"We are pleased to report strong first quarter results and our focus remains steadfast," said Rati Levesque, Chief Executive Officer of The RealReal. "We are reaffirming our full year 2025 guidance despite the uncertainties from tariffs and a less predictable backdrop. We occupy a unique position at the intersection of luxury and value, and we source our supply primarily from domestic closets, so there is potential to realize benefits in the current environment. Our strategy is working; we believe our brand ...

Q1 2025 Revenue of $160 million, up 11% Year-Over-YearQ1 2025 Net Income of $62 million including $80 million of non-cash gainsQ1 2025 Adjusted EBITDA of $4.1 million improved $6.4 million Year-Over-Year SAN FRANCISCO, May 08, 2025 (GLOBE NEWSWIRE) -- The RealReal, Inc. (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today reported financial results for its first quarter ended March 31, 2025. First quarter 2025 gross merchandise value (GMV) and total revenue incr ...

Core Viewpoint - Real Matters Inc. reported a decline in consolidated net revenue for Q2 2025, primarily due to a decrease in the U.S. purchase mortgage origination market, while maintaining operational efficiency and achieving growth in its U.S. Title segment [2][5]. Financial Summary - Consolidated revenue for Q2 2025 was $37.3 million, down 11% year-over-year [4][5]. - Net revenue for Q2 2025 was $10.1 million, a decrease of 7% compared to Q2 2024 [4][5]. - Adjusted EBITDA for Q2 2025 was $(1.9) million, compared to $0.7 million in Q2 2024 [4][5]. - The company reported a net loss of $2.2 million in Q2 2025, down from a net income of $2.1 million in Q2 2024 [4][5]. Segment Performance - U.S. Appraisal segment revenue was $26.7 million, down 9% year-over-year, with a net revenue margin of 27.3%, up 80 basis points sequentially [6]. - U.S. Title segment revenue increased by 32% year-over-year, driven by market share gains and higher refinance origination volumes [2][5]. - Canadian segment revenue was $8.3 million, down 8% year-over-year, but net revenue increased by 24% [6]. Market Conditions - The U.S. purchase mortgage origination market experienced a double-digit decline, impacting overall revenue [2]. - The company highlighted the potential for growth in the refinance market, with nearly 10 million outstanding mortgages above 6% interest rates [2][5]. Cash Position - As of March 31, 2025, Real Matters had $45.7 million in cash and no outstanding debt, positioning the company well for current market conditions [2][5].

Core Insights - The RealReal will release its financial results for Q1 2025 on May 8, 2025, after market close [1] - A conference call to discuss the financial results will take place at 2:00 p.m. Pacific Time [1][2] Company Overview - The RealReal is the largest online marketplace for authenticated resale luxury goods, boasting 38 million members [3] - The company employs a rigorous authentication process with hundreds of in-house experts to ensure the quality of items sold [3] - The RealReal supports the circular economy by providing a platform for buying and selling luxury items across various categories, including fashion, jewelry, and art [3] - The company offers services such as free virtual appointments, in-home pickup, and direct shipping to facilitate the selling process for consignors [3]

Core Insights - Real Matters Inc. will announce its second quarter fiscal 2025 financial results on April 30, 2025, before market open [1] - A conference call to discuss the results will be held at 10:00 a.m. (ET) on the same day, hosted by the CEO and CFO [2] Company Overview - Real Matters is a leading network management services provider for the mortgage lending and insurance industries, utilizing proprietary technology and a network of independent professionals [3] - The company serves top 100 mortgage lenders in the U.S. and major banks and insurance companies in Canada, specializing in residential real estate appraisals and title and mortgage closing services [3] - Real Matters is headquartered in Markham, Ontario, with additional offices in Buffalo, New York, and Middletown, Rhode Island, and is listed on the Toronto Stock Exchange under the symbol REAL [3]

