The RealReal (NasdaqGS:REAL) FY Conference March 23, 2026 06:00 PM ET Company ParticipantsAjay Gopal - CFONone - Company RepresentativeNoneAll right, guys. We're a little tight on time after that last transition, but we'll try to keep the trains moving on time here. Very pleased to have The RealReal here for a fireside chat. We got the CFO of The RealReal with us, Ajay Gopal. I guess we'll just jump right into the questions.Ajay GopalYeah.NoneWhat I wanted to start out with is just level setting everybody i ...

Core Viewpoint - The RealReal, the largest online marketplace for authenticated resale luxury goods, is set to participate in the 38th Annual Roth Conference with CFO Ajay Gopal presenting on March 23, 2026 [1]. Company Overview - The RealReal operates as a full-service consignment model, providing services such as virtual appointments, in-home pickup, drop-off, and direct shipping, facilitating the buying and selling of luxury items across various categories including fashion, fine jewelry, watches, art, and home goods [3]. - The company boasts a membership base of over 40 million, leveraging a rigorous authentication process combined with proprietary technology, including AI and machine learning, to optimize pricing and processing [3]. - By promoting the resale of luxury goods, The RealReal contributes to a more circular economy while ensuring a seamless experience for both buyers and sellers [3].

Core Insights - The RealReal, Inc. announced changes to its Board of Directors and executive leadership team to enhance governance and operational leadership as it enters a new growth phase [1] Board of Directors Update - Jennifer McKeehan has been appointed to the Board of Directors, effective March 6, 2026, while Niki Leondakis has departed from her role [2] - McKeehan is currently the Chief Operating Officer of Fanatics Commerce and has extensive experience in global operations and supply chain management from her previous roles at Walmart, Peloton, and The Home Depot [2] - Leondakis has been on the Board since 2019, providing valuable guidance during a transformative period for the company [2][3] Executive Leadership Update - Tiffany Stevenson has joined as Chief People Officer, bringing experience from Weight Watchers, Box, and Sephora, where she led global people strategy and organizational development [4] - Tom Hanrahan has been appointed as Chief Revenue Officer, responsible for revenue growth strategy across merchandising, supply acquisition, and commercial operations, with prior experience at Square [5] - These leadership additions reflect the company's commitment to investing in experienced operators to drive sustainable growth and innovation in the luxury resale market [6] Company Overview - The RealReal is the largest online marketplace for authenticated luxury resale, with over 40 million members [6] - The company offers a full-service consignment model that includes virtual appointments, in-home pickup, drop-off, and direct shipping, facilitating the buying and selling of luxury goods [6] - The RealReal employs a rigorous authentication process combined with proprietary technology, including AI and machine learning, to optimize pricing and processing for its members [6]

Company Overview - The RealReal operates an online resale marketplace for luxury goods, including apparel, jewelry, watches, and home decor, generating revenue by facilitating transactions between consignors and buyers [7] - The company reported a total revenue of $692.85 million and a net loss of $41.80 million for the trailing twelve months (TTM) [4] - The company has 3,011 employees and has seen a 1-year price change of 79.24% as of February 28, 2026 [4] Recent Financial Performance - The RealReal exceeded quarterly revenue estimates for Q4 FY 2025, reporting approximately $194 million in revenue against an estimate of $190.7 million [10] - The company has reduced its annual net loss for the fifth consecutive year, reporting a loss of $41.8 million for 2025, down from a loss of $134.2 million the previous year [10] Stock Performance - The current stock price of The RealReal is $12.27, with a market capitalization of $1.4 billion [5] - The stock has experienced a decline of 22% in 2026 as of February 28, raising concerns among investors [11] Recent Transactions - CFO Madan Gopal Ajay sold 31,381 shares for approximately $336,000 on February 23, 2026, which represents 2.5% of his direct holdings [1][6] - Post-transaction, Ajay retains 1,230,892 shares valued at approximately $13.50 million based on the market close on the same day [2] Market Position and Challenges - The RealReal is noted for being one of the few resale platforms with multiple physical locations, allowing for both shopping and selling of goods [8] - Despite past allegations of fraudulent goods, the company has reopened a core location in San Francisco, indicating a potential recovery from those issues [9]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - Neurogene Inc. (NGNE) is up 34% at $26.42 [3] - Cardio Diagnostics Holdings, Inc. (CDIO) is up 20% at $6.29 [3] - Applied Optoelectronics, Inc. (AAOI) is up 19% at $64.00 [3] - Caris Life Sciences, Inc. (CAI) is up 19% at $22.93 [3] - Block, Inc. (XYZ) is up 18% at $64.59 [3] - MARA Holdings, Inc. (MARA) is up 16% at $9.84 [3] - NCR Atleos Corporation (NATL) is up 14% at $48.13 [3] - Birchtech Corp. (BCHT) is up 12% at $2.70 [3] - The RealReal, Inc. (REAL) is up 11% at $13.80 [3] - Candel Therapeutics, Inc. (CADL) is up 10% at $5.68 [3] Premarket Losers - Duolingo, Inc. (DUOL) is down 24% at $88.30 [4] - Xponential Fitness, Inc. (XPOF) is down 23% at $6.16 [4] - Emergent BioSolutions Inc. (EBS) is down 22% at $8.58 [4] - Flutter Entertainment plc (FLUT) is down 14% at $105.85 [4] - Ginkgo Bioworks Holdings, Inc. (DNA) is down 14% at $8.27 [4] - Willdan Group, Inc. (WLDN) is down 12% at $104.63 [4] - Duos Technologies Group, Inc. (DUOT) is down 12% at $7.67 [4] - CoreWeave, Inc. (CRWV) is down 11% at $85.96 [4] - Zscaler, Inc. (ZS) is down 9% at $152.22 [4] - Progyny, Inc. (PGNY) is down 8% at $20.40 [4]

