ThredUp cuts outlook as revenue growth slows despite record buyers

ThredUp reported Q3 revenue of $88.2 million, up 7% year over year, as growth slowed from 34% in Q3 2025, according to Retail Dive. The fashion resale platform recorded 1.82 million active buyers, up 16%, while orders and items sold both rose 17% year over year.

Despite those records, the company’s net loss widened to $5.5 million from $4.2 million a year earlier. ThredUp lowered its Q4 revenue guidance to $77 million to $79 million, against its previous forecast of $85 million to $87 million. Full-year guidance was reduced to $337.7 million to $339.7 million.

CEO James Reinhart said competitors’ promotional spending was taking buyer share, particularly among price-sensitive customers, but had not affected sellers. He warned that deeper promotions might be needed during the holiday season. The company is expanding its premium mix and investing in AI shopping agents as part of its competitive strategy.

Why it matters

For fashion resale businesses, ThredUp’s results show that record buyer activity can coexist with slower revenue growth and wider losses. Its lowered outlook and warning about holiday promotions highlight the pricing pressure facing platforms competing for budget-conscious shoppers.