The RealReal Announces Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
The RealReal (Nasdaq: REAL) reported fourth quarter and full year 2025 results with FY GMV of $2.13B and total revenue of $693M, up 16% and 15% year-over-year respectively. Adjusted EBITDA improved to $42M for the year and Q4 Adjusted EBITDA was $22M.
Trailing 12-month active buyers reached 1,056,000, operating cash flow was $37M, and year-end cash totaled $166M. Company provided Q1 and full-year 2026 guidance for GMV, revenue, and Adjusted EBITDA.
Positive
- GMV +16% to $2.13 billion full year
- Total revenue +15% to $693 million full year
- Adjusted EBITDA improved $33 million to $42 million
- Trailing 12-month active buyers +9% to 1,056,000
- Operating cash flow +$10 million to $37 million
Negative
- GAAP net loss of $42 million for full year 2025
- Warrant liability fair-value adjustments of $36M (FY) and $39M (Q4)
- Year-end cash balance of $166 million may constrain flexibility
- GAAP basic net loss per share $(0.36) for 2025
Market Reaction – REAL
Following this news, REAL has gained 9.77%, reflecting a notable positive market reaction. Our momentum scanner has triggered 16 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $13.60. This price movement has added approximately $129M to the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
REAL gained 3.53% while peers were mixed: SIG and BRLT up modestly, MOV and ELA down, with only ELA appearing in momentum scanners to the downside.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 10 | Q3 2025 earnings | Positive | +38.1% | Record GMV and revenue with higher Adjusted EBITDA and raised full-year guidance. |
| Aug 07 | Q2 2025 earnings | Positive | +16.1% | Record GMV and revenue, reduced net loss, positive Adjusted EBITDA and higher margins. |
| May 08 | Q1 2025 earnings | Positive | -30.7% | Revenue and GMV growth with net income and positive Adjusted EBITDA improvement. |
| Feb 20 | FY/Q4 2024 earnings | Positive | -18.8% | Q4 and full-year growth with first positive full-year Adjusted EBITDA and cash flow. |
| Feb 10 | Prelim 2024 results | Positive | -4.1% | Preliminary Q4 and FY beats versus guidance and stronger 2025 outlook. |
Earnings releases have consistently shown improving GMV, margins, and EBITDA, but share reactions have been mixed, with both strong rallies and sharp selloffs following positive financial updates.
Across the last five earnings events from Feb 2025 through Nov 2025, The RealReal repeatedly reported record GMV, revenue growth, margin expansion, and a shift to positive Adjusted EBITDA. Guidance was raised multiple times, and 2024 marked a turn to positive Adjusted EBITDA and positive free cash flow. Despite these operational gains, stock responses ranged from gains of over 38% to declines of more than 30%, indicating volatile reactions to results.
Historical Comparison
Across five prior earnings releases, average stock move was 0.12% with wide swings from about -30% to over +38%. Today’s positive reaction of 3.53% to stronger 2025 results and 2026 guidance sits within this historically volatile range.
Earnings updates from early 2024 through 2025 show a progression from initial positive Adjusted EBITDA and improved cash flow to record quarterly GMV and revenue, rising margins, and repeatedly raised full-year guidance, culminating in 2025 results that exceeded prior targets.
Market Pulse Summary
The stock is up +9.8% following this news. A strong positive reaction aligns with earnings that showed 16% GMV growth to $2.13B, revenue up 15% to $693M, and full-year Adjusted EBITDA of $42M. Prior earnings have produced volatile moves, including large gains and steep drops, so sustained strength has not been guaranteed historically. High short interest of 45.87% could amplify upside but also left room for sharp reversals if sentiment changed.
Key Terms
gross merchandise value financial
GMV financial
Adjusted EBITDA financial
gross margin financial
free cash flow financial
GAAP financial
non-GAAP financial
warrant liability financial
AI-generated analysis. Not financial advice.
