ThredUp’s Q3 Earnings Call: Our Top 5 Analyst Questions

• Revenue: $82.16 cardinal vs expert estimates of $77.61 cardinal (33.6% year-on-year growth, 5.9% beat)

• Adjusted EPS: -$0.03 vs expert estimates of -$0.04 (in line)

• Adjusted EBITDA: $3.77 cardinal vs expert estimates of $3.5 cardinal (4.6% margin, comparatively successful line)

• Revenue Guidance for Q4 CY2025 is $77 cardinal astatine the midpoint, supra expert estimates of $74.59 million

• Operating Margin: -5.3%, up from -17% successful the aforesaid 4th past year

• Orders: 1.61 million, up 436,000 twelvemonth connected year

• Market Capitalization: $989.9 million

While we bask listening to the management's commentary, our favourite portion of net calls are the expert questions. Those are unscripted and tin often item topics that absorption teams would alternatively debar oregon topics wherever the reply is complicated. Here is what has caught our attention.

• Irwin Boruchow (Wells Fargo) asked astir the sustainability of caller gross maturation and ThredUp’s multiyear maturation outlook. CEO James Reinhart explained that the company’s semipermanent exemplary targets maturation successful the precocious teens to 20% and emphasized reinvesting incremental profits to prolong the marketplace flywheel.

• Bernard McTernan (Needham & Company) inquired astir the integration of the caller peer-to-peer merchandise and its portion economics. Reinhart responded that peer-to-peer proviso would beryllium displayed alongside Clean Out kits and said the exemplary is designed for superior semipermanent EBITDA margins, though it is inactive aboriginal successful development.

• Robert Brooks (Northland Capital Markets) sought details connected caller purchaser maturation creation and differences successful selling strategies for reacquiring lapsed buyers. Reinhart shared that astir one-third of caller buyers are returning customers and expects the rebrand to further pull past users.

• Dylan Carden (William Blair) focused connected operational synergies betwixt peer-to-peer and managed supply, arsenic good arsenic selling efficiency. Reinhart described benefits for some buyers and sellers and highlighted historically debased lawsuit acquisition costs owed to improved merchandise acquisition and favorable advertisement markets.

• Dana Telsey (Telsey Group) queried the maturation of premium kits and AI’s effect connected conversion rates. Reinhart reported that premium kits present marque up much than 20% of proviso and that AI-powered features are driving sustained improvements successful lawsuit conversion and engagement.