Core Viewpoint - The RealReal reported a quarterly loss of $0.14 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.13, indicating a negative earnings surprise of -7.69% [1] Financial Performance - The RealReal's revenues for the quarter ended March 2025 were $160.03 million, missing the Zacks Consensus Estimate by 0.04%, but showing an increase from $143.8 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [2] Stock Performance - The RealReal shares have declined approximately 35.5% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The current Zacks Rank for The RealReal is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $159.32 million, and for the current fiscal year, it is -$0.42 on revenues of $659.68 million [7] - The estimate revisions trend for The RealReal is currently unfavorable, which may impact future stock performance [6] Industry Context - The Consumer Products - Discretionary industry, to which The RealReal belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - Q1 GMV reached $490 million, a 9% increase year over year [27] - Q1 revenue was $160 million, reflecting an 11% year-over-year growth [28] - Adjusted EBITDA for Q1 was $4.1 million, up $6.4 million from the previous year, with adjusted EBITDA margins increasing over 400 basis points [31] - Gross profit for Q1 was $120 million, a 12% increase year over year, resulting in a gross margin of 75%, up 40 basis points [30] Business Line Data and Key Metrics Changes - Consignment revenue increased by 7%, while direct revenue surged by 61% compared to Q1 of 2024 [28] - Average order value (AOV) rose to $564, a 5% increase year over year [9] - The company reported its highest number of new consignors in over two years, contributing significantly to supply growth [10][27] Market Data and Key Metrics Changes - Active buyers increased by 7% on a trailing twelve-month basis, reaching 985,000 [27] - The company expects direct revenue to remain between 10% to 15% of total revenues going forward [29] Company Strategy and Development Direction - The company is focused on three strategic pillars: unlocking supply through a growth playbook, driving operational efficiencies, and obsessing over service [10][21] - The growth playbook includes initiatives like the "Get Paid Now" program and dropshipping, aimed at enhancing supply and profitability [15][76] - The company is leveraging AI and automation to improve operational efficiency and customer experience [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertainties in the macroeconomic environment, particularly due to its unique position in the luxury resale market [6][34] - The company anticipates that rising prices in the primary market could motivate consumers to monetize their closets, potentially increasing supply [88][89] - Full-year guidance for GMV is set between $1.96 billion and $1.99 billion, reflecting an 8% year-over-year increase at the midpoint [33] Other Important Information - The company ended the quarter with $154 million in cash, cash equivalents, and restricted cash [32] - Operating cash flow for Q1 was negative $28 million due to timing of incentive payments and working capital seasonality [32] Q&A Session Summary Question: Can you provide context around the improvements in direct revenue margins? - Management explained that direct revenues consist of out-of-policy returns and vendor purchases, with the "Get Paid Now" initiative significantly improving profitability, achieving a margin of 25.5% compared to 3% last year [38][39] Question: What signals are being observed in consumer behavior amid macro uncertainty? - Management noted consistent buyer resilience and strength in conversion rates, with a positive outlook on supply growth due to reduced friction in the consignment process [40][42] Question: Is there seasonality in direct revenue as a percentage of total revenue? - Management indicated that direct revenue is expected to remain between 10% to 15% of total revenues without inherent seasonality, depending on buyer mix [48][50] Question: How did the revenue mix play out in Q1? - Management confirmed that the revenue mix was consistent with expectations, with direct revenue comprising about 10% to 15% of total revenue [82][83] Question: What is the outlook for the second quarter revenue guidance? - Management reiterated that the second quarter revenue is expected to grow by 9%, aligning with GMV growth, and emphasized the stability of their business model amid external pressures [95][94]

