ThredUp Q2 Earnings Call Highlights

ThredUp NASDAQ: TDUP reported second-quarter 2026 revenue of $90.8 million, up 16.9% from a year earlier, as active buyers and orders grew at double-digit rates.

The online resale company said the results exceeded its internal expectations, though management lowered its outlook for the second half as it plans to use more promotions to support engagement among price-sensitive customers.

Chief Executive Officer and Co-Founder James Reinhart said the consumer environment was more difficult than expected, particularly in June and into July.

While traffic remained strong and the company recorded its highest-ever quarterly new-buyer acquisition, some shoppers needed greater incentives to complete purchases.

“We had to be incrementally promotional to drive conversion among our most price-sensitive shoppers,” Reinhart said.

The company estimated that promotional activity created a $3 million headwind to second-quarter revenue through lower average selling prices and average revenue per buyer.

ThredUp ended the quarter with 1.8 million trailing-12-month active buyers, a 21% increase from the prior year.

Second-quarter orders rose 22% year over year to 1.9 million, while new-buyer acquisition increased 13.1%, lapping 72% growth in the comparable period a year earlier.

The company reported a GAAP net loss of $5.9 million, compared with a net loss of $5.2 million in the prior-year quarter.

Adjusted EBITDA totaled $4.8 million, or 5.3% of revenue, representing a 140-basis-point improvement from the prior year, according to Chief Financial Officer Sean Sobers.

Revenue: $90.8 million, up 16.9% year over year.

Gross margin: 79.9%, up 40 basis points year over year.

GAAP net loss: $5.9 million.

Adjusted EBITDA: $4.8 million, or 5.3% of revenue.

Cash and securities at quarter-end: $57.4 million, up from $54.4 million at the beginning of the quarter.

Cash generated during the quarter: $3 million.

Capital expenditures: $2.7 million.

Sobers attributed gross-margin improvement to greater logistics efficiency.

He said the company expects capital spending in 2026 to remain at levels similar to those in 2025.

Management said its second-half strategy is intended to preserve engagement without discounting newly listed merchandise.

Reinhart said the company is emphasizing discounts on aging inventory rather than fresh products, which it views as important to maintaining customers’ willingness to pay for new marketplace listings.

The pressure has been concentrated among shoppers earning less than $60,000 annually, Reinhart said, describing that cohort as less than 20% of the company’s customer base.

He pointed to higher gas prices related to Middle East conflict as a factor weighing on budget-conscious consumers.

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