Core Insights - The RealReal's latest earnings report emphasizes the role of artificial intelligence in enhancing operational efficiency and improving the listing process for luxury items [1][3] - CEO Rati Levesque highlighted a multi-year AI roadmap aimed at leveraging technology to identify potential consignors and streamline the listing process [3][11] AI and Operational Strategy - The company is focusing on two key AI initiatives: SmartSales for identifying high-potential clients and Athena for reducing the time from item intake to live listing while enhancing accuracy [3] - The AI strategy is designed to shape supply dynamics, targeting higher-value consignors and premium product categories that foster loyalty among both sellers and buyers [4][11] Supply Growth and Retail Strategy - A coordinated "growth playbook" integrates marketing, sales, and retail efforts, improving targeting of mid to high-value sellers [8] - Approximately 25% of new consignors are sourced through retail locations, with items sourced through these channels having an average selling price 5 to 7 times higher than those from other sources [8] Demand Resilience - Demand remains strong, particularly in premium categories, with buyers spending $5,000 or more increasing by 20% year over year [9] - The RealReal's positioning at the intersection of luxury and value, along with educational efforts regarding resale pricing, contributes to this demand resilience [9] Financial Performance - In Q4 2025, gross merchandise value (GMV) rose 22% year over year, while revenue increased by 18%, with adjusted EBITDA reaching $22 million [10] - For the full year 2025, GMV increased by 16% to $2.13 billion, and revenue rose by 15% to $693 million, marking positive adjusted EBITDA in every quarter for the first time [10] Future Outlook - The results are seen as indicators of a broader transformation, with plans to deepen AI integration and enhance supply chain efficiency as priorities for 2026 [11]

The RealReal (NasdaqGS:REAL) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Company ParticipantsAjay Gopal - CFOCaitlin Howe - SVP of FinanceJay Sole - Managing DirectorRati Levesque - President and CEOConference Call ParticipantsAnna Glaessgen - Senior Research AnalystAshley Owens - VP and Equity Research AnalystBobby Brooks - VP and Senior Research AnalystDylan Carden - Senior AnalystIke Boruchow - Managing Director and Senior Analyst for Retailing, Specialty Softlines and E-commerceMark Altschwager ...

The RealReal (NasdaqGS:REAL) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Company ParticipantsAjay Gopal - CFOCaitlin Howe - SVP of FinanceJay Sole - Managing DirectorRati Levesque - President and CEOConference Call ParticipantsAnna Glaessgen - Senior Research AnalystAshley Owens - VP and Equity Research AnalystBobby Brooks - VP and Senior Research AnalystDylan Carden - Senior AnalystIke Boruchow - Managing Director and Senior Analyst for Retailing, Specialty Softlines and E-commerceMark Altschwager ...

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved $616 million in GMV, representing a 22% growth year-over-year, with an Adjusted EBITDA margin of 11% [4][13] - Full year GMV reached $2.13 billion, a 16% increase compared to the previous year, with revenue of $693 million, up 15% [17][18] - Adjusted EBITDA for the full year was $42 million, or 6.1% of total revenue, reflecting a 450 basis points increase year-over-year [18][21] Business Line Data and Key Metrics Changes - Q4 total revenue was $194 million, an 18% increase, with consignment revenue up 16% and direct revenue up 39% year-over-year [14][16] - Active buyer growth accelerated to 9% on a trailing 12-month basis, with orders up 10% and average order value increasing by 11% [15][16] - The take rate in Q4 was 36.5%, a decline of 120 basis points year-over-year, attributed to a favorable mix shift towards higher value items [15][16] Market Data and Key Metrics Changes - The company noted that 47% of consumers consider resale value when making primary market purchases, indicating a shift in consumer behavior towards luxury resale [5] - The luxury resale market is experiencing a fundamental shift, with younger consumers increasingly preferring resale options [5][11] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth playbook, operational excellence, and obsessing over service [6][10] - The growth playbook aims to unlock supply by meeting customers where they are, while operational excellence focuses on profitability through technology and automation [6][10] - The company is enhancing customer experience through initiatives like My Closet, which aims to provide tools for tracking and capitalizing on closet value [11][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, projecting full year GMV growth of 12%-15% and revenue growth of 10%-13% for 2026 [19][20] - The company anticipates Adjusted EBITDA to be in the range of $57 million-$65 million for 2026, representing an expansion of nearly 200 basis points [19][20] - Management highlighted the resilience of buyers and sellers, with no slowdown observed since Q4 [35][36] Other Important Information - The company ended Q4 with $166 million in cash equivalents and restricted cash, with free cash flow of $43 million, up $23 million year-over-year [17][21] - The company has reduced total indebtedness by over $80 million over the past two years, strengthening its balance sheet [18] Q&A Session Summary Question: Update on Athena's impact on operational model - Management confirmed that 35% of units are processed through Athena, contributing to operating leverage and plans to extend its use to mid-value items [25][26] Question: Q1 guidance and confidence in growth - Management noted strong buyer and seller resilience, with double-digit growth expected in Q1, driven by effective sales and marketing strategies [32][34] Question: Dropshipping testing and future plans - Management indicated that dropshipping is being tested in categories like watches and handbags, with plans to expand further [40] Question: Supply pipeline visibility and ASP trends - Management reported a healthy balance between volume and price growth, with a strong supply pipeline for higher value items like fine jewelry [56] Question: AI's role in supply procurement - Management emphasized AI's potential to enhance supply procurement and improve seller experiences through targeted approaches [83][85]

Q4 2025 Financial Results February 26, 2026 Q4 2025 FINANCIAL RESULTS Safe Harbor/Disclosure Statement These materials contain forward-looking statements relating to, among other things, the future performance of The RealReal that are based on the company's current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expect," "plan," "anticipate," "target," "contemplat ...

SAN FRANCISCO, Feb. 18, 2026 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL), the world’s largest marketplace for authenticated luxury resale, today announced the reopening of its San Francisco flagship store in the heart of Union Square — reaffirming the company’s deep roots in the city where it was founded and its commitment to San Francisco’s downtown revival. The store officially opens on Thursday, February 26, at 11:00 a.m. PT for consignment and shopping. The reopening marks The RealReal’s 17th retail ...

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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]

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 ...