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ThredUp Q1 Loss Meets Estimates, Adjusted EBITDA Margin Shrinks
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Key Takeaways
ThredUp's first-quarter revenue rose 14.6%, beating estimates on strong buyer and order growth.
TDUP concludes the first quarter with a record 1.71M active buyers and 1.64M orders, topping forecasts.
TDUP expects 16% revenue growth in the second quarter and raised its 2026 gross margin outlook.
ThredUp Inc.(TDUP - Free Report) reported first-quarter 2026 results, with revenues surpassing the Zacks Consensus Estimate and earnings in line with expectations. The company’s top line increased year over year, while its net loss widened.
ThredUp posted a loss of 5 cents per share, wider than the loss of 4 cents per share in the prior-year period. The reported figure came in line with the Zacks Consensus Estimate.
Quarterly revenues increased 14.6% year over year to $81.7 million from $71.3 million. The reported figure also surpassed the Zacks Consensus Estimate of $80 million. Performance was driven by investments in new buyer acquisition, improved LTV-to-CAC efficiencies and inbound processing supporting continued marketplace flywheel momentum.
The company ended the first quarter with a record 1.71 million active buyers, up 25% year over year, surpassing the Zacks Consensus Estimate of 1.61 million. The number of orders rose 19% year over year to 1.64 million, which surpassed the Zacks Consensus Estimate of 1.51 million.
TDUP’s Margin & Cost Performance
Gross profit increased 15% year over year to $64.7 million from $56.4 million in the prior-year period. Gross margin remained largely stable at 79.2% compared with 79.1% in the first quarter of 2025.
SG&A expenses totaled $15.2 million, increasing 12.5% year over year compared with $13.5 million in the same period last year.
Adjusted EBITDA was $2.7 million compared with $3.8 million in the prior-year period. Adjusted EBITDA margin declined to 3.4% from 5.3% in the first quarter of 2025, reflecting lower profitability relative to revenue during the quarter.
TDUP’s Financial Health Snapshot
The company ended the quarter with $54.4 million in cash, restricted cash and marketable securities, up $1.3 million from the prior quarter. ThredUp invested $4.1 million in capital expenditures during the first quarter. Net cash provided by operating activities was $4.8 million, while free cash flow was $0.6 million.
What to Expect From TDUP in 2026
The company remains optimistic about growth despite a somewhat cautious consumer backdrop. The company noted some pressure on average selling prices and conversion rates toward the end of the quarter, but highlighted resilient overall demand.
The company expects second-quarter revenues between $89 million and $91 million, representing 16% year-over-year growth at the midpoint, with gross margin projected to be between 78.5% and 79.5%. Adjusted EBITDA is expected to be approximately 5.2% of revenue.
For 2026, revenue is projected to be between $351.2 million and $356.2 million, reflecting 14% growth at the midpoint. The company also raised its gross margin outlook to 78.5%-79.5% from the previously guided range of 78%-79%. It expects an adjusted EBITDA margin of approximately 6.1%, representing around 170 basis points of expansion year over year.
TDUP currently carries a Zacks Rank #3 (Hold). The company’s shares have plunged 11.2% in the past three months compared with the industry’s decline of 9.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Krispy Kreme, Inc. (DNUT - Free Report) produces doughnuts in the United States, the U.K., Ireland, Australia, New Zealand, Mexico, Canada, Japan and internationally. At present, DNUT sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DNUT’s current fiscal-year sales implies a decline of 8.2%, and the same for earnings implies growth of 120% from the year-ago reported figures. DNUT delivered a trailing four-quarter earnings surprise of 14.6%, on average.
ARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 4.9% from the year-ago reported figure, while the same for earnings implies growth of 73.3%. ARKO delivered a trailing four-quarter earnings surprise of 36.5%, on average.
Post Holdings, Inc. (POST - Free Report) operates as a consumer packaged goods holding company in the United States and internationally. POST currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago actuals. POST delivered a trailing four-quarter earnings surprise of 19.6%, on average.
