ThredUp's Q3 revenue rises driven by increase in orders and active buyers

Overview

• US online resale platform's Q3 revenue rose 7%, slightly beating analyst expectations

• Adjusted EBITDA for Q3 beat analyst expectations

• Company achieved record active buyers and orders, but net loss widened yr/yr

Outlook

• ThredUp sees Q4 revenue between $77 mln and $79 mln, down 2% year-over-year at midpoint

• Company expects Q4 gross margin of 76.5% to 77.5% and adjusted EBITDA margin of (4.0)% to (2.0)%

• ThredUp forecasts full-year 2026 revenue of $337.7 mln to $339.7 mln, up 9% year-over-year at midpoint

Result Drivers

• ACTIVE BUYER GROWTH - Record 1.82 mln active buyers, up 16% yr/yr, which contributed to higher revenue and orders

• ORDER VOLUME - Orders rose 17% yr/yr, supporting revenue growth despite a competitive environment, per CEO James Reinhart

• COMPETITIVE ENVIRONMENT - CEO cited highly competitive market conditions as a factor impacting results

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for ThredUp Inc. is $6.50, about 225% above its November 3 closing price of $2.00

Reuters Recommended Reads

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• Nov 4 - Wayfair beats Q3 revenue, profit estimates on more customers, orders

• Nov 3 - South Korea's Coupang Q3 revenue beats estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)