thredUP (TDUP) Stock Forecast & Price Target

ThredUp Inc. is poised for significant financial growth, with projected FY25 revenues climbing to between $298 million and $302 million, surpassing prior guidance and aligning closely with the consensus estimate. The company's revenue for the latest quarter is expected to be $78 million, reflecting a robust 26.8% increase year-over-year and illustrating strong demand within its streamlined operational model. Furthermore, improvements in EBITDA margins—with an adjusted forecast raised to approximately 4.2%—indicate effective cost management and operational leverage, reinforcing the company’s financial stability and growth potential.

ThredUp Inc. is experiencing a significant slowdown in sales growth, with Q4 projected growth at approximately 10% year-over-year, a stark decline from about 25% in Q3. This deceleration is compounded by anticipated macroeconomic challenges, including the impact of resurgent student loan payments and rising grocery prices, which could further strain consumer spending. Additionally, the company's lower-end price point strategy may not gain traction as expected, leading to a potentially negative long-term outlook on its revenue growth trajectory.