Financial Data and Key Metrics Changes - In Q1 2025, GMV increased by 9% year over year to $490 million, while revenue rose by 11% to $160 million [25][8] - Adjusted EBITDA reached $4 million, an increase of $6 million compared to Q1 of the previous year, marking the third consecutive quarter of positive adjusted EBITDA [29][24] - Gross margin improved by 40 basis points year over year to 75%, driven by operational efficiencies [28][8] Business Line Data and Key Metrics Changes - Consignment revenue increased by 7%, while direct revenue surged by 61% compared to Q1 2024 [25] - Average order value (AOV) rose by 5% year over year to $564, indicating strong buyer engagement [8][57] - The company reported its highest number of new consignors in over two years, contributing to supply growth [8][9] Market Data and Key Metrics Changes - Active buyers increased by 7% on a trailing twelve-month basis, reaching 985,000 [25] - The company expects direct revenue to remain between 10% to 15% of total revenues going forward [26][46] Company Strategy and Development Direction - The company is focused on three strategic pillars: unlocking supply through a growth playbook, driving operational efficiencies, and obsessing over service [9][24] - The "Get Paid Now" program aims to enhance direct revenue by allowing consignors to receive upfront payments for high-demand items [14][26] - The company is leveraging AI and automation to improve operational efficiencies and customer experience [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertainties in the macroeconomic environment, particularly due to its unique position in the luxury resale market [5][32] - The company anticipates that rising prices in the primary market could motivate consumers to monetize their closets, potentially increasing supply [88][87] - Guidance for Q2 2025 includes GMV expectations of $476 million to $486 million, reflecting 9% growth year over year [32][30] Other Important Information - The company ended Q1 2025 with $154 million in cash and cash equivalents [30] - Operating cash flow for Q1 was negative $28 million due to timing of incentive payments and working capital seasonality [30] Q&A Session Summary Question: Can you provide context around the improvements in direct gross margin? - Management noted that direct revenues consist of out-of-policy returns and vendor purchases, with the "Get Paid Now" initiative significantly improving profitability, achieving a margin of 25.5% compared to 3% last year [37][27] Question: What signals are being observed in consumer behavior amid macro uncertainty? - Management indicated that consumer health has been resilient, with consistent strength in buyer engagement and new consignor growth [39][41] Question: Is there seasonality in direct revenue as a percentage of total revenue? - Management confirmed that direct revenue is expected to remain between 10% to 15% of total revenues without inherent seasonality [46][46] Question: How did the revenue mix play out in Q1? - The revenue mix was consistent with expectations, with direct revenue comprising about 10% to 15% of total revenue [82][81] Question: What is the outlook for the second quarter revenue guidance? - Management reiterated that the guidance reflects a consistent growth pattern, with revenue expected to grow by 9% year over year [92][93]

