ThredUp reports 20 percent revenue growth for full year 2025

ThredUp, the US-based online resale platform, has released its financial results for the fourth quarter and the full fiscal year ended December 31, 2025. The company reported a 20 percent increase in full-year revenue, reaching 310.80 million dollars, supported by significant gains in active buyers and a strategic shift toward premium assortments.

For the full year 2025, gross profit rose by 19 percent to 246.80 million dollars. While the company reported a loss from continuing operations of 20.20 million dollars, this represents a substantial narrowing from the 40 million dollars loss recorded in the previous year. Adjusted EBITDA from continuing operations reached 13.50 million dollars, equivalent to 4.4 percent of revenue, up from 8.70 million dollars in 2024.

Fourth quarter performance and buyer metrics

During the fourth quarter, revenue totaled 79.70 million dollars, an 18 percent increase year-over-year. The gross margin for the period was 79.6 percent, slightly lower than the 80.4 percent reported in the same quarter of the prior year. The company saw its active buyer base grow to 1.65 million, a 30 percent increase, while total orders for the year reached 6.08 million, up 25 percent.

ThredUp co-founder and chief executive officer, James Reinhart, attributed the performance to the scalability of the company’s infrastructure. “As we enter 2026, our focus is to build toward sustained, profitable growth by enhancing the structural drivers of our flywheel: full-funnel buyer growth, high-quality supply, and AI-driven innovation,” Reinhart stated.

Strategic shift toward premium and direct listings

The company has noted a successful transition toward higher price points and premium inventory. Premium goods accounted for approximately 18 percent of the business by the end of the fourth quarter. The launch of the direct listings feature in late 2025 has also yielded higher average selling prices (ASPs), with Reinhart noting that price points in the direct selling segment were more than double those of the core marketplace.

This shift is intended to attract a more affluent demographic and mitigate exposure to lower-income consumers who may face macroeconomic challenges. The company also highlighted the growing resonance of second-hand fashion during the holiday season, with the holiday shop contributing to the 18% YoY growth in the final quarter.

Financial outlook for 2026

For the first quarter of 2026, ThredUp forecasts revenue between 79.50 million dollars and 80.50 million dollars, up 12 percent year-over-year at the midpoint. The company expects a full-year 2026 revenue range of 349 million dollars to 355 million dollars, representing 13 percent growth at the midpoint.

The executive team expects a seasonal cadence where the second quarter will see a re-acceleration of growth as consumers transition from holiday spending toward sustainable New Year resolutions and closet clean-outs.