Core Insights - The RealReal reported strong third-quarter results, with gross merchandise value (GMV) increasing by 20% to $520 million and revenue rising by 17% to $174 million, leading to an upward revision of full-year GMV guidance to over $2.1 billion [2][3] Sales Performance - The company’s internal report highlighted fine jewelry as the fastest-growing category, with first-time watch buyers increasing by 46% and searches for wedding dresses rising by 247% year-over-year [4] - Handbag searches for fair-condition items grew by 32%, indicating a shift towards practicality and value retention among consumers [4] Consumer Behavior - Economic conditions are influencing consumer behavior, with nearly 70% of Americans living paycheck to paycheck and 25% struggling to pay bills recently [5] - Almost half of U.S. shoppers now purchase secondhand items as frequently as new ones, suggesting that resale has become a regular purchasing behavior rather than a niche choice [5] Operational Efficiency - The company’s growth strategy emphasizes supply quality and operational discipline, with a revised compensation plan that increased average supply value per luxury manager by 12% [7] - The AI-enabled intake system, Athena, managed 27% of all items during the quarter and is projected to handle 40% by year-end, automating authentication and listing processes [8] Financial Metrics - Gross profit rose by 16% to $129 million, supported by higher-value sales and automation gains, while consignment margins improved to 89% and direct-sales margins rose to 21% [11] - Operating expenses decreased by 6% as a share of revenue, reflecting continued cost discipline, with the company ending the quarter with $123 million in cash and reducing debt by $86 million since early 2024 [11] Future Outlook - For the fourth quarter, The RealReal expects GMV between $585 million and $595 million, representing an approximate 17% increase, and revenue between $188 million and $191 million, up roughly 16% [12] - Management anticipates that efficiency improvements and sustained consumer demand for secondhand luxury will support steady growth into 2026 [12] Customer Engagement - Users who both buy and consign, referred to as "Flywheelers," are two to three times more valuable than single-side participants, driving higher transaction frequency and long-term loyalty [9] - The RealReal's high-value pop-up events generated over $2.6 million in supply within a few days, indicating strong engagement with luxury consignors [10]

分组1 - The RealReal reported a quarterly loss of $0.49 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.14, marking an earnings surprise of -250.00% [1] - The company posted revenues of $173.57 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.39% and showing an increase from $147.76 million year-over-year [2] - The RealReal has surpassed consensus revenue estimates three times over the last four quarters, while it has only beaten EPS estimates once in the same period [2] 分组2 - The stock has added about 0.6% since the beginning of the year, underperforming compared to the S&P 500's gain of 14.4% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $180.27 million, and for the current fiscal year, it is -$0.15 on revenues of $674.95 million [7] - The Zacks Industry Rank for Consumer Products - Discretionary is in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8]

Core Insights - The RealReal reported $173.57 million in revenue for Q3 2025, a 17.5% year-over-year increase, and an EPS of -$0.49, compared to -$0.09 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $169.53 million by 2.39%, while the EPS fell short of the consensus estimate of -$0.14 by 250% [1] Financial Performance Metrics - Average Order Value (AOV) was $584.00, surpassing the estimated $554.00 [4] - The number of orders was 890, slightly below the estimated 900 [4] - Gross Merchandise Value (GMV) reached $519.81 million, exceeding the estimate of $498.3 million [4] - Consignment revenue was $134.43 million, below the estimate of $140.1 million but reflecting a 15% increase year-over-year [4] - Direct revenue was $22.93 million, significantly above the estimated $18.81 million, marking a 46.8% year-over-year increase [4] - Shipping services revenue was $16.22 million, in line with the estimate of $16.2 million, representing a 6.5% year-over-year increase [4] Stock Performance - The RealReal's shares have returned +16.3% over the past month, outperforming the Zacks S&P 500 composite's +0.