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ThredUp's Q3 revenue rises driven by increase in orders and active buyers

ThredUp's Q3 revenue rises driven by increase in orders and active buyers


Overview

  • US online resale platform's Q3 revenue rose 7%, slightly beating analyst expectations

  • Adjusted EBITDA for Q3 beat analyst expectations

  • Company achieved record active buyers and orders, but net loss widened yr/yr


Outlook

  • ThredUp sees Q4 revenue between $77 mln and $79 mln, down 2% year-over-year at midpoint

  • Company expects Q4 gross margin of 76.5% to 77.5% and adjusted EBITDA margin of (4.0)% to (2.0)%

  • ThredUp forecasts full-year 2026 revenue of $337.7 mln to $339.7 mln, up 9% year-over-year at midpoint


Result Drivers

  • ACTIVE BUYER GROWTH - Record 1.82 mln active buyers, up 16% yr/yr, which contributed to higher revenue and orders

  • ORDER VOLUME - Orders rose 17% yr/yr, supporting revenue growth despite a competitive environment, per CEO James Reinhart

  • COMPETITIVE ENVIRONMENT - CEO cited highly competitive market conditions as a factor impacting results


Company press release: ID:nGNX80KNwK


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$88.23 mln

$88.05 mln (7 Analysts)

Q3 Net Loss

$5.47 mln

Q3 Adjusted EBITDA

Beat

$3.52 mln

$3.45 mln (7 Analysts)

Q3 Gross Margin

78.2%

Q3 Gross Profit

$69.03 mln

Q3 Loss Per Basic Share

$0.04

Q3 Operating Income

-$5.26 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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 $6.50, about 225% above its November 3 closing price of $2.00


Reuters Recommended Reads

  • Nov 3 - Revolve Q3 sales beat consensus on order growth

  • Nov 4 - Wayfair beats Q3 revenue, profit estimates on more customers, orders

  • Nov 3 - South Korea's Coupang Q3 revenue beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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