Free cash flow margin reached just 2.7% in 2026Q2 while capital expenditure intensity climbed to 7.5% of revenue, leaving cumulative ten-quarter free cash flow near negative $1.4 million and operating cash flow heavily dependent on non-cash addbacks.
ThredUp Inc. (TDUP) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | 9.72M | 10.65M | 898K | -22.59M | -52.1M | -35.02M | -19.11M | -10.09M | -22.49M |
| Operating CF Margin % | - | 3.43% | 0.35% | -8.74% | -18.07% | -13.91% | -10.27% | -6.16% | -17.36% |
| Operating CF Growth % | 879.81% | 1086.19% | 103.97% | 56.64% | -48.79% | -83.3% | -89.35% | 55.14% | - |
| Net Income | -23.45M | -20.21M | -40M | -71.25M | -92.28M | -63.18M | -47.88M | -38.2M | -34.18M |
| Depreciation & Amortization | 14.09M | 12.92M | 17.33M | 14.23M | 14.03M | 9.15M | 5.58M | 4.27M | 4.17M |
| Stock-Based Compensation | 20.85M | 19M | 25.85M | 31.68M | 26.82M | 12.96M | 7.34M | 7.68M | 2.32M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.24M | 4.88M | 515K | 11.72M | 12.07M | 6.33M | 4.59M | 1.08M | 333K |
| Working Capital Changes | -7M | -5.94M | -2.79M | -8.97M | -12.74M | -284K | 11.26M | 15.08M | 4.87M |
| Change in Receivables | -1.2M | 1.13M | 1.48M | -3.13M | -530K | -1.19M | 229K | -638K | 84K |
| Change in Inventory | 0 | 0 | 2.13M | 2.21M | -7.89M | -2.74M | 374K | 2.29M | -153K |
| Change in Payables | 3.19M | 1.42M | 3.91M | 1.7M | -6.93M | 5.94M | 7.88M | -426K | 2.7M |
| Cash from Investing | -17.62M | -7.17M | -16.9M | 43.68M | 8.92M | -169.58M | -19.42M | -1.25M | -22.02M |
| Capital Expenditures | -10.48M | -10.47M | -6.58M | -15.98M | -43.25M | -19.83M | -19.42M | -9.5M | -13.93M |
| CapEx % of Revenue | 3.08% | 3.37% | 2.53% | 6.18% | 15% | 7.87% | 10.44% | 5.8% | 10.75% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -23.58M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -6.64M | 0 | 0 | 0 | 0 | 0 | -8.09M |
| Cash from Financing | 2.05M | -397K | -4.39M | -3.6M | -3.94M | 228.96M | 18.21M | 91.18M | 38.97M |
| Debt Issued (Net) | -1.47M | -4M | -4M | -4M | -5.94M | 625K | 17.16M | 7.95M | 3.4M |
| Equity Issued (Net) | 7.88M | 27.93M | 3.67M | 5.16M | 0 | 226.91M | 0 | 82.51M | 35.45M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.31M |
| Other Financing | -4.36M | -24.33M | -4.06M | -4.76M | 2.01M | 1.43M | 1.05M | 722K | 126K |
| Net Change in Cash | -5.85M | 3.09M | -19.26M | 17.42M | -47.79M | 24.3M | -20.31M | 79.84M | -5.54M |
| Free Cash Flow | -752K | 180K | -5.69M | -38.58M | -95.36M | -54.85M | -38.53M | -19.59M | -36.42M |
| FCF Margin % | -0.22% | 0.06% | -2.19% | -14.92% | -33.07% | -21.78% | -20.71% | -11.96% | -28.11% |
| FCF Growth % | -122.93% | 103.17% | 85.26% | 59.55% | -73.86% | -42.35% | -96.64% | 46.19% | - |
| FCF per Share | -0.01 | 0.00 | -0.05 | -0.37 | -0.96 | -0.71 | -0.42 | -0.21 | -0.47 |
| FCF Conversion (FCF/Net Income) | 0.03x | -0.53x | -0.01x | 0.32x | 0.56x | 0.55x | 0.40x | 0.26x | 0.66x |
| Interest Paid | 0 | 0 | 0 | 0 | 2.06M | 2.08M | 1.45M | 1.21M | 384K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 64K | 45K | 27K | 21K |
Quick answers to the most common questions about buying TDUP stock.
