ThredUp Reports $77.7 Million Revenue in Q2 2025, 16.4% Year-Over-Year Growth

ThredUp Inc. reported a revenue of $77.7 million for the second quarter of 2025, marking a 16.4% increase from $66.7 million in the same period last year. The company's gross profit also rose to $61.7 million, up 17.5% year-over-year, resulting in a gross margin of 79.5%, an increase of 70 basis points from the previous year. Despite these gains, ThredUp recorded a loss from continuing operations of $5.2 million, an improvement from a loss of $9.4 million in the second quarter of 2024. The company’s non-GAAP Adjusted EBITDA from continuing operations was $3.0 million, or 3.9% of revenue, compared to $1.5 million, or 2.2% of revenue, in the prior year.

In terms of operational metrics, ThredUp reported 1.5 million active buyers and 1.5 million orders in the second quarter, reflecting increases of 16.5% and 20.8%, respectively, compared to the same quarter in 2024. The growth in revenue was primarily driven by a significant increase in orders, although the average order value saw a slight decline of 2.4%. The company continues to focus on its consignment model, which has proven to be more capital-efficient and higher-margin.

ThredUp's financial position showed improvements as well, with cash and cash equivalents increasing to $40.9 million from $31.9 million at the end of 2024. The company also reported a total of $173.6 million in assets, up from $171.2 million at the end of the previous fiscal year. The total liabilities decreased slightly to $113.4 million from $114.9 million, while stockholders' equity rose to $60.2 million from $56.3 million. The company’s employee headcount has also increased, reflecting its ongoing investments in infrastructure and operational capacity.

Strategically, ThredUp has made significant changes, including the divestiture of its European subsidiary, Remix, which was completed in November 2024. This move has allowed the company to streamline its operations and focus on its core U.S. market. The company has also been investing in marketing, with expenses rising by 22.2% in the second quarter, indicating a commitment to driving future growth. ThredUp anticipates continued operating losses as it invests in expanding its business and infrastructure.

Looking ahead, ThredUp expects to maintain its growth trajectory, supported by its strong marketplace performance and strategic focus on the resale economy. The company believes that its existing cash reserves and operational cash flows will be sufficient to meet its capital requirements for at least the next 12 months. However, it acknowledges potential risks related to market conditions, inflation, and competition that could impact its financial performance.