ThredUp (NASDAQ:TDUP) Announces Quarterly Earnings Results

ThredUp (NASDAQ:TDUP) posted its quarterly earnings results on Wednesday. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.01, FiscalAI reports. The business had revenue of $88.23 million during the quarter, compared to analysts’ expectations of $88.05 million. ThredUp had a negative net margin of 6.65% and a negative return on equity of 37.30%.

Here are the key takeaways from ThredUp’s conference call:

• ThredUp reported Q3 revenue of $88.2 million, up 7% year over year, with record items sold and GMV up 20%. Active buyers rose 16% to 1.8 million and orders increased 17%.
• Softer willingness to pay and heavier promotions pressured results: price paid per item fell from $21 to $18, and gross margin declined 120 basis points year over year to 78.2%. For Q4, the company expects revenue to decline 2% at the midpoint year over year and adjusted EBITDA margin of negative 4% to negative 2%.
• Management cited a tougher consumer and holiday environment, as well as increased peer-to-peer competition; it estimates competitors will spend about $500 million in the second half, contributing to roughly $5 million of Q4 demand pressure. The company said its sellers and supply have not been affected.
• Preliminary 2027 planning assumes current challenges persist, with low-single-digit revenue growth and flat adjusted EBITDA margins versus 2026, though ThredUp expects to continue generating cash. It reiterated its longer-term growth and margin targets.
• ThredUp is investing in live selling, AI-enabled shopping, creator storefronts, and direct selling. Early live-selling results include 75% of Whatnot buyers being new to ThredUp and median selling prices 52% higher than for comparable items on its core marketplace, though the initiatives remain early-stage.

ThredUp Stock Up 9.5%

NASDAQ TDUP traded up $0.19 on Wednesday, reaching $2.19. The company had a trading volume of 3,123,069 shares, compared to its average volume of 2,269,039. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.99 and a quick ratio of 0.99. ThredUp has a 1 year low of $1.91 and a 1 year high of $8.76. The firm has a 50-day moving average of $2.37 and a 200-day moving average of $4.13. The firm has a market capitalization of $287.61 million, a PE ratio of -12.88 and a beta of 2.18.

Insider Buying and Selling

In other news, CFO Sean Sobers sold 44,559 shares of ThredUp stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.58, for a total value of $114,962.22. Following the transaction, the chief financial officer directly owned 613,503 shares of the company’s stock, valued at $1,582,837.74. This trade represents a 6.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Christopher Homer sold 60,230 shares of the company’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.58, for a total transaction of $155,393.40. Following the completion of the sale, the chief operating officer owned 1,363,358 shares of the company’s stock, valued at approximately $3,517,463.64. This trade represents a 4.23% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 23.10% of the company’s stock.

Analyst Ratings Changes

A number of research firms have commented on TDUP. Weiss Ratings upgraded ThredUp from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday. Telsey Advisory Group cut their target price on shares of ThredUp from $7.00 to $6.00 and set an “outperform” rating on the stock in a research note on Thursday, August 6th. Roth Capital reaffirmed a “buy” rating and set a $6.50 price target on shares of ThredUp in a research note on Thursday, August 6th. Finally, TD Cowen began coverage on shares of ThredUp in a research note on Friday, October 30th. They issued a “strong-buy” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $6.55.

ThredUp Company Profile

ThredUp Inc operates an online resale platform for secondhand apparel, shoes and accessories. Through its marketplace, consumers can shop for pre-owned women’s and children’s clothing and related products, while individuals can send in unwanted items for resale through the company’s “Clean Out” service.

ThredUp manages much of the resale process, including receiving, inspecting, photographing, pricing, listing and fulfilling merchandise. The company also provides resale-as-a-service solutions that enable brands and retailers to offer or support secondhand programs, helping them participate in the growing circular fashion market.

Founded in 2009, ThredUp initially focused on children’s clothing before expanding into women’s apparel and broader fashion categories.