ThredUp (NASDAQ:TDUP) Announces Earnings Results

ThredUp (NASDAQ:TDUP) announced its quarterly 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 business had revenue of $90.77 million for the quarter, compared to analyst estimates of $90.34 million. ThredUp had a negative return on equity of 37.54% and a negative net margin of 6.65%.

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 Stock Performance

NASDAQ:TDUP traded up $0.15 during mid-day trading on Friday, reaching $3.27. 2,532,419 shares of the company’s stock were exchanged, compared to its average volume of 2,322,319. The business’s fifty day simple moving average is $5.90 and its two-hundred day simple moving average is $4.87. ThredUp has a one year low of $3.04 and a one year high of $12.28. The firm has a market capitalization of $421.32 million, a PE ratio of -19.20 and a beta of 2.01. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.95 and a current ratio of 0.95.

Key Stories Impacting ThredUp

Here are the key news stories impacting ThredUp this week:

• Positive Sentiment: Second-quarter revenue reached a record $90.8 million, up 17% year over year, while active buyers increased 21% to 1.77 million. Gross margin was 79.9%, and the company ended the quarter with $57.4 million in cash, restricted cash and marketable securities. ThredUp Announces Second Quarter 2026 Results
• Positive Sentiment: Telsey Advisory Group maintained an “outperform” rating, although it lowered its price target from $7 to $6. The revised target still implies substantial upside from recent trading levels. Benzinga analyst coverage
• Neutral Sentiment: Analyst sentiment remains generally constructive, with ThredUp receiving a consensus “Moderate Buy” rating. Northland Securities expects a roughly breakeven loss of $0.01 per share in the fourth quarter of 2027, while the current full-year consensus remains a $0.09-per-share loss. ThredUp analyst consensus
• Negative Sentiment: ThredUp reported a second-quarter loss of $0.05 per share, worse than the $0.03 consensus estimate, despite revenue coming in slightly above expectations. The larger-than-expected loss has renewed concerns about the company’s path to profitability. ThredUp second-quarter earnings report
• Negative Sentiment: Management lowered full-year 2026 revenue guidance to $344.4 million-$348.4 million from market expectations of approximately $354.8 million and forecast third-quarter revenue of $87 million-$89 million versus $93 million expected. Management cited weaker demand among consumers earning below $60,000, a significant customer segment. The combination of reduced guidance and profitability concerns led to a sharp selloff and is the primary reason shares have decreased. ThredUp Q2 report analysis

Analysts Set New Price Targets

TDUP has been the subject of several research analyst reports. Telsey Advisory Group reduced their target price on ThredUp from $7.00 to $6.00 and set an “outperform” rating for the company in a research note on Thursday. Wells Fargo & Company decreased their target price on ThredUp from $10.00 to $8.00 and set an “overweight” rating on the stock in a report on Tuesday, May 5th. Roth Capital restated a “buy” rating and issued a $6.50 price target on shares of ThredUp in a research note on Thursday. TD Cowen raised their price target on ThredUp from $5.00 to $5.70 and gave the company a “buy” rating in a report on Tuesday, May 5th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of ThredUp in a research report on Wednesday, June 24th. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $6.55.

Insider Buying and Selling

In related news, COO Christopher Homer sold 61,578 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $4.43, for a total value of $272,790.54. Following the completion of the sale, the chief operating officer directly owned 1,301,843 shares in the company, valued at approximately $5,767,164.49. The trade was a 4.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. 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 firm’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $4.43, for a total value of $201,804.22. Following the transaction, the chief financial officer owned 572,523 shares in the company, valued at approximately $2,536,276.89. This trade represents a 7.37% decrease in their position. 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. 23.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of TDUP. Raymond James Financial Inc. acquired a new position in ThredUp in the second quarter valued at about $32,000. Quarry LP acquired a new stake in ThredUp during the third quarter worth about $37,000. Meeder Asset Management Inc. increased its holdings in ThredUp by 552.9% in the 4th quarter. Meeder Asset Management Inc. now owns 6,405 shares of the company’s stock valued at $41,000 after buying an additional 5,424 shares during the period. Tower Research Capital LLC TRC increased its holdings in ThredUp by 110.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 10,959 shares of the company’s stock valued at $82,000 after buying an additional 5,744 shares during the period. Finally, nVerses Capital LLC acquired a new position in shares of ThredUp in the 4th quarter valued at approximately $83,000. Institutional investors 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.