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Data and Key Metrics Changes - The company reported a record quarterly GMV of $520 million, representing a 20% increase year-over-year [5][14] - Revenue for Q3 was $174 million, up 17% compared to the previous year, with consignment revenue increasing by 15% [14][15] - Adjusted EBITDA was $9.3 million, or 5.4% of total revenue, reflecting a 380 basis point increase year-over-year [5][16] - Free cash flow for the quarter was $14 million, a $12 million improvement year-over-year [16][19] Business Line Data and Key Metrics Changes - Direct revenue increased by 47% year-over-year, accounting for 13% of total revenue in Q3 [14][15] - Average order value rose to $584, a 12% increase from the previous year [15] - The take rate decreased by 70 basis points year-over-year to 37.9% due to a higher mix of direct revenue [15] Market Data and Key Metrics Changes - The company noted a significant shift in consumer behavior, with 58% of shoppers preferring the secondary market and 47% considering resale value before purchasing new items [4][5] - The active buyer base reached over 1 million, marking a new all-time high with a 7% year-over-year increase [15] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth playbook, operational efficiency, and customer service [6][10] - Plans to expand retail locations by adding one to three stores per year, with a total addressable market of over $200 billion in the U.S. [7][9] - The introduction of AI-driven tools like Smart Sales and Athena aims to enhance supply acquisition and operational efficiency [6][10][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a full-year GMV of over $2 billion, driven by strong market demand and operational improvements [4][19] - The company raised its full-year guidance, expecting GMV in the range of $2.10 billion to $2.11 billion, reflecting a 15% increase at the midpoint [18][19] - Management highlighted the importance of building trust with customers and enhancing the resale experience as key to future growth [10][62] Other Important Information - The company has reduced total indebtedness by over $86 million since the beginning of 2024, reinforcing its commitment to deleveraging [17] - The proprietary AI-enabled product intake process, Athena, is expected to touch 30%-40% of all items by year-end, improving efficiency and reducing costs [10][57] Q&A Session Summary Question: Confidence in Q4 GMV growth guidance - Management noted strong momentum from sales, marketing, and retail efforts, with early signs of success in referral and affiliate programs [23][24] Question: Guardrails for next year's growth rates - Management indicated a medium-term growth rate expectation of high single digits to low double digits, with potential for higher growth in the short term [26] Question: Update on DropShip initiatives - Management stated that this year was focused on testing and learning, with plans for meaningful contributions from DropShip in the medium term [30] Question: Revenue growth drivers - Management emphasized that revenue growth is primarily driven by increased supply coming through the door rather than processing speed [32] Question: Competitive dynamics in the resale market - Management highlighted the company's market leadership and strategic advantages in expertise, data, and customer trust [38][39] Question: Q4 EBITDA expectations - Management expects continued operating efficiencies and leverage in operations and tech, driven by AI initiatives [41] Question: Marketing investment and efficiency - Management confirmed increased marketing investment to drive growth, with a focus on balancing growth and profitability [81]

Financial Data and Key Metrics Changes - The company reported a record quarterly GMV of $520 million, representing a 20% increase year-over-year [5][14] - Revenue for Q3 was $174 million, up 17% year-over-year, with consignment revenue increasing by 15% [14][15] - Adjusted EBITDA was $9.3 million, or 5.4% of total revenue, reflecting a 380 basis point increase year-over-year [5][14] - Free cash flow for the quarter was $14 million, a $12 million improvement year-over-year [16][17] Business Line Data and Key Metrics Changes - Fine jewelry emerged as the fastest-growing category, with first-time watch buyers increasing by 46% [5] - Average order value rose to $584, a 12% increase compared to the previous year [15] - Direct revenue surged by 47% year-over-year, accounting for 13% of total revenue [14][15] Market Data and Key Metrics Changes - The total addressable market for luxury resale is estimated at over $200 billion, indicating significant growth potential [6] - The company noted that 58% of shoppers now prefer the secondary market, with 47% considering resale value before purchasing new items [4][5] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth playbook, operational efficiency, and customer service [6][10] - The growth playbook emphasizes unlocking high-quality supply through data and strong consignor relationships [6][10] - The company plans to expand its retail presence by adding one to three stores per year, enhancing its market reach [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a full-year GMV of over $2 billion, driven by strong market trends and operational efficiencies [4][19] - The company raised its full-year guidance, expecting GMV in the range of $2.10 billion to $2.11 billion, reflecting a 15% increase [18][19] - Management highlighted the importance of building trust and transparency with customers