Why is ThredUp stock plunging today?

ThredUp stock is plunging nearly 30.0% in pre-open trading after the company released its second-quarter 2026 results following Wednesday’s market close, delivering a forward outlook that alarmed investors. The online fashion resale marketplace met Wall Street’s revenue expectations in Q2, with sales rising 16.9% year-over-year to $90.77 million. However, the headline beat was quickly overshadowed by a guidance reduction: the company dropped its full-year revenue guidance to $346.4 million at the midpoint from $353.7 million, a 2.1% decrease.

ThredUp lowered its second-half outlook, citing a more price-sensitive lower-income customer base and an expected $7 million revenue headwind from elevated promotions. Next quarter’s revenue guidance of $88 million came in 5.4% below analysts’ estimates, and the company’s GAAP loss of $0.05 per share was $0.02 below the consensus. Full-year revenue is now expected to grow approximately 11% at the midpoint, while near-term EBITDA margins are pressured by lower revenue and continued investments.

On the analyst front, heading into earnings, ThredUp carried an average analyst price target of $8.04, compared to a pre-report share price of $6.15 — a gap that suggested the market had already been skeptical about the company’s near-term trajectory. The broader market offered little support, with the Nasdaq edging slightly lower on the day, while the S&P 500 posted only a marginal gain, leaving high-beta growth names like ThredUp particularly exposed to negative earnings surprises.

The combination of a guidance cut, an EPS miss, and the disclosure of promotional headwinds proved too much for investors to absorb, driving TDUP sharply lower in pre-market to trade at $4.40 — approaching the lower end of its 52-week range of $3.08. While the company’s operational metrics, including a 21% rise in active buyers and a 22% jump in orders, showed continued platform momentum, the market’s focus firmly shifted to the dimmer near-term profit outlook.