Therealreal Financials
Therealreal (REAL) reported $692.8M in revenue for fiscal year 2025, up 15.4% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 9 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Gross-margin expansion and moderate overhead growth are pulling the business toward self-funding, even as the balance sheet stays stretched.
Gross margin moved from68.5% to74.6% while SG&A grew far slower than revenue, so the operating loss narrowed much faster than sales alone would suggest. That same improvement turned free cash flow positive for two straight years even though operating income stayed negative, a sign that day-to-day cash generation is no longer deteriorating in step with reported losses.
Balance-sheet repair has not kept pace: assets were
Capital intensity is no longer the main drag on cash: operating cash flow reached
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Therealreal's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Therealreal has an operating margin of -3.5%, meaning the company loses $3 on every $100 of revenue. This results in a profitability score of 30/100. This is up from -9.4% the prior year.
Therealreal's revenue surged 15.4% year-over-year to $692.8M, reflecting rapid business expansion. This strong growth earns a score of 70/100.
Therealreal's current ratio of 0.86 is below the typical benchmark, resulting in a score of 14/100. However, the company holds substantial cash reserves (57% of current liabilities), which buffers actual liquidity risk. Large mature operators often run tight current ratios by design.
Therealreal's free cash flow margin of 2.6% results in a low score of 26/100. Capital expenditures of $18.6M absorb a large share of operating cash flow.
Therealreal scores -2.01, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($1.4B) relative to total liabilities ($824.6M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Therealreal passes 3 of 5 computable financial strength tests (4 of the nine could not be computed from available data). All 1 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
Therealreal reported an operating loss of $23.9M against $27.7M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Therealreal generated $692.8M in revenue in fiscal year 2025. This represents an increase of 15.4% from the prior year.
Therealreal's EBITDA was $9.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 138.8% from the prior year.
Therealreal earned -$0.70 per diluted share (EPS) in fiscal year 2025. This represents an increase of 43.5% from the prior year.
Not reported for fiscal year 2025.
Cash & Balance Sheet
Therealreal generated $18.4M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 45.8% from the prior year.
Therealreal held $151.2M in cash as of fiscal year 2025; long-term debt is not reported for that period.
Not reported for fiscal year 2025.
Margins & Returns
Therealreal's gross margin was 74.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.1 percentage points from the prior year.
Therealreal's operating margin was -3.5% in fiscal year 2025, reflecting core business profitability. This is up 6.0 percentage points from the prior year.
Not reported for fiscal year 2025.
Not reported for fiscal year 2025.
