter of 2025, fourth quarter of 2025 and full year 2025, Stock-based compensation expense is expected to be $4.2 million, $3.6 million and $17.8 million, respectively. These items are uncertain, depend on various factors, and could result in projected net loss being materially greater than is indicated by the currently estimated Adjusted EBITDA margin.

ThredUp is not providing a quantitative reconciliation for free cash flow estimates on a forward-looking basis because it is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of net cash provided by operating activities and certain reconciling items on a forward-looking basis, which could be significant to the Company’s results.

Image courtesy ThredUp