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1. Company Snapshot

1.a. Company Description

ThredUp Inc., together with its subsidiaries, operates online resale platforms that allows consumers to buy and sell secondhand women's and kids' apparel, shoes, and accessories.ThredUp Inc.was incorporated in 2009 and is headquartered in Oakland, California.

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1.b. Last Insights on TDUP

ThredUp's recent performance was driven by strong Q2 2025 earnings, with revenue jumping 16% to $77.7 million, surpassing analyst expectations. The company's EBITDA came in 25% better than projected, thanks to trade policy tailwinds and increased marketing spend. ThredUp's active buyers grew 17% year-over-year, with new buyer growth of 74%, its best quarter for new buyer acquisition. The company raised its full-year guidance, anticipating 15% topline expansion. Additionally, ThredUp released its fourth annual Impact Report, highlighting its environmental, social, and governance strategy.

1.c. Company Highlights

2. ThredUp's Q3 2025 Earnings: A Strong Year-Over-Year Growth

ThredUp reported revenue of $82.2 million, a 33.6% increase year-over-year, with gross margin at 79.4% and adjusted EBITDA of $3.8 million, or 4.6% of revenue. The company's earnings per share (EPS) was -$0.03, beating estimates of -$0.04. The strong financial performance was driven by a 54% year-over-year increase in new buyer acquisition, with active buyers up 26% and orders up 37% year-over-year.

Publication Date: Nov -29

📋 Highlights
  • Revenue Growth Acceleration:: Achieved 34% YoY revenue growth ($82.2M), the strongest in nearly 4 years.
  • Adjusted EBITDA Expansion:: Delivered 4.6% adjusted EBITDA ($3.8M), exceeding expectations.
  • New Customer Acquisition Surge:: New buyer growth spiked 54% YoY, driving 37% orders growth.
  • Gross Margin Efficiency:: Maintained 79.4% gross margin despite growth, supporting long-term profitability.
  • Direct Selling Launch:: Introduced direct-to-consumer listings with 0.5M+ vetted sellers, enhancing margins and selection.

Growth Drivers

The acceleration in sales in the third quarter was driven by a combination of factors, including new tools, new buyer growth, and macro trends. ThredUp's sharp pricing and value proposition are drawing in more customers, with the company's tooling also improving conversion rates. The launch of new product features, such as the Daily Edit and the Trend Report, both powered by AI, has contributed to the growth. Additionally, the company's rebranded experience, "Fashion, Meet Forever," aims to build a more emotional long-term relationship with customers.

Direct Selling: A New Growth Vector

ThredUp is launching a new supply growth vector, direct selling, which will focus on casual sellers and provide a seamless experience for buyers. The company will mitigate potential fraud, provide premium listing and merchandising tools, and offer a seamless experience for sellers to choose between direct selling and the Clean Out Kit. The unit economics of peer-to-peer sales are expected to be superior to traditional Clean Out kits, with lower top-line revenue but higher margins.

Valuation and Outlook

ThredUp is raising its top-line expectations for Q4, with revenue expected to be in the range of $76 million to $78 million, representing 14% year-over-year growth. For the full year of 2025, the company expects revenue in the range of $307 million to $309 million, reflecting 18% year-over-year growth. The company's guidance for 2026 is revenue growth in the low double digits, in line with the US online resale industry growth expectations. With a P/S Ratio of 3.77 and an EV/EBITDA of -159.67, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 11.9%.

Competitive Advantage

ThredUp's competitive advantages in peer-to-peer include customer engagement, existing sellers, and a curated experience. The company is targeting the long-tail casual seller market, which has been crowded out by professional sellers. With the addition of direct selling, ThredUp is compounding its supply advantage, which is critical in the resale market. The company's focus on AI and proprietary tools and technology infrastructure will allow it to stay ahead in the market.

