ThredUp Inc.

Previous wording

Gross Profit and Margin: Gross profit totaled $72.5 million for the second quarter of 2026, compared to $61.7 million for the second quarter of 2025, representing an increase of 17.5% year over year. Gross margin was 79.9%, an increase of 40 basis points from 79.5% in the comparable quarter last year.

Current wording

Gross Profit and Margin: Gross profit totaled $69.0 million for the third quarter of 2026, compared to $65.2 million for the third quarter of 2025, representing an increase of 5.9% year over year. Gross margin was 78.2%, a decrease of 120 basis points from 79.4% in the comparable quarter last year.

Previous wording

Net Loss was $5.9 million, or a negative 6.5% of revenue, for the second quarter of 2026, compared to $5.2 million, or a negative 6.7% of revenue, for the second quarter of 2025, representing an increase of 14.7% year over year.

Current wording

Net Loss was $5.5 million, or a negative 6.2% of revenue, for the third quarter of 2026, compared to $4.2 million, or a negative 5.2% of revenue, for the third quarter of 2025, representing an increase of 28.8% year over year.

Previous wording

Active Buyers and Orders: Active Buyers totaled 1.8 million and Orders totaled 1.9 million in the second quarter of 2026, compared to 1.5 million and 1.5 million, respectively, in the second quarter of 2025, representing increases of 20.9% and 21.9%, respectively, year over year.

Current wording

Active Buyers and Orders: Active Buyers totaled 1.8 million and Orders totaled 1.9 million in the third quarter of 2026, compared to 1.6 million and 1.6 million, respectively, in the third quarter of 2025, representing increases of 16.1% and 17.4%, respectively, year over year.

Previous wording

Non-GAAP Adjusted EBITDA means Net loss adjusted to exclude, where applicable in a given period, stock-based compensation expense, depreciation and amortization, interest expense, provision for income taxes, severance and other reorganization costs, and gains related to non-marketable equity investments. Non-GAAP Adjusted EBITDA margin represents Non-GAAP Adjusted EBITDA divided by Revenue. We use these non-GAAP measures to evaluate and assess our operating performance and the operating leverage in our business, and for internal planning and forecasting purposes. We believe these non-GAAP measures, when taken collectively with our GAAP results, may be helpful to investors because they provide consistency and comparability with past financial performance and assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results.

Current wording

Non-GAAP Adjusted EBITDA means Net loss adjusted to exclude, where applicable in a given period, stock-based compensation expense, depreciation and amortization, legal settlement and fees, interest expense, provision for income taxes, severance and other reorganization costs, and gains related to non-marketable equity investments. Non-GAAP Adjusted EBITDA margin represents Non-GAAP Adjusted EBITDA divided by Revenue. We use these non-GAAP measures to evaluate and assess our operating performance and the operating leverage in our business, and for internal planning and forecasting purposes. We believe these non-GAAP measures, when taken collectively with our GAAP results, may be helpful to investors because they provide consistency and comparability with past financial performance and assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results.

Previous wording

Comparison of Financial Results for the Three and Six Months Ended June 30, 2026 and 2025

Current wording

Comparison of Financial Results for the Three and Nine Months Ended September 30, 2026 and 2025

Previous wording

Revenue increased $23.5 million, or 15.8%, for the six months ended June 30, 2026 as compared to the same period in 2025. The growth in revenue was mainly driven by a 20.6% increase in Orders, supported by higher engagement from both new and returning buyers, partially offset by a 2.3% decrease in the average order value, primarily driven by a higher mix of smaller orders. These trends reflect the continued strength in our core marketplace business and our ongoing focus on driving platform growth.

Current wording

Revenue increased $6.1 million, or 7.4%, for the three months ended September 30, 2026 as compared to the same period in 2025. The growth in revenue was mainly driven by a 17.4% increase in Orders, supported by higher engagement from both new and returning buyers, and a 2.4% increase in the average order value, partially offset by higher promotional discounts.

