thredUP (TDUP) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.19
• Revenue Growth: -10.39%
• EPS Growth: 14.92%
• Country: US
• Employees: 1,630
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.04
• Shares Outstanding: 102,185,170
• 10 Day Avg. Volume: 1,231,382
• 30 Day Avg. Volume: 1,741,879
• 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: 0.82
• Enterprise Value/Revenue: 3.63
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: -151.16
• 1Y Price Target: $13.00
• Price Target Upside: 45.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 49 Neutral
• Price Target: $9.00 ▲(0.78% Upside)

thredUP's overall stock score reflects significant challenges in financial performance and valuation, with ongoing losses and a negative P/E ratio. Technical analysis indicates bearish momentum. Despite positive earnings call highlights, including revenue growth and strategic innovations, macroeconomic uncertainties and operational inefficiencies weigh heavily on the score.

Positive Factors

Revenue Growth

The significant acceleration in revenue growth demonstrates thredUP's expanding market reach and effective business strategies, indicating potential for sustained long-term growth.

Gross Margin Strength

Strong gross margins reflect efficient cost management and pricing power, which are critical for maintaining profitability and competitive advantage in the long term.

AI-Driven Innovations

AI-driven innovations enhance user experience and operational efficiency, potentially leading to higher customer retention and acquisition, supporting sustainable growth.

Negative Factors

Ongoing Losses

Persistent losses and negative profit margins indicate challenges in achieving profitability, which could impact financial sustainability and investor confidence over time.

Declining Revenue

A decline in revenue suggests potential difficulties in market penetration and customer retention, which could hinder long-term growth prospects if not addressed.

Negative Return on Equity

A negative return on equity highlights inefficiencies in using shareholder funds to generate profits, which may affect the company's ability to attract and retain investors.

thredUP Business Overview & Revenue Model

Company Description

thredUP (TDUP) is an online consignment and thrift store that specializes in secondhand clothing, primarily targeting women and children. Founded in 2009, thredUP operates in the e-commerce sector and focuses on promoting sustainable fashion by providing a platform for individuals to buy and sell high-quality, pre-owned apparel. The company offers a wide range of products, including clothes, shoes, and accessories, from various popular brands, making it a go-to destination for eco-conscious shoppers looking for affordable fashion options.

How the Company Makes Money

thredUP generates revenue through several key streams, primarily by selling secondhand clothing and accessories on its online platform. The company operates a consignment model where individuals send in their gently used items, which thredUP then inspects, cleans, and lists for sale. It takes a commission from the sale of these items, which constitutes a significant portion of its revenue. Additionally, thredUP offers a subscription service called 'thredUP's Closet Cleanout,' where customers can receive a prepaid shipping kit to send in their items for resale. The company also partners with brands and retailers to facilitate the resale of their unsold inventory, creating a circular economy that benefits both the brands and thredUP. Furthermore, thredUP has explored collaborations and partnerships with various companies to expand its reach and enhance its offerings, contributing to its overall earnings.

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: Negative
• Last Price: 8.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDUP, the sentiment is Negative. The current price of 8.93 is below the 20-day moving average (MA) of 9.12, below the 50-day MA of 10.07, and above the 200-day MA of 6.33, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 21.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TDUP.

thredUP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LQDT	―	$775.30M	30.04	14.00%	―	38.40%	32.42%
ETSY	―	$7.32B	59.10	―	―	2.38%	-38.88%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RERE	―	$899.10M	34.23	5.65%	―	27.53%	―
WINA	―	$1.47B	36.77	―	2.72%	3.35%	1.97%
JMIA	―	$1.33B	―	-176.48%	―	-13.39%	―
TDUP	―	$1.10B	―	-58.93%	―	-10.39%	14.92%

thredUP Corporate Events

ThredUp’s Q2 2025 Earnings: Record Growth Amid Challenges

ThredUp’s recent earnings call painted a picture of robust growth and optimism, despite some anticipated challenges. The company reported record revenue growth and customer acquisition, largely driven by AI-led product improvements and strategic investments. While acknowledging a potential seasonal slowdown in Q4 and macroeconomic uncertainties, ThredUp remains confident in its growth trajectory and financial stability.

ThredUp Reports Strong Q2 2025 Growth

ThredUp Inc. is a leading online resale platform specializing in apparel, shoes, and accessories, leveraging technology to promote secondhand shopping and sustainability.