Core Insights - ThredUp is expanding its strategy to capture multiple resale channels through peer-to-peer resale and Resale-as-a-Service partnerships [1][10] - The company has achieved its strongest year-over-year growth in nearly four years, driven by record new customer acquisition and increased engagement from existing buyers [2][4] - Despite strong demand for online thrift and secondhand apparel, consumers are cautious as they approach the holiday season, emphasizing value-driven shopping behavior [1][5] Financial Performance - Revenue for the quarter ended September 30 rose by 33.6% to $82.2 million [3] - New buyer acquisition increased by 54% year-over-year, with active buyers up by 26% and orders climbing by 37% [4] - Guidance for the fourth quarter indicates expected revenue growth of 14% year-over-year at the midpoint [5] Marketing and Customer Engagement - The company launched a rebranded experience in September, focusing on building long-term emotional relationships with customers [7] - New AI-driven features, including the Daily Edit and Trend Report, have enhanced customer engagement and conversion rates [8] Product and Service Diversification - ThredUp's Resale-as-a-Service model has added new partnerships, including New York & Co. and CodeAvoxie [9] - The company is developing a peer-to-peer marketplace in closed beta, allowing users to sell directly to one another while ThredUp manages the process [10][11] Competitive Positioning - ThredUp aims to leverage its logistics network to enhance the peer-to-peer selling experience, providing options for sellers and buyers [11] - Continued investment in AI and first-party data is expected to strengthen ThredUp's competitive position in the resale market [11]

Revenue and Profitability - Revenue for Q3 2025 totaled $82.2 million, a 33.6% increase from $61.5 million in Q3 2024[89] - Gross profit for Q3 2025 was $65.2 million, up 33.8% year over year from $48.8 million in Q3 2024, with a gross margin of 79.4%[89] - Revenue for the nine months ended September 30, 2025, was $231.1 million, a 19.9% increase from $192.8 million in the same period of 2024[100] - Non-GAAP Adjusted EBITDA from continuing operations was $3.8 million, a significant increase of 1101.3% year over year from $0.3 million in Q3 2024[91] - Gross margin for the three months ended September 30, 2025, was 79.4%, a slight increase of 10 basis points from 79.3% in the same period in 2024[101] Operational Performance - Loss from continuing operations decreased to $4.2 million in Q3 2025, representing a 59.0% improvement compared to a loss of $10.4 million in Q3 2024[90] - Active Buyers reached 1.568 million in Q3 2025, a 25.6% increase from 1.248 million in Q3 2024[91] - Total Orders in Q3 2025 were 1.608 million, reflecting a 37.2% increase from 1.172 million in Q3 2024[91] - The average order value decreased by 4.2% in Q3 2025, attributed to a higher mix of orders from new buyers[99] Expenses and Costs - Operations, product, and technology expenses increased by $5.2 million, or 15.8%, for the three months ended September 30, 2025, primarily due to a $3.0 million increase in personnel-related costs[102] - Marketing expenses increased by $3.3 million, or 25.4%, for the three months ended September 30, 2025, primarily due to a $3.4 million increase in advertising costs[104] - Sales, general, and administrative expenses increased by $1.9 million, or 14.3%, for the three months ended September 30, 2025, mainly due to a $0.8 million increase in payment processing fees[106] Cash Flow and Liquidity - The company generated positive cash flows from continuing operations of $12.1 million for the nine months ended September 30, 2025[112] - As of September 30, 2025, the company had cash, cash equivalents, restricted cash, and short-term marketable securities totaling $56.1 million[112] - Net cash provided by continuing operating activities increased to $12.1 million for the nine months ended September 30, 2025, up 185.7% from $4.2 million in the same period of 2024[116] - Net cash used in continuing investing activities decreased to $0.9 million for the nine months ended September 30, 2025, compared to $7.2 million in the same period of 2024, reflecting a $6.3 million increase in cash inflows[117] - Net cash used in continuing financing activities was $0.4 million for the nine months ended September 30, 2025, down from $3.9 million in the same period of 2024, indicating a $3.5 million increase in cash inflows[118] - As of September 30, 2025, the company had non-restricted cash and cash equivalents of $46.2 million and marketable securities of $4.9 million, indicating a strong liquidity position[123] Strategic Initiatives and Future Outlook - The company’s Resale-as-a-Service (RaaS) offering is expected to accelerate growth in the resale category and enhance overall supply strategy[86] - The company expects operating losses to continue in 2025 as it invests in growing its business and infrastructure[113] - Future capital requirements will depend on factors including distribution center automation and expansion plans to support revenue growth[114] Risks and Accounting - The company is exposed to inflation risk, which has negatively impacted gross margin and operating expenses, potentially affecting revenue and order growth[125] - The Term Loan carries variable interest rates tied to the prime rate, with a floor of 4.75%, indicating exposure to interest rate risk[124] - The company has not made material changes to its critical accounting policies since the 2024 10-K, ensuring consistency in financial reporting[120]

