ThredUp Inc. Class A Common Stock Wells Fargo 9th Annual Consumer Conference

Yeah, sure. Thanks for having us. Q2 was a record quarter for us across all those dimensions, buyers, sellers, orders, revenue. I think it was the result of six plus quarters of record new buyer growth. We had been very successful acquiring new buyers, turning them into repeat buyers, and a lot of that was going well. All the work that we did on improving the customer experience, conversion rates were strong, prices were strong. There was a number of things, I think, that were all going quite well in Q2. It was also the seventh quarter for us of record top line and expanding EBITDA, right? Generating free cash flow. In general, Q2 was strong across the board, I think.

Yeah, no, I think if you just looked at Q2, you would be like, "Everything is awesome.

Yeah. But at the point of where you're looking forward, or you look back at what we did through Q2, it just got harder.

I know we're going to talk about the consumer and all that too, but the numbers for Q2, record across the board.

Yeah, I think the catalyst was really Q4 of 2024. So in Q4, for those of you who haven't followed it over the last few years, when we went public in 2021, at the end of 2021, we bought a business in Europe, end of 2021, called Remix. We'd owned that business for a number of years, but in 2022, when interest rates and inflation went up in the U.S., it was equally bad or worse in Europe. So, our Remix business really struggled. So we tried to turn that business around over a couple of years. The net of it was that our U.S. business was actually reasonably healthy during that period, but it had to effectively cover up the challenges we were having in Europe.

So we eventually got rid of the European business in, we announced that we were going to get rid of it in the summer of 2024, and then we closed that transaction in November of 2024. I think that was really the turning point where it was like, okay, the business was simpler, we were U.S. only. We could turn all of our investments, our best people back to the U.S. So beginning in Q4 of 2024, you saw the business just rapidly accelerate growth. It was +10 to +12 to plus- 16 16% to plus 33% to Q4 was plus 18%.

So 2025 was really a nice run of growth, all driven by improvements in both new customer acquisition and the product experience, which we invested a ton of in 2024, really rebuilding the fundamentals of the business. Once you had the fundamental funnel in much better shape, and you are able to add new buyers, that was the healthy growth. Now, right now, in the second half of this year, we are comping 23%, 24% growth in the second half last year. We always knew that comps in the second half would be challenging, and here we are.

No, not right now. We think that market is too big in second-hand, opportunity is too big, customer acquisition is efficient. So I think the best thing to do with the cash is to invest it and grow the business. The business is still $350 million. It is still modest size, and so I think we have got a long way to run before that. So I would not say never, but it is probably not the best use of it.