Core Insights - RealReal reported Q2 2025 earnings with GAAP revenue of $165 million, exceeding analyst expectations of $159.7 million, and showing a 14% year-over-year increase from $144.9 million in Q2 2024 [1][5] - Adjusted EPS (Non-GAAP) improved to $(0.06), better than the $(0.09) consensus estimate and the $(0.13) in Q2 2024, reflecting operational progress [1][2] - The company raised its full-year guidance, projecting GMV of $2.030–$2.045 billion and GAAP revenue of $667–$674 million, indicating strong momentum [11] Financial Performance - Q2 2025 GAAP revenue was $165 million, a 14% increase from Q2 2024's $144.9 million [2][5] - Non-GAAP EPS improved by 53.8% year-over-year from $(0.13) to $(0.06) [2] - Adjusted EBITDA reached $6.8 million, a significant turnaround from a loss of $(1.8) million in Q2 2024 [2][6] Operational Highlights - Active buyers increased by 6% year-over-year to 1,001,000, with total orders reaching 868,000 [2][5] - Gross margin improved to 74.3%, up 0.2 percentage points from Q2 2024, attributed to automation and AI tools [2][6] - Consignment revenue grew by 14% to $128.6 million, while direct revenue rose 23% to $20.5 million [5] Business Model and Strategy - RealReal operates an online marketplace for luxury goods, focusing on authentication to build trust and combat counterfeits [3][4] - The company's network effect encourages more consignors and buyers, creating a virtuous cycle [4] - Key initiatives like "Get Paid Now" and referral programs have contributed to supply growth and operational efficiency [7][8] Future Outlook - Management raised guidance for Q3 2025, projecting GMV between $495 and $502 million and adjusted EBITDA of $6.1–$7.1 million [11] - For the full fiscal year, the updated outlook calls for adjusted EBITDA of $29.0–$32.0 million, a significant increase from prior guidance [11] - Investors are advised to monitor cash flow trends, as free cash flow remained negative at $(15) million [12]