ThredUp, Inc., the online resale platforms for apparel, shoes, and accessories, reported another consecutive quarter of year-over-year (y/y) accelerating revenue growth in the third quarter, posting a 34 percent increase in the top-line to $82.2 million.

Active Buyers reached 1.57 million in Q3 and Orders totaled 1.61 million for the period, representing increases of 26 percent and 37 percent, respectively, over the third quarter last year.

“In Q3, we are proud to have delivered our fourth consecutive quarter of accelerating revenue growth, driven by exceptional new buyer acquisition and order growth,” said Company CEO and Co-Founder James Reinhart. “This quarter, we launched a fully rebranded ThredUp experience, with new products and features that create a more personalized and engaging way to buy and sell secondhand. These advancements are enabled by years of investment in our data and technology infrastructure, positioning us to innovate faster and strengthen our competitive moat in the growing resale market.”

Third Quarter Profitability and Expenses
Consolidated company gross profit totaled $65.2 million in the 2025 third quarter, an increase of 34 percent y/y. Gross margin was 79.4 percent of net sales, as compared to 79.3 percent in the third quarter last year.

Loss from continuing operations was $4.2 million, or a negative 5.2 percent of revenue, for the third quarter 2025, compared to a loss from continuing operations of $10.4 million, or a negative 16.8 percent of revenue, for the third quarter last year.

Adjusted EBITDA from continuing operations was $3.8 million, or 4.6 percent of revenue, for the third quarter 2025, compared to $0.3 million, or 0.5 percent of revenue, for the third quarter last year.

Q4 Outlook
For the fourth quarter 2025, ThredUp expects:

  • Revenue in the range of $76.0 million to $78.0 million, +14 percent year-over-year at the midpoint
  • Gross margin in the range of 78.0 percent to 79.0 percent
  • Adjusted EBITDA margin of approximately 3.0 percent

Full-Year Outlook
For the full fiscal year 2025, ThredUp expects:

  • Revenue in the range of $307.0 million to $309.0 million, +18 percent year-over-year at the midpoint
  • Gross margin in the range of 79.0 percent to 79.2 percent
  • Adjusted EBITDA margin of approximately 4.2 percent

ThredUp said in a media statement that 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.

“We calculate Adjusted EBITDA as net loss adjusted to exclude, where applicable in a given period, stock-based compensation expense, depreciation and amortization, interest expense, provision (benefit) for income taxes, severance and other reorganization costs, and gain on sale of non-marketable equity investment,” the company said in its earnings release. “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.”

Still, the company did report depreciation and amortization for the fourth quarter of 2025 and full year 2025, which is expected to be $3.2 million and $12.7 million, respectively. In addition, for the fourth quarter of 2025 and full year 2025, Stock-based compensation expense is expected to be $3.8 million and $18.3 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,” the company noted.

ThredUp said it 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