RealReal (NASDAQ:REAL) Announces Earnings Results

RealReal (NASDAQ:REAL) announced its quarterly earnings results on Thursday. The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.02) by $0.01, FiscalAI reports. The business had revenue of $192.57 million for the quarter, compared to analyst estimates of $188.11 million. RealReal’s revenue was up 16.6% compared to the same quarter last year.

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 Stock Down 3.7%

Shares of RealReal stock traded down $0.47 during trading on Friday, reaching $12.30. The company’s stock had a trading volume of 12,127,068 shares, compared to its average volume of 2,881,150. The business’s 50-day moving average price is $11.27 and its 200-day moving average price is $11.27. RealReal has a 52 week low of $6.32 and a 52 week high of $17.39. The firm has a market cap of $1.48 billion, a PE ratio of -10.98 and a beta of 2.69.

Trending Headlines about RealReal

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.

Analyst Upgrades and Downgrades

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

Insider Activity

In other RealReal news, insider Luke Thomas Friang sold 21,183 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 $195,942.75. Following the completion of the transaction, the insider directly owned 530,676 shares of the company’s stock, valued at $4,908,753. The trade was a 3.84% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Todd A. Suko sold 17,353 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $9.25, for a total value of $160,515.25. Following the sale, the insider directly owned 605,394 shares in the company, valued at approximately $5,599,894.50. This trade represents a 2.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 166,830 shares of company stock worth $1,543,178. 2.66% of the stock is currently owned by insiders.

Institutional Trading of RealReal

A number of hedge funds have recently added to or reduced their stakes in the stock. Quarry LP acquired a new position in shares of RealReal during the third quarter worth $28,000. Larson Financial Group LLC bought a new stake in shares of RealReal during the third quarter worth about $31,000. Kemnay Advisory Services Inc. bought a new position in RealReal in the 4th quarter valued at approximately $104,000. CIBC Bancorp USA Inc. bought a new stake in RealReal during the 3rd quarter worth approximately $108,000. Finally, Holocene Advisors LP bought a new stake in RealReal during the 3rd quarter worth approximately $125,000. Institutional investors and hedge funds own 64.73% of the company’s stock.

RealReal Company Profile

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.