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What were the key takeaways from ThredUp’s earnings call?

Did ThredUp beat or miss consensus estimates last quarter?

- **Revenue growth**: Q4 2025 revenue up 18.5% YoY to $79.7 million, driven by 57% YoY new buyer growth.
- **Gross margin expansion**: 79.6% (80 bps YoY improvement) due to premium supply and AI-driven efficiency.
- **AI innovation**: Direct listings ASP >$70, TikTok shop sales 100,000+ cleanout bags, and AI customer service reducing escalations by 50%.
- **2026 guidance**: Revenue $349-$355 million (13% YoY growth), EBITDA margin 6% (150 bps YoY expansion).
- **Key risks**: Macroeconomic uncertainty, consumer spending trends, and supply chain execution.

**【CEO Summary Section】**
- Q4 2025 revenue: $79.7 million (18.5% YoY growth), driven by new buyer acquisition and repeat purchases.
- New buyers increased 57% YoY, with 1.7 million active buyers (30% YoY growth) and 21.1 million items processed (17% YoY growth).
- Gross margin: 79.6%, up 80 bps YoY, due to premium supply and higher ASPs.
- AI innovations: Direct listings (10x more items listed), bulk import functionality, and AI-powered customer service (Dottie) reducing escalations by 50%.
- 2026 focus: Scaling supply via TikTok shop (100,000+ cleanout bags sold), direct listings, and RaaS partnerships (Lands' End, Steve Madden).

**【CFO Financial Commentary】**
- Full year 2025 revenue: $310.8 million (20% YoY growth), with $14 million adjusted EBITDA (4.4% of revenue).
- Q4 2025 adjusted EBITDA: $2.9 million (3.7% of revenue), up 370 bps YoY.
- 2026 guidance: Revenue $349-$355 million (13% YoY growth), EBITDA margin 6% (vs. 4.4% in 2025).
- Free cash flow: $10.5 million in 2025, with similar CapEx in 2026.
- Seasonality: Q1 smallest quarter, Q2-Q3 growth, Q4 seasonal decline.

**【Q&A Highlights】**
- **Customer acquisition**: 50%+ new buyer growth, LTV/CAC ratio at all-time high.
- **Premium listings**: Direct listings ASP >$70, 17% of supply from premium kits.
- **TikTok success**: 100,000+ cleanout bags sold, 97% new sellers, experimenting with TikTok Live.
- **AI impact**: Dottie resolves 50% of issues without human intervention.
- **2026 strategy**: Invest in marketing, supply processing, and customer experience for EBITDA expansion.


ThredUp Inc. (TDUP) Q4 2025 Earnings Call Transcript

- **Revenue Surge**: Q3 2025 revenue up 34% YoY, fueled by 54% YoY new customer acquisition and 37% YoY orders.
- **AI-Driven Innovation**: Launch of Daily Edit and Trend Report powered by in-house AI, driving record customer growth.
- **Direct Selling Expansion**: Closed beta for peer-to-peer selling with no fees, targeting casual sellers and integrating with existing supply chain.
- **Financial Strength**: Adjusted EBITDA of $3.8M (4.6% of revenue), free cash flow $2.4M, with FY2025 revenue guidance raised to $307-309M.
- **Strategic Growth**: 2026 plans include low double-digit revenue growth and EBITDA margin expansion, supported by $10M annual CapEx.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue grew 34% YoY, driven by new customer acquisition (54% YoY) and orders (37% YoY). Active buyers reached 1.6 million, up 26% YoY.
- **Product Innovations**: Launched rebranded experience with AI-powered Daily Edit and Trend Report, achieving record new customer acquisition in October (81% YoY). Introduced direct selling (peer-to-peer) in closed beta, targeting casual sellers with no listing fees and seller verification.
- **RaaS Expansion**: Launched RaaS programs with New York & Co. and Cotopaxi, with Premium Kits accounting for 20% of supply. Direct selling aims to integrate with existing Clean Out kits for seamless seller experience.
- **Strategic Focus**: Reinvesting incremental cash flow into marketing and infrastructure to sustain growth, targeting Rule of 40 (20%+ EBITDA margin with 18%+ revenue growth in 2025).

**【CFO Financial Commentary】**
- **Financial Highlights**: Q3 revenue $82.2M (36% YoY), gross margin 79.4%, adjusted EBITDA $3.8M (4.6% of revenue). Free cash flow $2.4M, ending Q3 with $56.1M cash.
- **Guidance**: Q4 2025 revenue $76-78M (14% YoY), FY2025 revenue $307-309M (18% YoY). 2026 revenue growth expected in low double digits, with EBITDA margin expansion similar to 2025.
- **CapEx**: $10M for 2025, aligning with 2026 plans to support automation and infrastructure.

**【Q&A Highlights】**
- **Peer-to-Peer Economics**: Direct selling designed for casual sellers with no fees, leveraging AI for curation. Sellers can choose between direct listings and Clean Out kits, with ThredUp providing premium tools for monetization.
- **Marketing Efficiency**: Historically low CAC driven by product improvements and ad market opportunities. Q3 new buyer acquisition cost lowest in company history.
- **RaaS Pipeline**: 6-month lag in RaaS contract renewals, with pipeline confidence for 2026. New RaaS partnerships expected to accelerate in Q4 and beyond.
- **AI Impact**: Generative AI used for listing photography, curation, and pricing, enabling superior buyer experience in direct selling.


