The RealReal(US:REAL)2025-08-07 20:10Financial Performance - Q2 2025 revenue reached $165 million, representing a 14% year-over-year increase[1] - Q2 2025 net loss improved to $(11) million, a $5 million improvement compared to the same period in 2024[1] - Adjusted EBITDA for Q2 2025 was $6.8 million, an increase of $8.6 million year-over-year, with an Adjusted EBITDA margin of 4.1%[1][5] - Total revenue for the three months ended June 30, 2025, was $165.2 million, a 13.9% increase from $144.9 million in the same period of 2024[24] - Gross profit for the six months ended June 30, 2025, was $242.7 million, compared to $214.7 million for the same period in 2024, reflecting a 13.0% increase[24] - Net income attributable to common stockholders for the six months ended June 30, 2025, was $51.0 million, a significant recovery from a loss of $47.8 million in the same period of 2024[24] - Adjusted EBITDA for the three months ended June 30, 2025, was $6.8 million, representing 4.1% of revenue, compared to a loss of $1.8 million in the same period of 2024[29] - For the three months ended June 30, 2025, the company reported a net loss of $11,366,000 compared to a net loss of $16,708,000 for the same period in 2024, showing an improvement of approximately 32.0%[33] - Non-GAAP net loss attributable to common stockholders for the six months ended June 30, 2025, was $16,557,000, a decrease of 35.5% from $25,746,000 in the same period of 2024[33] Guidance and Projections - The company raised its full-year guidance for 2025, projecting GMV between $2.030 billion and $2.045 billion[7] - Q3 2025 guidance estimates GMV between $495 million and $502 million, and total revenue between $167 million and $170 million[7] Operational Metrics - Gross merchandise value (GMV) for Q2 2025 was $504 million, up 14% from the same period in 2024[5] - Active buyers in the trailing twelve months reached 1,001,000, a 6% increase year-over-year[5] - Average order value (AOV) increased to $581, reflecting an 8% rise compared to the prior year[5] - The gross margin for Q2 2025 was 74.3%, an improvement of 20 basis points year-over-year[5] - The number of active buyers increased to 1,001 as of June 30, 2025, up from 985 in the previous quarter, reflecting a growth of 1.6%[33] - The average order value (AOV) for the quarter ended June 30, 2025, was $581, an increase of 7.9% from $538 in the previous quarter[33] - The company reported a take rate of 37.9% for the quarter ended June 30, 2025, compared to 38.6% in the previous quarter, indicating a slight decline[33] Cash Flow and Liabilities - Cash and cash equivalents decreased to $94.3 million as of June 30, 2025, down from $172.2 million at the end of 2024[26] - Total current liabilities decreased to $199.5 million as of June 30, 2025, compared to $248.7 million at the end of 2024[26] - Operating expenses for the six months ended June 30, 2025, totaled $265.4 million, up from $251.5 million in the same period of 2024[24] - The company experienced a net cash used in operating activities of $31.8 million for the six months ended June 30, 2025, compared to $10.2 million in the same period of 2024[28] - The company experienced a free cash flow of $(14,993,000) for the three months ended June 30, 2025, compared to $(11,713,000) for the same period in 2024, indicating a decline in cash flow[33] Inventory and Expenses - Inventory increased to $28.8 million as of June 30, 2025, compared to $23.6 million at the end of 2024[26] - The company incurred one-time expenses related to a fire incident, which were disclosed in the financial statements[32] Board and Management Changes - The appointment of Mark McCaffrey to the Board of Directors is expected to enhance the company's financial and technological strategies[8] Fair Value Changes - The change in fair value of warrant liability for the six months ended June 30, 2025, was $(47,040,000), a significant change from $(9,953,000) in the same period of 2024[33]