Q2 2025 ThredUp Inc Earnings Call Transcript
Key Points
- Revenue growth accelerated to 16.4% year over year, driven by strong customer growth and orders.
- Gross margin improved to 79.5%, with adjusted EBITDA at 3.9%, exceeding internal expectations.
- New buyer acquisition increased by 74% year over year, with active buyers up 17% and orders up 21%.
- AI-driven product improvements led to a 30% increase in visitor-to-sign-up rates and a 60% increase in sign-up-to-purchase rates.
- ThredUp's operational infrastructure and supply chain investments are yielding strong results, with record requests, receipts, and clean-out kits processed.
- The closure of the de minimis loophole and potential tariff impacts create uncertainty in pricing and production volumes.
- Ad markets remain dynamic, with fluctuations in advertising rates affecting marketing efficiency.
- Seasonal slowdown in resale is expected in Q4, with revenue growth guidance dropping to 10% year over year.
- Higher incentives are required to convert new buyers, slightly offsetting the benefits of premium supply growth.
- The macroeconomic environment remains uncertain, with weak job numbers and housing market concerns potentially impacting consumer behavior.
Good afternoon, ladies and gentlemen, and welcome to the ThredUp Q2 2025 earnings call. (Operator Instructions) This call is being recorded on August 4, 2025.
And I would now like to turn the conference over to Ms. Lauren Frasch. Thank you. Please go ahead.
Good afternoon, and thank you for joining us on today's conference call to discuss ThredUp's second-quarter 2025 financial results. With me are James Reinhart, ThredUp's CEO and Co-Founder; and Sean Sobers, CFO. We posted our press release and supplemental financial information on our Investor Relations website at ir.thredup.com. This call is being webcast on our IR website, and a replay of this call will be available on the site shortly.
Before we begin, I'd like to remind you that we will make forward-looking statements during the course of this call. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer
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