On this page of StockholderLetter.com we present the latest annual shareholder letter from ThredUp Inc. — ticker symbol TDUP. Reading current and past TDUP letters to shareholders can bring important insights into the investment thesis.
2025 Annual Report
To our stockholders: Last year, I wrote about the volatility we experienced in 2024 and the set of decisions we made to reset the business. We simplified the company, refocused our efforts, and made some hard tradeoffs in service of building a stronger foundation. 2025 was the proving ground for those decisions. I am pleased to report the meaningful progress we have made during this past year. Most notably, we achieved positive annual total cash flow for the first time in our history. That s an important milestone for us. It reflects a business that is becoming more durable and more scalable over time. There are a few things that drove this. First, focus. In late 2024, we made the decision to exit Europe and concentrate fully on the U.S. business. That gave us the ability to allocate resources more effectively and operate with greater clarity. In 2025, that showed up in a surge of new customers, which fueled a return to revenue growth and improved bottom line financial performance. Second, the marketplace is getting stronger. We saw growth on both sides: more buyers and better supply. Our new buyer acquisition increased meaningfully year-over-year, driven by continued investment in customer acquisition and new supply. Further, the mix of inventory continues to improve, with Premium Kits representing a larger share of what we process. That has a direct impact on customer experience and average selling prices. We re also seeing early signs that new channels, particularly in social commerce, can expand supply in ways that are incremental to our core business. Many of the sellers coming through these channels are new to ThredUp, which is encouraging. Third, we are increasingly leveraging AI as a core driver of our customer experience and operational efficiency. What makes this moment unique for ThredUp is not just the availability of new AI tools, but also how we apply them to the proprietary data and transaction layer we ve built over more than a decade. Our marketplace generates rich data across supply, demand, pricing, and customer behavior. These are the inputs required to train and deploy meaningful AI applications. We are already seeing impact across discovery, personalization, and customer support, and we believe we are still in the early innings of what this technology can unlock. We also made a decision this year to update our brand. As the business has evolved, we felt that it was important that how we show up to customers reflects where we re going. This rebrand is about reinforcing that secondhand can be even more than just affordable and
sustainable, but also stylish, relevant, and inspiring, while better reflecting the quality of the experience we re delivering to both buyers and sellers. The rebrand is a step in that direction. Looking ahead to 2026, the priorities are straightforward: continue to grow the marketplace, maintain discipline on costs, and reinvest where we see clear returns. We believe there is a significant opportunity in front of us, and we also know that execution will matter more than anything else. We have more work to do, but we re moving in the right direction and up for the challenge. Onward, James Reinhart Co-Founder and Chief Executive Officer ThredUp Inc.
 • shareholder letter icon 4/7/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/7/2023 TDUP Stockholder Letter
 • stockholder letter icon 4/5/2024 TDUP Stockholder Letter
 • stockholder letter icon 4/7/2025 TDUP Stockholder Letter
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 • Benford's Law Stocks icon TDUP Benford's Law Stock Score = 82


TDUP Shareholder/Stockholder Letter Transcript:

2025 Annual Report

To our stockholders:
Last year, I wrote about the volatility we experienced in 2024 and the set of decisions we made
to reset the business. We simplified the company, refocused our efforts, and made some hard
tradeoffs in service of building a stronger foundation.
2025 was the proving ground for those decisions.
I am pleased to report the meaningful progress we have made during this past year. Most
notably, we achieved positive annual total cash flow for the first time in our history. That   s an
important milestone for us. It reflects a business that is becoming more durable and more
scalable over time.
There are a few things that drove this.
First, focus. In late 2024, we made the decision to exit Europe and concentrate fully on the U.S.
business. That gave us the ability to allocate resources more effectively and operate with
greater clarity. In 2025, that showed up in a surge of new customers, which fueled a return to
revenue growth and improved bottom line financial performance.
Second, the marketplace is getting stronger. We saw growth on both sides: more buyers and
better supply. Our new buyer acquisition increased meaningfully year-over-year, driven by
continued investment in customer acquisition and new supply. Further, the mix of inventory
continues to improve, with Premium Kits representing a larger share of what we process. That
has a direct impact on customer experience and average selling prices. We   re also seeing early
signs that new channels, particularly in social commerce, can expand supply in ways that are
incremental to our core business. Many of the sellers coming through these channels are new to
ThredUp, which is encouraging.
Third, we are increasingly leveraging AI as a core driver of our customer experience and
operational efficiency. What makes this moment unique for ThredUp is not just the availability of
new AI tools, but also how we apply them to the proprietary data and transaction layer we   ve
built over more than a decade. Our marketplace generates rich data across supply, demand,
pricing, and customer behavior. These are the inputs required to train and deploy meaningful AI
applications. We are already seeing impact across discovery, personalization, and customer
support, and we believe we are still in the early innings of what this technology can unlock.
We also made a decision this year to update our brand. As the business has evolved, we felt
that it was important that how we show up to customers reflects where we   re going. This
rebrand is about reinforcing that secondhand can be even more than just affordable and

sustainable, but also stylish, relevant, and inspiring, while better reflecting the quality of the
experience we   re delivering to both buyers and sellers. The rebrand is a step in that direction.
Looking ahead to 2026, the priorities are straightforward: continue to grow the marketplace,
maintain discipline on costs, and reinvest where we see clear returns. We believe there is a
significant opportunity in front of us, and we also know that execution will matter more than
anything else.
We have more work to do, but we   re moving in the right direction and up for the challenge.
Onward,
James Reinhart   
Co-Founder and Chief Executive Officer   
ThredUp Inc.


shareholder letter icon 4/7/2026 Letter Continued (Full PDF)
 

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