Core Insights - The RealReal reported strong financial performance in Q4 2025, with significant growth in gross merchandise value (GMV) and profitability, indicating a transformative year ahead for the luxury resale platform [4][6][13]. Financial Performance - Q4 gross profit increased by 19% to $145 million, with a gross margin improvement of 40 basis points to 74.8% [2]. - The company achieved a full-year GMV of $2.13 billion, up 16% year-over-year, and total revenue rose by 15% to $693 million [13]. - Adjusted EBITDA for Q4 was $22 million, representing 11.3% of revenue, and for the full year, it was $42 million, or 6.1% of revenue, reflecting a margin expansion of 450 basis points [2][14]. Growth Drivers - The increase in GMV to $616 million in Q4 was driven by a combination of unit volume and higher average selling prices, with total revenue rising 18% [3]. - Active buyers, orders, and average order value all saw year-over-year increases, with active buyer growth accelerating to 9% [7]. - The company noted a favorable mix shift towards higher-value items, which, while lowering the take rate to 36.5%, resulted in higher profit dollars [8]. Strategic Initiatives - The implementation of AI through the Athena process has improved operational efficiency, with 35% of units processed through this system, contributing to significant operating leverage [9][10]. - Management plans to expand Athena's coverage to include mid-value and higher-value items, enhancing speed-to-site and consignor satisfaction [11][12]. Future Outlook - For 2026, the company anticipates GMV growth of 12% to 15% and revenue growth of 10% to 13%, with adjusted EBITDA projected between $57 million and $65 million [16]. - The first quarter of 2026 is expected to see GMV growth of 19% to 22% and revenue growth of 16% to 18%, with adjusted EBITDA anticipated to be between $11 million and $13 million [17]. Additional Initiatives - The company is exploring dropshipping tests and expanding its retail strategy to enhance new seller acquisition [19]. - Plans to enhance the "My Closet" feature include on-demand valuation tools and pricing transparency to strengthen long-term consignor relationships [19].

Group 1 - The article highlights concerns among investors regarding a shaky macroeconomy and weak consumer spending, except for the sales of used items which are increasing as consumers respond to high prices and inflation [1] - The experience of Gary Alexander in covering technology companies and advising startups provides insights into current industry themes, indicating a blend of Wall Street and Silicon Valley perspectives [1] Group 2 - The article does not provide any additional relevant content regarding companies or industries beyond the key points summarized above [2][3]

Core Insights - The RealReal's latest earnings report emphasizes the role of artificial intelligence in enhancing operational efficiency and improving the listing process for luxury items [1][3] - CEO Rati Levesque highlighted a multi-year AI roadmap aimed at leveraging technology to identify potential consignors and streamline the listing process [3][11] AI and Operational Strategy - The company is focusing on two key AI initiatives: SmartSales for identifying high-potential clients and Athena for reducing the time from item intake to live listing while enhancing accuracy [3] - The AI strategy is designed to shape supply dynamics, targeting higher-value consignors and premium product categories that foster loyalty among both sellers and buyers [4][11] Supply Growth and Retail Strategy - A coordinated "growth playbook" integrates marketing, sales, and retail efforts, improving targeting of mid to high-value sellers [8] - Approximately 25% of new consignors are sourced through retail locations, with items sourced through these channels having an average selling price 5 to 7 times higher than those from other sources [8] Demand Resilience - Demand remains strong, particularly in premium categories, with buyers spending $5,000 or more increasing by 20% year over year [9] - The RealReal's positioning at the intersection of luxury and value, along with educational efforts regarding resale pricing, contributes to this demand resilience [9] Financial Performance - In Q4 2025, gross merchandise value (GMV) rose 22% year over year, while revenue increased by 18%, with adjusted EBITDA reaching $22 million [10] - For the full year 2025, GMV increased by 16% to $2.13 billion, and revenue rose by 15% to $693 million, marking positive adjusted EBITDA in every quarter for the first time [10] Future Outlook - The results are seen as indicators of a broader transformation, with plans to deepen AI integration and enhance supply chain efficiency as priorities for 2026 [11]

Core Insights - The RealReal (REAL) reported a revenue of $194.05 million for Q4 2025, marking an 18.3% year-over-year increase and exceeding the Zacks Consensus Estimate by 1.98% [1] - The company achieved an EPS of $0.06, a significant improvement from -$0.62 a year ago, with a surprise of 71.43% over the consensus estimate of $0.04 [1] Financial Performance Metrics - Gross Merchandise Value (GMV) reached $615.68 million, surpassing the average estimate of $591.63 million [4] - The number of orders totaled 960, exceeding the two-analyst average estimate of 941 [4] - Average Order Value (AOV) was $641.00, compared to the average estimate of $628.50 [4] - Direct revenue was reported at $27.21 million, significantly above the average estimate of $24.47 million, reflecting a year-over-year increase of 39.4% [4] - Shipping services revenue amounted to $17.82 million, aligning closely with the average estimate of $17.8 million, and showing a year-over-year growth of 9% [4] - Consignment revenue reached $149.01 million, slightly above the average estimate of $147.2 million, with a year-over-year increase of 16.3% [4] Stock Performance - The RealReal's shares have declined by 21.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]