The US secondhand fashion platform reported record buyer activity and 17% order growth, although shrinking margins and a weaker fourth-quarter outlook highlight the profitability challenges facing online apparel resale.
US online fashion resale platform ThredUp recorded 1.82 million active buyers in the third quarter of 2026, an increase of 16% year on year, as demand for secondhand clothing continued to expand.
According to financial results released on November 4, quarterly revenue increased 7% to $88.2 million, while orders rose 17% to a record 1.89 million. The company also reported record volumes of items sold.
Revenue Growth Trails Customer Expansion
Despite stronger customer activity, ThredUp’s profitability deteriorated.
Gross profit increased 6% to $69 million, but gross margin declined from 79.4% to 78.2%.
The quarterly net loss widened to $5.5 million, compared with $4.2 million a year earlier.
Adjusted EBITDA fell to $3.5 million from $3.8 million, with the corresponding margin declining from 4.6% to 4.0%.
Revenue for the first nine months reached $260.7 million, up 12.8%.
Resale Platform Expands Its Reach
ThredUp operates a technology-driven marketplace for secondhand clothing, footwear and accessories, combining automated processing, inventory management and online retail.
The company has processed more than 250 million individual secondhand items, covering approximately 60,000 brands and 100 product categories.
Chief Executive James Reinhart emphasised improving the customer experience and maintaining competitiveness in an increasingly crowded resale market.
Fourth-Quarter Outlook Weakens
ThredUp expects fourth-quarter revenue of $77–79 million, representing a 2% annual decline at the midpoint.
It forecasts a negative adjusted EBITDA margin of 2–4% for the quarter.
Full-year revenue is projected at $337.7–339.7 million, approximately 9% higher year on year.
For fashion brands, the results demonstrate growing consumer participation in secondhand apparel, alongside the operational challenges of profitable resale.
The next test will be whether ThredUp can translate record customer activity into sustainable earnings, particularly through better inventory processing, fulfilment economics and customer retention.
