Shares of ThredUp Inc. (TDUP) surged 13.12% in after-hours trading on Monday following the release of the company's impressive second-quarter financial results and raised full-year guidance. The online resale platform's performance exceeded analyst expectations, driving investor enthusiasm and pushing the stock to significant gains.
ThredUp reported robust Q2 revenue of $77.7 million, representing a 16% increase year-over-year and surpassing the analyst consensus of $73.8 million. The company's gross profit reached $61.7 million, with a strong gross margin of 79.5%, up from 78.8% in the same quarter last year. These figures demonstrate ThredUp's ability to effectively monetize its platform and maintain healthy profitability in the competitive e-commerce landscape.
The company's CEO, James Reinhart, attributed the strong performance to AI-led product enhancements, operational improvements, and premium seller engagement. ThredUp also reported significant growth in its customer base, with active buyers reaching 1.47 million, a 17% rise year-over-year, and new buyer growth of 74% year-over-year, marking the best quarter for new buyer acquisition in the company's history. This surge in new customers, coupled with improved conversion rates and efficient marketing spend, has created a positive flywheel effect for the business.
Adding to the positive sentiment, ThredUp raised its full-year 2025 revenue guidance to between $298 million and $302 million, up from its previous outlook of $281 million to $291 million. The company also provided an optimistic forecast for the third quarter, projecting revenue between $76 million and $78 million, representing 25% year-over-year growth at the midpoint. These upward revisions in guidance suggest management's confidence in the company's growth trajectory and its ability to capitalize on the expanding secondhand clothing market.
The outstanding Q2 results and raised outlook highlight ThredUp's growing prominence in the secondhand clothing market, a sector that has been gaining traction due to increasing consumer interest in sustainable fashion. As ThredUp continues to leverage AI technology and improve its operational efficiency, investors appear optimistic about the company's potential for continued growth and market share gains in the burgeoning resale industry.