Yes, you can lose body fat by cycling and maintaining a calorie deficit [1]. However, you cannot specifically target fat loss in one area of your body such as your thighs. Cycling can help build muscle in your legs and glutes, and since muscle is denser than fat, your thighs may start to appear leaner with cycling [1]. Learn how to lose weight without killing your cycling performance here.
[1] Westerterp, K. R. (2018). Exercise, energy balance and body composition. European Journal of Clinical Nutrition, 72(9), 1246–1250. https://doi.org/10.1038/s41430-018-0180-4
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