ThredUp (NASDAQ:TDUP) Issues Earnings Results, Beats Estimates By $0.01 EPS

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

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%

TDUP stock opened at $2.19 on Thursday. ThredUp has a one year low of $1.91 and a one year high of $8.76. The company has a fifty day moving average of $2.36 and a 200-day moving average of $4.11. The stock has a market capitalization of $287.61 million, a PE ratio of -12.88 and a beta of 2.18. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.99 and a current ratio of 0.99.

Analyst Ratings Changes

A number of equities research analysts have weighed in on TDUP shares. TD Cowen started coverage on shares of ThredUp in a research report on Friday, October 30th. They set a “strong-buy” rating for the company. William Blair cut shares of ThredUp from an “outperform” rating to a “market perform” rating in a research report on Thursday. Roth Capital restated a “buy” rating and issued a $6.50 price target on shares of ThredUp in a research note on Thursday, August 6th. Northland Securities lowered ThredUp from an “outperform” rating to a “market perform” rating and set a $2.00 price objective on the stock. in a research report on Thursday. Finally, Weiss Ratings raised ThredUp from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $4.64.

Insider Transactions at ThredUp

In other news, COO Christopher Homer sold 60,230 shares of the 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 $155,393.40. Following the sale, the chief operating officer directly owned 1,363,358 shares in the company, valued at $3,517,463.64. This represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Sean Sobers sold 44,559 shares of the business’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 $114,962.22. Following the completion of the transaction, the chief financial officer directly owned 613,503 shares of the company’s stock, valued at approximately $1,582,837.74. This represents a 6.77% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 23.10% of the stock is currently owned by insiders.

About ThredUp

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.