Group 1 - The S&P 500 is hovering around all-time highs, prompting a recommendation to rotate out of momentum-driven winners that have performed well in 2024 [1] - There is an emphasis on reallocating portfolios towards "growth at" strategies, indicating a shift in investment focus [1] Group 2 - The analyst has extensive experience in covering technology companies and has worked in Silicon Valley, providing insights into current industry trends [1] - The analyst has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, indicating a strong presence in the investment community [1]

Financial Performance - In 2024, the company's Gross Merchandise Value (GMV) reached $1,829,463, an increase from $1,725,983 in 2023, while the Net Merchandise Value (NMV) rose to $1,382,875 from $1,269,880[199]. - Total revenue for 2024 was $600.5 million, compared to $549.3 million in 2023, reflecting overall growth despite a decline in direct revenue[220]. - The net loss for the year ended December 31, 2024, was $134.2 million, an improvement from a net loss of $168.5 million in 2023 and $196.4 million in 2022[266]. - Adjusted EBITDA for the year ended December 31, 2024, was $9.3 million, compared to a loss of $55.2 million in 2023 and a loss of $112.5 million in 2022[266]. Revenue Breakdown - The consignment revenue for 2024 was $473,396, up from $415,572 in 2023, reflecting a take rate increase to 38.4% from 37.5%[199]. - Direct revenue decreased by $14.6 million, or 18%, in 2024 compared to 2023, primarily due to planned actions to rebalance vendor-purchased company-owned inventory[223]. - Shipping services revenue increased by $7.9 million, or 15%, in 2024 compared to 2023, primarily due to an increase in the standard shipping fee per order[224]. - Consignment revenue increased by $57.8 million, or 14%, in 2024 compared to 2023, driven by a 4% increase in average order value (AOV) and a 240 basis point improvement in the take rate[222]. Customer Metrics - Active buyers increased to 972,000 in 2024, compared to 922,000 in 2023, demonstrating growth in the buyer base[199]. - Repeat consignors accounted for over 80% of GMV in both 2024 and 2023, showcasing strong customer loyalty[191]. - The Average Order Value (AOV) improved to $545 in 2024, up from $523 in 2023, indicating higher spending per transaction[199]. Operational Efficiency - The company reported a sell-through ratio of approximately 85% in 2024, indicating strong demand relative to supply[190]. - The buyer acquisition cost (BAC) has declined over time, reflecting improved efficiency in attracting new buyers[194]. - The company operates in approximately 1.4 million square feet of leased authentication centers, supporting its operational scalability[195]. - The company continues to invest in technology and infrastructure to enhance operational efficiency and support future growth[195]. Cost Management - Total gross margin increased by 603 basis points in 2024 compared to 2023, driven by higher margin consignment revenue and a decrease in lower margin direct revenue[231]. - Cost of consignment revenue decreased by $4.3 million, or 7%, in 2024 compared to 2023, attributed to reduced overhead costs[225]. - Cost of direct revenue decreased by $18.5 million, or 25%, in 2024 compared to 2023, reflecting the decrease in direct revenue[227]. - Marketing expense decreased by $3.0 million, or 5%, in 2024 compared to 2023, primarily due to a reduction in advertising costs[232]. Future Outlook - Operations and technology expenses are expected to increase in future periods to support growth, including investments in automation and technology improvements[215]. - Selling, general and administrative expenses are anticipated to decrease as a percentage of revenue over the longer term[216]. - The company expects operating losses and negative cash flows to continue in the foreseeable future but believes existing cash will meet needs for at least the next 12 months[246]. Debt and Cash Flow - As of December 31, 2024, the company had cash and cash equivalents of $172.2 million and an accumulated deficit of $1,253.8 million[244]. - Net cash provided by operating activities was $26.8 million in 2024, despite a net loss of $134.2 million[251]. - Net cash used in investing activities was $25.6 million, primarily for property and equipment purchases and capitalized software costs[252]. - The company exchanged $145.8 million of 2025 Notes and $6.5 million of 2028 Notes for $135.0 million of 2029 Notes, which bear an interest rate of 13.00% per annum[259]. Interest and Liabilities - Interest income decreased by $0.9 million, or 10%, in 2024, totaling $8.8 million, due to lower average cash balances[242]. - Interest expense increased by $10.7 million, or 100%, in 2024, reaching $21.4 million, due to contractual interest from the 2029 Notes[243]. - The fair value of warrant liability increased by $68.2 million, or 100%, in 2024, attributed to the issuance of warrants for up to 7,894,737 shares[239]. - The change in fair value of warrant liability for the year ended December 31, 2024, was $68.2 million, indicating significant fluctuations in the valuation of the warrants issued[266].

