Sales of secondhand luxury goods are growing faster than in brands' own stores. ...

Core Insights - The RealReal will release its financial results for Q3 2025 on November 10, 2025, after market close [1] - A conference call to discuss the financial results will take place at 2:00 p.m. Pacific Time [1] Company Overview - The RealReal is the largest online marketplace for authenticated resale luxury goods, boasting over 40 million members [3] - The company employs a rigorous authentication process with hundreds of in-house experts, including gemologists and brand authenticators [3] - The RealReal supports the circular economy by giving new life to luxury items across various categories, including fashion, jewelry, and home goods [3] - The company offers convenient selling options, including virtual appointments, in-home pickups, and direct shipping, handling all aspects of the consignment process [3]

Core Viewpoint - Real Matters Inc. will announce its fourth quarter and fiscal 2025 financial results on November 20, 2025, before market open [1] Company Overview - Real Matters is a leading network management services provider for the mortgage lending and insurance industries, combining proprietary technology with a network of independent qualified field 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] - Headquartered in Markham, Ontario, Real Matters has principal offices in Buffalo, New York, and Middletown, Rhode Island, and is listed on the Toronto Stock Exchange under the symbol REAL [3] Conference Call Details - A conference call to review the financial results will be held at 10:00 a.m. (ET) on November 20, 2025, hosted by the CEO and CFO [2] - Participants must pre-register to join the conference call, with registration details provided [4]

Core Insights - The RealReal's 2025 Resale Report highlights a cultural shift in luxury resale, emphasizing its desirability and accessibility, with over 40 million members engaging in the marketplace [1][10] - The report indicates that nearly one-third of clothing purchased in the U.S. last year was secondhand, with 58% of consumers preferring the secondary market [3] Market Trends - Fine jewelry and timeless handbags maintained strong demand, while nostalgia for 2010s fashion and 1980s maximalism influenced consumer preferences [2] - Vintage searches increased by nearly 30% year-over-year, as consumers sought long-term value through resale [2] Consumer Behavior - 47% of consumers now consider resale value before purchasing new items, reflecting a shift in buying habits due to inflation and rising retail prices [7] - The report notes a rejection of uniformity in fashion, with consumers favoring unique pieces that express personal style [3] Brand Performance - Resale values for luxury items showed significant increases: Rolex Datejusts (+17%), Goyard Saint Louis totes (+18%), and Hermès Birkin 30 (+15%) [7] - Isabel Marant emerged as the 1 most-searched contemporary label, with a 54% increase year-over-year [7] Notable Events - Celebrity influence was evident, with Kendrick Lamar's Celine Super Bowl jeans driving a 963% increase in related searches within 24 hours [7] - The report highlights a surge in wedding-related searches across generations, with vintage engagement rings seeing a 198% increase [11]

Core Insights - The RealReal has entered into strategic debt exchange transactions, converting a portion of its 1.00% Convertible Senior Notes due 2028 into 4.00% Convertible Senior Notes due 2031, reducing total indebtedness by over $6 million and extending maturities to 2031 [1][3] - Following the exchange, approximately $49.5 million of the 2028 Notes will remain outstanding, with the total amount of 4.00% Convertible Senior Notes due 2031 now at $190,079,000 [2] - The company has successfully reduced its total indebtedness by over $86 million since the beginning of 2024, enhancing its balance sheet and flexibility to manage remaining convertible debt [3] Company Overview - The RealReal is the largest online marketplace for authenticated resale luxury goods, boasting over 40 million members and a rigorous authentication process [4] - The company supports the circular economy by providing a platform for buying and selling luxury items across various categories, including fashion, jewelry, and art [4] - The RealReal offers services such as free virtual appointments, in-home pickups, and direct shipping, streamlining the selling process for consignors [4]

Core Insights - The RealReal is the largest online marketplace for authenticated, resale luxury goods, boasting over 40 million members [2] - The company emphasizes a rigorous authentication process managed by experts, ensuring a safe platform for buying and selling luxury items [2] - The RealReal supports the circular economy by giving new life to luxury items across various categories, including fashion, jewelry, art, and home goods [2] Company Overview - The RealReal employs hundreds of in-house gemologists, horologists, and brand authenticators who inspect thousands of items daily [2] - The company offers a seamless selling experience with services such as free virtual appointments, in-home pickup, drop-off, and direct shipping [2] - The RealReal utilizes AI and machine learning to determine optimal pricing for items, handling all aspects of the consignment process, including authentication, photography, listing, shipping, and customer service [2] Investor Engagement - The RealReal will participate in the B. Riley 8th Annual Consumer & TMT Conference on September 10, 2025, and the Wells Fargo 8th Annual Consumer Conference on September 16-17, 2025 [3]

Group 1 - The Q2 earnings season reveals a disconnect between the high stock market, particularly in large-cap tech stocks, and the challenges faced by the macroeconomy [1] - Investors are becoming aware that the stock market rally may not reflect the underlying economic conditions, especially for companies with exposure to these challenges [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and has been involved with seed-round startups, providing insights into current industry themes [1]

