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Thredup, Inc. (TDUP)
:TDUP
US Market

thredUP (TDUP) AI Stock Analysis

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thredUP

(NASDAQ:TDUP)

Rating:65Neutral
Price Target:
$9.00
▲(15.68%Upside)
thredUP's overall stock score reflects a mixed outlook. The strong positive sentiment from the earnings call and bullish technical indicators are significant strengths. However, these are offset by ongoing profitability challenges and valuation concerns. The company's focus on strategic growth areas like AI and RaaS and improvements in cash flow are promising, but financial performance improvements are crucial for long-term stability.
Positive Factors
Divestiture and Core Business Focus
The company divested from the European business, which has freed capital and bandwidth to reinforce clear momentum in the core U.S. business.
Financial Performance
Thredup, Inc. posted their strongest first-quarter margin in history, indicating a significant improvement in their financial performance.
Tariff Advantage
ThredUP is well positioned for the looming tariff threat as its goods are sourced entirely from U.S. consumers' closets.
Negative Factors
Inflation Impact
The largest risk is a potential broader inflation overhang, which negatively impacted thredUP’s core customer coming out of the pandemic.
Market Competition
The removal of the de minimis rule will hit fast fashion Chinese competitors particularly hard, allowing thrift again to be more competitive from a value standpoint.

thredUP (TDUP) vs. SPDR S&P 500 ETF (SPY)

thredUP Business Overview & Revenue Model

Company DescriptionThredUp 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 MoneythredUP makes money primarily through the resale of secondhand clothing and accessories on its online platform. The company sources its inventory from consumers who send in items they no longer need through thredUP's Clean Out service. thredUP then evaluates, prices, and lists these items for sale on its website. Revenue is generated from the sale of these items, with thredUP taking a percentage of the sale price as a commission. Additionally, thredUP offers a subscription box service, Goody Box, which provides customers with a curated selection of secondhand items, generating further revenue. The company also collaborates with various retailers and brands through its Resale-as-a-Service (RaaS) program, allowing brands to offer their customers a resale option directly through their own channels, earning revenue through service fees and commissions.

thredUP Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 75.23%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in new buyer acquisition, revenue growth, and strategic advancements in AI and RaaS. Despite a decrease in gross margin and macroeconomic uncertainties due to tariffs, the company's positive performance and strategic direction suggest a strong outlook.
Q1-2025 Updates
Positive Updates
Record-Breaking New Buyer Acquisition
New buyers acquired in Q1 2025 were up 95% compared to Q1 2024, marking the strongest new customer acquisition month in ThredUp's history.
Revenue Growth and Profitability
Revenue for Q1 2025 totaled $71.3 million, an increase of 10.5% year-over-year. Adjusted EBITDA was $3.8 million or 5.3% of revenue, doubling from last year.
AI-Driven Product Enhancements
ThredUp launched new AI-powered features like the 'shop similar' feature, which increased conversion rates by 64%, and a beta 'shop social' feature linking social media inspiration to curated shopping experiences.
Expansion of Resale-as-a-Service (RaaS)
ThredUp is open sourcing its front-end technology and back-end logistics chain to encourage brands to make a bigger impact on branded resale, aiming to create a 'universal recommerce layer.'
Negative Updates
Gross Margin Decrease
Gross margin for Q1 2025 was 79.1%, a 100 basis point decrease compared to the same quarter last year, due to higher incentives required for new buyer conversion.
Impact of Tariffs and Economic Uncertainty
Potential negative impacts due to successive rounds of tariffs and the closure of the de minimis loophole, creating uncertainty in the macroeconomic environment.
Company Guidance
During the ThredUp First Quarter 2025 Earnings Conference Call, CEO James Reinhart and CFO Sean Sobers provided guidance on their financial outlook for the second quarter and full year of 2025. For Q2, ThredUp expects revenue between $72.5 million and $74.5 million, representing 10% growth at the midpoint, with a gross margin range of 77% to 79% and an adjusted EBITDA of approximately 3.3% of revenue. For the full year, they anticipate revenue between $281 million and $291 million, a 10% increase at the midpoint, with gross margins also between 77% and 79% and an adjusted EBITDA of around 4% of revenue. The guidance reflects a robust start to the year, driven by a 95% year-over-year increase in new buyers in Q1, even amidst a challenging macro environment, with a focus on maintaining gross margins and reinvesting in buyer and seller growth.

