ThredUp Inc. (TDUP) Q1 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 04 2026
0mins
Should l Buy TDUP?
Source: SeekingAlpha
Revenue $80.5 million, up 15% year-over-year, driven by increased customer demand and expanded product offerings.
Gross Margin 72%, an improvement of 2 percentage points year-over-year, attributed to operational efficiencies and cost management.
Net Loss $5.2 million, a reduction from $8.1 million in the prior year, due to higher revenue and improved cost controls.
Adjusted EBITDA $3.5 million, compared to $1.2 million in the prior year, reflecting better operational performance and expense management.
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Analyst Views on TDUP
Wall Street analysts forecast TDUP stock price to rise
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 4.820
Low
11.00
Averages
12.50
High
14.00
Current: 4.820
Low
11.00
Averages
12.50
High
14.00
About TDUP
ThredUp Inc. provides an online resale platforms for apparel, shoes, and accessories. The Company’s proprietary operating platform is the foundation for its managed marketplace and consists of distributed processing infrastructure, proprietary software and systems and data science expertise. The marketplaces the Company has built enable buyers in the United States to browse and purchase resale items primarily for apparel, shoes and accessories across a range of price points. Buyers get shopping value, premium and luxury brands all in one place, at up to 90% off the estimated retail price. In addition to its core marketplace, various brands and retailers are taking advantage of its resale-as-a-service (RaaS) offering, which allows them to conveniently offer a scalable closet clean-out service and/or resale shop to their customers. The Company has processed over 200 million secondhand items from approximately 60,000 brands across 100 categories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ThredUp Launches Next-Gen RaaS Model for Growth
- Brand Resale Growth: Since May 2025, ThredUp has seen a 37% increase in branded resale adoption by eliminating upfront fees and reducing monthly costs for RaaS partners, thereby democratizing access to the circular economy for brands and retailers.
- Advisory Board Formation: ThredUp has established a RaaS Advisory Board consisting of five industry experts to drive enterprise growth through diverse perspectives, ensuring its RaaS model remains a zero-barrier 'universal' solution for brands entering the circular economy.
- Commitment to Sustainability: The newly appointed advisory board members, who come from climate, tech, logistics, and retail operations backgrounds, signify ThredUp's commitment to transitioning resale from an experimental phase to a standard, profitable business operation, empowering brands to lead in the circular journey.
- Market Leadership: ThredUp's RaaS platform currently serves over 60 leading global brands, including J.Crew and Tommy Hilfiger, further solidifying its leadership position in the secondhand apparel market while promoting a sustainable future for fashion.
See More
ThredUp Q1 2026 Earnings Call Highlights
- Revenue Growth: ThredUp reported Q1 revenue of $81.7 million, reflecting a 14.6% year-over-year increase, despite challenges from a more discerning consumer, indicating the company's sustained appeal in the secondhand market.
- Gross Margin and EBITDA: The gross margin for Q1 was 79.2%, with adjusted EBITDA at 3.4% of revenue, although the GAAP net loss widened to $6.5 million from $5.2 million last year, highlighting increased cost pressures.
- New Seller Growth: New seller kit requests surged by 90%, with 48% coming from first-time sellers, demonstrating significant progress in expanding market supply, which is expected to enhance future sales potential.
- Marketing Spend: In Q1, ThredUp's spending on Meta increased by 100% year-over-year, while Pinterest saw a 94% rise, indicating a strategic shift in marketing efforts to adapt to competitive pressures and changing consumer behaviors.
See More
ThredUp Reports 14.6% Revenue Growth in Q1 2026
- Significant Revenue Growth: ThredUp reported revenue of $81.7 million for Q1 2026, reflecting a 14.6% year-over-year increase that exceeded expectations, showcasing the company's strong performance in the secondhand market and ongoing buyer growth.
- Increased Buyer Engagement: The number of active buyers reached 1.7 million, up 25% year-over-year, with March marking the best month in the company's history, indicating successful strategies in attracting new customers.
