ThredUp (NASDAQ:TDUP) Issues Quarterly Earnings Results, Meets Estimates

ThredUp (NASDAQ:TDUP) announced its quarterly earnings results on Monday. The company reported ($0.05) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.05), FiscalAI reports. The firm had revenue of $81.67 million during the quarter, compared to the consensus estimate of $80.17 million. ThredUp had a negative net margin of 6.68% and a negative return on equity of 36.10%.

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

• ThredUp reported strong Q1 operational momentum with revenue up 14.6% to $81.7M, gross margin of 79.2%, and trailing-12-month active buyers up 25%, with March the best month in company history.
• Management flagged near-term macro pressure—average selling prices are roughly down ~3% and conversion rates for existing customers are ~down 5% since early March—and has baked those trends into its guidance.
• Product investments are accelerating personalization and conversion, including a live agentic product experience using reinforcement learning and exact‑match aggregation (starting with dresses) to improve discovery and shopping.
• Supply-side growth is accelerating: listings grew 17% YoY, new seller kit requests rose 90% YoY (48% of kits from new sellers), and the company is increasing inbound processing to unlock a more liquid, profitable marketplace.
• Guidance was maintained: Q2 revenue of $89M–$91M, full‑year revenue of $351.2M–$356.2M, gross margin guidance of 78.5%–79.5%, and an expected full‑year Adjusted EBITDA around 6.1%, with incremental upside to be reinvested into growth.

ThredUp Trading Up 14.6%

TDUP opened at $5.01 on Wednesday. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.24. The stock has a market capitalization of $636.46 million, a PE ratio of -31.31 and a beta of 2.07. ThredUp has a 1-year low of $3.08 and a 1-year high of $12.28. The firm has a 50-day moving average price of $3.91 and a two-hundred day moving average price of $5.80.

Wall Street Analyst Weigh In

TDUP has been the subject of several recent analyst reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of ThredUp in a report on Friday, March 27th. TD Cowen increased their price target on ThredUp from $5.00 to $5.70 and gave the stock a “buy” rating in a research report on Tuesday. Telsey Advisory Group dropped their price target on ThredUp from $9.00 to $7.00 and set an “outperform” rating for the company in a report on Tuesday. Finally, Wells Fargo & Company cut their price objective on ThredUp from $10.00 to $8.00 and set an “overweight” rating for the company in a research report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $9.14.

Insider Transactions at ThredUp

In other news, COO Christopher Homer sold 69,741 shares of the company’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $3.82, for a total transaction 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Patricia Nakache purchased 13,157 shares of the stock in a transaction that occurred on Tuesday, March 10th. The stock was bought at an average cost of $3.73 per share, with a total value of $49,075.61. Following the acquisition, the director owned 14,017 shares of the company’s stock, valued at $52,283.41. This represents a 1,529.88% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 23.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On ThredUp

Several hedge funds have recently added to or reduced their stakes in the company. Zurcher Kantonalbank Zurich Cantonalbank acquired a new position in ThredUp during the 3rd quarter valued at about $159,000. Cerity Partners LLC grew its position in shares of ThredUp by 6.7% during the 2nd quarter. Cerity Partners LLC now owns 19,011 shares of the company’s stock worth $142,000 after buying an additional 1,190 shares during the period. Legal & General Group Plc grew its position in shares of ThredUp by 135.3% during the 2nd quarter. Legal & General Group Plc now owns 16,056 shares of the company’s stock worth $120,000 after buying an additional 9,231 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of ThredUp by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 47,705 shares of the company’s stock worth $115,000 after buying an additional 2,034 shares during the last quarter. Finally, Bank of America Corp DE raised its stake in shares of ThredUp by 42.6% during the fourth quarter. Bank of America Corp DE now owns 77,456 shares of the company’s stock worth $108,000 after buying an additional 23,156 shares during the last quarter. Institutional investors own 89.08% of the company’s stock.

Key ThredUp News

Here are the key news stories impacting ThredUp this week:

• Positive Sentiment: Q1 revenue topped expectations and the company reported record active buyers (1.71M, +25% YoY) and order growth, supporting GM and top-line momentum. ThredUp Q1 Loss Meets Estimates, Adjusted EBITDA Margin Shrinks
• Positive Sentiment: Company launched an “agentic” AI shopping experience live for a subset of customers — a product initiative that could boost engagement and lifetime value if adoption scales. ThredUp AI Agents Personalize Shopping in Real Time
• Positive Sentiment: ThredUp raised its FY26 revenue, gross margin and adjusted EBITDA margin outlook in its Q1 release, signaling management’s confidence in the recovery trajectory. ThredUp Announces First Quarter 2026 Results
• Neutral Sentiment: EPS matched consensus at a ($0.05) loss; revenue was $81.67M vs. $80.17M expected — meets estimates but still unprofitable. ThredUp Q1 Press Release / Slide Deck
• Neutral Sentiment: Analyst note: Telsey cut its price target from $9 to $7 but kept an “outperform” rating — a mixed signal (lower target but still constructive outlook). Benzinga
• Negative Sentiment: Adjusted EBITDA margin contracted in the quarter and net margin/ROE remain negative, highlighting ongoing profitability challenges and margin pressure despite revenue growth. ThredUp Q1 Loss Meets Estimates, Adjusted EBITDA Margin Shrinks
• Negative Sentiment: Company remains unprofitable (negative net margin, -6.5%, and negative ROE), and shares have a wide trading range — execution and margin improvement are still required to justify higher valuations. MarketBeat Earnings Summary

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.