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thredUP (TDUP)
NASDAQ:TDUP
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thredUP
(NASDAQ:TDUP)
63Neutral
Positive Factors
Competitive Advantage
The closure of de minimus loopholes is expected to create a more level playing field for Thredup against competitors like Shein and Temu.
Customer Acquisition
Investments in customer acquisition are paying off, with strong growth in new buyers and more efficient advertising costs.
Financial Performance
Thredup, Inc. posted their strongest first-quarter margin in history, indicating a significant improvement in their financial performance.
Negative Factors
Liquidity Concerns
Liquidity remains an issue and could lead to volatility in Thredup shares.
Market Risks
The largest risk is a potential broader inflation overhang, which negatively impacted Thredup’s core customer coming out of the pandemic.
thredUP (TDUP) vs. S&P 500 (SPY)
Market Cap
$729.59M
Dividend YieldN/A
Average Volume (3M)2.61M
Price to Earnings (P/E)―
Beta (1Y)3.40
Revenue Growth-10.55%
EPS Growth9.27%
CountryUS
Employees1,630
SectorConsumer Cyclical
Sector Strength67
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.04
Shares Outstanding96,352,210
10 Day Avg. Volume5,146,634
30 Day Avg. Volume2,610,490
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)13.40
Price to Sales (P/S)0.00
P/FCF Ratio311.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.25Price Target Upside15.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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. The company operates a consignment model where individuals send their used clothing to thredUP, which then evaluates, prices, and lists the items on its online platform. Upon sale, thredUP takes a commission, and the remainder is paid to the original seller. Additionally, the company generates revenue through its 'Resale-as-a-Service' (RaaS) program, partnering with retailers and brands to offer resale solutions. This program helps other companies integrate resale into their business models, thereby expanding thredUP's reach and revenue opportunities. Key revenue streams include sales from its online marketplace and service fees from its RaaS partnerships.
thredUP Financial Statement Overview
Summary
thredUP faces significant challenges in achieving profitability, as reflected in its negative net profit margins and declining revenues. The balance sheet suggests moderate leverage and stability, but profitability remains a concern. While recent cash flow improvements are promising, historical liquidity issues underscore the need for sustained financial management improvements. The company must focus on reversing revenue declines and improving margins to enhance its financial health.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.45
Neutral
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.55
Neutral
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.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 251.73M | 260.03M | 322.02M | 288.38M | 251.79M | 186.01M | Gross Profit |
| 203.31M | 207.13M | 213.81M | 192.34M | 178.13M | 128.15M | EBIT |
| -31.49M | -40.00M | -71.84M | -89.49M | -62.39M | -46.59M | EBITDA |
| -11.52M | -20.12M | -53.10M | -70.94M | -47.68M | -36.90M | Net Income Common Stockholders |
| -65.65M | -76.99M | -71.25M | -92.28M | -63.18M | -47.88M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 62.85M | 44.18M | 64.18M | 104.93M | 205.83M | 64.48M | Total Assets |
| 244.28M | 171.22M | 249.97M | 301.95M | 360.83M | 142.91M | Total Debt |
| 80.15M | 58.84M | 76.41M | 84.81M | 76.25M | 59.68M | Net Debt |
| 29.71M | 26.99M | 20.33M | 46.78M | -8.29M | -4.81M | Total Liabilities |
| 150.75M | 114.92M | 146.05M | 161.95M | 155.09M | 117.24M | Stockholders Equity |
| 93.53M | 56.30M | 103.92M | 140.00M | 205.73M | 25.67M |
| Cash Flow | Free Cash Flow | ||||
| 2.47M | -1.68M | -38.58M | -95.36M | -54.85M | -38.53M | Operating Cash Flow |
| 9.25M | 4.90M | -22.59M | -52.10M | -35.02M | -19.11M | Investing Cash Flow |
| -6.04M | -10.26M | 43.68M | 8.92M | -169.58M | -19.42M | Financing Cash Flow |
| -4.50M | -4.39M | -3.60M | -3.94M | 228.96M | 18.21M |
thredUP Technical Analysis
Positive
6.30
Price Trends
3.44
Positive
2.75
Positive
1.89
Positive
Market Momentum
0.86
Negative
80.38
Negative
86.26
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 6.3 is above the 20-day moving average (MA) of 4.69, above the 50-day MA of 3.44, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 80.38 is Negative, neither overbought nor oversold. The STOCH value of 86.26 is Negative, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.41B | 28.91 | 11.97% | ― | 9.09% | 106.50% | |
63 Neutral | $729.59M | ― | -69.51% | ― | -10.55% | 9.27% | |
62 Neutral | $7.12B | 9.26 | -52.83% | 2.39% | -1.63% | -5.94% | |
61 Neutral | $6.93B | 11.84 | 2.89% | 3.91% | 2.59% | -21.68% | |
61 Neutral | $1.06B | ― | -44.94% | ― | 31.78% | ― | |
60 Neutral | $4.96B | 33.81 | -39.97% | ― | 2.18% | -32.87% | |
50 Neutral | $5.08B | ― | 17.86% | ― | -0.89% | 46.62% |
* Consumer Cyclical Sector Average
Performance Comparison
TDUP
thredUP
6.30
4.26
208.82%
BBWI
Bath & Body Works
33.67
-15.11
-30.98%
W
Wayfair
39.01
-32.05
-45.10%
ETSY
Etsy
46.77
-17.80
-27.57%
RVLV
Revolve Group
20.32
-2.36
-10.41%
HEPS
D-Market
2.78
1.15
70.55%
thredUP Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 41.89%|
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 Corporate Events
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.
Spark’s Take on TDUP Stock
According to Spark, TipRanks’ AI Analyst, TDUP is a Neutral.
thredUP demonstrates strong potential through improved financial performance and positive earnings call insights, particularly in customer acquisition and technological advancements. However, valuation concerns and the need for sustained revenue growth pose challenges. The stock’s technical indicators support a cautious optimism, but investors should be mindful of risks related to economic conditions and competitive pressures.
To see Spark’s full report on TDUP stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.