ThredUp Inc. (TDUP) Q3 2025 Earnings Call Transcript
Revenue $82.2 million, an increase of 33.6% year-over-year. The growth was driven by investments into marketing and inbound processing, which enhanced the marketplace flywheel, and improved buyer metrics from new customer-facing products.
Gross Margin 79.4%, a 10 basis point increase year-over-year. The improvement was attributed to higher average selling prices due to the rapid growth in the premium supply offering.
Adjusted EBITDA $3.8 million or 4.6% of revenue, a 410 basis point improvement year-over-year. This was due to leveraging multiyear investments, revenue outperformance, and continued investments in marketing and inbound processing.
Active Buyers 1.6 million for the trailing 12 months, up 25.6% year-over-year. Growth was driven by record new buyer acquisition and improved conversion rates for both new and existing buyers.
Orders 1.6 million in the third quarter, up 37.2% year-over-year. This was supported by repeat purchases from new buyers and improved conversion rates.
Free Cash Flow $2.4 million for the quarter and $3.4 million year-to-date. This reflects strong operational performance and efficient cash management.
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