Financial Performance - Revenue for Q3 2025 was $82.2 million, a 33.6% increase from $61.5 million in Q3 2024[3] - Gross profit for Q3 2025 was $65.2 million, up 33.8% from $48.8 million in Q3 2024[3] - Adjusted EBITDA from continuing operations was $3.8 million in Q3 2025, compared to $0.3 million in Q3 2024[3] - The company reported a loss from continuing operations of $4.2 million in Q3 2025, an improvement from a loss of $10.4 million in Q3 2024[3] - Adjusted EBITDA margin for Q3 2025 was 4.6%, compared to 0.5% in Q3 2024[3] - ThredUp reported a loss from continuing operations of $8,059,000 for the three months ended December 31, 2024, which improved to a loss of $4,248,000 by September 30, 2025[9] - Net cash provided by continuing operating activities was $663,000 for the three months ended December 31, 2024, increasing to $6,028,000 by September 30, 2025[10] - Non-GAAP free cash flow from continuing operations was negative $2,935,000 for the three months ended December 31, 2024, but improved to positive $2,377,000 by September 30, 2025[10] Operational Metrics - Active Buyers reached 1,568 thousand in Q3 2025, representing a 25.6% year-over-year increase from 1,248 thousand in Q3 2024[3] - Orders totaled 1,608 thousand in Q3 2025, a 37.2% increase compared to 1,172 thousand in Q3 2024[3] - Gross margin for Q3 2025 was 79.4%, slightly up from 79.3% in Q3 2024[3] Future Projections - For Q4 2025, ThredUp expects revenue in the range of $76.0 million to $78.0 million[3] - For fiscal year 2025, ThredUp anticipates revenue between $307.0 million and $309.0 million[3] Cash and Assets - Cash and cash equivalents increased from $31,851,000 in December 2023 to $41,057,000 in March 2024, a growth of 29%[8] - Total current assets rose from $56,922,000 in December 2023 to $60,460,000 in March 2024, reflecting a 5.4% increase[8] - Cash, cash equivalents, and restricted cash at the end of September 30, 2025, totaled $51,253,000, up from $40,488,000 at the beginning of the period[9] Liabilities and Equity - Total liabilities decreased slightly from $114,924,000 in December 2023 to $116,417,000 in March 2024[8] - Total stockholders' equity decreased from $56,301,000 in December 2023 to $56,083,000 in March 2024[8] - The accumulated deficit stood at $(555,861,000) in December 2024, projected to increase to $(570,500,000) by September 2025[8] Expenses - Total operating expenses for Q4 2023 were $56,216,000, with a projected increase to $64,108,000 in Q1 2024, representing a 15% increase[6] - Non-GAAP operating expenses as a percentage of revenue were 80.7% in Q4 2023, expected to rise to 84.4% in Q1 2024[6] - Stock-based compensation expense for Q4 2023 was $6,162,000, with a forecasted decrease to $4,500,000 by Q3 2025[6] Market Position and Strategy - ThredUp processed over 200 million unique secondhand items from 60,000 brands across 100 categories, emphasizing its position as a leading online resale platform[11] - The company aims to enhance its technology and infrastructure, including investments in AI technologies for improved shopping experiences[12] - ThredUp's Resale-as-a-Service (RaaS) model is expanding, with plans to attract new Active Buyers through innovative shopping experiences[12] - The company anticipates growth in the online resale market, with a focus on consumer demand and long-term growth strategies[12] Cash Management - ThredUp's operating lease liabilities decreased from $801,000 in December 2024 to $1,235,000 by September 2025, indicating improved cash management[9] Guidance and Reconciliation - The company is not providing a quantitative reconciliation of forward-looking guidance for non-GAAP measures due to uncertainties in certain items[19]

