thredUP (TDUP) AI Stock Analysis

• Market Cap: $760.86M
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.18
• Revenue Growth: -4.90%
• EPS Growth: 50.77%
• Country: US
• Employees: 1,630
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.03
• Shares Outstanding: 104,273,160
• 10 Day Avg. Volume: 1,344,198
• 30 Day Avg. Volume: 1,615,397
• PEG Ratio: -1.37
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -92.58
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 4.54
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 72.16
• 1Y Price Target: $12.50
• Price Target Upside: 111.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $6.00 ▲(1.69% Upside)

The score is held back primarily by weak profitability/ROE and bearish technicals (below key moving averages with negative MACD). Offsetting these, the latest earnings call indicates meaningful operating momentum with accelerating revenue growth, improved margins/EBITDA, and supportive guidance, while valuation remains challenging due to negative earnings and no dividend.

Positive Factors

High Gross Margin

ThredUP's very high gross profit margin (85.64% TTM) demonstrates advantaged unit economics for resale inventory processing and pricing. Sustained high gross margins create durable operating leverage, allowing the company to fund fulfillment, AI, and RaaS investments while improving path to profitability.

Improving Free Cash Flow

Free cash flow growth of 28.22% TTM indicates improving cash generation and operational efficiency. Durable FCF expansion enhances financial flexibility to invest in logistics and platform tech, reduce reliance on external capital, and support scalable RaaS programs and marketing over multiple quarters.

Customer Base Expansion

Record new buyer acquisition (+54% YoY) and a 26% rise in active buyers show strengthening marketplace demand. A growing buyer base is structurally important: it improves liquidity, supports higher sell-through, lowers customer acquisition costs over time and underpins durable network effects.

Negative Factors

Negative Return on Equity

Return on equity of -94.05% indicates current operations destroy shareholder capital and that retained earnings are insufficient. Persistently negative ROE constrains the firm's ability to self-finance growth, making sustainable profit recovery essential to restore capital efficiency and investor confidence.

Ongoing Net Losses

Net profit margin of -22.78% with negative EBIT/EBITDA margins shows that high gross margins aren't translating to operating profits. This structural disconnect points to persistent cost pressure in logistics, processing and SG&A that must be addressed to achieve lasting profitability.

Peer-to-Peer Marketplace Frictions

Peer-to-peer market issues—listing quality, seller reputation, and buyer trust—are structural marketplace frictions. They can depress conversion, raise returns and acquisition costs, and require ongoing investment in moderation, authentication and quality controls to maintain long-term marketplace health.

thredUP Business Overview & Revenue Model

Company Description

ThredUp Inc., together with its subsidiaries, operates online resale platforms that allows consumers to buy and sell secondhand women's and kids' apparel, shoes, and accessories. ThredUp Inc. was incorporated in 2009 and is headquartered in Oakland, California.

How the Company Makes Money

thredUP generates revenue through several key streams, primarily by selling secondhand clothing and accessories on its online platform. The company operates a consignment model where individuals send in their gently used items, which thredUP then inspects, cleans, and lists for sale. It takes a commission from the sale of these items, which constitutes a significant portion of its revenue. Additionally, thredUP offers a subscription service called 'thredUP's Closet Cleanout,' where customers can receive a prepaid shipping kit to send in their items for resale. The company also partners with brands and retailers to facilitate the resale of their unsold inventory, creating a circular economy that benefits both the brands and thredUP. Furthermore, thredUP has explored collaborations and partnerships with various companies to expand its reach and enhance its offerings, contributing to its overall earnings.

thredUP Financial Statement Overview

Summary

thredUP shows strong gross profit margins and improvements in cash flow, but faces challenges with profitability and leverage, as indicated by negative net profit margins and return on equity.

Income Statement

thredUP's income statement shows a mixed performance. The company has a strong gross profit margin of 85.64% in the TTM, indicating efficient cost management. However, the net profit margin remains negative at -22.78%, reflecting ongoing losses. Revenue growth is modest at 3.66% TTM, showing some improvement compared to the previous year. The EBIT and EBITDA margins are negative, suggesting challenges in achieving operational profitability.

Balance Sheet

The balance sheet presents a moderate risk profile. The debt-to-equity ratio improved to 0.94 TTM from 1.05 in the previous year, indicating better leverage management. However, the return on equity is negative at -94.05%, highlighting profitability issues. The equity ratio is not provided, but the overall leverage appears manageable.

Cash Flow

Cash flow analysis shows positive trends with a 28.22% growth in free cash flow TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.23, suggesting some efficiency in converting income to cash. However, the free cash flow to net income ratio is 0.39, indicating room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	258.78M	260.03M	258.50M	288.38M	251.79M	186.01M
Gross Profit	223.88M	207.13M	198.47M	192.34M	178.13M	128.15M
EBITDA	16.27M	-20.12M	-35.87M	-77.41M	-51.67M	-40.94M
Net Income	-36.35M	-76.99M	-71.25M	-92.28M	-63.18M	-47.88M
Balance Sheet
Total Assets	172.47M	171.22M	249.97M	301.95M	360.83M	142.91M
Cash, Cash Equivalents and Short-Term Investments	51.11M	44.18M	64.18M	104.93M	205.83M	64.48M
Total Debt	54.30M	58.84M	76.41M	84.81M	76.25M	59.68M
Total Liabilities	113.40M	114.92M	146.05M	161.95M	155.09M	365.09M
Stockholders Equity	59.07M	56.30M	103.92M	140.00M	205.73M	-222.18M
Cash Flow
Free Cash Flow	3.28M	-5.69M	-38.58M	-95.36M	-54.85M	-38.53M
Operating Cash Flow	13.24M	898.00K	-22.59M	-52.10M	-35.02M	-19.11M
Investing Cash Flow	-9.37M	-16.90M	43.68M	8.92M	-169.58M	-19.42M
Financing Cash Flow	-915.00K	-4.39M	-3.60M	-3.94M	228.96M	18.21M

thredUP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDUP, the sentiment is Negative. The current price of 5.9 is below the 20-day moving average (MA) of 7.10, below the 50-day MA of 7.58, and below the 200-day MA of 7.64, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 30.79 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TDUP.

thredUP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LQDT	72 Outperform	$947.99M	36.00	14.56%	―	31.20%	38.38%
RERE	71 Outperform	$1.26B	37.45	7.42%	―	27.84%	―
WINA	69 Neutral	$1.51B	38.75	―	3.35%	3.35%	1.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETSY	57 Neutral	$6.10B	42.81	―	―	1.98%	-20.98%
TDUP	54 Neutral	$760.86M	-18.95	-35.37%	―	-4.90%	50.77%
JMIA	45 Neutral	$1.75B	―	-102.27%	―	-4.62%	―

thredUP Corporate Events

ThredUp Appoints Kelly Bodnar Battles to Board

On November 17, 2025, ThredUp announced the appointment of Kelly Bodnar Battles to its Board of Directors, effective December 1, 2025, where she will also serve as the Audit Committee Chair. This strategic move aims to bolster ThredUp’s financial governance as it accelerates growth and transitions into an AI-first resale marketplace. Battles brings over 35 years of finance and strategy experience, having held executive roles at several high-growth companies, and her expertise is expected to drive long-term value for shareholders as ThredUp continues to scale and innovate in the resale industry.

The most recent analyst rating on (TDUP) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on thredUP stock, see the TDUP Stock Forecast page.