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What does ThredUp do and what are its main business segments?

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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TDUP

TDUP fundamentals

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