ThredUp Stock Plunges 34% After Outlook Calls for Lower Fourth-Quarter Revenue

ThredUp Inc. (Nasdaq: TDUP) shares fell 33.8% on Thursday, closing at $1.45 from a previous close of $2.19, a session in which the S&P 500 ETF (SPY) fell 4.41%. Trading volume ran at 3.6 times its usual level. The decline followed the company's third-quarter 2026 results and updated outlook, released after the close on Wednesday in an 8-K. The filings do not tie the share move to a specific item.

Fourth-quarter guidance points to a revenue decline

The company expects fourth-quarter 2026 revenue of $77.0 million to $79.0 million, a 2% year-over-year decline at the midpoint. For the full year, it projects revenue of $337.7 million to $339.7 million, or 9% growth at the midpoint. It also guided to a fourth-quarter adjusted EBITDA margin of negative 4.0% to negative 2.0%.

Growth slowed and losses widened

Third-quarter revenue rose 7% to $88.2 million, and active buyers reached a record 1.82 million, up 16%. Gross margin fell to 78.2% from 79.4% a year earlier. The net loss widened to $5.5 million from $4.2 million, and adjusted EBITDA was $3.5 million, or 4.0% of revenue, down from $3.8 million, or 4.6%, a year earlier.

Cash position

At Sept. 30, ThredUp held $54.8 million in cash and investments together, including $42.7 million in cash and equivalents and $12.2 million in short-term investments. The company's nine-month net loss was $17.9 million. Before the drop, the company had a market capitalization of about $292 million.