Financial Performance - For the three months ended March 31, 2025, the Gross Merchandise Value (GMV) was $490,405,000, an increase of 8.5% from $451,941,000 in the same period of 2024[159]. - The Net Merchandise Value (NMV) for the same period was $370,757,000, up from $334,815,000, reflecting an increase of 10.7% year-over-year[159]. - Total revenue for Q1 2025 was $160.0 million, a 11.2% increase from $143.8 million in Q1 2024[185]. - Net income for Q1 2025 was $62.4 million, a significant recovery from a net loss of $31.1 million in Q1 2024[185]. - Adjusted EBITDA for Q1 2025 was $4.1 million, compared to a loss of $2.3 million in Q1 2024[174]. Revenue Breakdown - Consignment revenue reached $123,814,000, compared to $115,648,000 in the prior year, marking a growth of 7.5%[159]. - Direct revenue surged by $7.7 million, or 61%, to $20.5 million in Q1 2025, primarily due to higher sell-through of inventory[189]. - Shipping services revenue rose by $0.3 million, or 2%, to $15.8 million in Q1 2025, attributed to a 3% increase in the number of orders[190]. - Consignment revenue increased by $8.2 million, or 7%, to $123.8 million in Q1 2025, driven by a 5% increase in average order value and a 3% increase in the number of orders[187]. Operational Metrics - Active buyers increased to 985,000 as of March 31, 2025, compared to 922,000 in the same period last year, representing a growth of 6.8%[159]. - The Average Order Value (AOV) rose to $564 in Q1 2025, compared to $538 in Q1 2024, indicating a growth of 4.8%[159]. - Repeat consignors accounted for over 80% of GMV in both Q1 2025 and Q1 2024, highlighting strong retention[153]. - As of March 31, 2025, 15% of buyers also consigned items, while 49% of consignors made purchases, demonstrating a strong cross-engagement[155]. Cost and Expenses - Total operating expenses increased to $132.8 million in Q1 2025, compared to $125.2 million in Q1 2024[185]. - Marketing expenses rose by $0.6 million, or 4%, to $15.9 million, primarily due to increased advertising costs, while as a percentage of revenue, it decreased to 9.9% from 10.6%[199][200]. - Operations and technology expenses increased by $4.0 million, or 6%, to $67.0 million, with a decrease in expenses as a percentage of revenue to 41.9% from 43.8%[201][202]. - Selling, general and administrative expenses increased by $3.2 million, or 7%, to $50.0 million, with a decrease in expenses as a percentage of revenue to 31.2% from 32.5%[203][204]. Profitability Metrics - Gross profit margin improved to 75.0% in Q1 2025, up from 74.6% in Q1 2024[186]. - Total gross margin increased by 40 basis points for the three months ended March 31, 2025, compared to the same period in 2024[198]. Debt and Interest - Gain on extinguishment of debt increased by $32.9 million, or 788%, to $37.1 million for the three months ended March 31, 2025[207]. - Interest income decreased by $0.7 million, or 34%, to $1.4 million due to lower average cash balances[208]. - Interest expense increased by $2.6 million, or 68%, to $6.3 million, attributed to the full-quarter impact of the 2029 Notes and the issuance of the 2031 Notes[209][210]. Cash and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $139.6 million and an accumulated deficit of $1,191.4 million[211]. - As of March 31, 2025, the Company had unrestricted cash and cash equivalents of $139.6 million, with a hypothetical 10% change in interest rates expected to have no material impact on financial results[236]. Future Outlook - The company expects to maintain a full valuation allowance for its net deferred tax assets for the foreseeable future[184]. - The Company anticipates ongoing inflationary pressures that may affect costs and financial condition[237]. Infrastructure and Technology - The company operates in approximately 1.4 million square feet of leased authentication centers in Arizona and New Jersey to support its operations[156]. - The company continues to invest in technology and infrastructure to enhance operational efficiency and support future growth[156].

"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 ...

Core Insights - The RealReal, Inc. reported a strong financial performance for Q1 2025, with total revenue of $160 million, representing an 11% increase year-over-year [2][9] - The company achieved a net income of $62 million, which includes $80 million in non-cash gains, marking a significant turnaround from a net loss in the same period last year [2][9] - Adjusted EBITDA for Q1 2025 was $4.1 million, an improvement of $6.4 million compared to Q1 2024 [2][9] Financial Performance - Gross merchandise value (GMV) for Q1 2025 was $490 million, up 9% from the previous year [2][9] - Gross profit reached $120 million, an increase of $13 million year-over-year, with a gross margin of 75.0%, improving by 40 basis points [2][9] - The trailing twelve months active buyer count increased by 7% to 985,000, and the average order value (AOV) rose by 5% to $564 [9] Strategic Focus - The CEO emphasized the company's unique position at the intersection of luxury and value, with a focus on sourcing supply from domestic closets [3] - The company is committed to operational efficiency and enhancing customer service, leveraging AI to optimize operations [3] - The growth strategy includes enhancing sales, marketing, and store presence, leading to the highest growth in new consignors in over two years [3] Guidance and Outlook - The RealReal reaffirmed its full-year guidance for 2025 despite market uncertainties, projecting GMV between $1.96 billion and $1.99 billion [5][7] - For Q2 2025, the company expects GMV to be between $476 million and $486 million, with total revenue projected between $157 million and $161 million [7]

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]