ThredUp Inc. (TDUP) generated $10.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ThredUp Inc. (TDUP) generated $0.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
ThredUp Inc. (TDUP) spent $10.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Dilution masks weak cash generation
Metrics are mathematically derived from official filings.
Non-Cash Addbacks Bridge Persistent Losses
ThredUp's cumulative net losses of roughly $110 million over ten quarters contrast with aggregate operating cash flow near $25 million, a gap almost fully explained by stock-based compensation and depreciation, as disclosed in recent quarterly financial statements, suggesting reported losses understate ongoing dilution rather than signal cash recovery.
The 2026Q2 OCF/NI ratio of -1.55 reflects a $9.2 million operating cash inflow against a $5.9 million net loss, a divergence that appears driven primarily by $11.4 million in SBC and $7.4 million of depreciation for the same period. Because SBC alone exceeds the reported loss, investors should recognize that positive operating cash flow is being manufactured by non-cash addbacks rather than by operating profitability. Treating OCF as a quality-of-earnings signal in this case would likely overstate the underlying business economics.
Free Cash Flow Volatile, Not Compounding
Over the trailing ten quarters ThredUp's cumulative free cash flow was approximately negative $1.4 million, with quarterly margins ranging from -8.7% to +5.5%, per ThredUp's reported figures, and only two of the last four quarters reaching a 2.7% FCF margin — a pattern suggesting stabilization rather than compounding cash generation.
FCF has been negative in four of ten quarters, with the worst prints (2024Q2 at -$5.8M and 2025Q4 at -$3.2M) coinciding with negative or minimal operating cash flow rather than with heavy capex. The recent two-quarter run of positive but sub-3% FCF margins suggests the business may be approaching breakeven on a cash basis, but with capex intensity rising sharply (see CapEx section), any near-term FCF gains could be quickly absorbed by reinvestment. The trajectory does not yet support a durable upward thesis.
Rising Capital Intensity Absorbs Operating Cash
ThredUp's capital expenditure intensity climbed from 1.3% of revenue in 2024Q2 to 7.5% in 2026Q2, with the latest $6.8 million outlay approaching the $7.4 million depreciation charge, as shown in ThredUp's quarterly cash flow statements, suggesting spending has shifted from maintenance toward capacity expansion whose returns remain unproven.
Historically, ThredUp's CapEx ran well below its D&A (e.g., 2024Q2: $848K vs. $4.7M), consistent with a maintenance-only capital profile. The recent quarters — notably 2026Q1 ($4.1M CapEx vs. $3.3M D&A) and 2026Q2 ($6.8M vs. $7.4M) — break that pattern and suggest management is funding growth capacity, potentially in processing or technology infrastructure. Investors should note that this shift raises the bar for FCF durability: incremental growth capex will need to translate into revenue and margin expansion to avoid structurally suppressing free cash flow.
Working Capital Swings Compress After Reset
Working capital movements at ThredUp have swung between -$8.9 million and +$3.5 million across ten quarters, but the magnitude of swings has generally compressed since the 2024Q4 reset, per disclosed cash flow statements, suggesting a smaller operating balance sheet rather than a demonstrable improvement in collection or payables efficiency.
The -$8.9 million working capital drag in 2024Q4 aligns with the sharp revenue reset disclosed in the income statement review, likely reflecting receivable or inventory write-downs tied to a portfolio change. Subsequent quarters show materially smaller swings (+$0.4M in 2026Q2, +$1.3M in 2026Q1), but this compression should not be read as an efficiency gain — it is more plausibly a function of the reduced operating perimeter. Investors should monitor whether working capital becomes a headwind again as revenue scales back into mid-teens growth.
Dilution Cost Disguised as Cash Flow
Stock-based compensation reached $11.4 million in 2026Q2, or 12.5% of revenue and more than double the prior quarter, per ThredUp's quarterly disclosure, meaning reported operating cash flow is materially supported by non-cash charges that represent real economic dilution to shareholders and should not be treated as free cash generation.
Cumulative SBC of approximately $62 million over ten quarters offsets a substantial portion of ThredUp's reported net losses, and would reduce or eliminate operating cash flow if treated as an economic cost. In 2026Q2, SBC of $11.4 million exceeds the entire OCF of $9.2 million, implying that cash operations are effectively loss-making on a fully-diluted economic basis. Investors should also consider whether any capitalized development costs or other non-cash adjustments are further inflating the reported OCF line; without clearer disclosure, the reported free cash flow figures likely overstate the true economic cash generation of the business.