Company surpassed
SAN FRANCISCO, Feb. 26, 2026 (GLOBE NEWSWIRE) -- The RealReal, Inc. (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today reported financial results for its fourth quarter and full year ended December 31, 2025. Fourth quarter 2025 gross merchandise value (GMV) and total revenue increased
Fourth quarter Adjusted EBITDA was
“2025 was a year of transformation for The RealReal,” said Rati Levesque, President and Chief Executive Officer of The RealReal. “We accelerated top line growth throughout the year, culminating in particularly strong fourth quarter performance. In 2025, we surpassed the
Levesque continued, "We are leading a fundamental shift in the luxury consumer’s mindset with
Fourth Quarter Highlights
- GMV was
$616 million , an increase of22% compared to the same period in 2024 - Total Revenue was
$194 million , an increase of18% compared to the same period in 2024 - Gross Profit was
$145 million , an increase of$23 million compared to the same period in 2024 - Gross Margin was
74.8% , an increase of 40 basis points compared to the same period in 2024 - Net Loss was
$39 million or (20.0)% of total revenue, compared to$68 million in the fourth quarter of 2024. Fourth Quarter 2025 Net Loss includes a$39 million adjustment as a result of the change in fair value of warrant liability - Adjusted EBITDA was
$22 million or11.3% of total revenue, compared to$11 million or6.7% of total revenue in the fourth quarter of 2024 - GAAP basic and diluted net loss per share was
$(0.33) compared to$(0.62) in the prior year period - Non-GAAP basic and diluted net income per share was
$0.06 compared to a net loss of$(0.01) in the prior year period - Operating Cash Flow was
$50 million , which increased$22 million compared to the fourth quarter of 2024 - Free Cash Flow was positive
$43 million , which increased$23 million compared to the fourth quarter of 2024 - Top-line-related Metrics
- Trailing twelve months active buyers was 1,056,000, an increase of
9% compared to the same period in 2024 - Average order value (AOV) was
$641 , an increase of11% compared to the same period in 2024
- Trailing twelve months active buyers was 1,056,000, an increase of
Full Year 2025 Financial Highlights
- GMV was
$2.13 billion , an increase of16% compared to full year 2024 - Total Revenue was
$693 million , an increase of15% compared to full year 2024 - Net Loss was
$42 million or (6.0)% of total revenue, compared to$134 million or (22.3)% of total revenue for full year 2024, an improvement of$92 million . Full Year 2025 Net Loss includes a$36 million adjustment as a result of the change in fair value of warrant liability - Adjusted EBITDA was
$42 million or6.1% of total revenue compared to$9 million or1.6% of total revenue for full year 2024 - GAAP basic net loss per share was
$(0.36) compared to$(1.24) in the prior year - Non-GAAP basic and diluted net loss per share was
$(0.12) compared to$(0.35) in the prior year - At the end of 2025, cash, cash equivalents and restricted cash totaled
$166 million - Operating Cash Flow was
$37 million , which increased$10 million compared to full year 2024 - Free Cash Flow of
$5 million increased$5 million compared to full year 2024 - Top-line-related Metrics
- Trailing 12-months active buyers reached 1,056,000, an increase of
9% compared to the same period in 2024 - Average order value (AOV) was
$594 , an increase of9% compared to the same period in 2024
- Trailing 12-months active buyers reached 1,056,000, an increase of
Q1 and Full Year 2026 Guidance
Based on market conditions as of February 26, 2026, we are providing guidance for GMV, total revenue, capital expenditures and Adjusted EBITDA, which is a non-GAAP financial measure.
We have not reconciled forward-looking Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure, because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including payroll tax expense on employee stock transactions, that are not within our control, or other components that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income (loss).
| Q1 2026 | Full Year 2026 | |
| GMV | ||
| Total Revenue | ||
| Adjusted EBITDA |
Webcast and Conference Call
The RealReal will host a conference call to review the company’s fourth quarter and full year 2025 results beginning at approximately 2:00 p.m. Pacific Time today (5:00 p.m. Eastern Time). A live webcast of the conference call and accompanying materials will be available online at investor.therealreal.com. A replay of the webcast will be available at the same location.
About The RealReal, Inc.
