ThredUp Q3 Revenue Surges 34%, Adjusted EBITDA Hits $3.8M with Raised Guidance
ThredUp posted 34% year-over-year Q3 revenue growth, improved adjusted EBITDA to $3.8 million (4.6% margin), and saw active buyers rise 26% with new buyer growth hitting 81% in October. Optimist Fund added to its largest position in ThredUp despite a 2.4% one-month pullback and 118.8% 52-week gain, citing undervaluation and fundamentals.
1. Q3 Financial Results
ThredUp recorded approximately 34% year-over-year revenue growth in its third quarter and achieved adjusted EBITDA of $3.8 million, a 4.6% margin compared with breakeven a year earlier. Management raised full-year revenue guidance, reflecting confidence in sustained top-line momentum.
2. Operational and User Metrics
Active buyers increased about 26% year-over-year, driven by enhanced acquisition strategies including a late-September rebrand and a new product recommendation feed. New buyer growth accelerated to 81% in October, marking the fastest expansion in recent company history.
3. Fund Investment Decision
Optimist Fund, which pursues a five-year investment horizon, added to its position in ThredUp during Q4 2025. The fund cited the share price decline relative to improving fundamentals as the primary reason for increasing its largest holding.
4. Share Performance and Hedge Fund Ownership
ThredUp shares closed at $4.88 on February 27, 2026, reflecting a 2.4% decline over one month and a 118.8% gain over 52 weeks. Institutional interest rose as hedge fund ownership jumped from 31 portfolios to 40 by the end of the quarter.