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Investing.com -- ThredUp Inc. (NASDAQ:TDUP) shares surged 8.3% after the online resale platform reported second-quarter results that exceeded analyst expectations and raised its full-year outlook, driven by strong customer growth and improving profitability.
The company posted a second-quarter loss of -$0.04 per share, beating analyst estimates of -$0.05, as revenue jumped 16% YoY to $77.7 million, significantly above the consensus estimate of $73.68 million. ThredUp also reported a substantial improvement in its adjusted EBITDA, which reached $3.0 million or 3.9% of revenue, compared to $1.5 million or 2.2% of revenue in the same period last year.
"Driven by strong customer and order growth, we are extremely pleased with our second quarter performance," said ThredUp CEO and co-founder James Reinhart. "We are now more than 18-months into our AI-led product journey, and are proud to see positive results compound in new buyer and seller growth."
The company’s active buyers increased 17% to 1.47 million while orders grew 21% to 1.54 million compared to the second quarter of 2024. Gross margin improved to 79.5% from 78.8% in the year-ago period.
Looking ahead, ThredUp raised its full-year 2025 revenue guidance to between $298 million and $302 million, well above the consensus estimate of $289.4 million. For the third quarter, the company expects revenue of $76 million to $78 million, surpassing analyst expectations of $71.98 million.
The improved outlook comes as ThredUp continues to benefit from its AI investments, which appear to be driving both buyer and seller acquisition. The company also expects adjusted EBITDA margin to reach approximately 4.2% for the full year 2025, showing continued progress toward profitability.
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