thredUP (TDUP) AI Stock Analysis

• Market Cap: $856.11M
• Dividend Yield: N/A
• Average Volume (3M): 3.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.29
• Revenue Growth: -10.55%
• EPS Growth: 9.27%
• Country: US
• Employees: 1,630
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Specialty Retail
• EPS (TTM): -0.04
• Shares Outstanding: 96,352,210
• 10 Day Avg. Volume: 1,600,221
• 30 Day Avg. Volume: 3,006,340
• PEG Ratio: -0.72
• Price to Book (P/B): 13.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 311.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.25
• Price Target Upside: -2.82% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $8.50 ▲(13.94%Upside)

The most significant contributors to thredUP's score are the strong technical analysis indicators and positive outlook from the earnings call. However, the poor financial performance and valuation metrics due to profitability challenges weigh heavily on the overall score.

Positive Factors

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.

Market Positioning

ThredUP is well positioned for the looming tariff threat as its goods are sourced entirely from U.S. consumers' closets.

Negative Factors

Inflation Risk

The largest risk is a potential broader inflation overhang, which negatively impacted thredUP’s core customer coming out of the pandemic.

Liquidity Concerns

Liquidity remains an issue and could lead to volatility in ThredUP shares.

thredUP Business Overview & Revenue Model

Company Description

thredUP Inc. (TDUP) is a leading online resale platform for secondhand clothing, shoes, and accessories. Operating within the e-commerce and fashion sectors, thredUP provides a convenient platform for consumers to buy and sell high-quality secondhand apparel. The company aims to promote sustainable fashion by extending the lifespan of clothing items and reducing waste.

How the Company Makes Money

thredUP 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.

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
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

• Technical Analysis Sentiment: Positive
• Last Price: 7.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 7.46 is above the 20-day moving average (MA) of 6.99, above the 50-day MA of 4.89, and above the 200-day MA of 2.34, indicating a bullish trend. The MACD of 0.73 indicates Positive momentum. The RSI at 77.56 is Negative, neither overbought nor oversold. The STOCH value of 73.55 is Neutral, 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	72 Outperform	$1.45B	30.91	11.97%	―	9.09%	106.50%
ETSY	68 Neutral	$6.13B	42.76	-39.97%	―	2.18%	-32.87%
TDUP	67 Neutral	$856.11M	―	-69.51%	―	-10.55%	9.27%
Sector *	62 Neutral	$6.93B	11.25	2.95%	3.88%	2.69%	-24.71%
BBWI	59 Neutral	$5.75B	7.26	-52.83%	2.95%	-0.93%	-4.07%
HEPS	53 Neutral	$829.17M	―	-51.21%	―	22.41%	―
W	47 Neutral	$5.51B	―	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.

ThredUp Board Member Jack Lazar Resigns

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.