Company Overview - The RealReal operates an online marketplace for consigned luxury goods, connecting sellers and buyers of premium products through a digital platform [6][9] - The company generates revenue by facilitating the resale of authenticated luxury items, serving fashion-conscious consumers and collectors in the United States [9] Financial Performance - For the third quarter, The RealReal reported a 20% year-over-year increase in Gross Merchandise Value (GMV) and a 17% increase in revenue [10] - The adjusted EBITDA margin improved by 380 basis points to 5.4%, indicating a meaningful shift in profitability compared to recent years [10] - The company's total revenue for the trailing twelve months (TTM) is $662.8 million, with a net income of -$71.5 million [4] Market Position - The RealReal's market capitalization is approximately $1.6 billion, with shares priced at $13.98, reflecting a 128% increase over the past year, significantly outperforming the S&P 500, which is up 13% in the same period [3][4] - As of September 30, Manatuck Hill Partners held nearly 1.3 million shares of The RealReal, representing about 4.5% of its 13F reportable assets under management (AUM) [2][3] Growth Indicators - The company is showing signs of durable operating momentum, with accelerating growth and expanding margins, leading to raised full-year guidance [7] - Rising average order values and a growing active-buyer base indicate improving engagement within the platform [10] Investment Insights - Despite shares trading roughly 50% below pandemic-era highs, the recent performance suggests that The RealReal is executing better and demonstrating improved profitability and cash generation [7][12] - Sustained margin expansion and disciplined cost control will be crucial for the stock to achieve a more durable re-rating in the market [12]

Financial Data and Key Metrics Changes - The company reported a 20% growth in GMV (Gross Merchandise Value) in Q3, following a 14% growth in Q2, indicating strong performance in the luxury resale market [7][14] - EBITDA margin expanded by 380 basis points in Q3, reaching approximately 5%, with expectations to close the year at 5.5% [46][49] - The company aims for medium-term EBITDA margins of 15%-20% over the next four to six years [46][48] Business Line Data and Key Metrics Changes - The RealReal is closing in on $2 billion in GMV, with significant room for growth compared to the $85 billion U.S. luxury resale market [3][19] - The company has processed and sold 50 million items, providing a robust data set for pricing and authentication [12][19] Market Data and Key Metrics Changes - The luxury resale market is experiencing a cultural shift, with 58% of consumers preferring to shop on resale platforms [7] - The primary luxury retail market is expected to grow in low single digits, while the resale market is anticipated to grow at a faster rate, potentially in the high single digits [14][16] Company Strategy and Development Direction - The company is focused on unlocking supply from consumers' closets, which is estimated to be around $200 billion, by enhancing its sales team, marketing efforts, and retail presence [21][22] - The introduction of the Dropship initiative aims to tap into international supply without taking possession of items, facilitating growth in new markets [25][24] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation in the primary market increases the attractiveness of the resale platform, as consumers seek value [11] - The company is seeing broad-based strength across demographics, particularly among Gen Z and millennials, with a higher propensity to spend on initial purchases [29][30] Other Important Information - The company has implemented AI tools, such as Athena, to streamline the intake and authentication process, with 27% of items processed through this system in Q3 [31][34] - The company has made significant progress in deleveraging, reducing debt by $86 million since the beginning of the previous year [51][53] Q&A Session Summary Question: How does the company view the current competitive landscape? - The company sees competition from various sources, including peer-to-peer resale platforms, managed marketplaces, and traditional retail, but believes it has strong strategic advantages [17][18] Question: What are the company's priorities for international expansion? - While international expansion is a growth area, the company is currently focused on maximizing potential in the U.S. market [27] Question: How is the company addressing the men's luxury segment? - The company acknowledges under-indexing in men's luxury but is actively working to expand its presence in this category, particularly through watches [43][44] Question: What are the expectations for margin expansion moving forward? - The company anticipates continued margin expansion driven by operational efficiencies and improved sales strategies, aiming for mid-teens margins in the future [46][48]

