thredUP (TDUP) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: N/A
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.14
• Revenue Growth: -10.55%
• EPS Growth: 9.27%
• Country: US
• Employees: 1,630
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Specialty Retail
• EPS (TTM): -0.04
• Shares Outstanding: 96,352,210
• 10 Day Avg. Volume: 2,607,898
• 30 Day Avg. Volume: 2,436,548
• 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: 0.75
• Enterprise Value/Revenue: 3.63
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: -93.53
• 1Y Price Target: $13.00
• Price Target Upside: 27.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 60 Neutral
• Price Target: $10.00 ▼(-2.25% Downside)

thredUP's overall stock score is driven by positive earnings call insights and technical momentum, offset by weak financial performance and valuation concerns. The company's strategic initiatives in AI and RaaS and new buyer growth are promising, but profitability and economic challenges remain significant risks.

Positive Factors

Financial Performance

Better than expected results have driven up revenue and adjusted EBITDA estimates.

Growth Strategy

The company divested from the European business, which has freed capital and bandwidth to reinforce clear momentum in the core U.S. business.

Market Position

Momentum in the business and metrics provided around new customer growth, retention, and user experience are all signs of an extremely healthy marketplace.

Operational Efficiency

The introduction of fees on the platform improved overall inventory quality on the site.

Negative Factors

Growth Expectations

Estimated revenue deceleration could limit growth expectations.

Valuation Concerns

Valuation is stretched, being in our view the largest risk to further upside after a large one-day run.

thredUP Business Overview & Revenue Model

Company Description

thredUP, Inc. (TDUP) is a leading online resale platform for secondhand clothing, shoes, and accessories. Operating primarily in the e-commerce sector, thredUP offers a convenient way for consumers to buy and sell high-quality secondhand fashion items from a wide range of brands. The company is committed to promoting sustainable fashion by extending the life cycle of clothing items and reducing waste.

How the Company Makes Money

thredUP 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 Financial Statement Overview

Summary

thredUP's financial performance shows significant challenges in profitability with negative net profit margins and declining revenues. While the balance sheet reflects moderate stability and recent cash flow improvements are promising, historical liquidity issues and ongoing net losses highlight the need for improved financial management.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	249.64M	260.03M	322.02M	288.38M	251.79M	186.01M
Gross Profit	213.79M	207.13M	213.81M	192.34M	178.13M	128.15M
EBITDA	-9.69M	-20.12M	-53.10M	-70.94M	-47.68M	-36.90M
Net Income	-56.87M	-76.99M	-71.25M	-92.28M	-63.18M	-47.88M
Balance Sheet
Total Assets	173.60M	171.22M	249.97M	301.95M	360.83M	142.91M
Cash, Cash Equivalents and Short-Term Investments	47.58M	44.18M	64.18M	104.93M	205.83M	64.48M
Total Debt	40.23M	58.84M	76.41M	84.81M	76.25M	59.68M
Total Liabilities	113.40M	114.92M	146.05M	161.95M	155.09M	117.24M
Stockholders Equity	60.21M	56.30M	103.92M	140.00M	205.73M	25.67M
Cash Flow
Free Cash Flow	5.68M	-1.68M	-38.58M	-95.36M	-54.85M	-38.53M
Operating Cash Flow	14.57M	4.90M	-22.59M	-52.10M	-35.02M	-19.11M
Investing Cash Flow	-4.35M	-10.26M	43.68M	8.92M	-169.58M	-19.42M
Financing Cash Flow	353.00K	-4.39M	-3.60M	-3.94M	228.96M	18.21M

thredUP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 10.23 is above the 20-day moving average (MA) of 7.82, above the 50-day MA of 7.72, and above the 200-day MA of 3.80, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 75.07 is Negative, neither overbought nor oversold. The STOCH value of 85.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDUP.

thredUP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	71 Outperform	$1.48B	31.45	10.36%	―	9.09%	106.50%
ETSY	63 Neutral	$5.55B	44.77	-39.97%	―	2.38%	-38.88%
BBWI	62 Neutral	$6.12B	7.70	-52.83%	2.77%	-0.93%	-4.07%
HEPS	60 Neutral	$880.59M	―	-64.24%	―	22.41%	―
TDUP	60 Neutral	$1.20B	―	-58.93%	―	-10.55%	9.27%
Sector *	57 Neutral	HK$24.67B	3.83	-3.22%	5.89%	0.28%	-59.63%
W	56 Neutral	$9.45B	―	17.86%	―	-0.89%	46.62%

thredUP Corporate Events

thredUP Stockholders Approve Key Proposals at Annual Meeting

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.