- Market Environment Challenges: Despite robust overall demand, high gas prices and inflation have made consumers more discerning, resulting in a 3% decline in average selling prices and slightly lower conversion rates, necessitating cautious navigation of future market fluctuations.
- Supply Chain Expansion Strategy: New seller kit requests surged by 90% year-over-year, reflecting ThredUp's successful promotions on platforms like TikTok, which is expected to further enhance supply capabilities to meet the growing buyer demand.
See More
THREDUP PROJECTS FY REVENUE BETWEEN USD 351.2 MILLION AND USD 356.2 MILLION
- Revenue Overview: The total revenue reported is between $351.2 million and $356.2 million.
- Financial Performance: The figures indicate a strong financial performance, reflecting growth in revenue.
See More
ThredUp Shares Rise on Positive Retail Sales Data
- Retail Sales Growth: U.S. clothing and accessories store sales increased by 0.57% month-over-month, indicating resilient consumer spending, which contributed to a 4.6% rise in ThredUp's stock price, reflecting optimistic market expectations for its future performance.
- Advertising Campaign Boost: Peer AEO launched its second advertising campaign with actress Sydney Sweeney, aiming to build on last year's successful partnership, where the first campaign reportedly led to a 77% increase in its stock price, highlighting the positive impact of brand influence on market sentiment.
- Stock Volatility Analysis: ThredUp's shares have experienced 43 moves greater than 5% over the past year, and while today's increase is notable, the market perceives it as unlikely to fundamentally change its view of the company, indicating a cautious investor sentiment.
- Long-Term Investment Returns: ThredUp's stock has declined 30.3% since the beginning of the year, currently trading at $4.23 per share, which is 65% below its 52-week high of $12.08, suggesting that investors who bought $1,000 worth of shares five years ago would now only have $274.85, reflecting the risks of long-term investment.
See More
ThredUp Releases 14th Annual Resale Report Highlighting Market Growth
- Market Growth Forecast: ThredUp's 14th Annual Resale Report indicates that the global secondhand apparel market is projected to reach $393 billion by 2030, growing at twice the rate of the overall apparel industry, highlighting the robust potential of the resale market.
- U.S. Market Performance: The U.S. secondhand market is expected to hit $78.8 billion by 2030, outpacing broader retail growth by nearly four times, indicating a rapid increase in consumer demand for secondhand goods.
- Young Consumer Drivers: Gen Z and Millennials are forecasted to drive over 70% of future growth, as younger consumers increasingly discover secondhand finds through social media and influencers, transforming traditional shopping behaviors.
- Supply Chain Challenges: With demand rising quickly, the industry's next bottleneck is anticipated to be on the supply side, where unlocking an additional $23.3 billion in market value will depend on simplifying the selling process for secondhand clothing.
See More
ThredUp Launches Next-Gen RaaS Model for Growth
- Brand Resale Growth: Since May 2025, ThredUp has seen a 37% increase in branded resale adoption by eliminating upfront fees and reducing monthly costs for RaaS partners, thereby democratizing access to the circular economy for brands and retailers.
- Advisory Board Formation: ThredUp has established a RaaS Advisory Board consisting of five industry experts to drive enterprise growth through diverse perspectives, ensuring its RaaS model remains a zero-barrier 'universal' solution for brands entering the circular economy.
- Commitment to Sustainability: The newly appointed advisory board members, who come from climate, tech, logistics, and retail operations backgrounds, signify ThredUp's commitment to transitioning resale from an experimental phase to a standard, profitable business operation, empowering brands to lead in the circular journey.
- Market Leadership: ThredUp's RaaS platform currently serves over 60 leading global brands, including J.Crew and Tommy Hilfiger, further solidifying its leadership position in the secondhand apparel market while promoting a sustainable future for fashion.
See More
ThredUp Q1 2026 Earnings Call Highlights
- Revenue Growth: ThredUp reported Q1 revenue of $81.7 million, reflecting a 14.6% year-over-year increase, despite challenges from a more discerning consumer, indicating the company's sustained appeal in the secondhand market.