The RealReal is the world’s largest online marketplace for authenticated, resale luxury goods, trusted by more than 40 million members. Our full-service consignment model—offering virtual appointments, in-home pickup, drop-off, and direct shipping—enables consumers to buy and sell luxury across fashion, fine jewelry and watches, art, and home categories with ease. The company combines a rigorous, expert-led authentication process with proprietary technology, including AI and machine learning, to power optimal pricing and processing for our members and to help scale the business. By extending the life of millions of luxury goods, the company is leading a more circular economy, all the while delivering a seamless experience for buyers and sellers.
Investors:
IR@therealreal.com
Media:
pr@therealreal.com
Forward Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of The RealReal that are based on the company's current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” anticipate,” "target," "contemplate,” “project,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. These statements include, but are not limited to, statements about future operating and financial results, including our strategies, plans, commitments, objectives and goals, the debt exchange, financial guidance, anticipated growth in 2026, the anticipated impact of generative AI, and long-range financial targets and projections. Actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Other factors that could cause or contribute to such differences include, but are not limited to, inflation, macroeconomic uncertainty, geopolitical instability, any failure to generate a supply of consigned goods, pricing pressure on the consignment market resulting from discounting in the market for new goods, failure to efficiently and effectively operate our merchandising and fulfillment operations, labor shortages and other reasons.
More information about factors that could affect the company's operating results is included under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company's Investor Relations website at https://investor.therealreal.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.
Non-GAAP Financial Measures
To supplement our unaudited and condensed financial statements presented in accordance with generally accepted accounting principles ("GAAP"), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA as a percentage of total revenue ("Adjusted EBITDA Margin"), free cash flow, non-GAAP net loss attributable to common stockholders, and non-GAAP net loss per share attributable to common stockholders, basic and diluted. We have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures in this earnings release.
We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors should also note that non-GAAP financial measures we use may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies, including other companies in our industry.
Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure as an overall assessment of our performance, to evaluate the effectiveness of our business strategies and for business planning purposes. Adjusted EBITDA may not be comparable to similarly titled metrics of other companies.
We calculate Adjusted EBITDA as net loss before interest income, interest expense, provision (benefit) for income taxes, depreciation and amortization, further adjusted to exclude stock-based compensation, payroll tax on employee stock transactions, legal settlement charges, restructuring, CEO separation benefit and transition costs, gain on extinguishment of debt, change in fair value of warrant liability and certain one time expenses. The employer payroll tax expense related to employee stock transactions are tied to the vesting or exercise of underlying equity awards and the price of our common stock at the time of vesting, which may vary from period to period independent of the operating performance of our business. Adjusted EBITDA has certain limitations as the measure excludes the impact of certain expenses that are included in our statements of operations that are necessary to run our business and should not be considered as an alternative to net loss or any other measure of financial performance calculated and presented in accordance with GAAP.
In particular, the exclusion of certain expenses in calculating Adjusted EBITDA and Adjusted EBITDA Margin facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of stock-based compensation and the related employer payroll tax on employee stock transactions, excludes an item that we do not consider to be indicative of our core operating performance. Investors should, however, understand that stock-based compensation and the related employer payroll tax will be a significant recurring expense in our business and an important part of the compensation provided to our employees. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
Free cash flow is a non-GAAP financial measure that is calculated as net cash (used in) provided by operating activities less net cash used to purchase property and equipment and capitalized proprietary software development costs. We believe free cash flow is an important indicator of our business performance, as it measures the amount of cash we generate. Accordingly, we believe that free cash flow provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.
Non-GAAP net loss per share attributable to common stockholders, basic and diluted is a non-GAAP financial measure that is calculated as GAAP net loss plus stock-based compensation expense, provision (benefit) for income taxes, payroll tax on employee stock transactions, legal settlement charges, gain on extinguishment of debt, change in fair value of warrant liabilities, restructuring and non-recurring items divided by weighted average shares outstanding. We believe that making these adjustments to our GAAP net loss, before calculating per share amounts for all periods presented provides a more meaningful comparison between our operating results from period to period.
