ThredUp (NASDAQ:TDUP) Posts Quarterly Earnings Results, Misses Estimates By $0.02 EPS

ThredUp (NASDAQ:TDUP) announced its earnings results on Wednesday. The company reported ($0.05) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.02), FiscalAI reports. The firm had revenue of $90.77 million for the quarter, compared to the consensus estimate of $90.34 million. ThredUp had a negative return on equity of 36.11% and a negative net margin of 6.68%.

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

• Q2 results exceeded expectations, with revenue up 16.9% year over year to $90.8 million, gross margin expanding to 79.9%, and adjusted EBITDA rising to $4.8 million. Active buyers increased 21% and orders rose 22%.
• ThredUp lowered its second-half outlook, citing a more price-sensitive lower-income customer base and an expected $7 million revenue headwind from elevated promotions. Full-year revenue is now expected to grow approximately 11% at the midpoint, while near-term EBITDA margins are pressured by lower revenue and continued investments.
• The company is shifting customer acquisition toward Meta and Pinterest, where it reports higher lifetime values and lower customer acquisition costs, while premium supply is expanding. Premium items rose 32% year over year, and management expects the customer mix to continue moving toward more affluent shoppers.
• ThredUp reported early traction from AI-driven personalization and shopping tools. Its real-time personalization engine generated a 5% lift in item engagement and a 7% increase in profit per buyer for new customers in an initial test, while features such as Exact Match and Notify Me aim to improve conversion and repeat visits.
• The newly expanded peer-to-peer direct-listing marketplace surpassed 100,000 listings with an average listing price of $80, but sell-through is slower than in the managed marketplace because sellers tend to price items above market-clearing levels.

ThredUp Price Performance

Shares of TDUP traded up $0.11 during trading hours on Wednesday, hitting $6.28. 2,400,862 shares of the company were exchanged, compared to its average volume of 2,186,494. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.30. ThredUp has a fifty-two week low of $3.08 and a fifty-two week high of $12.28. The company has a market cap of $810.37 million, a price-to-earnings ratio of -39.25 and a beta of 2.01. The firm’s fifty day moving average is $5.90 and its 200 day moving average is $4.88.

Insider Activity

In related news, CFO Sean Sobers sold 45,554 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $4.43, for a total transaction of $201,804.22. Following the completion of the sale, the chief financial officer owned 572,523 shares of the company’s stock, valued at $2,536,276.89. This represents a 7.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Christopher Homer sold 61,578 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $4.43, for a total transaction of $272,790.54. Following the sale, the chief operating officer owned 1,301,843 shares in the company, valued at $5,767,164.49. The trade was a 4.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 23.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in TDUP. Bank of America Corp DE raised its position in ThredUp by 42.6% during the fourth quarter. Bank of America Corp DE now owns 77,456 shares of the company’s stock valued at $108,000 after purchasing an additional 23,156 shares in the last quarter. Cubist Systematic Strategies LLC increased its stake in shares of ThredUp by 7.6% in the 1st quarter. Cubist Systematic Strategies LLC now owns 37,516 shares of the company’s stock valued at $90,000 after purchasing an additional 2,659 shares during the last quarter. AQR Capital Management LLC increased its stake in shares of ThredUp by 185.9% in the 1st quarter. AQR Capital Management LLC now owns 94,652 shares of the company’s stock valued at $228,000 after purchasing an additional 61,547 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of ThredUp by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 47,705 shares of the company’s stock worth $115,000 after buying an additional 2,034 shares in the last quarter. Finally, Jane Street Group LLC raised its holdings in shares of ThredUp by 39.2% during the 1st quarter. Jane Street Group LLC now owns 92,376 shares of the company’s stock worth $223,000 after buying an additional 25,995 shares in the last quarter. 89.08% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have commented on TDUP shares. Wells Fargo & Company decreased their price objective on ThredUp from $10.00 to $8.00 and set an “overweight” rating on the stock in a report on Tuesday, May 5th. TD Cowen boosted their target price on shares of ThredUp from $5.00 to $5.70 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Weiss Ratings restated a “sell (e+)” rating on shares of ThredUp in a research note on Wednesday, June 24th. Finally, Telsey Advisory Group lowered their price target on shares of ThredUp from $9.00 to $7.00 and set an “outperform” rating on the stock in a research report on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $7.92.

ThredUp Company Profile

ThredUp, Inc operates an online consignment and thrift platform that enables consumers to buy and sell secondhand clothing and accessories. Through its digital marketplace, the company offers curated selections of apparel for women and children, spanning a broad range of brands and styles. Sellers can order a “Clean Out Kit” to send in items they no longer wear, while buyers benefit from discounted prices and a simplified shopping experience powered by ThredUp’s in-house authentication, quality control and logistics capabilities.

In addition to its core consumer-to-consumer marketplace, ThredUp has expanded into business-to-business services with its Resale-as-a-Service (RaaS) offering.