Previous wording

Revenue increased $13.1 million, or 16.9%, for the three months ended June 30, 2026 as compared to the same period in 2025. The growth in revenue was mainly driven by a 21.9% increase in Orders, supported by higher engagement from both new and returning buyers, partially offset by a 2.9% decrease in the average order value, primarily driven by a higher mix of smaller orders. These trends reflect the continued strength in our core marketplace business and our ongoing focus on driving platform growth.

Current wording

Revenue increased $29.6 million, or 12.8%, for the nine months ended September 30, 2026 as compared to the same period in 2025. The growth in revenue was mainly driven by a 19.5% increase in Orders, supported by higher engagement from both new and returning buyers, partially offset by higher promotional discounts, primarily in the third quarter, and a 0.6% decrease in the average order value.

Previous wording

Gross margin was 79.6% for the six months ended June 30, 2026, compared to 79.3% in the same period in 2025, an increase of 30 basis points. Overall, gross margin remained relatively stable across the periods.

Current wording

Gross margin was 79.1% for the nine months ended September 30, 2026, compared to 79.3% in the same period in 2025, a decrease of 20 basis points. Overall, gross margin remained relatively stable across the periods.

Previous wording

Operations, product, and technology expenses increased $7.6 million, or 20.2%, for the three months ended June 30, 2026 as compared to the same period in 2025. The increase was primarily due to a $4.2 million increase in personnel-related costs, mainly reflecting distribution center headcount, a $2.0 million increase in inbound shipping costs driven by higher supply volume, and a $1.4 million increase in facilities, technology and other distribution center-related costs. The increase in operations, product, and technology expenses as a percentage of revenue for the three months ended June 30, 2026 as compared to the same period in 2025 reflects higher labor and inbound shipping costs associated with increased processing volume.

Current wording

Operations, product, and technology expenses increased $3.9 million, or 10.2%, for the three months ended September 30, 2026 as compared to the same period in 2025. The increase was primarily due to a $2.1 million increase in personnel-related costs, mainly reflecting distribution center headcount, a $1.2 million increase in inbound shipping costs driven by higher supply volume, and a $0.6 million increase in facilities, technology and other costs. The increase in operations, product, and technology expenses as a percentage of revenue for the three months ended September 30, 2026 as compared to the same period in 2025 reflects higher labor and inbound shipping costs associated with increased processing volume.

Previous wording

Operations, product, and technology expenses increased $13.5 million, or 18.6%, for the six months ended June 30, 2026 as compared to the same period in 2025. The increase was primarily due to a $7.7 million increase in personnel-related costs, mainly reflecting distribution center headcount, a $3.7 million increase in inbound shipping costs driven by higher supply volume, and a $2.1 million increase in facilities, technology and other distribution center-related costs. The increase in operations, product, and technology expenses as a percentage of revenue for the six months ended June 30, 2026 as compared to the same period in 2025 reflects higher labor and inbound shipping costs associated with increased processing volume.

Current wording

Operations, product, and technology expenses increased $17.5 million, or 15.7%, for the nine months ended September 30, 2026 as compared to the same period in 2025. The increase was primarily due to a $9.9 million increase in personnel-related costs, mainly reflecting distribution center headcount, a $4.9 million increase in inbound shipping costs driven by higher supply volume, and a $2.7 million increase in facilities, technology and other distribution center-related costs. The increase in operations, product, and technology expenses as a percentage of revenue for the nine months ended September 30, 2026 as compared to the same period in 2025 reflects higher labor and inbound shipping costs associated with increased processing volume.

Previous wording

Marketing expenses increased $1.6 million, or 9.6%, for the three months ended June 30, 2026 as compared to the same period in 2025, which was primarily due to an increase in advertising costs related to our marketing initiatives aimed at driving customer engagement and platform growth. The decrease in marketing expenses as a percentage of revenue for the three months ended June 30, 2026 as compared to the same period in 2025 was primarily due to increased operating leverage resulting from higher revenue.

