ThredUp Cuts Fourth-Quarter Sales Outlook After Growth Slows

The Tip Desk · November 4, 2026 · 3 min read

Third-quarter revenue was $88.2 million, up 7% from a year earlier, as the company lowered its fourth-quarter midpoint to a 2% year-over-year decline.

ThredUp Inc. (TDUP), an online resale platform for apparel, shoes and accessories, reported third-quarter revenue of $88.2 million, a 7% increase from a year earlier, and cut its fourth-quarter sales outlook after year-over-year growth slowed from 17% in the second quarter.

The result landed inside the $87.0 million to $89.0 million range the company had set in August, with Adjusted EBITDA margin of 4.0% matching the prior approximately 4.0% outlook. Gross profit rose 6% to $69.0 million, and gross margin was 78.2%, down from 79.4% a year earlier.

Active buyers reached a record 1.82 million, up 16% from a year earlier, after 21% growth in the second quarter. Orders were 1.89 million, up 17%. Chief executive James Reinhart said the company delivered a record quarter for active buyers, orders and items sold.

Net loss was $5.5 million, or 6.2% of revenue, compared with a $4.2 million loss, or 5.2% of revenue, a year earlier. Adjusted EBITDA was $3.5 million, or 4.0% of revenue, down from $3.8 million, or 4.6%, a year earlier. The Adjusted EBITDA reconciliation included $546 thousand of legal settlement and fees.

Operating expenses totaled $74.3 million. Operations, product and technology expense was $42.5 million, marketing $18.2 million, and sales, general and administrative $13.7 million. Operating loss was $5.3 million, or 6.0% of revenue.

Cash and cash equivalents, restricted cash and marketable securities ended the quarter at $57.6 million, up $0.2 million from the previous quarter. Long-term debt, net of the current portion, was $17.7 million as of September 30, 2026.

For the fourth quarter of 2026, ThredUp expects revenue of $77.0 million to $79.0 million, a 2% year-over-year decline at the midpoint, and an 8% two-year average growth rate. That range replaced the $85.0 million to $87.0 million outlook issued in August, which had implied 8% growth at the midpoint. Fourth-quarter gross margin is expected at 76.5% to 77.5%, and Adjusted EBITDA margin at (4.0)% to (2.0)%, down from an approximately 6.0% outlook given three months earlier.

For the full fiscal year 2026, the company now expects revenue of $337.7 million to $339.7 million, 9% year-over-year growth at the midpoint, and a 14% two-year average growth rate. Full-year gross margin is expected at 78.5% to 78.7%, and Adjusted EBITDA margin at 2.4% to 2.8%, compared with an approximately 4.7% full-year Adjusted EBITDA margin outlook in August.

The company said depreciation and amortization is expected to be $3.3 million in the fourth quarter and $14.0 million for the full year, and stock-based compensation $6.0 million in the fourth quarter and $22.3 million for the full year. It said those items are uncertain and could result in projected net loss being materially greater than is indicated by the currently estimated Adjusted EBITDA margin.

Reinhart said the company remains focused on innovating across the product experience as a managed marketplace.