ThredUp (TDUP) Wells Fargo 9th Annual Consumer Conference summary

Q2 performance and business fundamentals

• Achieved record Q2 results with revenues up 17%, buyers and orders up over 20%, and strong conversion rates.

• Seven consecutive quarters of record top line and expanding EBITDA, now generating free cash flow.

• Positive EBITDA and $60 million in cash on the balance sheet, a significant turnaround from prior years.

• Simplified business after divesting the struggling European Remix unit in late 2024, refocusing on U.S. operations.

• Growth in 2025 driven by improved customer acquisition and product experience, with challenging comps expected in the second half.

Strategic priorities and capital allocation

• No current plans for share buybacks or M&A; focus remains on reinvesting cash to drive growth.

• Emphasis on expanding surface areas for sales, such as direct listing and live selling, to increase demand.

• Improving product mix by focusing on higher-value items to enhance unit economics.

• Maintaining customer engagement at lower prices is prioritized over protecting unit margins.

• Ongoing pricing experiments to optimize top line and margin, leveraging data-driven insights.

Consumer trends and market environment

• Noted a shift in value consumer behavior post-Memorial Day, with increased price sensitivity and lower willingness to pay.

• Strategy is to retain buyers through competitive pricing, expecting a snapback in pricing power when conditions improve.

• Lowered guidance for the second half by $7 million, but still expects growth and positive cash flow.

• Consumer uncertainty and gas prices are key variables; recovery is expected to be gradual as uncertainty resolves.

• Holiday season is not typically strong for secondhand, but leather goods may perform well.