Capital Allocation
Therealreal invested $18.6M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 30.9% from the prior year.
Not reported for fiscal year 2025.
Not reported for fiscal year 2025.
REAL Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $749.9M | $692.8M+15.4% | $600.5M+9.3% | $549.3M-9.0% | $603.5M+29.0% | $467.7M+55.9% | $299.9M-5.2% | $316.4M+48.0% | $213.7M+55.4% | $137.5M |
| Cost of Revenue | $191.3M | $176.0M+15.1% | $153.0M-11.6% | $173.0M-32.1% | $254.8M+31.2% | $194.2M+72.8% | $112.4M-2.1% | $114.8M+49.5% | $76.8M+54.0% | $49.9M |
| Gross Profit | $558.7M | $516.8M+15.5% | $447.5M+18.9% | $376.3M+7.9% | $348.7M+27.5% | $273.5M+45.8% | $187.6M-6.9% | $201.5M+47.2% | $136.9M+56.2% | $87.6M |
| SG&A Expenses | $208.3M | $201.6M+7.4% | $187.7M+2.1% | $183.8M-5.9% | $195.3M+10.8% | $176.2M+25.3% | $140.7M+27.1% | $110.7M+73.6% | $63.7M+44.7% | $44.0M |
| Operating Income | -$5.8M | -$23.9M+57.6% | -$56.5M+66.0% | -$166.3M+12.1% | -$189.2M+12.0% | -$214.9M-24.4% | -$172.8M-72.6% | -$100.1M-35.5% | -$73.9M-42.7% | -$51.8M |
| Interest Expense | $28.9M | $27.7M+29.5% | $21.4M+99.8% | $10.7M+2.2% | $10.5M-51.4% | $21.5M+309.0% | $5.3M+754.5% | $616K-46.5% | $1.2M+51.2% | $762K |
| Income Tax | $388K | $363K+31.5% | $276K-2.5% | $283K+64.5% | $172K+207.1% | $56K-44.6% | $101K-49.2% | $199K+101.0% | $99K+73.7% | $57K |
| Net Income | N/A | N/A | N/A | N/A | N/A | N/A | -$175.8M-78.6% | -$98.4M-29.9% | -$75.8M-44.8% | -$52.3M |
| EPS (Diluted) | — | -$0.70+43.5% | -$1.24+24.8% | -$1.65+19.5% | -$2.05+20.5% | -$2.58-28.4% | -$2.01 | -$2.14 | N/A | N/A |
Not reported in any period shown, so not listed: R&D Expenses.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
REAL Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 |
|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $409.0M-3.3% | $423.1M-5.3% | $446.9M-27.4% | $615.6M-18.5% | $754.9M+24.8% | $605.1M+30.1% | $465.2M+243.6% | $135.4M | N/A |
| Current Assets | $227.5M-2.2% | $232.7M-1.4% | $235.9M-36.6% | $372.3M-28.1% | $517.8M+22.9% | $421.5M+3.6% | $406.8M+356.3% | $89.1M | N/A |
| Cash & Equivalents | $151.2M-12.2% | $172.2M-2.0% | $175.7M-40.2% | $293.8M-29.7% | $418.2M+19.2% | $350.8M+127.2% | $154.4M+349.1% | $34.4M+108.6% | $16.5M |
| Inventory | $30.8M+30.8% | $23.6M+6.0% | $22.2M-48.2% | $43.0M-39.5% | $71.0M+67.8% | $42.3M+93.1% | $21.9M+111.6% | $10.4M | N/A |
| Accounts Receivable | $23.8M+70.6% | $14.0M-19.0% | $17.2M+41.1% | $12.2M+57.2% | $7.8M+7.7% | $7.2M-7.3% | $7.8M+2.7% | $7.6M | N/A |
| Total Liabilities | $824.6M-0.7% | $830.5M+10.7% | $750.2M-4.5% | $785.7M+15.2% | $681.8M+64.8% | $413.8M+223.3% | $128.0M-67.4% | $393.1M | N/A |
| Current Liabilities | $264.2M+6.3% | $248.7M+31.7% | $188.9M-9.0% | $207.5M+10.4% | $188.0M+26.8% | $148.3M+25.1% | $118.5M+34.2% | $88.4M | N/A |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $3.2M | N/A |
| Total Equity | -$415.5M-2.0% | -$407.4M-34.3% | -$303.3M-78.3% | -$170.1M-332.6% | $73.1M-61.8% | $191.3M-43.3% | $337.2M+230.9% | -$257.7M-45.6% | -$177.0M |
| Retained Earnings | -$1.3B-3.3% | -$1.3B-12.0% | -$1.1B-17.7% | -$951.2M-23.8% | -$768.1M-44.4% | -$532.0M-49.4% | -$356.2M-38.2% | -$257.7M | N/A |
Not reported in any period shown, so not listed: Goodwill.