Financial Data and Key Metrics Changes - The company reported a 20% growth in GMV (Gross Merchandise Value) in Q3, following a 14% growth in Q2, indicating strong performance in the luxury resale market [10][20][70] - EBITDA margin expanded by 380 basis points in Q3, reaching approximately 5%, with expectations to close the year at 5.5% [70][71] Business Line Data and Key Metrics Changes - The company is focusing on unlocking supply from consumers' closets, with a target of accessing approximately $200 billion in potential supply [34] - The retail presence is contributing significantly, with stores bringing in about 25% of new consignors [13] Market Data and Key Metrics Changes - The luxury resale market is estimated to be growing at high single digits, potentially reaching 10%, while the primary luxury market is expected to grow in low single digits [20][26] - The company is the market leader in luxury resale, closing in on $2 billion in GMV, compared to the $85 billion annual spending in the U.S. luxury resale category [4][30] Company Strategy and Development Direction - The company is implementing a growth playbook that includes a sales team, marketing efforts, and retail presence to unlock supply [11][34] - The strategy includes leveraging AI for efficiency in the intake and authentication processes, with the Athena initiative processing 27% of items in Q3 [48][51] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation in the primary market increases consideration for the resale platform, as consumers seek value [15] - The company is optimistic about its growth trajectory, with plans to achieve 15%-20% EBITDA margins over the next four to six years [71][72] Other Important Information - The company has seen a significant increase in brand trust, with an eight-point rise year-on-year [32] - The company is actively working to expand its presence in the men's luxury segment, which currently under-indexes compared to women's fashion [65][66] Q&A Session Summary Question: How is the company addressing the supply issue in the luxury resale market? - The company is focused on unlocking supply through a combination of sales teams, marketing, and retail presence, targeting the estimated $200 billion in consumer closets [34] Question: What is the company's approach to pricing in the current inflationary environment? - The company stated that the market sets the price, and they help sellers find the optimal balance between price and speed of sale [15][16] Question: How does the company plan to improve margins in the future? - The company aims to achieve 15%-20% EBITDA margins by focusing on operational efficiencies and leveraging AI technologies like Athena [71][72] Question: What is the company's strategy for international expansion? - While international expansion is a growth area, the company is currently prioritizing growth in the U.S. market due to existing potential [42] Question: How is the company leveraging AI in its operations? - The Athena initiative is streamlining the intake process, allowing for faster processing and authentication of items, which is expected to improve efficiency significantly [48][51]

Core Insights - The RealReal, a luxury resale marketplace, has seen its stock price increase by over 200% in the past year, indicating strong sector momentum [1][4] - Notable insider sales occurred on November 21, 2025, with CFO Ajay Gopal selling 30,196 shares and CEO Rati Sahi Levesque selling 97,036 shares [1][9] Company Overview - The RealReal operates a curated online marketplace for consigned luxury goods, including apparel, jewelry, watches, and home decor [5][6] - The company follows a commission-based model, generating revenue from the sale of authenticated pre-owned luxury items on behalf of consignors [5] - As of the latest financial data, the company reported a total revenue of $662.79 million and a net income of -$71.47 million [4] Insider Transactions - Ajay Gopal's sale of 30,196 shares represented 2.5% of his direct holdings, reducing his stake to 1,184,612 shares, valued at approximately $16.0 million post-transaction [2][8] - The shares were sold at around $13.06 each, with a closing price of $13.52 on the transaction date, reflecting a significant appreciation of 202% over the previous twelve months [8][11] - CEO Rati Sahi Levesque's sale accounted for about 5.7% of her shares, indicating a broader trend of insider selling among the executive team [9][10] Market Context - The surge in The RealReal's stock price, reaching a three-year high, may have prompted insiders to liquidate some of their holdings [11] - Despite the insider sales, both the CFO and CEO retain substantial amounts of stock, suggesting confidence in the company's future [11]

