RealReal (NASDAQ:REAL) Issues Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• RealReal beat expectations: Q2 revenue rose 16.6% year over year to $192.57 million, above the $188.11 million consensus, while its $0.01 per-share loss was $0.01 better than expected.
• Marketplace growth and profitability improved: Record GMV increased 22% to $617 million, active buyers surpassed 1.1 million, and adjusted EBITDA reached $13.5 million with a 7% margin.
• Guidance was raised, but risks remain: Management increased full-year GMV, revenue and adjusted EBITDA targets, while warning that a shift toward higher-value goods would keep pressuring the take rate; the company remains unprofitable and its shares fell 3.7% after the results.

RealReal (NASDAQ:REAL - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.01) earnings per share for the quarter, topping analysts' consensus estimates of ($0.02) by $0.01, FiscalAI reports. The firm had revenue of $192.57 million for the quarter, compared to analyst estimates of $188.11 million. The firm's quarterly revenue was up 16.6% on a year-over-year basis.

Here are the key takeaways from RealReal's conference call:

• Positive Sentiment: The RealReal reported record Q2 GMV of $617 million, up 22% year over year, while revenue rose 17% to $193 million and active buyers increased 11% to more than 1.1 million.
• Positive Sentiment: Adjusted EBITDA reached $13.5 million, or a 7% margin, expanding 290 basis points year over year as automation and operating leverage reduced processing and technology costs. The company reiterated its path toward 15%-20% medium-term adjusted EBITDA margins.
• Positive Sentiment: Management raised full-year guidance to $2.535 billion-$2.565 billion in GMV, $788 million-$797 million in revenue, and $66 million-$69 million in adjusted EBITDA. It also expects strong positive free cash flow in both the third and fourth quarters.
• Positive Sentiment: Supply and customer-engagement initiatives are gaining momentum: supply per sales representative rose 15%, 44% of new consignors came from the active buyer base, and the company added Japanese and European vendors to its asset-light dropship network.
• Negative Sentiment: The Q2 take rate declined 200 basis points to 35.9% because sales are shifting toward higher-value items, which carry lower percentage commissions. Management expects this mix-related pressure to remain similar in the second half, although it said profit dollars and unit economics are stronger.

RealReal Stock Down 3.7%

NASDAQ REAL traded down $0.47 on Friday, reaching $12.30. The company had a trading volume of 12,127,068 shares, compared to its average volume of 2,881,150. The company's fifty day moving average is $11.27 and its 200 day moving average is $11.27. RealReal has a 52-week low of $6.32 and a 52-week high of $17.39. The stock has a market capitalization of $1.48 billion, a P/E ratio of -10.98 and a beta of 2.69.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on REAL shares. Wall Street Zen downgraded RealReal from a "buy" rating to a "hold" rating in a report on Saturday, April 18th. Roth Capital restated a "buy" rating and set a $19.00 price target on shares of RealReal in a research note on Friday. UBS Group upped their price objective on shares of RealReal from $14.00 to $16.00 and gave the stock a "neutral" rating in a report on Friday. Robert W. Baird set a $13.00 price objective on shares of RealReal in a research note on Friday, May 8th. Finally, BTIG Research reissued a "buy" rating and set a $17.00 target price on shares of RealReal in a research report on Wednesday, June 3rd. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $17.75.

Key Stories Impacting RealReal

Here are the key news stories impacting RealReal this week:

• Positive Sentiment: Second-quarter revenue rose 17% year over year to $192.57 million, exceeding the $188.11 million analyst consensus. The company reported a loss of $0.01 per share, narrower than the expected $0.02 loss and significantly improved from a $0.13 loss a year earlier. The RealReal Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: Gross merchandise value (GMV) increased 22% to a quarterly record, outpacing revenue growth and indicating stronger marketplace activity. Management also cited meaningful margin expansion. The RealReal Announces Second Quarter 2026 Results
• Positive Sentiment: The company raised full-year 2026 revenue guidance to $788 million-$797 million, above the $780.8 million consensus, and projected third-quarter revenue of $194 million-$198 million versus expectations of $191.2 million. The RealReal Q2 Results and Guidance
• Positive Sentiment: Management’s AI-focused overhaul of authentication, merchandising and operations is being associated with accelerating growth, including the 22% GMV increase. The RealReal’s AI Overhaul Helps Drive 22% GMV Growth
• Neutral Sentiment: An analyst price-target report placed the target at $17.25, suggesting potential upside but offering limited information about broader Wall Street sentiment. Analysts Set The RealReal Price Target at $17.25
• Negative Sentiment: Despite the earnings beat, REAL remains unprofitable, and the available guidance did not provide a specific EPS outlook. Investors may therefore remain focused on the pace of further margin improvement and the path to sustained profitability.

Insider Transactions at RealReal

In related news, CEO Levesque Rati Sahi sold 81,194 shares of the business's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $9.25, for a total transaction of $751,044.50. Following the transaction, the chief executive officer directly owned 1,581,276 shares in the company, valued at approximately $14,626,803. The trade was a 4.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Steve Ming Lo sold 12,077 shares of the company's stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $9.25, for a total transaction of $111,712.25. Following the completion of the sale, the chief accounting officer directly owned 189,469 shares of the company's stock, valued at $1,752,588.25. The trade was a 5.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 166,830 shares of company stock worth $1,543,178. 2.66% of the stock is owned by insiders.

Hedge Funds Weigh In On RealReal

Institutional investors have recently modified their holdings of the business. Quarry LP purchased a new position in RealReal in the third quarter worth $28,000. Larson Financial Group LLC purchased a new stake in shares of RealReal during the 3rd quarter valued at $31,000. Kemnay Advisory Services Inc. bought a new stake in shares of RealReal during the 4th quarter worth $104,000. CIBC Bancorp USA Inc. bought a new stake in shares of RealReal during the 3rd quarter worth $108,000. Finally, Holocene Advisors LP purchased a new position in shares of RealReal in the 3rd quarter worth about $125,000. 64.73% of the stock is owned by institutional investors.

RealReal Company Profile

The RealReal, Inc NASDAQ: REAL operates an online marketplace specializing in the authenticated resale of luxury goods. Since its founding in 2011 by entrepreneur Julie Wainwright, the company has positioned itself as a leading platform for consignors and shoppers seeking designer fashion, fine jewelry, watches, art, and home décor. Headquartered in San Francisco, The RealReal combines e-commerce technology with an in-house team of experts to offer a seamless buying and selling experience for secondhand luxury items.

At the core of The RealReal's business model is its consignment service, which enables individuals to sell pre-owned luxury products through a fully managed process.

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