ThredUp (NASDAQ:TDUP) Announces Quarterly Earnings Results

ThredUp (NASDAQ:TDUP) announced its earnings results on Monday. The company reported ($0.04) EPS for the quarter, meeting analysts’ consensus estimates of ($0.04), FiscalAI reports. The business had revenue of $79.70 million during the quarter, compared to analysts’ expectations of $77.17 million. ThredUp had a negative return on equity of 34.59% and a negative net margin of 6.50%.

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

• Strong financials: Q4 revenue grew 18.5% YoY and full-year revenue reached $310.8M (+20%), with ~79% gross margins, $14M Adjusted EBITDA (4.4% of revenue) and the company’s first full-year positive free cash flow in 2025.
• Customer and supply momentum: New buyer acquisition surged 57% in Q4, active buyers topped a record 1.7M (+30% YoY), items processed hit 21.1M (+17%), and Premium Kits and TikTok Shop early tests meaningfully expanded supply (Premium Kits ~17% of supply; 100k cleanout bags sold, 97% new suppliers).
• Product/AI innovation & Direct Listings: Direct Listings sellers are listing ~10x more items than expected with higher ASPs (> $70), bulk-imports now account for ~50% of new listings, and AI features (search, Daily Edit, Dottie customer agent) are improving conversion, satisfaction and operational efficiency.
• Cautious guidance and risks: Management guided to modest 2026 growth (revenue ~$349–355M, ~13% at midpoint) with Q1 deliberately conservative, expects slight GM range compression to 78–79%, rising CAC and macro/seasonality risks could pressure near-term execution.

ThredUp Price Performance

ThredUp stock opened at $3.84 on Wednesday. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.26. The company has a 50-day moving average price of $5.35 and a 200 day moving average price of $7.76. ThredUp has a 12-month low of $2.02 and a 12-month high of $12.28. The stock has a market cap of $480.54 million, a P/E ratio of -25.60 and a beta of 1.72.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on TDUP. Weiss Ratings restated a “sell (e+)” rating on shares of ThredUp in a report on Monday, December 29th. Telsey Advisory Group decreased their price target on shares of ThredUp from $12.00 to $9.00 and set an “outperform” rating on the stock in a research note on Tuesday. Wells Fargo & Company lowered their price target on shares of ThredUp from $13.00 to $10.00 and set an “overweight” rating on the stock in a research report on Tuesday. Finally, Wall Street Zen downgraded shares of ThredUp from a “buy” rating to a “hold” rating in a report on Saturday, December 20th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $11.00.

More ThredUp News

Here are the key news stories impacting ThredUp this week:

• Positive Sentiment: Q4 results showed progress: revenue $79.7M (+18% YoY) slightly beat estimates, gross profit rose and active buyers hit a record 1.65M (+30% YoY); ThredUp also reported positive annual total cash flow (~$3.1M) and a stronger cash position — fundamentals that support recovery. Read More.
• Positive Sentiment: Management raised FY‑2026 revenue guidance to $349M–$355M (above consensus) and issued Q1 revenue guidance roughly in line with estimates — a constructive signal on top‑line momentum for 2026. Read More.
• Positive Sentiment: Strategic initiatives highlighted — expansion of premium supply and AI‑driven personalization to improve unit economics and buyer engagement, which could lift margins over time if execution continues. Read More.
• Neutral Sentiment: Analysts trimmed price targets (Wells Fargo: $13 → $10, Telsey: $12 → $9) but kept constructive ratings (overweight/outperform), leaving upside on estimates but reducing near‑term valuation room. Read More. Read More.
• Negative Sentiment: Insider selling by senior executives: recent filings show the CFO (Sean Sobers) and COO executed large sales (56k and 69k shares at ~$3.82), adding to a string of insider sales in recent months — this can pressure sentiment and raise questions about insider conviction. Read More.
• Negative Sentiment: Market reaction: despite the revenue beat and guidance, the stock traded down after the report (investors likely focusing on margins, lingering losses, valuation and heavy insider selling), which explains the downward move today. Read More.

Insider Activity at ThredUp

In related news, COO Christopher Homer sold 69,741 shares of the company’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $3.82, for a total value of $266,410.62. Following the transaction, the chief operating officer directly owned 1,274,906 shares in the company, valued at approximately $4,870,140.92. This represents a 5.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Sean Sobers sold 56,504 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $3.82, for a total value of $215,845.28. Following the completion of the transaction, the chief financial officer owned 555,254 shares of the company’s stock, valued at $2,121,070.28. The trade was a 9.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 27.00% of the company’s stock.

Hedge Funds Weigh In On ThredUp

Several large investors have recently modified their holdings of the business. Marshall Wace LLP increased its position in shares of ThredUp by 11.8% during the 4th quarter. Marshall Wace LLP now owns 4,825,251 shares of the company’s stock worth $30,833,000 after purchasing an additional 509,195 shares during the last quarter. State Street Corp raised its stake in shares of ThredUp by 26.2% in the 4th quarter. State Street Corp now owns 2,886,417 shares of the company’s stock valued at $18,444,000 after acquiring an additional 598,793 shares during the period. Millennium Management LLC lifted its holdings in shares of ThredUp by 27.1% in the 3rd quarter. Millennium Management LLC now owns 2,740,992 shares of the company’s stock worth $25,902,000 after acquiring an additional 584,506 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of ThredUp by 7.2% during the 4th quarter. Geode Capital Management LLC now owns 2,416,626 shares of the company’s stock worth $15,445,000 after purchasing an additional 161,967 shares during the period. Finally, Renaissance Technologies LLC increased its holdings in ThredUp by 0.5% in the 4th quarter. Renaissance Technologies LLC now owns 2,292,853 shares of the company’s stock valued at $14,651,000 after purchasing an additional 12,127 shares during the last quarter. Institutional investors and hedge funds own 89.08% of the company’s stock.

About ThredUp

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.