ThredUp 2025 Q1 Earnings Narrowed Net Loss by 68.5%

ThredUp (TDUP) reported its fiscal 2025 Q1 earnings on May 5th, 2025. The online resale platform saw a notable performance improvement in Q1 2025, with revenue increasing by 10.5% to $71.29 million, surpassing expectations. The company raised its full-year guidance, projecting revenue between $281 million and $291 million, reflecting a 10% growth at the midpoint. Adjusted EBITDA is anticipated to be around 4% of revenue, showcasing ThredUp's focus on growth amidst a challenging consumer environment.

Revenue

The total revenue of thredup increased by 10.5% to $71.29 million in 2025 Q1, up from $64.53 million in 2024 Q1.

Earnings/Net Income

ThredUp narrowed losses to $0.04 per share in 2025 Q1 from a loss of $0.15 per share in 2024 Q1, marking a 73.3% improvement. The company successfully reduced its net loss by 68.5% to $5.21 million, compared to $16.55 million in the previous year, indicating a positive trend in its earnings performance.

Price Action

The stock price of ThredUp has edged down 0.89% during the latest trading day, climbed 3.50% during the most recent full trading week, and surged 74.80% month-to-date.

Post-Earnings Price Action Review

ThredUp's shares have demonstrated strong post-earnings momentum over the past five years. The strategy of buying ThredUp (TDUP) shares after the earnings release and holding for 30 days has yielded an impressive average annual return of 22.8%, outperforming the market benchmark. This suggests that investors looking to capitalize on post-earnings momentum might consider ThredUp as a viable option. The company's consistent performance in this strategy highlights its potential to deliver shareholder value through strategic investment timing.

CEO Commentary

ThredUp's CEO and Co-Founder, James Reinhart, expressed optimism about the company's performance, highlighting a 10.5% year-over-year revenue growth and a significant 95% increase in new buyer acquisition. He attributed this success to a strong product experience and effective marketing strategies, asserting that the business is executing at a high level. Reinhart emphasized the focus on maintaining gross margins while reinvesting into customer growth, viewing the closure of the de minimis loophole and increasing apparel prices as potential benefits. He maintained confidence in the company's trajectory, stating, "We believe this creates the greatest long-term shareholder value."

Guidance

For Q2 2025, ThredUp expects revenue between $72.5 million and $74.5 million, reflecting a 10% growth at the midpoint. Adjusted EBITDA is projected at approximately 3.3% of revenue, with gross margins ranging from 77% to 79%. For the full year, revenue guidance is raised to a range of $281 million to $291 million, indicating a 10% growth at the midpoint. Adjusted EBITDA is anticipated at around 4% of revenue, maintaining a focus on growth despite the current consumer environment.

Additional News

ThredUp has recently seen significant movements in its corporate structure. The company announced the appointment of Danielle Vermeer as Head of Social Commerce, effective January 2025. Vermeer, previously CEO of social commerce app Teleport, brings extensive experience in ecommerce and fashion tech. Additionally, ThredUp completed its divestiture of the European business, Remix, allowing it to concentrate on the U.S. market. The company's strategic focus is on enhancing its AI-driven product experiences and expanding its Resale-as-a-Service model to solidify its position in the resale market.

Ask Aime: What's next for ThredUp after its impressive Q1 earnings?