A managed online marketplace where people send in bags of used clothing, shoes, and accessories that ThredUp processes, photographs, and resells at steep discounts from estimated retail prices. It also runs Resale-as-a-Service, helping brands and retailers offer closet clean-outs and resale shops to their own customers. The company divested its European operations in November 2024 and uses AI tools like natural language search and Style Chat.
ThredUp Q2 revenue rose 16.9% to $90.8M on 21.9% order growth, and adjusted EBITDA rose 58.4% to $4.8M.
ThredUp's order growth accelerated, pushing to a record $90.8 million. Revenue rose 16.9% as orders climbed 21.9% to 1.9 million, expanded to 79.9%, and grew 58.4% to $4.8 million, helped by marketing . The U.S. consignment model is scaling, but net losses persist and the Nasdaq listing status remains unresolved.
Key takeaways
rose 16.9% to $90.8 million, driven by a 21.9% increase in orders to 1.9 million and a rise in active buyers to 1.8 million, partially offset by a 2.9% decline in average order value.
expanded 40 to 79.9%, with up 17.5% to $72.5 million, as cost of grew 14.6% on higher processing volume.
grew 58.4% to $4.8 million, aided by marketing spend that rose only 9.6% and fell to 19.6% of , demonstrating .
Section summaries
Management's Discussion and Analysis
Revenue rose 16.9% to $90.8M on 21.9% order growth; gross margin reached 79.9% and adjusted EBITDA grew 58.4% to $4.8M.
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increased 16.9% to $90.8M, driven by a 21.9% rise in Orders to 1.9M and Active Buyers to 1.8M, partially offset by a 2.9% decline in average order value.
expanded 40 to 79.9%, with up 17.5% to $72.5M, while cost of grew 14.6% on higher processing volume.
Net loss widened 14.7% to $5.9 million, as operations, product, and technology expenses rose 20.2% to $45.1 million, driven by higher distribution center headcount, inbound shipping, and facility costs.
improved to $9.2 million for the first half of the fiscal year, and total liquidity stood at $57.4 million in cash and equivalents plus $10.0 million available under the term loan.
The company stated there have been no material changes to risk factors since the Fiscal 2025 10-K, leaving the Nasdaq bid-price deficiency and the remaining Remix divestiture as outstanding items.
What changed
Order growth accelerated to 21.9% from 19.3% in Q1 2026, confirming the Q1 deceleration was not the start of a new trend and that demand momentum is building.
Operating expense growth relative to improved: marketing spend grew only 9.6% versus 21.1% in Q1 2026, reversing the prior quarter's dynamic where cost growth outpaced revenue and widened the net loss.
The margin expanded to 5.3% from 3.3% in Q1 2026, as the flagged as a watch item in the prior quarter began to materialize.
What to watch
Q3 2026 and order growth to confirm whether the 21.9% order increase sustains as the company laps the 37.2% order growth from Q3 2025.
Q3 2026 as inflation in freight, labor, and packaging costs continues to pressure the 79.9% figure, with management citing these as ongoing headwinds.
Nasdaq listing status and any reverse split or delisting action, as the March 2025 bid-price compliance deadline passed without a disclosed resolution.
Completion of the remaining Remix divestiture and any final exit costs or proceeds recorded.
Operations, product, and technology expenses rose 20.2% to $45.1M, driven by higher distribution center headcount, inbound shipping, and facility costs.
Marketing spend increased 9.6% to $17.8M but declined as a percentage of to 19.6%, reflecting from higher revenue.
Net loss widened 14.7% to $5.9M, but grew 58.4% to $4.8M, aided by lower after a debt amendment.
improved to $9.2M; cash and equivalents totaled $57.4M with $10.0M available under the term loan, and is expected to remain modest.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate risk from cash/investments and variable-rate debt is deemed immaterial; inflation is flagged as an ongoing cost and demand headwind.
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Cash equivalents and marketable securities total $52.5 million, invested in short- to intermediate-term instruments with no derivatives used for hedging.
The Term Loan carries a variable rate tied to (2.50% floor plus 3.25% margin), but a hypothetical 1% rate shift would not materially change annual .
The company does not enter into investments for trading or speculative purposes.
Elevated U.S. inflation is raising fuel, labor, processing, and freight costs, pressuring and operating expenses.
Inflation may also weaken customer purchasing power, potentially slowing and Order growth, and the company may be unable to fully offset rising costs through price increases.
We are not a party to any material pending legal proceedings. From time to time, we may be subject to legal proceedings and claims arising in the ordinary course of business.
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We are not a party to any material pending legal proceedings. From time to time, we may be subject to legal proceedings and claims arising in the ordinary course of business.
Risks affecting our business are discussed in the section titled “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on March 2, 2026 (our “Fiscal 2025 10-K”). There have been no material changes to o…
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Risks affecting our business are discussed in the section titled “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on March 2, 2026 (our “Fiscal 2025 10-K”). There have been no material changes to our risk factors as previously disclosed in our Fiscal 2025 10-K.