Companies

ThredUp Cuts 2026 Outlook After Record Quarter

The Tip Desk · October 21, 2026 · 3 min read

Second-quarter revenue reached a record $90.8 million as the company lowered full-year sales guidance to $344.4 million to $348.4 million.

ThredUp Inc. (TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, reported record second-quarter revenue of $90.8 million, up 17% from a year earlier, and then cut its 2026 outlook.

Year-over-year growth had been 15% in the first quarter. Sequential revenue rose 11% after a 3% increase in the prior quarter and a 3% decline before that.

Gross profit was $72.5 million, matching the 17% revenue increase. Gross margin was 79.9%. Adjusted EBITDA was $4.8 million, or 5.3% of revenue, versus $3.0 million, or 3.9% of revenue, a year earlier.

Active Buyers reached a record 1.77 million, up 21% year-over-year. Orders were 1.87 million, up 22%. Sequential Active Buyers growth slowed to 3% from 4% in the prior quarter. Sequential Orders growth accelerated to 14% from 5%.

Net loss was $5.9 million, or a negative 6.5% of revenue, compared with a $5.2 million loss, or a negative 6.7% of revenue, a year earlier. Operating loss narrowed to $6.1 million, or 6.7% of revenue, from $6.6 million, or 8.1% of revenue, in the prior quarter.

Marketing spend rose to $17.8 million from $14.9 million in the prior quarter. Operations, product, and technology expense increased to $45.1 million. Sales, general, and administrative expense rose to $15.8 million. Severance and other reorganization costs of $362,000 appeared in the quarter, versus none in the prior quarter.

Cash, cash equivalents, restricted cash, and marketable securities ended the quarter at $57.4 million, up $3.0 million from the previous quarter. Non-GAAP free cash flow was $1.8 million, versus $0.6 million in the prior quarter, after a $3.2 million outflow in the quarter before that.

Chief Executive James Reinhart said the company was pleased with results that exceeded expectations across the board and that fundamentals remained strong, active buyers were growing, supply quality was improving, and the company was methodically expanding Adjusted EBITDA. He said the company was updating guidance for the second half of the year to reflect ongoing economic uncertainty affecting the most price-sensitive buyers in its marketplace.

For the third quarter of 2026, ThredUp expects revenue in the range of $87.0 million to $89.0 million, +7% year-over-year growth at the midpoint, and a 20.3% two-year average growth rate. That range is below the $89.0 million to $91.0 million second-quarter outlook, which had implied +16% growth at the midpoint. Third-quarter gross margin is expected at 78.0% to 79.0%, and Adjusted EBITDA margin at approximately 4.0%.

For the fourth quarter of 2026, the company expects revenue of $85.0 million to $87.0 million, +8% year-over-year at the midpoint, and a 13.2% two-year average growth rate, with gross margin of 77.5% to 78.5% and Adjusted EBITDA margin of approximately 6.0%.

Full-year 2026 revenue guidance was cut to $344.4 million to $348.4 million, +11% year-over-year at the midpoint, from $351.2 million to $356.2 million, +14% at the midpoint. Full-year gross margin is now expected at 78.7% to 79.1%, and Adjusted EBITDA margin at approximately 4.7%.

The company said depreciation and amortization is expected to be $3.3 million in each of the third and fourth quarters and $14.0 million for the full year. Stock-based compensation is expected to be $5.9 million in each of those quarters and $23.3 million for the year.

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