| THE REALREAL, INC. Statements of Operations (In thousands, except share and per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue: | |||||||||||||||
| Consignment revenue | $ | 149,014 | $ | 128,126 | $ | 535,877 | $ | 473,396 | |||||||
| Direct revenue | 27,214 | 19,524 | 91,091 | 64,580 | |||||||||||
| Shipping services revenue | 17,823 | 16,345 | 65,877 | 62,508 | |||||||||||
| Total revenue | 194,051 | 163,995 | 692,845 | 600,484 | |||||||||||
| Cost of revenue: | |||||||||||||||
| Cost of consignment revenue | 15,549 | 14,087 | 56,582 | 53,801 | |||||||||||
| Cost of direct revenue | 20,132 | 16,839 | 70,682 | 55,809 | |||||||||||
| Cost of shipping services revenue | 13,167 | 11,006 | 48,759 | 43,353 | |||||||||||
| Total cost of revenue | 48,848 | 41,932 | 176,023 | 152,963 | |||||||||||
| Gross profit | 145,203 | 122,063 | 516,822 | 447,521 | |||||||||||
| Operating expenses: | |||||||||||||||
| Marketing | 17,702 | 14,610 | 63,251 | 55,256 | |||||||||||
| Operations and technology | 69,249 | 66,234 | 275,916 | 260,827 | |||||||||||
| Selling, general and administrative | 51,980 | 46,373 | 201,589 | 187,737 | |||||||||||
| Restructuring | — | — | — | 196 | |||||||||||
| Total operating expenses(1) | 138,931 | 127,217 | 540,756 | 504,016 | |||||||||||
| Loss from operations | 6,272 | (5,154 | ) | (23,934 | ) | (56,495 | ) | ||||||||
| Change in fair value of warrant liability | (38,881 | ) | (58,958 | ) | (35,769 | ) | (68,167 | ) | |||||||
| Gain on extinguishment of debt | — | — | 40,785 | 4,177 | |||||||||||
| Interest income | 956 | 1,671 | 4,257 | 7,943 | |||||||||||
| Interest expense | (7,258 | ) | (5,916 | ) | (27,701 | ) | (21,384 | ) | |||||||
| Other income (expense), net | 284 | — | 926 | — | |||||||||||
| Loss before provision for income taxes | (38,627 | ) | (68,357 | ) | (41,436 | ) | (133,926 | ) | |||||||
| Provision for income taxes | 155 | 98 | 363 | 276 | |||||||||||
| Net loss attributable to common stockholders | $ | (38,782 | ) | $ | (68,455 | ) | $ | (41,799 | ) | $ | (134,202 | ) | |||
| Net loss per share attributable to common stockholders | |||||||||||||||
| Basic | $ | (0.33 | ) | $ | (0.62 | ) | $ | (0.36 | ) | $ | (1.24 | ) | |||
| Diluted | $ | (0.33 | ) | $ | (0.62 | ) | $ | (0.70 | ) | $ | (1.24 | ) | |||
| Weighted average shares used to compute net loss per share attributable to common stockholders | |||||||||||||||
| Basic | 117,439,703 | 110,363,487 | 114,871,414 | 107,878,366 | |||||||||||
| Diluted | 117,439,703 | 110,363,487 | 116,512,265 | 107,878,366 | |||||||||||
| (1)Includes stock-based compensation as follows: | |||||||||||||||
| Marketing | $ | 310 | $ | 225 | $ | 1,064 | $ | 932 | |||||||
| Operations and technology | 2,185 | 2,403 | 9,380 | 9,930 | |||||||||||
| Selling, general and administrative | 4,276 | 3,874 | 18,499 | 18,220 | |||||||||||
| Total | $ | 6,771 | $ | 6,502 | $ | 28,943 | $ | 29,082 | |||||||
| THE REALREAL, INC. Balance Sheets (In thousands, except share and per share data) | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 151,231 | $ | 172,212 | |||
| Accounts receivable | 23,822 | 13,961 | |||||
| Inventory, net | 30,843 | 23,583 | |||||
| Prepaid expenses and other current assets | 21,595 | 22,913 | |||||
| Total current assets | 227,491 | 232,669 | |||||
| Property and equipment, net | 96,148 | 94,443 | |||||
| Operating lease right-of-use assets | 64,641 | 75,714 | |||||
| Restricted cash | 14,808 | 14,911 | |||||