分组1 - The RealReal reported a quarterly loss of $0.13 per share, which was better than the Zacks Consensus Estimate of a loss of $0.15, representing an earnings surprise of +13.33% [1] - The company posted revenues of $165.19 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.13% and showing an increase from $144.93 million year-over-year [2] - The RealReal has surpassed consensus EPS estimates two times over the last four quarters [2] 分组2 - The stock has underperformed, losing about 47.4% since the beginning of the year, while the S&P 500 gained 7.9% [3] - The current consensus EPS estimate for the coming quarter is -$0.13 on revenues of $161.63 million, and for the current fiscal year, it is -$0.15 on revenues of $663.37 million [7] - The Zacks Industry Rank for Consumer Products - Discretionary is in the top 28% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Data and Key Metrics Changes - The company reported a record GMV of $5.04 billion and record revenue of $165 million, both up 14% year over year [8][20] - Adjusted EBITDA was $6.8 million, representing a 4.1% margin, which was a substantial beat versus expectations [9][23] - Gross profit for Q2 was $123 million, with a gross margin of 74.3%, an increase of 20 basis points year over year [21][22] - Operating expenses were $133 million, improved by 690 basis points year over year as a percentage of revenue [22][23] - The company ended the quarter with $109 million in cash and cash equivalents, and reduced total debt by $27 million [24][25] Business Line Data and Key Metrics Changes - Consignment revenue grew 14%, while direct revenue increased 23% compared to the previous year, representing 12% of total revenue [20][21] - The consignment gross margin was 89.3%, an improvement of 93 basis points year over year [21][22] - Direct gross margin was 16.2%, fluctuating based on the category mix of products sold [21] Market Data and Key Metrics Changes - The active buyer base increased by 6% on a trailing twelve-month basis, exceeding 1 million active buyers [20] - The company noted that 53% of its customers are millennials and Gen Z, indicating a strong generational appeal [7] Company Strategy and Development Direction - The company is focused on a growth playbook centered on sales, marketing, and stores, with a new sales team compensation plan emphasizing retail value [10] - The strategy includes leveraging AI for operational efficiency and enhancing customer engagement through innovative features [13][16] - The company is expanding its dropship initiative to include jewelry, aiming to partner with larger luxury good aggregators [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of the business, with expectations for continued growth in Q3 and Q4 [32][30] - The company raised its full-year guidance, expecting GMV in the range of $2.03 billion to $2.045 billion, and revenue between $667 million and $674 million [26][27] - Management highlighted the favorable cash dynamics of the business model, anticipating strong positive free cash flows in the second half of the year [25][29] Other Important Information - The company is actively addressing counterfeiting issues in luxury goods through collaboration with law enforcement and proprietary technology [14] - The introduction of the reconsigned program has strengthened supply and created a circular loop for luxury assets [11] Q&A Session Summary Question: Can you comment on the cadence seen over the past couple of months? - Management noted that momentum has kept pace in Q3, with double-digit new seller growth continuing [32] Question: How should we think about the take rate and gross margin going forward? - Management explained that the take rate is influenced by the average order value, which was up 8%, and that consignment gross margins remain strong [36][37] Question: Can you elaborate on the expansion to luxury vendors and international consignors? - Management indicated that the dropship channel is still in early stages but has potential for growth, especially with international partners [42] Question: What drove the increase in new consignors? - Management attributed the growth to marketing reinvestment and the effectiveness of the growth playbook, including the reconsign feature [51][52] Question: How is Athena impacting operational efficiency? - Management stated that Athena is currently processing 20% of items, with plans to increase to 30-40% by year-end, aiming to reduce costs per unit [55][88]

Core Insights - RealReal reported Q2 2025 earnings with GAAP revenue of $165 million, exceeding analyst expectations of $159.7 million, and showing a 14% year-over-year increase from $144.9 million in Q2 2024 [1][5] - Adjusted EPS (Non-GAAP) improved to $(0.06), better than the $(0.09) consensus estimate and the $(0.13) in Q2 2024, reflecting operational progress [1][2] - The company raised its full-year guidance, projecting GMV of $2.030–$2.045 billion and GAAP revenue of $667–$674 million, indicating strong momentum [11] Financial Performance - Q2 2025 GAAP revenue was $165 million, a 14% increase from Q2 2024's $144.9 million [2][5] - Non-GAAP EPS improved by 53.8% year-over-year from $(0.13) to $(0.06) [2] - Adjusted EBITDA reached $6.8 million, a significant turnaround from a loss of $(1.8) million in Q2 2024 [2][6] Operational Highlights - Active buyers increased by 6% year-over-year to 1,001,000, with total orders reaching 868,000 [2][5] - Gross margin improved to 74.3%, up 0.2 percentage points from Q2 2024, attributed to automation and AI tools [2][6] - Consignment revenue grew by 14% to $128.6 million, while direct revenue rose 23% to $20.5 million [5] Business Model and Strategy - RealReal operates an online marketplace for luxury goods, focusing on authentication to build trust and combat counterfeits [3][4] - The company's network effect encourages more consignors and buyers, creating a virtuous cycle [4] - Key initiatives like "Get Paid Now" and referral programs have contributed to supply growth and operational efficiency [7][8] Future Outlook - Management raised guidance for Q3 2025, projecting GMV between $495 and $502 million and adjusted EBITDA of $6.1–$7.1 million [11] - For the full fiscal year, the updated outlook calls for adjusted EBITDA of $29.0–$32.0 million, a significant increase from prior guidance [11] - Investors are advised to monitor cash flow trends, as free cash flow remained negative at $(15) million [12]