Core Insights - ThredUp Inc. reported its financial results for Q3 2025, showcasing a fourth consecutive quarter of accelerating revenue growth, driven by new buyer acquisition and order growth [2][3] - The company launched a fully rebranded experience, enhancing its platform with new products and features aimed at creating a more personalized shopping experience [3] Financial Highlights - Q3 2025 revenue reached $82.2 million, marking a 34% increase year-over-year [6][7] - Gross profit for the quarter was $65.2 million, also up 34% year-over-year, with a gross margin of 79.4% [6][7] - Active buyers totaled 1.57 million, reflecting a 26% year-over-year growth, with new buyer growth at 54%, the highest in the company's history [6][7] Financial Outlook - For Q4 2025, ThredUp expects revenue in the range of $76.0 million to $78.0 million, representing a 14% year-over-year increase at the midpoint [7] - The full fiscal year 2025 revenue is projected to be between $307.0 million and $309.0 million, an 18% year-over-year increase at the midpoint [7] Operational Metrics - Adjusted EBITDA from continuing operations for Q3 2025 was $3.8 million, or 4.6% of revenue, compared to $0.3 million, or 0.5% of revenue, in Q3 2024 [7][17] - The company ended Q3 2025 with cash and cash equivalents of $56.1 million, consistent with the previous quarter [6] Market Position - ThredUp is positioned as one of the largest online resale platforms for apparel, shoes, and accessories, emphasizing sustainability and value for consumers [19] - The company has processed over 200 million unique secondhand items, indicating a strong operational capacity and market presence [19]

Core Insights - The article discusses the collaboration between TradeSmith and InvestorPlace to create a stock selection system that combines popularity among retail traders with strong fundamentals, leading to significant stock gains [2][4] Group 1: Stock Strategy and Performance - The combined system has already identified stocks that have risen double-digits, with one stock increasing over 25% [2] - The system aims to uncover companies that are often overlooked by Wall Street, suggesting potential for further gains as mainstream media catches up [3] - The strategy claims to generate total returns 15 times higher than the S&P 500 [4] Group 2: Consumer Trends and E-commerce - Gen Z Americans are projected to spend an average of $1,357 on gifts, travel, and entertainment this holiday season, which is 15% more than baby boomers [5] - Over half of Gen Z have purchased products from TikTok Shop, with 97% researching products on social media before buying [7] Group 3: Company Spotlight - ThredUp - ThredUp, an online resale platform, has pivoted to a consignment model to cater to Gen Z, leading to a projected revenue growth of 16% this year, up from 0.6% the previous year [8][9] - The company has a Social Heat Score of 78.4, indicating that concerns about a Gen Z spending pullback are likely exaggerated [10] - Google search volumes for ThredUp are currently 46% higher than a year ago, supporting its growth potential [11] Group 4: Company Spotlight - Alphabet Inc. - Alphabet has integrated AI products into its smart home devices, contributing to a surge in monthly users for its Gemini app, which increased by 200 million to 650 million [15] - The company achieved its first-ever quarter of $100 billion in sales, with a Social Heat Score of 83.8 indicating further upside potential [16] - Alphabet is recognized for strong returns on equity and solid earnings growth, earning a "B" grade from Louis' Stock Grader [16]

Core Insights - Optimist Fund reported a return of +9.1% in Q3 2025, outperforming the benchmark return of 7.9% [1] - The fund is focusing on cyclical holdings that have experienced multi-year downswings while also paying attention to developments in AI [1] Company Performance - ThredUp Inc. (NASDAQ:TDUP) is highlighted as a key stock, with a one-month return of -8.59% but a remarkable 1,458.21% increase in value over the past 52 weeks [2] - As of October 30, 2025, ThredUp's stock closed at $8.62 per share, with a market capitalization of $1.062 billion [2] - ThredUp's revenue grew by 16% year-over-year to $77.7 million, marking its fastest growth in several years, and adjusted EBITDA increased by approximately 100% year-over-year [3] Market Position - ThredUp Inc. was held by 25 hedge fund portfolios at the end of Q2 2025, an increase from 13 in the previous quarter [4] - Despite its growth potential, the company is not among the 30 most popular stocks among hedge funds, and certain AI stocks are considered to have greater upside potential with less downside risk [4]