Financial Data and Key Metrics Changes - The company reported a 14% revenue growth in Q4 2024, with full-year GMV reaching $18 billion, up 6% year-over-year [6][10][31] - Adjusted EBITDA for the full year was positive at $9.3 million, marking a $64 million increase compared to 2023 [40] - Free cash flow improved significantly, reaching $1 million for the full year, an increase of $104 million year-over-year [41] Business Line Data and Key Metrics Changes - Consignment revenue increased by 14% for the year, driven by successful unlocking of mid and high-value supply [10][38] - Active buyers on a trailing 12-month basis grew by 5% year-over-year, reaching 972,000 [10][34] - Average order value (AOV) reached an all-time high of $579 in Q4, contributing significantly to GMV growth [34][58] Market Data and Key Metrics Changes - The company noted that nearly 25% of new consignors were acquired through retail locations, indicating a strong market presence [20][66] - The luxury resale market is projected to continue growing, with the company well-positioned to capture a significant share [30][42] Company Strategy and Development Direction - The company is focused on three strategic pillars: unlocking supply, driving operational efficiencies, and enhancing service [11][21][24] - The growth playbook includes optimizing the sales team, refining marketing strategies, and expanding retail locations [12][17][19] - The company aims to leverage AI initiatives like SmartSales and Athena to improve efficiency and enhance the consignor experience [15][23][112] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to unlock profitable supply and achieve high single-digit to low double-digit growth over the medium term [42] - The company anticipates stable gross margins and operating expenses in 2025, with a focus on maintaining operational efficiency [43][44] Other Important Information - The company completed a strategic debt transaction, reducing total indebtedness by $37 million, enhancing its capital structure [47] - The company plans to open one to three new stores annually, maintaining its strategy of positioning stores in affluent areas [94] Q&A Session Summary Question: Operating cash flow and free cash flow guidance for the year - Management did not provide explicit guidance but noted positive cash flow metrics for Q4 and 2024, with $27 million in operating cash flow and close to $1 million in free cash flow [53] Question: Marketing spend plans for the first quarter and beyond - Management indicated that marketing spend is yielding good returns and will continue to be balanced with investments in sales and stores [56] Question: Supply growth drivers and mix of current vs. new consignors - Management highlighted the importance of targeting mid to high-value consignors and noted that 25% of new consignors come from retail [66] Question: Active buyers' stickiness and engagement - Management reported that buyers are resilient and engaged, with a 20% year-over-year increase in buyers spending $5,000 or more [75] Question: Sales team productivity and efficiency - Management noted a 15% increase in supply generated per sales rep and emphasized the potential for further productivity gains [82] Question: Breakdown of growth forecast for Q1 - Management expects revenue growth of 9% to 12% for Q1, with strong momentum carried over from Q4 [85] Question: SG&A leverage opportunities - Management indicated that SG&A includes both variable and fixed costs, with opportunities for leverage primarily in sales and G&A functions [90][106]

Q4 2024 Earnings Presentation February 2025 In addition to financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes the non-GAAP financial measures of Adjusted EBITDA and Adjusted EBITDA Margin (Adjusted EBITDA as a percentage of revenue). These non-GAAP measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. These non ...

The RealReal (REAL) came out with a quarterly loss of $0.62 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -520%. A quarter ago, it was expected that this online luxury consignment site would post a loss of $0.21 per share when it actually produced a loss of $0.09, delivering a surprise of 57.14%.Over the last four quarters, the c ...