ThredUp Inc. (TDUP) Q3 2025 Earnings Call Transcript

- **Revenue Acceleration**: Q2 2025 revenue up 16.4% YoY to $77.7M, driven by 74% YoY new buyer growth and 21% order growth.
- **AI-Driven Efficiency**: 18% YoY improvement in visitor-to-customer conversion, with AI model images boosting satisfaction for new secondhand shoppers.
- **Profitability Beat**: Adjusted EBITDA of $3M (3.9% of rev) vs. -$1.2M last year, with full year EBITDA margin guidance of 4.2%.
- **Q3 Growth Guidance**: 25% YoY revenue growth expected, supported by early Q3 marketing investments and AI-driven funnel efficiency.
- **RaaS Expansion**: 60+ brand conversations post-open-source model launch, with potential 2026+ impact on supply diversity.


**【CEO Summary Section】**
- **Revenue Growth**: Q2 2025 revenue of $77.7 million, up 16.4% YoY, driven by 74% YoY increase in new buyer acquisition and 21% YoY order growth.
- **AI-Driven Product Experience**: Conversion rates improved 18% YoY, with AI-generated model images boosting satisfaction for new secondhand shoppers. Social commerce features (e.g., Instagram integration) are rolling out to iOS app.
- **Seller Growth**: Record requests and receipts processed, with 44% QoQ growth in premium service kits. 25% of premium kits come from first-time sellers.
- **RaaS Strategy**: Engaged with 60+ brands post-open-source model launch, aiming to create a universal recommerce layer akin to AWS or Shopify.
- **Competitive Advantages**: $400M+ invested in purpose-built supply chain, proprietary resell database, and marketplace flywheel dynamics.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income of $420M, Non-GAAP EPS of $1.08 (vs. $0.95 consensus). Gross margin 79.5% (up 70bps YoY), Adjusted EBITDA $3M (3.9% of rev, vs. -$1.2M last year).
- **Q3 Guidance**: Revenue $76-78M (25% YoY), EBITDA 4.5% of rev. Q4: $73-75M (10% YoY), EBITDA 3% of rev. Full year: $298-302M (15% YoY), EBITDA 4.2% of rev.
- **Cash Flow**: Ended Q2 with $56.2M cash, generating $800K in cash. CapEx $3.3M, expecting $8M annualized.

**【Q&A Key Highlights】**
- **Growth Drivers**: Flywheel of improved product experience, efficient marketing, and high-quality supply. Q3 momentum suggests 25% YoY growth despite macro uncertainty.
- **Gross Margin Dynamics**: Premium supply ASPs offset new buyer incentives. Q3 gross margin expected 77-79% as focus shifts to customer retention.
- **RaaS Outlook**: 60+ brand conversations, but material impact likely 2026+. Initial focus on operational efficiency for brand partners.
- **Customer Acquisition**: CAC payback under 1 year. AI-driven conversion improvements allow earlier Q3 marketing spend to drive long-term growth.
- **Seasonality**: Q4 downshift due to resale slowdown, higher ad rates, and cautious macro outlook. Q3 guidance reflects 4.5% EBITDA margin despite 25% rev growth.


ThredUp Inc. (TDUP) Q2 2025 Earnings Call Transcript

- **Record Growth**: Q1 2025 revenue up 10.5% YoY to $71.3M, with new buyers surging 95% YoY. April 2025 marked strongest customer acquisition in history.
- **AI-Driven Efficiency**: New features like visual search and social shopping boost conversions 64-400%, while free cash flow hit $3.9M Q1 record.
- **RaaS Expansion**: Open-sourcing tech to enable branded resale at scale, with usage-based fee model supporting long-term ecosystem growth.
- **Profitability**: Adjusted EBITDA doubles to $3.8M (5.3% margin), with free cash flow positive for the first time in company history.
- **Tariff Tailwinds**: Closure of de minimis loophole and apparel tariffs expected to enhance price competitiveness vs. fast fashion, while reduced ad spend by competitors lowers acquisition costs.

**【CEO Summary Section】**
- **Revenue Growth**: Q1 2025 revenue reached $71.3 million, up 10.5% YoY, driven by a 95% YoY increase in new buyer acquisition. Active buyers grew 5.7% YoY to 1.4 million trailing 12 months.
- **AI-Driven Product Experience**: Launched features like visual search, personalized pathways, and social media integration (Shop Social beta), with sessions using new search tools showing 64% higher conversion rates.
- **RaaS Strategy**: Open-sourcing front-end tech and lowering fees to expand branded resale partnerships, with free resale shops and usage-based pricing models.
- **Macro Tailwinds**: Closure of de minimis loophole and apparel tariffs expected to enhance price competitiveness vs. fast fashion, while reduced ad spend by competitors lowers acquisition costs.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA of $3.8 million (5.3% of revenue), doubling vs. Q1 2024. Free cash flow reached $3.9 million, a record quarterly level.
- **Gross Margin**: 79.1% (down 100bps YoY due to new buyer incentives), with plans to reinvest incremental cash into growth.
- **Guidance**: Full year 2025 revenue updated to $281-291 million (10% midpoint growth), with EBITDA margin expected to remain around 4%.