Current wording

Marketing expenses increased $2.0 million, or 12.3%, for the three months ended September 30, 2026 as compared to the same period in 2025, which was primarily due to an increase in advertising costs related to our marketing initiatives aimed at driving customer engagement and platform growth. The increase in marketing expenses as a percentage of revenue for the three months ended September 30, 2026 as compared to the same period in 2025 reflects a higher rate of marketing spend relative to the growth in revenue, as we continue to invest in marketing initiatives to support future growth.

Previous wording

Marketing expenses increased $3.4 million, or 11.4%, for the six months ended June 30, 2026 as compared to the same period in 2025, which was primarily due to an increase in advertising costs related to our marketing initiatives aimed at driving customer engagement and platform growth. The decrease in marketing expenses as a percentage of revenue for the six months ended June 30, 2026 as compared to the same period in 2025 was primarily due to increased operating leverage resulting from higher revenue.

Current wording

Marketing expenses increased $5.3 million, or 11.7%, for the nine months ended September 30, 2026 as compared to the same period in 2025, which was primarily due to an increase in advertising costs related to our marketing initiatives aimed at driving customer engagement and platform growth. The marketing expenses as a percentage of revenue remained consistent across the periods.

Previous wording

Sales, general, and administrative expenses increased $2.5 million, or 19.0%, for the three months ended June 30, 2026 as compared to the same period in 2025. The increase was primarily due to a $1.5 million increase in personnel-related costs, of which $1.0 million was attributable to stock-based compensation, a $0.4 million increase in professional services, a $0.3 million increase in payment processing fees driven by higher gross sales volume during the period, and a $0.3 million increase in facilities, technology and other costs. The sales, general, and administrative expenses as a percentage of revenue remained consistent across the periods.

Current wording

Sales, general, and administrative expenses increased $3.0 million, or 7.2%, for the nine months ended September 30, 2026 as compared to the same period in 2025. The increase was primarily due to a $1.6 million increase in personnel-related costs, of which $1.1 million was attributable to stock-based compensation, a $0.5 million increase in facilities, technology and other costs, a $0.5 million increase in professional services, and a $0.3 million increase in payment processing fees. The decrease in sales, general, and administrative expenses as a percentage of revenue for the nine months ended September 30, 2026 as compared to the same period in 2025 reflects increased operating leverage resulting from higher revenue.

Previous wording

Interest expense decreased $0.2 million for the three months ended June 30, 2026 as compared to the same period in 2025, primarily due to a lower interest rate resulting from our recent debt amendment and reduced outstanding debt balances.

Current wording

Interest expense decreased $0.1 million for the three months ended September 30, 2026 as compared to the same period in 2025, primarily due to a lower interest rate resulting from our recent debt amendment and reduced outstanding debt balances.

Previous wording

Interest expense decreased $0.3 million for the six months ended June 30, 2026 as compared to the same period in 2025, primarily due to a lower interest rate resulting from our recent debt amendment and reduced outstanding debt balances.

Current wording

Interest expense decreased $0.5 million for the nine months ended September 30, 2026 as compared to the same period in 2025, primarily due to a lower interest rate resulting from our recent debt amendment and reduced outstanding debt balances.

Previous wording

Other income, net, decreased $0.4 million for the six months ended June 30, 2026 as compared to the same period in 2025, primarily due to a gain recognized on a non-marketable equity investment in the first quarter of 2025.

Current wording

Other income, net, decreased $0.8 million for the nine months ended September 30, 2026 as compared to the same period in 2025, primarily due to higher non-operating expenses in the third quarter of 2026 and a gain recognized on a non-marketable equity investment in the first quarter of 2025.

