0001484778-26-000016
SEC filingRevenue grew 14.6% YoY driven by order growth, but net loss widened 24.1% and non-GAAP EBITDA fell 27.9% as costs outpaced sales.
For the three months ended March 31, 2026, ThredUp reported revenue of $81.7 million, a 14.6% increase from $71.3 million in the prior-year period. The growth was primarily driven by a 19.3% increase in Orders, supported by higher engagement from new and returning buyers, partially offset by a 1.6% decrease in average order value due to a higher mix of orders from newer buyer cohorts and a lower free shipping threshold. Gross profit rose 14.7% to $64.7 million, with gross margin expanding 10 basis points to 79.2%, reflecting stable cost of revenue relative to sales. Net loss widened 24.1% to $6.5 million (negative 7.9% of revenue) from $5.2 million (negative 7.3% of revenue) in the prior year, as operating expenses increased at a faster rate than revenue. Non-GAAP Adjusted EBITDA declined 27.9% to $2.7 million (3.4% of revenue) from $3.8 million (5.3% of revenue), driven by higher personnel, inbound shipping, and advertising costs.
The MD&A does not provide a formal segment breakdown. The business operates as a single managed marketplace, though the RaaS offering is noted as a supplementary supply channel. Revenue growth was fueled by order volume expansion across the core marketplace, with Active Buyers increasing 25.0% to 1.7 million and Orders up 19.3% to 1.6 million. The decline in average order value suggests a shift toward lower-value transactions, likely from newer customers attracted by a lower free shipping threshold.
Management did not provide specific numerical guidance for future periods. However, they noted expected near-term increases in shipping rates due to fuel surcharges and anticipate that capital expenditures will remain modest for the remainder of 2026. They do not plan to expand the distribution network to additional locations in the near term. The company believes existing cash, cash equivalents, and marketable securities ($54.4 million as of March 31, 2026) are sufficient for at least the next 12 months.
As of March 31, 2026, ThredUp held $39.0 million in cash and cash equivalents plus $4.9 million in restricted cash, and $10.5 million in marketable securities (all classified as available-for-sale with maturities mostly under two years). Total liquidity (cash + marketable securities) stood at $49.5 million. The company has no inventory reported on the balance sheet; its primary current liabilities include $18.9 million in seller payable, $7.8 million in gift card and site credit liabilities, and $4.3 million in allowance for returns.
The notes disclose no material purchase commitments or contractual obligations beyond normal operating leases and the term loan. Lease liabilities are $34.4 million (current + non-current), and the company has no other off-balance-sheet commitments. Legal contingencies are not expected to be material.
ThredUp operates as a single operating and reportable segment. The CODM uses consolidated net loss as the key measure of segment profit. No geographic or further segment breakdown is provided in the notes.
ThredUp's operating cash flow (CFO) of $4.8M exceeded the net loss of $6.5M, indicating underlying cash generation from non-cash charges like stock-based compensation ($5.5M) and depreciation ($3.3M). Working capital changes provided a net boost, driven by increases in accounts payable and accrued liabilities, partially offset by higher accounts receivable. Capex intensity rose significantly to $4.1M from $1.8M, representing 86% of CFO, which limits free cash flow to just $0.6M (CFO minus capex). The company's investing activities also included net purchases of marketable securities, consuming additional cash. Financing activities contributed $0.6M primarily from stock award proceeds. Overall, cash flow quality is moderate; while CFO covers net losses, the heavy capex and negative free cash flow margin (if computed) suggest reliance on external funding for growth. No dividends or share repurchases were made.
Anomalies: A large swing in accounts payable and accrued liabilities provided a $4.6M boost to CFO, but operating lease liabilities reduced cash by $1.7M. The prior period had a larger positive impact from accounts payable.