RealReal (NASDAQ:REAL) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

RealReal (NASDAQ:REAL) posted its quarterly earnings results on Thursday. The company reported $0.06 EPS for the quarter, topping analysts’ consensus estimates of $0.04 by $0.02, FiscalAI reports. The business had revenue of $194.05 million for the quarter, compared to analyst estimates of $190.62 million. During the same period last year, the firm posted ($0.01) EPS. RealReal’s quarterly revenue was up 51.4% on a year-over-year basis.

Here are the key takeaways from RealReal’s conference call:

• The company reported strong results with Q4 GMV of $616 million (+22%) and full-year GMV of $2.13 billion (+16%), delivered quarterly Adjusted EBITDA margin of ~11%, and generated positive free cash flow ($43M in Q4; $5M for FY), showing profitable scale.
• AI and automation drove meaningful operating leverage—35% of units processed through Athena at year-end, shortening intake-to-listing cycle times and reducing O&T costs, with plans to expand Athena into mid and higher-value items.
• Supply engine and marketing momentum strengthened growth—tools like Smart Sales and a real-time valuation tool plus a buyer-to-consignor flywheel (≈40% of new consignors from existing buyers) helped active buyer growth accelerate to ~9% TTM and lift AOVs, especially in fine jewelry and watches.
• Management guided to continued expansion—2026 outlook calls for GMV growth of 12–15%, revenue growth of 10–13%, and Adjusted EBITDA of $57–65M (≈8% midpoint), with Q1 guidance showing near-term acceleration, signaling confidence in further margin improvement.
• Margin and revenue mix risk—Q4 take rate fell ~120 bps as mix shifted to higher-value items with lower percentage fees, and revenue growth is guided slightly below GMV growth, creating variability in revenue and direct-channel margins.

RealReal Stock Up 3.1%

RealReal stock traded up $0.37 during mid-day trading on Thursday, hitting $12.39. 7,473,963 shares of the stock were exchanged, compared to its average volume of 3,003,449. The stock has a market capitalization of $1.45 billion, a price-to-earnings ratio of -8.98 and a beta of 2.65. RealReal has a 12 month low of $4.61 and a 12 month high of $17.39. The firm’s fifty day simple moving average is $14.63 and its two-hundred day simple moving average is $12.33.

Analyst Ratings Changes

REAL has been the subject of a number of research reports. BTIG Research increased their target price on shares of RealReal from $15.00 to $18.00 and gave the stock a “buy” rating in a report on Tuesday, December 30th. UBS Group raised their price objective on RealReal from $14.00 to $16.00 and gave the company a “neutral” rating in a report on Thursday, January 8th. B. Riley Financial increased their target price on RealReal from $14.00 to $17.00 and gave the company a “buy” rating in a research report on Friday, December 12th. Robert W. Baird set a $15.00 price target on RealReal in a report on Wednesday, December 17th. Finally, Wall Street Zen lowered shares of RealReal from a “buy” rating to a “hold” rating in a report on Saturday, January 31st. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $17.94.

Insider Activity at RealReal

In related news, CAO Steve Ming Lo sold 16,962 shares of the business’s stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $10.72, for a total value of $181,832.64. Following the transaction, the chief accounting officer owned 170,236 shares in the company, valued at $1,824,929.92. The trade was a 9.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Levesque Rati Sahi sold 121,399 shares of the business’s stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $10.72, for a total value of $1,301,397.28. Following the completion of the transaction, the chief executive officer directly owned 1,482,779 shares in the company, valued at $15,895,390.88. This represents a 7.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 235,298 shares of company stock valued at $2,522,395 over the last 90 days. 9.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. AQR Capital Management LLC lifted its position in shares of RealReal by 589.2% during the 1st quarter. AQR Capital Management LLC now owns 887,997 shares of the company’s stock worth $4,786,000 after buying an additional 759,160 shares in the last quarter. Cannell Capital LLC lifted its holdings in RealReal by 75.3% during the second quarter. Cannell Capital LLC now owns 1,429,207 shares of the company’s stock worth $6,846,000 after acquiring an additional 613,845 shares during the period. Hudson Bay Capital Management LP purchased a new position in RealReal in the fourth quarter worth $8,510,000. Renaissance Technologies LLC grew its stake in RealReal by 147.3% in the 4th quarter. Renaissance Technologies LLC now owns 755,500 shares of the company’s stock valued at $11,922,000 after purchasing an additional 450,000 shares during the period. Finally, Interval Partners LP purchased a new stake in shares of RealReal during the 3rd quarter valued at $4,512,000. 64.73% of the stock is owned by institutional investors.

About RealReal

The RealReal, Inc (NASDAQ: REAL) operates an online marketplace specializing in the authenticated resale of luxury goods. Since its founding in 2011 by entrepreneur Julie Wainwright, the company has positioned itself as a leading platform for consignors and shoppers seeking designer fashion, fine jewelry, watches, art, and home décor. Headquartered in San Francisco, The RealReal combines e-commerce technology with an in-house team of experts to offer a seamless buying and selling experience for secondhand luxury items.

At the core of The RealReal’s business model is its consignment service, which enables individuals to sell pre-owned luxury products through a fully managed process.