ThredUp Shares Surge on Stellar Quarterly Performance

ThredUp Inc. has ignited investor enthusiasm with an extraordinary quarterly report that surpassed market expectations. The online resale platform demonstrated remarkable progress not only in revenue generation but also in its path toward profitability, sending its stock value soaring.

Institutional Confidence Grows Substantially

Significant capital is flowing into ThredUp as institutional investors demonstrate strengthened conviction in the company’s future. Recent data reveals that 315 funds and institutional entities now maintain positions in the company, representing an increase of 77 owners within just three months. Institutional holdings have expanded by 25.10 percent, exceeding 101 million shares. This substantial accumulation underscores growing faith in the resale platform’s business strategy.

Financial Metrics Show Dramatic Improvement

For the third quarter of 2025, ThredUp generated $82.2 million in revenue, representing a 34 percent year-over-year increase. More significantly, the company’s operating loss narrowed dramatically from $10.4 million to $4.2 million. With a gross margin standing at 79.4 percent, the company clearly demonstrates its trajectory toward sustainable profitability.

Operational momentum appears undeniable across key performance indicators:
* Active buyer count expanded by 26 percent to reach 1.57 million
* New customer growth proved particularly impressive at 54 percent
* Total orders surged by 37 percent year-over-year

Should investors sell immediately? Or is it worth buying ThredUp?

Analyst Sentiment Turns Increasingly Bullish

The financial community has responded with notable optimism. On November 4, Telsey Advisory Group reaffirmed its “Outperform” rating, while Wall Street Zen upgraded its position from “Hold” to “Buy.” The average price target among analysts sits at $12.50, suggesting substantial upside potential of 56 percent from the recent price of $8.50 per share.

Additional market indicators reflect positive sentiment:
* Expected annual revenue: $397 million (representing 38.39% growth)
* Price target range: $12.12 to $14.70
* Put/Call ratio of 0.24 indicates strongly bullish options market positioning

Future Outlook and Industry Context

Looking ahead, management projects fourth-quarter revenue between $76 million and $78 million, with maintained margins of 78-79 percent. The full 2025 fiscal year is expected to conclude with an 18 percent revenue increase. These projections suggest the secondhand retail revolution continues to gain momentum, with ThredUp positioned to capitalize on this expanding market trend.