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.

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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.