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.
Discover Tomorrow's Bullish Stocks Today
Analyst Views on TDUP
About TDUP
About the author
Coursera (COUR) Merges with Udemy (UDMY) Amid Stock Declines
- Merger Agreement: On December 17, Coursera announced an all-stock merger agreement with Udemy, aiming to leverage both companies' strengths to address global talent transformation opportunities, despite its stock falling approximately 17% over the past month, with a 52-week low of $5.76.
- Poor Stock Performance: Coursera's shares dropped 10.6% to close at $6.55 on Tuesday, with an RSI value of 19.8 indicating an oversold condition in the consumer discretionary sector, potentially presenting a buying opportunity for investors.
- Udemy Rating Downgrade: Keybanc analyst Devin Au downgraded Udemy from Overweight to Sector Weight, resulting in a 10% decline in its stock over the past five days, with a 52-week low of $4.86 and an RSI value of 28.2.
- ThredUp Rating Maintained: Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating on ThredUp with a $12 price target, even as its stock fell about 25% over the past month, currently at a 52-week low of $1.66 and an RSI value of 29.8.
Discount Retailers and Resale Platforms Dominate During Strong Holiday Season
- Holiday Shopping Trends: Americans showed a last-minute approach to holiday shopping, indicating a rush to complete purchases.
- Consumer Demand: Despite the timing, total holiday sales increased by nearly 4%, reflecting strong consumer demand.
