RealReal (NASDAQ:REAL) Releases Earnings Results, Beats Estimates By $0.01 EPS

RealReal (NASDAQ:REAL) issued its quarterly earnings data on Thursday. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.02) by $0.01, FiscalAI reports. The company had revenue of $192.57 million for the quarter, compared to analyst estimates of $188.11 million. The business’s quarterly revenue was up 16.6% on a year-over-year basis.

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

• Positive Sentiment: The RealReal reported record Q2 GMV of $617 million, up 22% year over year, while revenue rose 17% to $193 million and active buyers increased 11% to more than 1.1 million.
• Positive Sentiment: Adjusted EBITDA reached $13.5 million, or a 7% margin, expanding 290 basis points year over year as automation and operating leverage reduced processing and technology costs. The company reiterated its path toward 15%-20% medium-term adjusted EBITDA margins.
• Positive Sentiment: Management raised full-year guidance to $2.535 billion-$2.565 billion in GMV, $788 million-$797 million in revenue, and $66 million-$69 million in adjusted EBITDA. It also expects strong positive free cash flow in both the third and fourth quarters.
• Positive Sentiment: Supply and customer-engagement initiatives are gaining momentum: supply per sales representative rose 15%, 44% of new consignors came from the active buyer base, and the company added Japanese and European vendors to its asset-light dropship network.
• Negative Sentiment: The Q2 take rate declined 200 basis points to 35.9% because sales are shifting toward higher-value items, which carry lower percentage commissions. Management expects this mix-related pressure to remain similar in the second half, although it said profit dollars and unit economics are stronger.

RealReal Price Performance

NASDAQ:REAL traded down $0.47 during trading hours on Friday, reaching $12.30. 12,127,068 shares of the company were exchanged, compared to its average volume of 2,881,150. The firm has a market cap of $1.48 billion, a price-to-earnings ratio of -10.98 and a beta of 2.69. The stock has a 50 day simple moving average of $11.27 and a 200 day simple moving average of $11.27. RealReal has a 52-week low of $6.32 and a 52-week high of $17.39.

RealReal News Roundup

Here are the key news stories impacting RealReal this week:

• Positive Sentiment: Second-quarter revenue rose 17% year over year to $192.57 million, exceeding the $188.11 million analyst consensus. The company reported a loss of $0.01 per share, narrower than the expected $0.02 loss and significantly improved from a $0.13 loss a year earlier. The RealReal Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: Gross merchandise value (GMV) increased 22% to a quarterly record, outpacing revenue growth and indicating stronger marketplace activity. Management also cited meaningful margin expansion. The RealReal Announces Second Quarter 2026 Results
• Positive Sentiment: The company raised full-year 2026 revenue guidance to $788 million-$797 million, above the $780.8 million consensus, and projected third-quarter revenue of $194 million-$198 million versus expectations of $191.2 million. The RealReal Q2 Results and Guidance
• Positive Sentiment: Management’s AI-focused overhaul of authentication, merchandising and operations is being associated with accelerating growth, including the 22% GMV increase. The RealReal’s AI Overhaul Helps Drive 22% GMV Growth
• Neutral Sentiment: An analyst price-target report placed the target at $17.25, suggesting potential upside but offering limited information about broader Wall Street sentiment. Analysts Set The RealReal Price Target at $17.25
• Negative Sentiment: Despite the earnings beat, REAL remains unprofitable, and the available guidance did not provide a specific EPS outlook. Investors may therefore remain focused on the pace of further margin improvement and the path to sustained profitability.

Wall Street Analysts Forecast Growth

REAL has been the subject of several recent research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of RealReal in a research report on Friday, July 17th. BTIG Research restated a “buy” rating and issued a $17.00 price objective on shares of RealReal in a research report on Wednesday, June 3rd. Roth Capital reaffirmed a “buy” rating and set a $19.00 price objective on shares of RealReal in a research note on Friday. Wall Street Zen cut RealReal from a “buy” rating to a “hold” rating in a research report on Saturday, April 18th. Finally, Robert W. Baird set a $13.00 target price on shares of RealReal in a research note on Friday, May 8th. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, RealReal presently has a consensus rating of “Moderate Buy” and a consensus target price of $17.75.

Insider Activity at RealReal

In related news, CEO Levesque Rati Sahi sold 81,194 shares of RealReal stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $9.25, for a total value of $751,044.50. Following the transaction, the chief executive officer owned 1,581,276 shares in the company, valued at approximately $14,626,803. This trade represents a 4.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Gopal Ajay Madan sold 35,023 shares of the business’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $9.25, for a total value of $323,962.75. Following the sale, the chief financial officer directly owned 1,145,278 shares of the company’s stock, valued at approximately $10,593,821.50. This trade represents a 2.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 166,830 shares of company stock worth $1,543,178. 2.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On RealReal

Several hedge funds and other institutional investors have recently modified their holdings of REAL. Quarry LP acquired a new stake in RealReal during the 3rd quarter worth approximately $28,000. Larson Financial Group LLC acquired a new position in RealReal during the third quarter valued at approximately $31,000. Kemnay Advisory Services Inc. acquired a new position in RealReal during the fourth quarter valued at approximately $104,000. CIBC Bancorp USA Inc. purchased a new stake in RealReal during the third quarter worth approximately $108,000. Finally, Holocene Advisors LP purchased a new stake in RealReal during the third quarter worth approximately $125,000. 64.73% of the stock is owned by institutional investors and hedge funds.

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.