Will ThredUp's (TDUP) Resale Marketplace Maintain Its Momentum After 400% Rally?

ThredUp Inc. (NASDAQ:TDUP) is among the hottest SMID-cap stocks so far in 2025. On November 4, Matt Koranda, an analyst at Roth MKM, reaffirmed his Buy rating on thredUP with an unchanged price target of $11. Notably, Koranda had initiated coverage of the stock on October 30, and this update confirms his conviction in the stock.

Koranda’s rating reaffirmation came after the company’s Q3 2025 results on November 3. For Q3, the company’s revenue surged 34% year over year to $82.2 million, which came in 6% ahead of the street estimate. Management attributed this strong topline growth to its recent investments in marketing and inbound processing, as well as to the launch of new customer-facing products.

With these efforts, the company witnessed a record 54% year-over-year growth in new buyers in the quarter and a 26% surge in trailing twelve-month active buyers. Higher average selling prices also led to a 10-basis-point improvement in gross margin to 79.4%. Adjusted EBITDA margin also expanded substantially to 4.6%, as compared to 0.5% in Q3 2024.

Management raised its revenue guidance, supported by positive business trends. Compared to their earlier guidance, they raised their Q4 revenue expectations by $3 million to $76-$78 million, which was ahead of the consensus of $74.7 million. As a result, FY 2025 revenue guidance was also raised to $307-$309 million from $298-$302 million earlier. This stood 2% above the consensus at the midpoint of the guidance range and reflected an 18% year-over-year growth. That said, management maintained their gross and EBITDA margin guidance.

ThredUp Inc. (NASDAQ:TDUP) stock has rallied over 400% year to date, as of November 20. Still, the strong Buy-rated consensus and the 1-year median price target upside of 80% indicate strong positioning for the company.

ThredUp Inc. (NASDAQ:TDUP) operates an online resale marketplace for apparel, footwear, and accessories, allowing consumers to buy and sell second-hand items.

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Disclosure: None. This article is originally published at Insider Monkey.