**【Q&A Highlights】**
- **Market Momentum**: April 2025 saw strongest new customer acquisition in company history, with CACs at multi-year lows. Tariffs and de minimis changes could provide tailwinds but not directly factored into guidance.
- **Category Performance**: Dresses remain top category, with premium items (60% higher contribution margins) driving mix shift.
- **AI Impact**: Shop Social beta converts at 4x non-AI search rates, with plans for broader rollout in Q2.
- **Tariff Outlook**: No direct consumer impact observed yet, but long-term benefits from reduced ultra-fast fashion competition expected.

ThredUp (TDUP)-5 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: Q4 2024 up 9.5% YoY to $67.3M, with new customer volume +32% YoY
- **AI-Driven Success**: Image search sessions drive 85% higher conversion rates
- **Profitability**: Adjusted EBITDA $5M in Q4 (vs. $2.5M prior year), targeting flat 2025 EBITDA
- **Tariff Opportunity**: Potential for lower ad costs and increased secondhand demand
- **2025 Outlook**: $270-280M revenue (+6% YoY), 77-79% gross margin, $8M CapEx

**【CEO Opening Remarks】**
- Q4 2024 revenue reached $67.3M, up 9.5% YoY, driven by strong customer acquisition and AI-driven shopping experience.
- New customer volume grew 32% YoY in Q4, with Q1 2025 shaping as one of the strongest acquisition quarters in history.
- Active buyers declined 6% YoY to 1.3M, but order growth reaccelerated to 2% YoY.

**【Growth Drivers】**
1. **Customer Acquisition**: 
   - New customer volume +32% YoY in Q4
   - Payback periods <1 year for marketing spend
   - Conversion rates from visit to purchase at all-time highs
2. **Supply Strategy**: 
   - Fresh listings (items <14 days old) up 9% YoY
   - Premium seller kits ($34.99) now account for 10%+ of new listings
   - 360-degree photos boost sell-through rates by 12%
3. **AI Innovation**: 
   - Image search sessions: 1.3M total, 85% higher conversion rate
   - AI-generated pivots achieve 15%+ click-through rates
   - Automated measurements reduce returns and improve retention

**【CFO Financial Highlights】**
- Q4 2024: 
   - GAAP net income: $5M (7.4% of revenue)
   - Gross margin: 80.4% (290bps YoY improvement)
   - Adjusted EBITDA: $5M (vs. $2.5M in Q4 2023)
   - Free cash flow: -$4.2M (vs. -$6.6M in 2023)
- 2025 Outlook: 
   - Revenue: $270-280M (+6% YoY midpoint)
   - Gross margin: 77-79% (slight decline vs. 2024)
   - Adjusted EBITDA: Flat to 2024 levels
   - CapEx: $8M (vs. $6.6M in 2024)
   - Stock-based comp: -40% YoY

**【Key Takeaways from Q&A】**
- **Revenue Growth Rhythm**: Q2 > Q1 > Q3 > Q4 in 2025
- **Marketing Spend**: 19% of new customer acquisition cost in 2025
- **Tariff Impact**: Potential tailwinds from:
   - Lower CPC rates in advertising
   - Higher cost of new apparel driving secondhand demand
- **Pricing Flexibility**: Dynamic pricing algorithm adjusts in real-time to market conditions

Actual	-0.17	-0.15	-0.15	-0.1466	-0.21	-0.29	-0.24	-0.19	-0.19	-0.18	-0.17	-0.14	-0.15	-0.13	-0.22	-0.07	-0.04	-0.04	-0.03	-0.04
Forecast	-0.3986	-0.1525	-0.152	-0.163	-0.1945	-0.2123	-0.2032	-0.1994	-0.1845	-0.2309	-0.1644	-0.13	-0.1382	-0.1089	-0.1465	-0.16	-0.0657	-0.0475	-0.036	-0.04
Surprise	+57.35%	+1.64%	+1.32%	+10.06%	-7.97%	-36.60%	-18.11%	+4.71%	-2.98%	+22.04%	-3.41%	-7.69%	-8.54%	-19.38%	-50.17%	+56.25%	+39.12%	+15.79%	+16.67%	0.00%

TDUP

TDUP fundamentals

TDUP Q4 2025 Earnings

Earnings Call

You can ask Aime

TDUP

TDUP fundamentals

TDUP Q4 2025 Earnings

Earnings Call

TDUP Earnings Call Summary for Q4/20254:30 PM on Mar 2, 2026

TDUP Earnings Call Summary for Q3/20254:30 PM on Nov 3, 2025

TDUP Earnings Call Summary for Q2/20254:30 PM on Aug 4, 2025

TDUP Earnings Call Summary for Q1/20254:30 PM on May 5, 2025

TDUP Earnings Call Summary for Q4/20244:30 PM on Mar 3, 2025

You can ask Aime