Forensic Analysis · Retail / Consumer Discretionary · as of Sep 25, 2026
Thredup Inc. (TDUP)
A forensic read on Thredup Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-8.4
Distress distance
Clean
Earnings quality
3
Forensic signals
-17.2
P / E (ttm)
-34.1%
ROE
$403M
Market cap
0.00%
Dividend yield
19.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Thredup Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -8.4, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-24.5%
FY2025
Return on invested capital.Return on invested capital is -24.5% in the latest fiscal year, against -34.1% in FY2023, having run between -39.3% and -24.5% across FY2023–FY2025 with no direction held. After-tax operating profit was ($42M) in FY2023 and ($17M) in FY2025, with operating income at -20.5% of revenue in FY2023, -15.6% in FY2024 and -7.0% in FY2025. The capital base behind it came down -43% across FY2023–FY2025, from $123M to $70M, so this is a return struck on a smaller base rather than a record of money put to work. FY2024's operating profit carried a $10M asset write-down that alone took about 9.5 points off that year's return; FY2024 sits between the two ends of FY2023–FY2025, so the charge shapes the path between them without moving the change across it.
+7.7%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +16% over the last 2 years to FY2025 (+7.7%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~7.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~14%.
6% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 6% of revenue and 10557% of free cash flow in FY2025 — about $0.16 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 7.7% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$310.8M
Revenue Growth YoY+19.5%
Revenue CAGR (2yr)+9.6%
Net Margin-6.5%
Free Cash Flow$180,000.00
Return on Equity-34.1%
Debt / Equity0.31x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Thredup Inc.'s actual 10-K/10-Q/8-K filings?