ThredUp Inc. Q4 FY2025 earnings call

James Reinhart discussed highlights of 2025 as a streamlined US-focused business, record revenue and gross margin, completion of multi-year accounting transition to consignment-based model. Focus in 2026 on full funnel buyer growth, high quality supply, AI driven innovation. Sean Sobers walked through Q4 and 2025 financial results, balance sheet, and guidance for 2026 including revenue range, gross margin range, and EBITDA margin expectations

Q4 revenue grew 18.5% year over year to $79.7 million. Gross margin was 79.6%. Adjusted EBITDA was $2.9 million or 3.7% of revenue. For full year 2025, revenue was $310.8 million, up 20% year-over-year. Gross margin was 79.4%. Adjusted EBITDA was $14 million, or 4.4% of revenue. Premium kit offering was 17% of supply for the year

Expect Q1 2026 revenue in range of $79.5 million to $80.5 million, 12% y-o-y growth midpoint. Full year 2026 revenue range $349 to $355 million, 13% y-o-y growth midpoint. Gross margin range 78% to 79%, adjusted EBITDA ~6% of revenue, sequential EBITDA expansion into Q2 with second half EBITDA greater than first half

No specific risks detailed in the provided transcript but mentions forward-looking statements subject to risks and uncertainties, macroeconomic environment uncertainties affecting discretionary spending

Q: Ike Bershaw asked about Q1 guide and revenue EBITDA pacing.

A: James and Sean discussed conservative approach, normal cadence of business with Q1 as smallest quarter, Q2 reacceleration.

Q: Matt Caranda asked about 2026 line items leveraging for EBITDA margin expansion.

A: Sean said marketing at similar revenue percentage, gross margin range, and customer acquisition costs increasing but expecting strong new buyer momentum.

Q: Dylan Cardin asked about new buyer growth and churn.

A: James said returning to normal cadence, less about churn.

Q: Vienna Tulsi asked about ASPs and customer health.

A: James talked about premium portion growth, direct listings impact.

Q: Bobby Brooks asked about product enhancements for LTV.

A: James discussed personalization efforts.

Q: Oliver Chen asked about costs mix and ASP influence on payback math.

A: James and Sean discussed fixed variable costs mix and ASP impact on LTV