thredUP (TDUP) AI Stock Analysis

• Market Cap: $414.14M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.37
• Revenue Growth: -4.90%
• EPS Growth: 50.77%
• Country: US
• Employees: 1,630
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.04
• Shares Outstanding: 106,368,140
• 10 Day Avg. Volume: 2,318,059
• 30 Day Avg. Volume: 2,487,482
• PEG Ratio: 0.51
• Price to Book (P/B): 13.14
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 4.32K
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: -107.02
• 1Y Price Target: $9.63
• Price Target Upside: 195.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.11
• Revenue Forecast (FY): $352.46M

• Rating: 53 Neutral
• Price Target: $3.50 ▲(7.36% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

TDUP scores as a mid-range turnaround: improving fundamentals and upbeat 2026 guidance (growth plus EBITDA expansion) are the key supports, but a weak technical setup (below major moving averages with negative MACD) and still-negative profitability/uneven free cash flow keep the overall score restrained.

Positive Factors

High gross margins (consignment model)

ThredUp’s consignment-first marketplace yields sustainably high gross margins near 79–80%, which reduces inventory carrying risk and supports operating leverage as revenue scales. This margin profile provides durable room for reinvestment and EBITDA expansion absent material cost shocks.

Reaccelerating top-line and buyer growth

Solid revenue re-acceleration and large new-buyer gains indicate stronger product-market fit and network effects. Growing buyer base and higher order volumes create a virtuous cycle for supply intake, resale margins and SaaS/logistics opportunities with retail partners over the medium term.

Improving cash generation and liquidity

Operating cash flow turned positive and free cash flow reached slightly positive in 2025, while debt declined versus prior year and cash balances remained stable. This improvement materially extends runway, reduces refinancing pressure, and supports disciplined investment in growth and product initiatives.

Negative Factors

Still loss-making on GAAP basis

Despite improving margins and adjusted EBITDA, GAAP profitability remains negative. Persistent net losses weigh on returns on equity and limit internal funding for growth, meaning management must sustain margin and revenue gains to reach consistent positive GAAP earnings.

Free-cash-flow volatility

FCF turned slightly positive but showed large year-over-year variability, signaling fragile cash durability. Volatile FCF constrains capacity for multi-year investments or buybacks, increases reliance on debt or capital raises, and raises sensitivity to demand or working-capital swings.

Operational risk from rapid new supply channels

Rapid scaling of new supply channels (e.g., large TikTok cleanout volumes) can strain processing, raise item-quality costs, and increase returns or rework. Persistent operational frictions would raise unit costs and compress margins unless investments in automation and quality controls reliably scale.

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 primarily through (1) resale marketplace transactions and (2) services provided to brands/retailers. In its core marketplace model, thredUP acquires inventory from individuals (e.g., via mail-in clean out kits or similar intake programs), processes items in its operations facilities (sorting, photographing, pricing, listing), and sells them to consumers through its website/app. When an item sells, thredUP keeps a portion of the sale proceeds to cover processing, logistics, and platform costs and may pay the original consignor a payout based on the item’s realized selling price and applicable terms; revenue is recorded from the customer transaction. thredUP may also earn ancillary revenue tied to shipping/handling and other customer fees where applicable; if specific fee categories or their materiality are not disclosed in a given period, null. Separately, thredUP’s resale-as-a-service offering generates revenue from providing technology, logistics, and operational support that enables partner brands/retailers to offer branded resale (e.g., powering trade-in, processing, and fulfillment). This revenue is typically service-based and depends on commercial agreements with partners; if the exact pricing structure for a specific partner is not publicly disclosed, null. Overall earnings are influenced by factors such as the volume and quality of inbound supply, sell-through rates, average order value, take rate/consignor payouts, fulfillment and processing efficiency, and demand for secondhand apparel. Significant partnerships are those with brands/retailers using thredUP’s platform for branded resale; if a comprehensive, current list of partners is not available from the company’s public disclosures, null.

thredUP Financial Statement Overview

Summary

Financials show a turnaround in progress: revenue re-accelerated in 2025 (+20.1% YoY), gross margin remained very strong (~79–80%), leverage declined, and operating cash flow improved to $10.7M with slightly positive 2025 free cash flow. The main constraint is the business is still loss-making with volatile free-cash-flow durability.