| Other assets | 5,945 | 5,358 | |||||
| Total assets | $ | 409,033 | $ | 423,095 | |||
| Liabilities and Stockholders’ Deficit | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 14,565 | $ | 11,004 | |||
| Accrued consignor payable | 111,497 | 89,718 | |||||
| Operating lease liabilities, current portion | 24,645 | 22,835 | |||||
| Convertible senior notes, net, current portion | — | 26,653 | |||||
| Other accrued and current liabilities | 113,533 | 98,466 | |||||
| Total current liabilities | 264,240 | 248,676 | |||||
| Operating lease liabilities, net of current portion | 66,793 | 85,790 | |||||
| Convertible senior notes, net | 230,833 | 276,807 | |||||
| Non-convertible notes, net | 140,980 | 134,470 | |||||
| Warrant liability | 114,353 | 78,584 | |||||
| Other noncurrent liabilities | 7,352 | 6,144 | |||||
| Total liabilities | 824,551 | 830,471 | |||||
| Stockholders’ deficit: | |||||||
| Common stock, | 1 | 1 | |||||
| Additional paid-in capital | 880,107 | 846,450 | |||||
| Accumulated deficit | (1,295,626 | ) | (1,253,827 | ) | |||
| Total stockholders’ deficit | (415,518 | ) | (407,376 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 409,033 | $ | 423,095 | |||
| THE REALREAL, INC. Statements of Cash Flows (In thousands) | |||||||
| Year Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (41,799 | ) | $ | (134,202 | ) | |
| Adjustments to reconcile net loss to cash used in operating activities: | |||||||
| Depreciation and amortization | 33,004 | 33,100 | |||||
| Stock-based compensation expense | 28,943 | 29,082 | |||||
| Reduction of operating lease right-of-use assets | 16,070 | 15,192 | |||||
| Bad debt expense | 2,607 | 2,498 | |||||
| Non-cash interest expense | 8,179 | 8,684 | |||||
| Issuance costs allocated to liability classified warrants | — | 374 | |||||
| Accretion of debt discounts and issuance costs | 2,206 | 2,127 | |||||
| Provision for inventory write-downs and shrinkage | 2,214 | 2,590 | |||||
| Gain on debt extinguishment | (40,785 | ) | (4,177 | ) | |||
| Change in fair value of warrant liability | 35,769 | 68,167 | |||||
| Loss (gain) related to warehouse fire, net | (95 | ) | 740 | ||||
| Other adjustments | (39 | ) | (165 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (12,468 | ) | 767 | ||||
| Inventory, net | (9,474 | ) | (3,677 | ) | |||
| Prepaid expenses and other current assets | (796 | ) | 701 | ||||
| Other assets | (701 | ) | 76 | ||||
| Operating lease liability | (22,184 | ) | (20,883 | ) | |||
| Accounts payable | 1,613 | 910 | |||||
| Accrued consignor payable | 21,779 | 11,470 | |||||
| Other accrued and current liabilities | 12,663 | 13,090 | |||||
| Other noncurrent liabilities | 304 | 382 | |||||
| Net cash provided by operating activities | 37,010 | 26,846 | |||||
| Cash flow from investing activities: | |||||||
| Insurance proceeds related to warehouse fire | 2,309 | 461 | |||||
| Capitalized proprietary software development costs | (12,889 | ) | (11,800 | ) | |||
| Purchases of property and equipment | (18,644 | ) | (14,248 | ) | |||
| Net cash used in investing activities | (29,224 | ) | (25,587 | ) | |||
| Cash flow from financing activities: | |||||||
| Proceeds from exercise of stock options | 1,030 | 376 | |||||
| Proceeds from issuance of stock in connection with the Employee Stock Purchase Program | 1,652 | 1,413 | |||||
| Repayment of 2025 Notes | (26,749 | ) | — | ||||
| Taxes paid related to restricted stock vesting | (160 | ) | (1,646 | ) | |||