REAL Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $53.8M | $37.0M+37.9% | $26.8M+143.8% | -$61.3M+33.1% | -$91.6M+35.6% | -$142.2M-5.8% | -$134.4M-146.7% | -$54.5M-15.5% | -$47.2M-22.3% | -$38.6M |
| Capital Expenditures | $17.6M | $18.6M+30.9% | $14.2M-51.2% | $29.2M+27.6% | $22.9M-39.0% | $37.5M+105.3% | $18.3M-26.3% | $24.8M+84.9% | $13.4M+15.5% | $11.6M |
| Free Cash Flow | $36.2M | $18.4M+45.8% | $12.6M+113.9% | -$90.4M+21.0% | -$114.4M+36.3% | -$179.6M-17.7% | -$152.7M-92.6% | -$79.3M-30.8% | -$60.6M-20.8% | -$50.2M |
| Investing Cash Flow | -$30.9M | -$29.2M-14.2% | -$25.6M+39.3% | -$42.1M-14.1% | -$36.9M+15.0% | -$43.4M-124.4% | $178.0M+182.7% | -$215.4M-534.8% | -$33.9M-200.1% | -$11.3M |
| Financing Cash Flow | $1.7M | -$28.9M-506.6% | -$4.8M-2205.8% | $226K-94.5% | $4.1M-98.4% | $252.9M+65.5% | $152.8M-59.6% | $378.7M+256.9% | $106.1M+127.1% | $46.7M |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
REAL Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 74.6%+0.1pp | 74.5%+6.0pp | 68.5%+10.7pp | 57.8%-0.7pp | 58.5%-4.1pp | 62.5%-1.2pp | 63.7%-0.4pp | 64.1%+0.3pp | 63.7% |
| Operating Margin | -3.5%+6.0pp | -9.4%+20.9pp | -30.3%+1.1pp | -31.3%+14.6pp | -46.0%+11.7pp | -57.6%-26.0pp | -31.6%+2.9pp | -34.6%+3.1pp | -37.7% |
| Net Margin | N/A | N/A | N/A | N/A | N/A | -58.6%-27.5pp | -31.1%+4.3pp | -35.4%+2.6pp | -38.0% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | -91.9%-62.7pp | -29.2% | N/A | N/A |
| Return on Assets | N/A | N/A | N/A | N/A | N/A | -29.1%-7.9pp | -21.2%+34.8pp | -56.0% | N/A |
| Current Ratio | 0.86-0.1x | 0.94-0.3x | 1.25-0.5x | 1.79-1.0x | 2.75-0.1x | 2.84-0.6x | 3.43+2.4x | 1.01 | N/A |
| Debt-to-Equity | N/A | N/A | N/A | N/A | 9.32+7.2x | 2.16+1.8x | 0.38 | N/A | N/A |
| FCF Margin | 2.6%+0.5pp | 2.1%+18.6pp | -16.5%+2.5pp | -19.0%+19.4pp | -38.4%+12.5pp | -50.9%-25.9pp | -25.1%+3.3pp | -28.3%+8.1pp | -36.5% |
Note: Shareholder equity is negative (-$415.5M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.86), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Where Therealreal Ranks
Frequently Asked Questions
What is Therealreal's annual revenue?
Therealreal (REAL) reported $692.8M in total revenue for fiscal year 2025. This represents a 15.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Therealreal's revenue growing?
Therealreal (REAL) revenue grew by 15.4% year-over-year, from $600.5M to $692.8M in fiscal year 2025.
What is Therealreal's EBITDA?
Therealreal (REAL) had EBITDA of $9.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Therealreal's gross margin?
Therealreal (REAL) had a gross margin of 74.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Therealreal's operating margin?
Therealreal (REAL) had an operating margin of -3.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Therealreal's free cash flow?
Therealreal (REAL) generated $18.4M in free cash flow during fiscal year 2025. This represents a 45.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Therealreal's operating cash flow?
Therealreal (REAL) generated $37.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Therealreal's total assets?
Therealreal (REAL) had $409.0M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Therealreal's capital expenditures?
Therealreal (REAL) invested $18.6M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Therealreal's current ratio?
Therealreal (REAL) had a current ratio of 0.86 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
Why is Therealreal's debt-to-equity ratio negative or not reported?
Therealreal (REAL) has negative shareholder equity of -$415.5M as of fiscal year 2025, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Therealreal's Altman Z-Score?
Therealreal (REAL) has an Altman Z-Score of -2.01, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Therealreal's Piotroski F-Score?
Therealreal (REAL) has a Piotroski F-Score of 3 out of 5 computable signals; 4 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Can Therealreal cover its interest payments?
Therealreal (REAL) reported an operating loss of $23.9M against $27.7M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Therealreal?
Therealreal (REAL) scores 29 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.