to enhance loyalty and drive growth [11][12] Other Important Information - The proprietary AI-enabled product intake process, Athena, is expected to touch 30%-40% of all items by year-end, improving efficiency and reducing costs [10][56] - The company has reduced its total indebtedness by over $86 million since the beginning of 2024, strengthening its balance sheet [17] Q&A Session Summary Question: Can you speak to the confidence in the Q4 GMV growth guidance? - Management noted strong momentum from sales, marketing, and retail efforts, with early signs of success from referral and affiliate programs [22][23] Question: What guardrails can you provide for next year's growth rates? - Management indicated a medium-term growth rate expectation of high single digits to low double digits, with potential for higher growth in the short term [25] Question: How is the DropShip initiative performing? - Management stated that the DropShip initiative is in the testing phase, with plans for future expansion based on learnings [28][29] Question: What is driving the revenue growth, supply processing speed, or overall supply increase? - Management emphasized that the growth is primarily driven by increased supply coming through the door, supported by effective sales and marketing strategies [30][31] Question: Can you share insights on competitive dynamics in the resale market? - Management highlighted the growing attention to resale and the company's strong market position, leveraging expertise and data to maintain a competitive edge [36][39] Question: What are the plans for cash uses in the balance sheet going forward? - Management indicated that cash will primarily be used for investments in automation and technology to enhance operational efficiency [74]

Financial Performance - The RealReal achieved a record quarterly GMV of $520 million, a 20% year-over-year increase[20, 24] - Revenue reached $174 million, up 17% year-over-year, with Consignment Revenue increasing by 15% and Direct Revenue by 47%[29] - Adjusted EBITDA was $9.3 million, representing 5.4% of Total Revenue, a 380 basis points year-over-year increase[20, 31] - The company generated $14 million in Free Cash Flow[20] Operational Efficiency and Scalability - Athena, the company's AI-enabled product intake process, scaled to approximately 27% of all units and is on track for 30-40% by year-end[20] - Consignment Gross Margin increased by 70 basis points year-over-year to 89.3%[20] - Operating Expenses improved by 620 basis points year-over-year as a percentage of revenue due to operating efficiencies, AI and automation, and fixed cost leverage[20, 34] Customer Engagement - Active Buyers reached an all-time high of 1.024 million, a 7% increase on a trailing 12-month basis[20, 26] - Supply value per existing Luxury Manager increased by 12% year-over-year, driven by a new compensation plan and AI investments[20] - Over 80% of GMV comes from repeat customers[44] Outlook - The company raised its Full-Year 2025 Guidance[20] - The FY25 Adjusted EBITDA outlook reflects approximately 400 basis points margin expansion versus 2024 at the guidance midpoint[20] - Full year GMV is projected to be between $2.099 billion and $2.109 billion[36] - Full year Revenue is projected to be between $687 million and $690 million[36] - Full year Adjusted EBITDA is projected to be between $37.7 million and $38.7 million[36]

Financial Performance - For the three months ended September 30, 2025, Gross Merchandise Value (GMV) was $519.8 million, an increase of 20% from $433.1 million in the same period of 2024[161]. - Net Merchandise Value (NMV) for the same period was $397.1 million, up 18.5% from $335.2 million year-over-year[161]. - Total revenue for the three months ended September 30, 2025, was $173.6 million, a 17.4% increase from $147.8 million in the same period of 2024[187]. - Adjusted EBITDA for the three months ended September 30, 2025, was $9.3 million, compared to $2.3 million in the same period of 2024[187]. - The net loss for the three months ended September 30, 2025, was $54.1 million, compared to a net loss of $17.9 million in the same period of 2024[187]. Revenue Breakdown - Consignment revenue reached $134.4 million, representing a 15% increase compared to $116.9 million in the prior year[161]. - Direct revenue rose by $7.3 million, or 47%, to $22.9 million for the three months ended September 30, 2025, primarily due to higher sell-through of high-value inventory[191]. - Shipping services revenue increased by $1.0 million, or 7%, to $15,224,000 for the three months ended September 30, 2025, driven by a 7% increase in the number of orders[192]. - Direct revenue increased by $18.8 million, or 42%, to $63,877,000 for the nine months ended September 30, 2025, primarily driven by higher sell-through of high-value inventory[214]. - Shipping services revenue increased by $1.9 million, or 4%, to $48,054,000 for the nine months ended September 30, 2025, primarily due to a 6% increase in the number of orders[215]. Cost and Expenses - Total cost of revenue for the three months ended September 30, 2025, was $44.7 million, up from $37.0 million in the same period of 2024[187]. - Marketing expenses for the three months ended September 30, 2025, were $14.1 million, compared to $11.6 million in the same period of 2024[187]. - Operations and technology expenses increased to $70.7 million for the three months ended September 30, 2025, from $66.2 million in the same period of 2024[187]. - Selling, general and administrative expenses were $51.6 million for the three months ended September 30, 2025, compared to $47.5 million in the same period of 2024[187]. - Cost of direct revenue increased by $11.6 million, or 30%, to $38,970,000 for the nine months ended September 30, 2025, attributed to the increase in direct revenue[218]. Customer Metrics - Active buyers increased to 1,024 in Q3 2025, up from 958 in Q3 2024, indicating a growth in the customer base[161]. - Repeat consignors accounted for over 80% of Gross Merchandise Value (GMV) in both Q3 2025 and Q3 2024, highlighting strong customer loyalty[155]. - As of September 30, 2025, 16% of buyers also consigned items, while 49% of consignors made purchases, indicating a strong network effect within the marketplace[157]. Market and Operational Insights - The company continues to invest in technology and infrastructure, with approximately 1.4 million square feet of leased authentication centers in Arizona and New Jersey to support growth[158]. - The company expects operating expenses to decrease as a percentage of revenue over the longer term[182]. - Total gross margin decreased by 60 basis points for the three months ended September 30, 2025, compared to the same period in 2024[199]. - Operations and technology expenses increased by $12.1 million, or 6%, but decreased as a percentage of revenue from 45% to 41%[225][226]. - Selling, general and administrative expenses increased by $8.2 million, or 6%, and decreased as a percentage of revenue from 32% to 30%[227][228]. Financial Position and Debt - As of September 30, 2025, the company had cash and cash equivalents of $108.4 million and an accumulated deficit of $1,256.8 million[234]. - Net cash used in operating activities was $12.5 million, primarily due to a net loss of $3.0 million and cash outflows from operating assets and liabilities[240]. - 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[252]. - Cash requirements related to the 2031 Notes amount to $234.9 million, with $7.6 million expected to be paid within the next 12 months[258]. - The Company anticipates ongoing inflationary pressures that may affect costs and financial condition[261].

Financial Performance - Third quarter 2025 gross merchandise value (GMV) was $520 million, a 20% increase year-over-year[5] - Total revenue for the third quarter 2025 reached $174 million, reflecting a 17% growth compared to the same period in 2024[5] - Adjusted EBITDA for the third quarter was $9.3 million, representing 5.4% of total revenue, up from 1.6% in the prior year[5] - The company reported a net loss of $(54) million, or (31.1)% of total revenue, compared to a net loss of $(18) million, or (12.1)% of total revenue in the same period in 2024[5] - Gross margin for the third quarter was 74.3%, a decrease of 60 basis points compared to the same period in 2024[5] - Total revenue for the three months ended September 30, 2025, was $173.573 million, a 17.4% increase from $147.755 million in the same period of 2024[22] - Gross profit for the three months ended September 30, 2025, was $128.920 million, compared to $110.713 million in 2024, reflecting a gross margin of 74.3%[22] - Operating expenses for the three months ended September 30, 2025, totaled $136.470 million, up from $125.315 million in 2024, representing an 8.7% increase[22] - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $54.051 million, compared to a net loss of $17.938 million in 2024[22] - Adjusted EBITDA for the three months ended September 30, 2025, was $9.294 million, representing 5.4% of total revenue, compared to 1.6% in 2024[27] Cash Flow and Assets - Cash and cash equivalents as of September 30, 2025, were $108.422 million, down from $172.212 million at the end of 2024[24] - Total assets decreased to $366.212 million as of September 30, 2025, from $423.095 million at the end of 2024[24] - Total liabilities as of September 30, 2025, were $751.264 million, a decrease from $830.471 million at the end of 2024[24] - The company reported a net cash used in operating activities of $12.510 million for the nine months ended September 30, 2025, compared to $1.148 million in 2024[26] - The company generated $19,330,000 in net cash from operating activities for the three months ended September 30, 2025, an increase from $9,073,000 in the same period of 2024[30] - Free cash flow for the three months ended September 30, 2025 was $13,718,000, compared to $2,134,000 in the same period of 2024[30] Buyer and Order Metrics - Trailing twelve months active buyers increased to 1,024,000, a 