- Gross Margin and EBITDA: The gross margin for Q1 was 79.2%, with adjusted EBITDA at 3.4% of revenue, although the GAAP net loss widened to $6.5 million from $5.2 million last year, highlighting increased cost pressures.
- New Seller Growth: New seller kit requests surged by 90%, with 48% coming from first-time sellers, demonstrating significant progress in expanding market supply, which is expected to enhance future sales potential.
- Marketing Spend: In Q1, ThredUp's spending on Meta increased by 100% year-over-year, while Pinterest saw a 94% rise, indicating a strategic shift in marketing efforts to adapt to competitive pressures and changing consumer behaviors.
See More
ThredUp Reports 14.6% Revenue Growth in Q1 2026
- Significant Revenue Growth: ThredUp reported revenue of $81.7 million for Q1 2026, reflecting a 14.6% year-over-year increase that exceeded expectations, showcasing the company's strong performance in the secondhand market and ongoing buyer growth.
- Increased Buyer Engagement: The number of active buyers reached 1.7 million, up 25% year-over-year, with March marking the best month in the company's history, indicating successful strategies in attracting new customers.
- Market Environment Challenges: Despite robust overall demand, high gas prices and inflation have made consumers more discerning, resulting in a 3% decline in average selling prices and slightly lower conversion rates, necessitating cautious navigation of future market fluctuations.
- Supply Chain Expansion Strategy: New seller kit requests surged by 90% year-over-year, reflecting ThredUp's successful promotions on platforms like TikTok, which is expected to further enhance supply capabilities to meet the growing buyer demand.
See More
THREDUP PROJECTS FY REVENUE BETWEEN USD 351.2 MILLION AND USD 356.2 MILLION
- Revenue Overview: The total revenue reported is between $351.2 million and $356.2 million.
- Financial Performance: The figures indicate a strong financial performance, reflecting growth in revenue.
See More
ThredUp Shares Rise on Positive Retail Sales Data
- Retail Sales Growth: U.S. clothing and accessories store sales increased by 0.57% month-over-month, indicating resilient consumer spending, which contributed to a 4.6% rise in ThredUp's stock price, reflecting optimistic market expectations for its future performance.
- Advertising Campaign Boost: Peer AEO launched its second advertising campaign with actress Sydney Sweeney, aiming to build on last year's successful partnership, where the first campaign reportedly led to a 77% increase in its stock price, highlighting the positive impact of brand influence on market sentiment.
- Stock Volatility Analysis: ThredUp's shares have experienced 43 moves greater than 5% over the past year, and while today's increase is notable, the market perceives it as unlikely to fundamentally change its view of the company, indicating a cautious investor sentiment.
- Long-Term Investment Returns: ThredUp's stock has declined 30.3% since the beginning of the year, currently trading at $4.23 per share, which is 65% below its 52-week high of $12.08, suggesting that investors who bought $1,000 worth of shares five years ago would now only have $274.85, reflecting the risks of long-term investment.
See More
ThredUp Releases 14th Annual Resale Report Highlighting Market Growth
- Market Growth Forecast: ThredUp's 14th Annual Resale Report indicates that the global secondhand apparel market is projected to reach $393 billion by 2030, growing at twice the rate of the overall apparel industry, highlighting the robust potential of the resale market.
- U.S. Market Performance: The U.S. secondhand market is expected to hit $78.8 billion by 2030, outpacing broader retail growth by nearly four times, indicating a rapid increase in consumer demand for secondhand goods.
- Young Consumer Drivers: Gen Z and Millennials are forecasted to drive over 70% of future growth, as younger consumers increasingly discover secondhand finds through social media and influencers, transforming traditional shopping behaviors.
- Supply Chain Challenges: With demand rising quickly, the industry's next bottleneck is anticipated to be on the supply side, where unlocking an additional $23.3 billion in market value will depend on simplifying the selling process for secondhand clothing.
See More
