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].

Summary of ThredUp Inc. Conference Call Company Overview - **Company**: ThredUp Inc. - **Industry**: Online resale and secondhand retail Key Points and Arguments Business Transformation - ThredUp underwent a significant transformation in the U.S. business, moving away from a struggling European segment, which was dragging down consolidated results. The decision to focus solely on the U.S. market was made in August of the previous year, leading to improved performance in subsequent quarters [2][3]. Revenue Growth - The company reported a revenue growth of 10% in Q4 of the previous year and projected a 25% growth for Q3 of the current year [4][5]. - New customer growth was remarkable, with a 95% increase year-over-year in Q1 and a 75% increase in Q2 [43]. AI and Product Investments - ThredUp has made significant investments in AI, which has improved product cataloging and customer experience. The company transitioned from tagging 6-7 attributes per item to over 100 attributes using AI, resulting in an 18% year-over-year increase in new customer conversion rates [25][26]. - AI-driven features include improved search capabilities, similar search options, and social commerce initiatives that integrate with platforms like Pinterest and Instagram [28][29]. Seller Experience Enhancements - The introduction of a premium selling kit priced at $34.99 has been successful, accounting for over 10% of seller expenses. This kit offers enhanced services such as longer consignment windows and better price control [10][11]. - The psychology of pricing has been leveraged to encourage sellers to submit higher-quality items, as they are more likely to include valuable items when paying a premium fee [16]. Customer Acquisition Costs (CAC) and Payback Period - Customer acquisition costs have decreased, leading to a payback period of well under a year. This allows for increased marketing spend to further accelerate growth [55]. - The marketing budget has remained stable at 18-20% of sales, with expectations to maintain this level while focusing on organic growth opportunities in the long term [56]. Supply Chain and Processing Efficiency - The processing backlog for regular bags is currently 4-5 weeks, with premium kits processed within a week. This efficiency has improved customer satisfaction regarding processing times [62]. - The existing distribution network can support approximately $500 million in revenue, with plans for future expansions based on growth [65]. Financial Discipline and Margin Management - ThredUp aims to balance growth with margin expansion, committing to EBITDA guidance while reinvesting incremental revenue into growth initiatives [83][84]. - The company anticipates steady industry growth in the low double digits, which aligns with its growth strategy and free cash flow generation [87]. Market Trends and Customer Behavior - The current customer base is increasingly composed of resale natives who are familiar with secondhand shopping, leading to better lifetime values and retention rates [43][44]. - The normalization of secondhand shopping is seen as a potential tailwind for the industry, with a shift in consumer perception similar to the acceptance of electric vehicles [46]. Additional Important Insights - The company is focused on leveraging technology and innovation to enhance operational efficiency and customer experience, with ongoing discussions about future capital expenditures to support growth [81]. - ThredUp's strategy includes a commitment to maintaining a positive free cash flow while investing in new technologies and infrastructure to stay ahead in the competitive landscape [76][84].

Core Insights - Optimist Fund reported its strongest investment performance in Q2 2025, achieving a return of 39.2%, significantly outperforming its benchmark which returned 11.3% [1] Company Overview: ThredUp Inc. (NASDAQ:TDUP) - ThredUp Inc. is an online resale platform focused on secondhand apparel, shoes, and accessories, with a market capitalization of $1.33 billion as of September 15, 2025 [2] - The stock experienced a remarkable one-year return of 1,062.54% and a one-month return of 1.98% [2] Financial Performance - ThredUp Inc. reported a revenue growth of 16.4% year-over-year, reaching $77.7 million in Q2 2025 [4] - The company exceeded expectations in Q1 2025 and raised its guidance for Q2 and the full year, indicating a positive outlook for future performance [3] Investment Sentiment - ThredUp Inc. was held by 25 hedge fund portfolios at the end of Q2 2025, an increase from 13 in the previous quarter, reflecting growing interest among institutional investors [4] - Despite its strong performance, some analysts suggest that certain AI stocks may offer greater upside potential with less downside risk compared to ThredUp Inc. [4]

Group 1 - The excitement of finding valuable items at garage sales parallels the potential in small-cap stocks, highlighting the investment opportunities in this sector [1] - Gary Alexander, with extensive experience in technology and startups, contributes insights on industry trends and has been active on Seeking Alpha since 2017 [1] Group 2 - No current stock or derivative positions are held by the analyst, but there is potential for initiating a long position in ThredUp (TDUP) within the next 72 hours [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [2]

Group 1 - The excitement of finding valuable items at garage sales parallels the potential in small-cap stocks, highlighting the investment opportunities in this sector [1] - Gary Alexander, with extensive experience in technology and startups, contributes insights on industry trends and has been active on Seeking Alpha since 2017 [1] Group 2 - No current stock or derivative positions are held by the analyst, but there is potential for initiating a long position in ThredUp (TDUP) within the next 72 hours [2]

Company Overview - ThredUp Inc. is one of the largest online resale platforms for apparel, shoes, and accessories, transforming resale with technology and a mission to inspire the world to think secondhand first [2] - The company has processed over 200 million unique secondhand items from 60,000 brands across 100 categories, promoting a more sustainable future for the fashion industry [2] Upcoming Events - CEO James Reinhart and CFO Sean Sobers will participate in the 8th Annual Wells Fargo Consumer Conference on September 17, 2025, from 9:30 AM to 10:05 AM PT [1] - The event will be webcast live on ThredUp's investor website, with a replay available for 30 days following the event [1] Business Model - ThredUp's proprietary operating platform includes distributed processing infrastructure, proprietary software, systems, and data science expertise, supporting its managed marketplace [2] - The company offers a Resale-as-a-Service model, allowing leading brands and retailers to leverage its platform for customizable and scalable resale experiences [2] Consumer Benefits - Sellers benefit from an easy process to clean out their closets and unlock value, either for themselves or for charity, while contributing to environmental sustainability [2] - Buyers can shop for premium and luxury brands at discounts of up to 90% off estimated retail prices [2]

Group 1 - The global trade war is intensifying, with significant developments occurring this week, particularly the United States ending the de minimis rule for small shipments [1] - Observing megatrends can provide insights into societal advancements and potential investment opportunities, despite the challenges in identifying them [1] - The importance of fundamentals, quality of leadership, and product pipeline is emphasized for uncovering investment opportunities [1] Group 2 - The focus has shifted towards marketing and business strategy for medium-sized companies and startups, highlighting the relevance of these aspects in the current market [1] - The analyst has experience in international development and evaluating startups and emerging technologies, indicating a broad understanding of various industries [1]

Group 1 - The article focuses on value investing opportunities in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - The investment strategy emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks, as well as wide moat stocks that represent high-quality businesses [1] - The author provides a range of watch lists with monthly updates to assist investors in identifying potential investment opportunities [1]