ThredUp (NASDAQ:TDUP) Announces Quarterly Earnings Results

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

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 Trading Up 1.8%

Shares of NASDAQ TDUP traded up $0.11 during trading on Wednesday, reaching $6.28. The company had a trading volume of 2,400,862 shares, 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 12 month low of $3.08 and a 12 month high of $12.28. The company’s fifty day moving average price is $5.90 and its 200-day moving average price is $4.88. The stock has a market cap of $810.37 million, a P/E ratio of -39.25 and a beta of 2.01.

Insider Activity at ThredUp

In related news, COO Christopher Homer sold 61,578 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $4.43, for a total value of $272,790.54. Following the transaction, the chief operating officer directly owned 1,301,843 shares of the company’s stock, valued at approximately $5,767,164.49. The trade was a 4.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Sean Sobers sold 45,554 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $4.43, for a total value of $201,804.22. Following the completion of the sale, the chief financial officer owned 572,523 shares in the company, valued at $2,536,276.89. This represents a 7.37% decrease in their ownership of the stock. 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. Company insiders own 23.10% of the company’s stock.

Hedge Funds Weigh In On ThredUp

A number of institutional investors have recently added to or reduced their stakes in TDUP. Woodson Capital Management LP purchased a new position in shares of ThredUp during the 4th quarter valued at about $11,502,000. Arrowstreet Capital Limited Partnership grew its stake in shares of ThredUp by 263.7% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,056,345 shares of the company’s stock worth $19,432,000 after buying an additional 1,491,020 shares during the last quarter. Invesco Ltd. grew its holdings in shares of ThredUp by 3,682.1% during the second quarter. Invesco Ltd. now owns 1,135,351 shares of the company’s stock valued at $8,504,000 after buying an additional 1,105,332 shares during the last quarter. JPMorgan Chase & Co. lifted its position in ThredUp by 919.9% during the second quarter. JPMorgan Chase & Co. now owns 785,155 shares of the company’s stock valued at $5,881,000 after purchasing an additional 708,169 shares during the period. Finally, State Street Corp grew its position in ThredUp by 26.2% during the fourth quarter. State Street Corp now owns 2,886,417 shares of the company’s stock valued at $18,444,000 after buying an additional 598,793 shares during the period. 89.08% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

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