Key Highlights

  • ThredUp shares are down 29.16% in pre-market trading.
  • Q2 2026 revenue reached $90.8 million, up 16.9% year over year, beating estimates.
  • Adjusted EBITDA of $4.8 million beat estimates, with active buyers up 21% year over year.
  • Third-quarter guidance came in below expectations, rattling investors.
  • Full-year 2026 revenue guidance was narrowed to $344.4 million to $348.4 million.

Shares Plunge on Weak Forward Guidance

ThredUp (NASDAQ:TDUP) is trading sharply lower today, down nearly 30%, after the online resale marketplace reported second-quarter results that beat estimates on both revenue and adjusted EBITDA, but rattled investors with a weaker forward outlook. Shares fell as much as 29.16% to $4.45 in pre-market trading, following a 1.78% gain in the prior regular session.

ThredUp, one of the largest online resale platforms in the United States, operates a marketplace connecting consumers to buy and sell secondhand apparel, shoes, and accessories, primarily for women and children, at 90% off estimated retail prices. Second-quarter revenue reached $90.8 million, up 16.9% year over year, with gross margin of 79.9%, up 40 basis points, and adjusted EBITDA of $4.8 million, exceeding internal expectations, while active buyers grew 21% and orders grew 22% year over year, marking a record quarter for buyer acquisition.

Third-Quarter Guidance Disappoints

For the third quarter of 2026, the company guided revenue of $87 to $89 million, representing 7% year-over-year growth at the midpoint, below what investors appeared to be pricing in following the strong Q2 print. Adjusted EBITDA guidance for Q3 was set at $6 to $8 million, representing 6.7% to 8.9% margin.

Full-year 2026 guidance was narrowed to revenue of $344.4 million to $348.4 million, representing 11% year-over-year growth at the midpoint, with gross margin of 79.7% to 79.9%, adjusted EBITDA margin of 4.7% to 4.9%, expecting to remain roughly flat for the year and into 2027. Management pointed to elevated promotional activity tied to price-sensitive budget shoppers, with customers earning under $60,000 up nearly 20% year over year, as a headwind requiring increased discounting to protect inventory turnover and manage aging inventory.

Strategic Initiatives Continue

The company continues shifting toward higher-income and more premium customers, with new premium partnerships with Meta (NASDAQ:META) and Pinterest up 130% and 145% year over year respectively, scaling promotional supply with premium bag items up 27% year over year, and expanding its department store partnerships with retailers including Saks, Dice Vote, and Betsey Johnson, month-over-month since a June launch, alongside deploying AI-driven personalization technology that has shown a 5% lift in item engagement and 7% lift in profit per buyer for new customers in initial testing.

Conclusion

ThredUp's sharp decline reflects investor concern over the pace of third-quarter and full-year growth relative to elevated expectations following the strong second-quarter print. With active buyer growth remaining robust and new premium partnerships gaining traction, the company's ability to manage promotional intensity while sustaining growth will be a key focus for investors ahead.

This article is for informational purposes only and does not constitute financial, investment, or trading advice. Readers should conduct their own research or consult a licensed financial advisor before making any investment decisions.