Online thrift marketplace ThredUp beats Q3 revenue estimates as active buyers grow

ThredUp

03/11/2025 21:27

Overview

ThredUp Q3 revenue grows 34% yr/yr, beating analyst expectations

Adjusted EBITDA for Q3 improves significantly, reflecting operational efficiency

Company raises Q4 and full-year 2025 revenue guidance, indicating confidence in growth

Outlook

Company expects Q4 revenue between $76.0 mln and $78.0 mln

ThredUp forecasts full-year 2025 revenue between $307.0 mln and $309.0 mln

Company anticipates Q4 gross margin between 78.0% and 79.0%

Result Drivers

NEW BUYER GROWTH - Active buyers grew 26% yr/yr, with new buyer growth at 54%, marking the best quarter for new buyer acquisition

REBRANDING IMPACT - Launch of rebranded ThredUp experience with new products and features boosted engagement and sales

TECHNOLOGY INVESTMENT - Years of investment in data and technology infrastructure enabled faster innovation and strengthened competitive position

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$82.2 mln
$77.60 mln (6 Analysts)
Q3 Net Income
-$4.24 mln
Q3 Gross Margin
79.40%
Q3 Basic EPS
-$0.03
Q3 Gross Profit
$65.21 mln
Q3 Operating Income
-$4.38 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for ThredUp Inc is $12.50, about 29.7% above its October 31 closing price of $8.79

Press Release: ID:nGNX16lbY0

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)