Q3 2025 ThredUp Inc Earnings Call Transcript
Key Points
- ThredUp Inc (TDUP) reported its strongest year-over-year growth in nearly four years, with revenue growth accelerating to 34%.
- The company achieved a gross margin of 79.4% and an adjusted EBITDA of 4.6%, both exceeding expectations.
- New buyer acquisition increased by 54% year over year, marking the highest in the company's history.
- The launch of new AI-driven product features, such as the Daily Edit and Trend Report, has enhanced personalization and trend forecasting, improving customer engagement.
- ThredUp's Resale-as-a-Service (RaaS) business continues to expand, with new partnerships, including New York & Co and Code Epoxy, showcasing its competitive advantage in the resale market.
- Despite strong growth, ThredUp remains cautious about the broader American consumer environment, particularly concerning holiday spending and potential shifts in wallet share.
- The company anticipates a seasonal slowdown in resale around the holidays, which could impact Q4 revenue growth.
- ThredUp's peer-to-peer selling model is still in early stages, and while promising, it faces challenges such as ensuring seller verification and managing returns.
- The competitive landscape in the peer-to-peer market is challenging, with existing platforms like Poshmark and Mercari already established.
- ThredUp's guidance for 2026 indicates a lower growth rate in the low double digits, reflecting industry expectations and economic uncertainties.
Good afternoon, ladies and gentlemen, and welcome to the ThredUp Q3 2025 earnings conference call. (Operator Instructions) This call is being recorded on November 3, 2025.
And I would now like to turn a 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 third-quarter 2025 financial results. With me are James Reinhart, ThredUp's CEO and Co-Founder; and Sean Sobers, CFO. We post 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.
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