Core Insights - The Optimist Fund achieved a return of +9.1% in Q3 2025, significantly outperforming its benchmark [5] - The fund's year-to-date return stands at 44.5%, compared to the benchmark's 11.1% [5] - The fund anticipates continued growth opportunities over the next three and a half years, similar to recent performance [4] Fund Performance - The fund's performance over various periods shows significant volatility, with a notable recovery from a -51.4% return in 2022 to 82.9% in 2023 [5] - Compound returns as of September 30, 2025, indicate strong performance across 1-year (61.2%), 2-year (65.6%), and 3-year (61.9%) periods [5] Top Contributors - **Wayfair**: Revenue increased by approximately 5% year-over-year to $3.27 billion, marking its fastest growth since Q1 2021. Adjusted EBITDA reached $205 million, indicating a margin above 6% for the first time since Q2 2021 [7][8][9] - **ThredUp**: Revenue rose 16% year-over-year to $77.7 million, with adjusted EBITDA increasing by around 100%. Active buyers grew by 17% to 1.47 million [10][11][12] - **Carvana**: Retail units sold increased by 41% year-over-year to 143,280 vehicles, with total revenue rising 42% to $4.84 billion. Adjusted EBITDA reached $601 million, reflecting a 12.4% margin [13][14][15] Top Detractors - **Monday.com**: Despite a 27% increase in revenue, the company reduced its second-half 2025 revenue guidance due to weaker performance marketing trends, causing investor concerns [20][21][22] - **Fiverr**: Results were below expectations, leading to a reduction in position size despite maintaining an attractive risk/reward profile [25][26] Portfolio Composition - The top 10 holdings comprise approximately 85% of the portfolio, including ThredUp, Monday.com, Carvana, Uber, Wayfair, DoorDash, First Advantage, Fiverr, Latham Group, and Medpace [27] Notable Changes - The fund exited positions in HelloFresh and Revolve due to management changes and reduced confidence in growth prospects, reallocating capital to more promising opportunities [29][30] Company Insights - **Medpace**: A leading contract research organization (CRO) focused on small and mid-sized biotech companies, showing strong revenue growth of 14.2% year-over-year to $603.3 million [31][18][35] - The company has a disciplined capital allocation strategy, with a history of share repurchases during market downturns, enhancing long-term growth potential [34][35]

Core Insights - ThredUp released its 2025 Holiday Report, indicating a significant shift towards circular shopping among consumers [1] - Despite economic uncertainty, holiday spending is expected to remain resilient, with consumers planning to allocate nearly 40% of their total holiday budgets to secondhand gifts, an increase from the typical 30% [1] Company Overview - ThredUp is recognized as one of the largest online resale platforms for apparel, shoes, and accessories [1] Consumer Behavior Trends - The study, conducted by GlobalData, surveyed 2,000 consumers, highlighting a growing trend in secondhand shopping during the holiday season [1] - The increase in budget allocation for secondhand gifts reflects changing consumer attitudes towards sustainability and cost-effectiveness [1]

Core Insights - ThredUp will release its financial results for Q3 2025 on November 3, 2025, after U.S. market close [1] - A conference call and live webcast will be held on the same day at 1:30 p.m. PT / 4:30 p.m. ET [1] Company Overview - ThredUp is a leading online resale platform for apparel, shoes, and accessories, promoting the idea of thinking secondhand first [3] - The platform has processed over 250 million unique secondhand items from 60,000 brands across 100 categories [3] - ThredUp's proprietary operating platform supports its managed marketplace, utilizing distributed processing infrastructure, proprietary software, and data science expertise [3] - The company offers a Resale-as-a-Service model, enabling major brands and retailers to create customizable resale experiences [3] - ThredUp aims to extend the lifecycle of clothing, contributing to a more sustainable future for the fashion industry [3]

Core Insights - Small-cap stocks are gaining significant attention, with some stocks in the iShares Russell 2000 ETF experiencing massive gains this year, outperforming larger-cap stocks like Nvidia and Palantir [1][2]. Small-Cap Performance - The iShares Russell 2000 ETF has increased by 11.2% this year, although it still lags behind the S&P 500 [2]. - On September 18, the Russell 2000 index reached an all-time high for the first time since March 15, 2021, ending a streak of 967 trading days without a new high, which is the second longest in the index's history [3]. Notable Small-Cap Stocks - The Oncology Institute (TOI) has seen a remarkable rise of 1,064% this year, increasing from 31 cents to $3.60 per share [3]. - Better Home & Finance (BETR) and ThredUp (TDUP) also performed well, with gains of 602.6% and 578.1% respectively [7]. - ThredUp is valued at over $1.1 billion and is expected to lose 24 cents per share this year, yet its stock price has risen to $9.44 [5]. Market Dynamics - Many small-cap stocks started the year with low share prices, leading to substantial percentage increases with even small dollar gains [3]. - The average stock in the Russell 2000 index now trades for $37 per share, indicating a shift in market dynamics as small stocks rally [6].