thredUP (TDUP) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: N/A
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.18
• Revenue Growth: -10.39%
• EPS Growth: 14.92%
• Country: US
• Employees: 1,630
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): -0.04
• Shares Outstanding: 102,185,170
• 10 Day Avg. Volume: 2,137,037
• 30 Day Avg. Volume: 2,342,352
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 3.63
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: -151.16
• 1Y Price Target: $13.00
• Price Target Upside: 13.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: $11.50 ▲(0.09% Upside)

thredUP's overall score is driven by strong technical momentum and positive earnings call sentiment, offset by weak financial performance and valuation concerns. The company's strategic focus on AI and new buyer acquisition supports a positive outlook, but profitability challenges remain a significant risk.

Positive Factors

Business Growth

The rate of change in the business has accelerated, which suggests a higher, more profitable level of structural growth.

Customer Growth

New buyer growth reported at all-time highs, and better product and experience driving both conversion and retention.

Financial Performance

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

Negative Factors

Growth Expectations

Estimated revenue deceleration could limit growth expectations.

Investor Engagement

Despite a material run in shares YTD (+500% vs. SPX +7%), investors are still not focused on TDUP's recent resurgence and need to re-engage.

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 faces challenges in profitability and revenue growth, with a negative net profit margin and declining revenue. However, improvements in cash flow and moderate leverage provide some financial stability.

Income Statement

thredUP's income statement shows a mixed performance. The company has a strong gross profit margin of 85.64% in TTM, indicating efficient cost management. However, the net profit margin is negative at -22.78%, reflecting ongoing losses. Revenue has declined by 8.33% in the TTM period, suggesting challenges in maintaining sales growth. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio is 0.94, showing a balanced leverage level. However, the return on equity is negative at -94.05%, indicating that the company is not generating profits from shareholders' equity. The equity ratio stands at 34.68%, suggesting a reasonable level of equity financing.

Cash Flow

The cash flow statement shows improvement in free cash flow, with a growth rate of 129.63% in TTM. The operating cash flow to net income ratio is 0.23, indicating some cash generation relative to net losses. The free cash flow to net income ratio is 0.39, showing a positive trend in cash flow management despite ongoing losses.

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	-5.99M	-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	56.45M	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: 11.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 11.49 is above the 20-day moving average (MA) of 10.41, above the 50-day MA of 8.76, and above the 200-day MA of 4.60, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 70.27 is Negative, neither overbought nor oversold. The STOCH value of 73.88 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	73 Outperform	$1.58B	35.28	10.36%	―	10.68%	37.84%
BBWI	66 Neutral	$6.63B	8.32	-52.83%	2.54%	-0.93%	-4.07%
ETSY	65 Neutral	$5.57B	44.96	-39.97%	―	2.38%	-38.88%
TDUP	63 Neutral	$1.43B	―	-58.93%	―	-10.39%	14.92%
HEPS	62 Neutral	$915.94M	―	-64.24%	―	28.17%	―
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
W	57 Neutral	$9.46B	―	17.86%	―	0.87%	54.67%

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.