thredUP (TDUP) Stock Forecast & Price Target

ThredUp Inc. has demonstrated robust financial performance, with total revenue increasing by 18.5% to $79.7 million, which exceeded both company guidance and consensus forecasts due to significant growth in orders and active buyers. In addition, the company reported a notable growth of 33.6% in total revenue, reaching $82.2 million for the quarter, bolstered by a 57% year-over-year rise in new buyers and a strong monthly acquisition rate in October. Furthermore, ThredUp has raised its full-year 2025 revenue guidance to between $307 million and $309 million, surpassing previous estimates and reflecting a positive trajectory for future growth.

ThredUp Inc.'s full year gross margin outlook has been narrowed to 79.0%-79.2%, which marks a decline from FY24's rate of 79.7%, suggesting potential challenges in maintaining profitability. The company's adjusted EBITDA margin significantly decreased to 3.7%, representing a 370-basis point drop from the previous year, while operating expenses rose to 88.0% of sales, indicating worsening cost management. Additionally, future initiatives aimed at enhancing customer satisfaction, including lower-margin activities like a TikTok shop, raise concerns about further erosion of profitability against a backdrop of stagnant marketing spend as a percentage of revenue.