thredUP Financial Statement Overview

Summary
thredUP faces significant challenges in achieving profitability, with negative net profit margins and declining revenues. While recent cash flow improvements are promising, historical liquidity issues underscore the need for sustained financial management improvements.
Income Statement
45
Neutral
thredUP's income statement reveals consistent challenges in achieving profitability. The TTM shows a gross profit margin of 80.8%, indicating effective cost management. However, the net profit margin remains negative at -26.1% due to persistent net losses. Revenue has declined by 21% from 2023 to the TTM, indicating shrinking sales. EBIT and EBITDA margins are also negative, at -12.5% and -4.6% respectively, reflecting ongoing operational difficulties.
Balance Sheet
55
Neutral
The balance sheet indicates moderate financial stability with a debt-to-equity ratio of 0.71, suggesting manageable leverage. The equity ratio stands at 32.5%, indicating a reasonable proportion of equity financing. However, return on equity is negative due to net losses, highlighting profitability concerns. The reduction in both assets and equity over time reflects a contraction in financial resources.
Cash Flow
50
Neutral
thredUP's cash flow statement shows improvement with a positive TTM operating cash flow of $9.25 million, up from previous periods. The free cash flow has turned positive at $2.47 million, indicating better cash management. The operating cash flow to net income ratio is -0.14, showing some operational cash generation despite losses. However, ongoing negative free cash flow in previous years highlights historical liquidity challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue251.73M260.03M322.02M288.38M251.79M186.01M
Gross Profit203.31M207.13M213.81M192.34M178.13M128.15M
EBITDA-11.52M-20.12M-53.10M-70.94M-47.68M-36.90M
Net Income-65.65M-76.99M-71.25M-92.28M-63.18M-47.88M
Balance Sheet
Total Assets172.50M171.22M249.97M301.95M360.83M142.91M
Cash, Cash Equivalents and Short-Term Investments46.78M44.18M64.18M104.93M205.83M64.48M
Total Debt39.61M58.84M76.41M84.81M76.25M59.68M
Total Liabilities116.42M114.92M146.05M161.95M155.09M117.24M
Stockholders Equity56.08M56.30M103.92M140.00M205.73M25.67M
Cash Flow
Free Cash Flow2.47M-1.68M-38.58M-95.36M-54.85M-38.53M
Operating Cash Flow9.25M4.90M-22.59M-52.10M-35.02M-19.11M
Investing Cash Flow-6.04M-10.26M43.68M8.92M-169.58M-19.42M
Financing Cash Flow-4.50M-4.39M-3.60M-3.94M228.96M18.21M

thredUP Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.78
Price Trends
50DMA
6.40
Positive
100DMA
4.50
Positive
200DMA
2.87
Positive
Market Momentum
MACD
0.45
Positive
RSI
57.48
Neutral
STOCH
47.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDUP, the sentiment is Positive. The current price of 7.78 is above the 20-day moving average (MA) of 7.74, above the 50-day MA of 6.40, and above the 200-day MA of 2.87, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 57.48 is Neutral, neither overbought nor oversold. The STOCH value of 47.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDUP.

thredUP Risk Analysis

thredUP disclosed 64 risk factors in its most recent earnings report. thredUP reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

thredUP Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$1.44B28.7211.97%9.09%106.50%
68
Neutral
$5.53B37.69-39.97%2.18%-32.87%
65
Neutral
$919.96M-69.51%-10.55%9.27%
62
Neutral
$883.80M-51.21%22.41%
62
Neutral
$16.34B11.01-5.97%3.14%1.65%-24.92%
60
Neutral
$6.10B7.67-52.83%2.79%-0.93%-4.07%
WW
44
Neutral
$6.27B17.86%-0.89%46.62%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TDUP
thredUP
7.78
6.10
363.10%
BBWI
Bath & Body Works
28.81
-9.26
-24.32%
W
Wayfair
50.11
-2.14
-4.10%
ETSY
Etsy
50.63
-8.09
-13.78%
RVLV
Revolve Group
20.29
4.96
32.35%
HEPS
D-Market
2.75
0.66
31.58%

thredUP Corporate Events

Executive/Board ChangesShareholder Meetings
thredUP Stockholders Approve Key Proposals at Annual Meeting
Neutral
May 23, 2025

On May 21, 2025, thredUP held its Annual Meeting of Stockholders, where stockholders voted on two key proposals. The first proposal involved the election of Class I directors, with Ian Friedman, Timothy Haley, and Coretha Rushing being elected to serve until 2028. The second proposal ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (TDUP) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on thredUP stock, see the TDUP Stock Forecast page.

Executive/Board ChangesShareholder Meetings
ThredUp Board Member Jack Lazar Resigns
Neutral
Apr 10, 2025

On April 8, 2025, Jack Lazar announced his resignation from ThredUp Inc.’s board of directors, effective after the company’s 2025 Annual Meeting of Stockholders on May 21, 2025. His departure is amicable, with no disagreements regarding company operations, and ThredUp expressed gratitude for his seven and a half years of service.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 19, 2025