Income Statement

Revenue growth re-accelerated in 2025 (+20.1% YoY) after flat performance in 2024 and a decline in 2023, pointing to improving demand momentum. Gross margin is very strong and stable (~79–80% in 2024–2025), which supports the path to profitability. However, the company remains loss-making, with net losses improving meaningfully in 2025 (net margin -6.5% vs. -29.6% in 2024) but still negative, indicating the turnaround is not yet complete.

Balance Sheet

Leverage improved with debt declining to $37.9M in 2025 from $58.8M in 2024, and debt relative to equity also moved down (0.64x vs. 1.05x). Equity is positive and roughly stable (~$59.2M in 2025), which is supportive of financial flexibility. The key weakness is continued net losses translating into negative returns on equity (improving to -0.34 in 2025 from -1.37 in 2024), and the balance sheet is smaller than prior years (assets ~ $167M vs. ~$250M in 2023), suggesting less cushion than earlier periods.

Cash Flow

Cash generation improved sharply: operating cash flow turned positive in 2024 and expanded to $10.7M in 2025, signaling better working-capital and/or operating discipline. Free cash flow was slightly positive in 2025 ($0.2M) after being negative in prior years, but it fell significantly versus 2024 levels (large negative growth rate), indicating volatility and limited consistency. Overall, cash flow is trending in the right direction, but free-cash-flow durability remains the main risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	310.81M	260.03M	258.50M	288.38M	251.79M
Gross Profit	246.75M	207.13M	198.47M	192.34M	178.13M
EBITDA	-5.31M	-20.12M	-35.87M	-77.41M	-51.67M
Net Income	-20.21M	-76.99M	-71.25M	-92.28M	-63.18M
Balance Sheet
Total Assets	167.25M	171.22M	249.97M	301.95M	360.83M
Cash, Cash Equivalents and Short-Term Investments	48.13M	44.18M	64.18M	104.93M	205.83M
Total Debt	52.13M	58.84M	76.41M	84.81M	76.25M
Total Liabilities	108.05M	114.92M	146.05M	161.95M	155.09M
Stockholders Equity	59.19M	56.30M	103.92M	140.00M	205.73M
Cash Flow
Free Cash Flow	180.00K	-5.69M	-38.58M	-95.36M	-54.85M
Operating Cash Flow	10.65M	898.00K	-22.59M	-52.10M	-35.02M
Investing Cash Flow	-7.17M	-16.90M	43.68M	8.92M	-169.58M
Financing Cash Flow	-397.00K	-4.39M	-3.60M	-3.94M	228.96M

thredUP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.26 is below the 20-day moving average (MA) of 4.05, below the 50-day MA of 4.75, and below the 200-day MA of 7.64, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 31.65 is Neutral, neither overbought nor oversold. The STOCH value of 12.14 is Positive, 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
WINA	71 Outperform	$1.44B	34.96	―	3.35%	3.35%	1.97%
RERE	71 Outperform	$1.07B	26.11	8.68%	―	27.84%	―
LQDT	70 Outperform	$888.24M	31.00	14.46%	―	31.20%	38.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETSY	55 Neutral	$5.09B	33.41	-15.36%	―	1.98%	-20.98%
TDUP	53 Neutral	$414.14M	-38.47	-34.47%	―	-4.90%	50.77%
JMIA	50 Neutral	$845.91M	-12.43	-133.66%	―	-4.62%	―

thredUP Corporate Events

ThredUp amends loan facility, extends maturity and liquidity

On January 30, 2026, ThredUp Inc. and certain subsidiaries amended their existing loan and security agreement, significantly reducing the unused Term B Loan commitment from $22.5 million to $10 million while extending the overall facility’s maturity from July 14, 2027 to July 10, 2030. The Amendment shifts the loan’s reference rate from the Wall Street Journal Prime Rate to Term SOFR with a 2.50% floor and a 3.25% margin, adjusts the Term A Loan so that only interest, and no principal, is due until January 10, 2028, and revises financial covenants by eliminating the minimum fixed charge coverage ratio in favor of liquidity and cash-based maintenance tests, including an RML covenant and daily specified cash requirements, collectively strengthening liquidity flexibility and lengthening ThredUp’s debt runway while tightening cash discipline.

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