ThredUp Posts Record Q2, Navigates More Price-Sensitive Shoppers

ThredUp reported 17% revenue growth, with buyers and orders each rising more than 20%. The company also posted positive EBITDA and free cash flow for its seventh consecutive period of record top-line performance.

Budget-conscious shoppers became more selective after Memorial Day, prompting ThredUp to reduce its second-half outlook by about $7 million. Management is prioritizing customer retention and engagement over preserving near-term per-item margins.

Exiting the European Remix business improved ThredUp’s financial profile, and the company plans to reinvest cash in growth rather than repurchase shares. Direct Listing, premium merchandise, live selling and AI-enabled shopping tools are key potential expansion opportunities.

ThredUp executives said the online resale company delivered a record second quarter across buyers, sellers, orders and revenue, while also navigating a recent shift toward more price-sensitive behavior among budget-conscious consumers.

Speaking at Wells Fargo’s consumer conference, Chief Executive Officer and Co-Founder James Reinhart said second-quarter revenue rose 17%, while buyers and orders each increased by more than 20%. He attributed the performance to more than six quarters of record new-buyer growth, stronger customer conversion, pricing improvements and investments in the product experience.

Reinhart said ThredUp’s operational and financial improvement accelerated after the company exited its European Remix business. ThredUp acquired Remix at the end of 2021, but the business struggled as inflation and interest rates rose in Europe during 2022, according to Reinhart. ThredUp announced plans to exit the unit in summer 2024 and closed the transaction in November 2024.

After the exit, ThredUp was able to focus its investment and personnel on its U.S. operations, he said. The company now has positive EBITDA, is generating free cash flow and held approximately $60 million in cash, according to the discussion. Reinhart said the company does not currently view share repurchases as the best use of cash. Instead, ThredUp plans to continue investing in growth, citing the size of the secondhand market and what it sees as efficient customer-acquisition economics.

While second-quarter results were strong, executives said demand conditions became more difficult in June and into July. Reinhart said the company observed that budget shoppers became increasingly selective, with consumers seeking lower clearing prices on individual items. ThredUp’s technology and broad assortment allow it to assess demand across brands, categories and price points, Reinhart said. The company lists roughly 100,000 new items online each day and expects to sell about 25 million units this year across 35,000 brands and 100 categories. The company lowered its outlook for the second half by about $7 million, but executives said the ...