ThredUp Inc. (NASDAQ: TDUP) stock is soaring more than 30% in pre-market trading on Tuesday, following the company's impressive first-quarter 2025 earnings report and raised full-year guidance. The online fashion resale marketplace demonstrated significant improvements in financial performance and operational metrics, surpassing analysts' expectations across the board.

ThredUp reported Q1 revenue of $71.3 million, marking a 10% year-over-year growth and beating Wall Street estimates of $68.2 million. The company's loss narrowed considerably to $5.22 million, or $0.04 per share, compared to a loss of $16.6 million, or $0.15 per share, in the same quarter last year. This performance significantly outperformed analysts' expectations of a $0.07 loss per share. Notably, ThredUp achieved a record quarter for new buyer acquisition, with a remarkable 95% growth, indicating strong market traction and potential for future expansion.

Investors were particularly encouraged by ThredUp's improved profitability metrics and optimistic outlook. The company's operating margin improved to -7.6% from -19.2% in the same quarter last year. Furthermore, ThredUp raised its full-year revenue guidance to a range of $281 million to $291 million, up from the previous forecast of $270 million to $280 million. This combination of better-than-expected results, record new buyer acquisition, and increased guidance has fueled investor optimism, driving the substantial pre-market stock price surge of over 30%.