| Cash received from settlement of Capped Calls in conjunction with the Note Exchanges | 1,907 | 396 | |||||
| Issuance costs paid related to the Note Exchanges | (6,550 | ) | (5,298 | ) | |||
| Net cash used in financing activities | (28,870 | ) | (4,759 | ) | |||
| Net decrease in cash, cash equivalents, and restricted cash | (21,084 | ) | (3,500 | ) | |||
| Cash, cash equivalents, and restricted cash | |||||||
| Beginning of period | 187,123 | 190,623 | |||||
| End of period | $ | 166,039 | $ | 187,123 | |||
The following table reflects the reconciliation of net loss to Adjusted EBITDA for each of the periods indicated (in thousands):
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Adjusted EBITDA Reconciliation: | |||||||||||||||
| Net loss | $ | (38,782 | ) | $ | (68,455 | ) | $ | (41,799 | ) | $ | (134,202 | ) | |||
| Net loss (% of revenue) | 20.0 | % | 41.7 | % | 6.0 | % | 22.3 | % | |||||||
| Depreciation and amortization | 8,164 | 8,294 | 33,004 | 33,100 | |||||||||||
| Interest income | (956 | ) | (1,671 | ) | (4,257 | ) | (7,943 | ) | |||||||
| Interest expense(1) | 7,258 | 5,916 | 27,701 | 21,384 | |||||||||||
| Provision for income taxes | 155 | 98 | 363 | 276 | |||||||||||
| EBITDA | (24,161 | ) | (55,818 | ) | 15,012 | (87,385 | ) | ||||||||
| Stock-based compensation | 6,771 | 6,502 | 28,943 | 29,082 | |||||||||||
| CEO separation benefit and transition costs(2) | — | 782 | — | 782 | |||||||||||
| Payroll tax expense on employee stock transactions | 370 | 121 | 1,454 | 371 | |||||||||||
| Legal settlements | — | — | — | 600 | |||||||||||
| Restructuring | — | — | — | 196 | |||||||||||
| Gain on extinguishment of debt(3) | — | — | (40,785 | ) | (4,177 | ) | |||||||||
| Change in fair value of warrant liability(4) | 38,881 | 58,958 | 35,769 | 68,167 | |||||||||||
| One time expenses(5) | — | 462 | 1,711 | 1,672 | |||||||||||
| Adjusted EBITDA | $ | 21,861 | $ | 11,007 | $ | 42,104 | $ | 9,308 | |||||||
| Adjusted EBITDA (% of revenue) | 11.3 | % | 6.7 | % | 6.1 | % | 1.6 | % | |||||||
(1) As of December 31, 2025 and December 31, 2024, interest expense includes
(2) The CEO separation benefits and transition costs for the three and twelve months ended December 31, 2024 consist of severance and benefits payable to John Koryl pursuant to his separation agreement.
(3) The gain on extinguishment of debt for the year ended December 31, 2025 reflects the difference between the carrying value of the 2025 Exchanged Notes and the fair value of the 2031 Notes. The gain on extinguishment of debt for the year ended December 31, 2024 reflects the difference between the carrying value of the Exchanged Notes and the fair value of the 2029 Notes.
(4) The change in fair value of warrant liability for the three and twelve months ended December 31, 2025 and December 31, 2024 reflects the remeasurement of the Warrants issued by the Company in connection with the 2024 Note Exchange in February 2024.
(5) One time expenses for the year ended December 31, 2025 consist of employee severance costs associated with a departmental reorganization, including certain executives, recorded within Marketing and Selling, General and Administrative expenses on the statements of operations. One time expenses for the twelve months ended December 31, 2024 consists of vendor services settlement and estimated losses, net of estimated insurance recoveries related to the fire at one of our New Jersey authentication centers.
