ThredUp (NASDAQ:TDUP) Posts Earnings Results, Misses Estimates By $0.02 EPS

ThredUp (NASDAQ:TDUP) released 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 business had revenue of $90.77 million for the quarter, compared to the consensus estimate of $90.34 million. ThredUp had a negative return on equity of 36.11% and a negative net margin of 6.68%.

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 Up 1.8%

Shares of NASDAQ:TDUP opened at $6.28 on Thursday. ThredUp has a 12 month low of $3.08 and a 12 month high of $12.28. The company’s 50-day moving average price is $5.94 and its two-hundred day moving average price is $4.88. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.30. The firm has a market cap of $810.37 million, a P/E ratio of -39.25 and a beta of 2.01.

Insider Transactions at ThredUp

In other ThredUp 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 completion of 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible 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 company’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 transaction of $201,804.22. Following the transaction, the chief financial officer owned 572,523 shares in the company, valued at $2,536,276.89. The trade was 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. Insiders own 23.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Raymond James Financial Inc. bought a new stake in shares of ThredUp during the second quarter worth $32,000. Quarry LP bought a new position in ThredUp in the third quarter valued at about $37,000. Meeder Asset Management Inc. increased its position in ThredUp by 552.9% in the fourth quarter. Meeder Asset Management Inc. now owns 6,405 shares of the company’s stock worth $41,000 after purchasing an additional 5,424 shares during the period. Tower Research Capital LLC TRC increased its position in ThredUp by 110.1% in the second quarter. Tower Research Capital LLC TRC now owns 10,959 shares of the company’s stock worth $82,000 after purchasing an additional 5,744 shares during the period. Finally, nVerses Capital LLC bought a new stake in ThredUp during the 4th quarter worth about $83,000. 89.08% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

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