Group 1 - The Q3 earnings season has been characterized by a narrative of a weakening U.S. consumer, particularly affecting retail companies and restaurant chains [1] - There has been a notable decline in discretionary spending, especially among younger consumers, raising concerns about the potential ongoing impact on the macroeconomy [1] - The experience of analysts covering technology companies and working in Silicon Valley provides insights into the themes currently shaping the industry [1]

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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].

Exhibit 99.1 THE REALREAL ANNOUNCES THIRD QUARTER 2025 RESULTS Company delivers profitable growth with record high quarterly Revenue and Gross Merchandise Value, strengthening its leadership position in luxury resale "We delivered another quarter of accelerating growth and expanded margins, with GMV up 20% and Adjusted EBITDA ahead of expectations," said Rati Levesque, CEO of The RealReal. "Through execution against our strategic pillars — unlock supply through our growth playbook, drive operational efficie ...