Previous wording

We generated positive cash flows from operating activities of $9.2 million for the six months ended June 30, 2026. We have primarily financed our operations through private and public sales of equity securities and a term loan facility (“Term Loan”). As of June 30, 2026, we had cash, cash equivalents, restricted cash and marketable securities of $57.4 million, an increase of $4.3 million from December 31, 2025. Additionally, we have a Term Loan under which $10.0 million remained available to be drawn as of June 30, 2026 for the purchase of certain equipment, and we were in full compliance with our debt covenants under the Term Loan as of that date. See Note 6, Long-Term Debt, to the condensed consolidated financial statements included in Part I, Item 1, Financial Statements, of this Quarterly Report on Form 10-Q for a further discussion on our Term Loan.

Current wording

We generated positive cash flows from operating activities of $11.2 million for the nine months ended September 30, 2026. We have primarily financed our operations through private and public sales of equity securities and a term loan facility (“Term Loan”). As of September 30, 2026, we had cash, cash equivalents, restricted cash and marketable securities of $57.6 million, an increase of $4.5 million from December 31, 2025. Additionally, we have a Term Loan under which $10.0 million remained available to be drawn as of September 30, 2026 for the purchase of certain equipment, and we were in full compliance with our debt covenants under the Term Loan as of that date. See Note 6, Long-Term Debt, to the condensed consolidated financial statements included in Part I, Item 1, Financial Statements, of this Quarterly Report on Form 10-Q for a further discussion on our Term Loan.

Previous wording

Net cash provided by operating activities was $9.2 million during the six months ended June 30, 2026, compared to $6.1 million for the same period in 2025. The $3.1 million increase in operating cash inflows was primarily due to a $0.8 million improvement in net loss, adjusted for non-cash items, as well as a $2.3 million increase in the net cash provided by changes in operating assets and liabilities. Changes in operating assets and liabilities were primarily driven by $3.3 million in higher cash inflows from accounts payable and accrued and other liabilities, primarily reflecting the timing of vendor payments and compensation, partially offset by $0.9 million in higher cash outflows from operating liabilities reflecting higher lease payments.

Current wording

Net cash provided by operating activities was $11.2 million during the nine months ended September 30, 2026, compared to $12.1 million for the same period in 2025. The $0.9 million decrease in operating cash inflows was primarily due to changes in operating assets and liabilities, which were driven by $2.3 million in higher cash outflows from accounts receivable, reflecting timing of cash receipts, $1.2 million in higher cash outflows from operating liabilities, reflecting escalating lease payments, $0.7 million in higher cashouts of seller payable, partially offset by $3.2 million in higher cash inflows from accounts payable and accrued and other liabilities, reflecting the timing of vendor payments.

Previous wording

Net cash used in investing activities for the six months ended June 30, 2026 was $7.5 million as compared to net cash provided by investing activities of $1.0 million for the same period in 2025. The $8.4 million increase in cash outflows was primarily due to a $5.6 million decrease in sale and maturities of marketable securities, a $1.7 million increase in purchases of property and equipment, and a $1.1 million increase in purchases of marketable securities.

Current wording

Net cash used in investing activities for the nine months ended September 30, 2026 was $11.4 million as compared to $0.9 million for the same period in 2025. The $10.5 million increase in cash outflows was primarily due to an $8.8 million decrease in sale and maturities of marketable securities and a $1.7 million increase in purchases of marketable securities, reflecting the maturity schedule of our investment portfolio.

Previous wording

Net cash provided by financing activities for the six months ended June 30, 2026 was $1.8 million as compared to $2.1 million for the same period in 2025. The $0.3 million decrease in cash inflows was primarily due to a $6.5 million decrease in proceeds from issuance of stock-based awards, partially offset by a $4.7 million decrease in withholding taxes paid on stock-based award activity and a $1.5 million decrease in payments on debt resulting from our debt amendment in the first quarter of 2026.

Current wording

Net cash provided by financing activities for the nine months ended September 30, 2026 was $2.0 million as compared to net cash used in financing activities of $0.4 million for the same period in 2025. The $2.4 million increase in cash inflows was primarily due to a $2.5 million decrease in payments on debt resulting from our debt amendment in the first quarter of 2026.