Q4 2025 ThredUp Inc Earnings Call Transcript
Key Points
- ThredUp Inc (TDUP) reported a Q4 revenue growth of 18.5% year over year, driven by investments in customer acquisition and new listings.
- The company achieved a record gross margin of 79.6% in Q4 and maintained a premium gross margin profile of 79.4% for the full year 2025.
- ThredUp Inc (TDUP) saw a 57% year-over-year increase in new buyer acquisition and a 30% increase in active buyers for the trailing 12 months.
- The company generated $14 million in adjusted EBITDA for 2025, representing 4.4% of revenue, and achieved positive free cash flow for the full year.
- ThredUp Inc (TDUP) successfully launched new product innovations, including premium and direct listings, which expanded their customer base and increased average selling prices.
- The macroeconomic environment for discretionary spending remains uncertain, with potential headwinds from job growth revisions and tariff burdens.
- Despite strong revenue growth, ThredUp Inc (TDUP) experienced an 80-basis-point decrease in gross margin in Q4 compared to the same quarter last year.
- The company anticipates a cautious approach to 2026 guidance due to uncertainties in the consumer environment, impacting revenue and EBITDA growth expectations.
- Customer acquisition costs are expected to rise as ThredUp Inc (TDUP) continues to invest in marketing and scale spend.
- The company faces challenges in maintaining high-quality supply, as evidenced by the need to tweak influencer and affiliate strategies to ensure the right product mix.
Good afternoon, ladies and gentlemen, and welcome to the TDUP fourth quarter 2025 earnings conference call. (Operator Instructions) This call is being recorded on Monday, March 2, 2026.
I would now like to turn the conference over to Lauren Frasch, Head of IR. Please go ahead.
Good afternoon, and thank you for joining us on today's conference call to discuss ThredUp's fourth quarter and 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.
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