3. NewsRoom

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3 Stocks You'll Wish You Bought Before 2026

Dec -03

Source: marketbeat.com

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ThredUp: Buy The Dip As Growth Accelerates In A Tough Economy

Nov -24

Source: seekingalpha.com

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ThredUp Appoints Financial Governance Leader Kelly Bodnar Battles to Board of Directors and Audit Committee Chair

Nov -17

Source: businesswire.com

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How tariffs and AI are giving secondhand platforms like ThredUp a boost

Nov -15

Source: cnbc.com

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ThredUp Inc. (TDUP) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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ThredUp Is ‘Cautious' on State of the Consumer

Nov -04

Source: pymnts.com

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ThredUp Announces Third Quarter 2025 Results

Nov -03

Source: globenewswire.com

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ThredUp (TDUP) Projected to Post Earnings on Monday

Nov -01

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.67%)

6. Segments

Consignment

Expected Growth: 10%

ThredUp's consignment segment growth is driven by increasing consumer adoption of online thrift shopping, fueled by Gen Z's and millennials' preference for sustainable fashion. Additionally, the company's data-driven approach to inventory management, efficient logistics, and strong brand recognition contribute to its 10% growth.

Apparel, Shoes and Accessories

Expected Growth: 12%

ThredUp Inc.'s 12% growth in Apparel, Shoes, and Accessories is driven by increasing consumer adoption of online thrift shopping, growing demand for sustainable fashion, and the company's effective marketing strategies. Additionally, the rise of social media influencers promoting second-hand shopping and the expansion of ThredUp's product offerings also contribute to this growth.

7. Detailed Products

ThredUp Goody Box

A personalized shopping experience where customers receive a box of curated second-hand clothing based on their style and preferences

ThredUp Online Marketplace

An online platform where customers can browse and purchase high-quality, second-hand women's and children's clothing and accessories

ThredUp Clean Out Kit

A convenient and easy way for customers to declutter their closet and send in gently-used clothing in exchange for ThredUp credit or cash

ThredUp Resale-as-a-Service (RaaS)

A platform that enables retailers and brands to offer resale options to their customers, powered by ThredUp's technology and logistics

ThredUp Luxury

A curated selection of high-end, pre-owned designer clothing and accessories

8. ThredUp Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

ThredUp's business model is focused on online consignment, which is a niche market. While there are some substitutes like eBay, Poshmark, and Facebook Marketplace, they are not direct substitutes. ThredUp's unique selling proposition and strong brand recognition reduce the threat of substitutes.

Bargaining Power Of Customers

ThredUp's customers have limited bargaining power due to the company's strong brand recognition and unique selling proposition. Customers have limited alternatives, and the company's pricing strategy is competitive.

Bargaining Power Of Suppliers

ThredUp's suppliers are primarily individuals who consign their used clothing. The company has a large supplier base, and the suppliers have limited bargaining power due to the company's strong brand recognition and competitive pricing.

Threat Of New Entrants

The threat of new entrants is moderate due to the capital requirements and regulatory hurdles in the online consignment industry. However, the industry is growing, and new entrants may emerge, posing a threat to ThredUp's market share.

Intensity Of Rivalry

The online consignment industry is highly competitive, with several players competing for market share. ThredUp faces intense competition from companies like Poshmark, eBay, and Facebook Marketplace, which may lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.43%
Debt Cost 3.95%
Equity Weight 76.57%
Equity Cost 7.46%
WACC 6.63%
Leverage 30.59%

11. Quality Control: ThredUp Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Qurate Retail

A-Score: 4.0/10

Value: 9.7

Growth: 1.2

Quality: 5.4

Yield: 5.0

Momentum: 1.0

Volatility: 1.7

1-Year Total Return ->

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ThredUp

A-Score: 3.9/10

Value: 4.4

Growth: 4.9

Quality: 3.3

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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Olaplex

A-Score: 3.6/10

Value: 8.0

Growth: 4.6

Quality: 5.8

Yield: 0.0

Momentum: 1.5

Volatility: 2.0

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Conn's

A-Score: 3.6/10

Value: 10.0

Growth: 1.8

Quality: 4.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

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GrowGen

A-Score: 3.4/10

Value: 9.4

Growth: 2.1

Quality: 4.2

Yield: 0.0

Momentum: 3.5

Volatility: 1.3

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iPower

A-Score: 2.8/10

Value: 9.6

Growth: 1.6

Quality: 4.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.41$

Current Price

8.41$

Potential

-0.00%

Expected Cash-Flows