7% rise compared to the same period in 2024[5] - Average order value (AOV) was $584, marking a 12% increase year-over-year[5] - The number of active buyers increased to 1,024, up from 1,001 in the same period of 2024[30] - The average order value (AOV) for the three months ended September 30, 2025 was $584, compared to $581 in the same period of 2024[30] Future Projections - The company raised its full-year guidance for 2025, projecting GMV between $2.099 billion and $2.109 billion[7] - Fourth quarter 2025 GMV is expected to be between $585 million and $595 million, with total revenue projected between $188 million and $191 million[7] Strategic Initiatives - The company aims to enhance customer experience through deeper consignor relationships and ongoing AI initiatives[2] Loss Metrics - The company incurred a loss before provision for income taxes of $54.027 million for the three months ended September 30, 2025, compared to a loss of $17.866 million in 2024[22] - For the three months ended September 30, 2025, the company reported a net loss of $54,051,000 compared to a net loss of $17,938,000 for the same period in 2024[30] - Non-GAAP net loss attributable to common stockholders for the nine months ended September 30, 2025 was $21,739,000, a decrease from $35,700,000 in the same period of 2024[30] Merchandise Volume - Gross Merchandise Volume (GMV) for the three months ended September 30, 2025 was $519,814,000, up from $490,405,000 in the same period of 2024[30] - Net Merchandise Volume (NMV) for the three months ended September 30, 2025 was $397,062,000, compared to $370,757,000 in the same period of 2024[30] - Total revenue for the three months ended September 30, 2025 was $134,429,000, an increase from $128,620,000 in the same period of 2024[30] - The company reported a take rate of 37.9% for the three months ended September 30, 2025, consistent with the previous quarter[30]

Core Insights - The RealReal reported a strong third quarter for 2025, with gross merchandise value (GMV) increasing by 20% year-over-year and total revenue rising by 17% compared to the same period in 2024 [1][9] - The company achieved a significant growth in direct revenue, which surged by 47% year-over-year, while consignment revenue grew by 15% [1][9] - Adjusted EBITDA margin improved to 5.4%, reflecting an increase of 380 basis points from the prior year [1][9] Financial Performance - Third quarter 2025 GMV reached $520 million, up from $433 million in the same quarter of 2024 [9] - Total revenue for the third quarter was $174 million, compared to $149 million in the prior year [9] - Gross profit was reported at $129 million, an increase of $18 million year-over-year, with a gross margin of 74.3%, down 60 basis points from the previous year [9] Guidance and Outlook - The company raised its full-year guidance based on positive market conditions and ongoing growth momentum [4][6] - For Q4 2025, GMV is expected to be between $585 million and $595 million, with total revenue projected between $188 million and $191 million [6] - Adjusted EBITDA for Q4 is anticipated to be in the range of $17.5 million to $18.5 million, with full-year adjusted EBITDA expected between $37.7 million and $38.7 million [6] Strategic Initiatives - The CEO emphasized the importance of building trust with sellers and enhancing customer experience through improved consignor relationships and AI initiatives [2] - The company aims to continue shaping the luxury resale market, leveraging operational efficiency and customer service as key strategic pillars [2] Operational Metrics - The trailing twelve months active buyers increased to 1,024,000, marking a 7% rise compared to the same period in 2024 [9] - The average order value (AOV) reached $584, reflecting a 12% increase year-over-year [9]

Core Insights - The RealReal, Inc. is a leading online marketplace for authenticated luxury consignment, specializing in pre-owned luxury goods such as clothing, jewelry, and home decor [1] - The company is set to release its quarterly earnings on November 10, 2025, with Wall Street estimating an EPS of approximately -$0.06 and analysts predicting a more significant loss of $0.14 per share, indicating a 55.6% decline year-over-year [2][6] Financial Performance - Despite the anticipated decline in earnings, The RealReal's revenue is expected to rise by 14% year-over-year, reaching $168.47 million for the quarter ending in September 2025, suggesting an expanding market presence [3][6] - The company has a negative price-to-earnings (P/E) ratio of -88.62, indicating negative earnings, while the price-to-sales ratio is about 4.92, suggesting investors are willing to pay nearly five times the company's sales per share [5] - The enterprise value to sales ratio is approximately 5.51, reflecting the company's valuation relative to its sales [5] Market Sentiment - There has been an 8.3% downward revision in the consensus EPS estimate over the past 30 days, which may influence potential investor actions regarding the stock [4][6]