ThredUp Inc.

Revenue in Q2 2026 was $90.8 million, up 16.9% year over year. Gross margin was 79.9%, up 40 basis points, and GAAP net loss was $5.9 million versus a net loss of $5.2 million in the same quarter last year. Adjusted EBITDA was $4.8 million, or 5.3% of revenue, up 140 basis points year over year. Active buyers on a trailing 12-month basis were 1.8 million, up 21%, and orders were 1.9 million, up 22%. For Q3 2026, ThredUp guided to revenue of $87 million to $89 million, gross margin of 78% to 79%, and adjusted EBITDA of approximately 4% of revenue. For Q4 2026, it expects revenue of $85 million to $87 million, gross margin of 77.5% to 78.5%, and adjusted EBITDA of approximately 6% of revenue. For full-year 2026, the company now expects revenue of $344.4 million to $348.4 million, gross margin of 78.7% to 79.1%, adjusted EBITDA of approximately 4.7% of revenue, and continued cash flow positivity. Management said the second-half revenue outlook was reduced by approximately $7 million because of elevated promotions.

James Reinhart framed the quarter as operationally strong but set against a more difficult consumer backdrop, especially for lower-income and price-sensitive shoppers. He said ThredUp is deliberately becoming more selective in where it promotes, emphasizing discounts on older inventory rather than fresh product to protect brand equity and future willingness to pay. Strategically, he emphasized three priorities: grow and retain higher-value buyers, expand premium supply, and use AI to improve discovery and marketplace efficiency.

Sean Sobers said the company beat internal expectations on revenue, gross margin, and adjusted EBITDA, helped by strong buyer trends and higher repurchase rates supported by elevated promotions. He noted cash and securities ended Q2 at $57.4 million, up from $54.4 million at the start of the quarter, while CapEx was $2.7 million and the company generated $3 million in cash in the quarter; he also said CapEx in 2026 should be similar to 2025. On guidance, he tied the lower revenue and EBITDA outlook to about $7 million of second-half revenue headwind from promotions, while stressing the company still expects to remain cash flow positive for the full year.

Analysts focused on why guidance was cut despite strong Q2 execution, and management repeatedly pointed to a weaker June environment and especially softer conversion among customers making under $60,000 a year. James Reinhart said the company chose to be more promotional to preserve buyer engagement and avoid discounting fresh inventory, while Sean Sobers said the EBITDA impact comes from both lower revenue flow-through and continued investment in marketing and processing. Questions also probed whether promotions would hit AOV more than orders; management said AOV should come down somewhat while orders and buyers should stay strong, and marketing was not expected to materially change versus last year.