Core Insights - Real Matters Inc. demonstrated resilience and competitive strength in 2025, launching 10 new clients and expanding market share, particularly in the U.S. Title segment, which has become a key growth engine for the company [2][3] Financial Performance - Consolidated revenues for Q4 2025 were $46.0 million, a 1% increase year-over-year, driven by growth in U.S. refinance origination revenues and Canada, despite lower activity in the U.S. purchase market [3][8] - The U.S. Title segment achieved a 28% year-over-year net revenue growth in Q4, while the Adjusted EBITDA margins increased in both U.S. Appraisal and U.S. Title segments [3][8] - For fiscal year 2025, consolidated revenues totaled $169.7 million, down 2% year-over-year, primarily due to a weaker U.S. purchase mortgage origination market [8][9] Client and Market Expansion - The company launched six new clients in Q4, including a Tier 1 lender in U.S. Title and a top-15 mortgage lender in U.S. Appraisal, contributing to a more than doubled daily order run rate in U.S. Title compared to the start of the year [2][8] - The U.S. Title refinance origination revenues increased by 41% year-over-year, attributed to net market share gains and higher refinance origination market volumes [8][9] Consumer Trends - A recent Consumer Mortgage Survey indicated that 40% of potential buyers plan to purchase within the next two years, and 50% of existing mortgage holders intend to refinance when rates ease, highlighting significant growth opportunities in mortgage origination volume [4][8] Adjusted Financial Metrics - The company reported a net loss of $17.9 million in Q4 2025, primarily due to the derecognition of U.S. deferred tax assets amounting to $17.1 million, compared to a net loss of $0.2 million in Q4 2024 [7][8] - Adjusted Net Loss for Q4 2025 was $1.6 million, a decline from an Adjusted Net Income of $0.9 million in Q4 2024 [7][8]

Ravi Rody Sahi LC is president and CEO of the real re real joining us now exclusively on power lunch. Uh Rody it's great to have you on the program. I mean what a day.What is behind the t besides of course your leadership. What is behind the turn for the Real Real and its investors this year. >> Yes, thanks for the question.Um we're pretty excited about the momentum. Um, the Real Real is the leader in luxury resale and there's definitely been a market shift um into resale. So, it's great to see more awarene ...

Core Insights - The Real Real is experiencing significant momentum in the luxury resale market, with a projected Gross Merchandise Value (GMV) of $2 billion for the first time in its history, indicating a market shift towards resale [2][3] - A notable statistic reveals that 58% of consumers now prefer the secondary market over the primary market, highlighting a change in consumer shopping behavior [3] Company Strategy - The company operates 19 physical locations, which facilitate consignment by reducing friction for consigners and enhancing customer engagement [4][5] - Plans for expansion include opening 1 to 3 new stores annually, while maintaining a digital-first approach [7] Market Dynamics - The total addressable market (TAM) in the U.S. is estimated at $200 billion, representing significant potential for growth in the luxury resale sector [9] - The intersection of luxury and value is driving consumer willingness to spend, particularly on high-value items such as fine jewelry, watches, and handbags [10] Technological Advancements - The Real Real has leveraged technology and AI to streamline the processing of items, improving efficiency and reducing costs per unit [12][13] - The introduction of the AI tool "Athena" has enabled faster item processing, enhancing operational capabilities [13]

Core Insights - The RealReal, Inc. reported better-than-expected third-quarter financial results, with an adjusted loss of 4 cents per share, surpassing the consensus estimate of a 6 cents loss [1] - The company achieved sales of $173.57 million, exceeding the consensus estimate of $170.51 million [1] - The RealReal raised its full-year sales guidance to a range of $687 million to $690 million, up from the previous range of $667 million to $674 million [2] Financial Performance - The RealReal's fourth-quarter sales are expected to be between $188 million and $191 million, compared to the consensus estimate of $179.61 million [2] - The company reported a 20% increase in Gross Merchandise Value (GMV) and an Adjusted EBITDA that was ahead of expectations [3] Market Reaction - Following the earnings announcement, RealReal shares increased by 34.3%, trading at $15.07 [3] - Analysts have adjusted their price targets for RealReal, with BTIG analyst Marvin Fong raising the target from $11 to $15, and Baird analyst Mark Altschwager increasing it from $8 to $13 [6]

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]

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]