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ThredUp Q1 Loss Meets Estimates, Adjusted EBITDA Margin Shrinks
Key Takeaways
ThredUp Inc.(TDUP - Free Report) reported first-quarter 2026 results, with revenues surpassing the Zacks Consensus Estimate and earnings in line with expectations. The company’s top line increased year over year, while its net loss widened.
TDUP’s Quarterly Performance: Key Metrics & Insights
ThredUp posted a loss of 5 cents per share, wider than the loss of 4 cents per share in the prior-year period. The reported figure came in line with the Zacks Consensus Estimate.
ThredUp Inc. Price, Consensus and EPS Surprise
ThredUp Inc. price-consensus-eps-surprise-chart | ThredUp Inc. Quote
Quarterly revenues increased 14.6% year over year to $81.7 million from $71.3 million. The reported figure also surpassed the Zacks Consensus Estimate of $80 million. Performance was driven by investments in new buyer acquisition, improved LTV-to-CAC efficiencies and inbound processing supporting continued marketplace flywheel momentum.
The company ended the first quarter with a record 1.71 million active buyers, up 25% year over year, surpassing the Zacks Consensus Estimate of 1.61 million. The number of orders rose 19% year over year to 1.64 million, which surpassed the Zacks Consensus Estimate of 1.51 million.
TDUP’s Margin & Cost Performance
Gross profit increased 15% year over year to $64.7 million from $56.4 million in the prior-year period. Gross margin remained largely stable at 79.2% compared with 79.1% in the first quarter of 2025.
SG&A expenses totaled $15.2 million, increasing 12.5% year over year compared with $13.5 million in the same period last year.
Adjusted EBITDA was $2.7 million compared with $3.8 million in the prior-year period. Adjusted EBITDA margin declined to 3.4% from 5.3% in the first quarter of 2025, reflecting lower profitability relative to revenue during the quarter.
TDUP’s Financial Health Snapshot
The company ended the quarter with $54.4 million in cash, restricted cash and marketable securities, up $1.3 million from the prior quarter. ThredUp invested $4.1 million in capital expenditures during the first quarter. Net cash provided by operating activities was $4.8 million, while free cash flow was $0.6 million.
What to Expect From TDUP in 2026
The company remains optimistic about growth despite a somewhat cautious consumer backdrop. The company noted some pressure on average selling prices and conversion rates toward the end of the quarter, but highlighted resilient overall demand.
The company expects second-quarter revenues between $89 million and $91 million, representing 16% year-over-year growth at the midpoint, with gross margin projected to be between 78.5% and 79.5%. Adjusted EBITDA is expected to be approximately 5.2% of revenue.
For 2026, revenue is projected to be between $351.2 million and $356.2 million, reflecting 14% growth at the midpoint. The company also raised its gross margin outlook to 78.5%-79.5% from the previously guided range of 78%-79%. It expects an adjusted EBITDA margin of approximately 6.1%, representing around 170 basis points of expansion year over year.
TDUP currently carries a Zacks Rank #3 (Hold). The company’s shares have plunged 11.2% in the past three months compared with the industry’s decline of 9.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Krispy Kreme, Inc. (DNUT - Free Report) produces doughnuts in the United States, the U.K., Ireland, Australia, New Zealand, Mexico, Canada, Japan and internationally. At present, DNUT sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DNUT’s current fiscal-year sales implies a decline of 8.2%, and the same for earnings implies growth of 120% from the year-ago reported figures. DNUT delivered a trailing four-quarter earnings surprise of 14.6%, on average.
ARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 4.9% from the year-ago reported figure, while the same for earnings implies growth of 73.3%. ARKO delivered a trailing four-quarter earnings surprise of 36.5%, on average.
Post Holdings, Inc. (POST - Free Report) operates as a consumer packaged goods holding company in the United States and internationally. POST currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago actuals. POST delivered a trailing four-quarter earnings surprise of 19.6%, on average.