A reconciliation of GAAP net loss to non-GAAP net loss attributable to common stockholders, the most directly comparable GAAP financial measure, in order to calculate non-GAAP net loss attributable to common stockholders per share, basic and diluted, is as follows (in thousands, except share and per share data):
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net loss | $ | (38,782 | ) | $ | (68,455 | ) | $ | (41,799 | ) | $ | (134,202 | ) | |||
| Stock-based compensation | 6,771 | 6,502 | 28,943 | 29,082 | |||||||||||
| CEO separation benefit and transition costs | — | 782 | — | 782 | |||||||||||
| Payroll tax expense on employee stock transactions | 370 | 121 | 1,454 | 371 | |||||||||||
| Legal settlements | — | — | — | 600 | |||||||||||
| Provision for income taxes | 155 | 98 | 363 | 276 | |||||||||||
| Gain on extinguishment of debt | — | — | (40,785 | ) | (4,177 | ) | |||||||||
| Change in fair value of warrant liability | 38,881 | 58,958 | 35,769 | 68,167 | |||||||||||
| Restructuring and other | — | 462 | 1,711 | 1,868 | |||||||||||
| Non-GAAP net income (loss) attributable to common stockholders | $ | 7,395 | $ | (1,532 | ) | $ | (14,344 | ) | $ | (37,233 | ) | ||||
| Weighted-average common shares outstanding used to calculate Non-GAAP net loss attributable to common stockholders per share, basic and diluted | 117,439,703 | 110,363,487 | 114,871,414 | 107,878,366 | |||||||||||
| Non-GAAP net loss attributable to common stockholders per share, basic and diluted | $ | 0.06 | $ | (0.01 | ) | $ | (0.12 | ) | $ | (0.35 | ) | ||||
The following table presents a reconciliation of net cash provided by (used in) operating activities to free (negative) cash flow for each of the periods indicated (in thousands):
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net cash provided by (used in) operating activities | $ | 49,520 | $ | 27,994 | $ | 37,010 | $ | 26,846 | |||||||
| Purchase of property and equipment and capitalized proprietary software development costs | (6,920 | ) | (8,829 | ) | (31,533 | ) | (26,048 | ) | |||||||
| Free (negative) cash flow | $ | 42,600 | $ | 19,165 | $ | 5,477 | $ | 798 | |||||||
Key Financial and Operating Metrics:
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | |||||||||||||||||||||||||||
| (In thousands, except AOV and percentages) | |||||||||||||||||||||||||||||||||||
| GMV | $ | 450,668 | $ | 451,941 | $ | 440,914 | $ | 433,074 | $ | 503,534 | $ | 490,405 | $ | 504,105 | $ | 519,814 | $ | 615,683 | |||||||||||||||||
| NMV | $ | 335,245 | $ | 334,815 | $ | 329,422 | $ | 335,191 | $ | 383,447 | $ | 370,757 | $ | 379,377 | $ | 397,062 | $ | 466,924 | |||||||||||||||||
| Consignment Revenue | $ | 113,500 | $ | 115,648 | $ | 112,714 | $ | 116,908 | $ | 128,126 | $ | 123,814 | $ | 128,620 | $ | 134,429 | $ | 149,014 | |||||||||||||||||
| Direct Revenue | $ | 15,964 | $ | 12,709 | $ | 16,724 | $ | 15,623 | $ | 19,524 | $ | 20,454 | $ | 20,495 | $ | 22,928 | $ | 27,214 | |||||||||||||||||
| Shipping Services Revenue | $ | 13,909 | $ | 15,443 | $ | 15,496 | $ | 15,224 | $ | 16,345 | $ | 15,765 | $ | 16,073 | $ | 16,216 | $ | 17,823 | |||||||||||||||||
| Number of Orders | 826 | 840 | 820 | 829 | 870 | 869 | 868 | 890 | 960 | ||||||||||||||||||||||||||
| Take Rate | 37.7 | % | 38.4 | % | 38.5 | % | 38.6 | % | 37.7 | % | 38.6 | % | 37.9 | % | 37.9 | % | 36.5 | % | |||||||||||||||||
| Active Buyers | 922 | 922 | 942 | 958 | 972 | 985 | 1,001 | 1,024 | 1,056 | ||||||||||||||||||||||||||
| AOV | $ | 545 | $ | 538 | $ | 538 | $ | 522 | $ | 579 | $ | 564 | $ | 581 | $ | 584 | $ | 641 | |||||||||||||||||
FAQ
What were The RealReal (REAL) Q4 2025 financial highlights?
Did The RealReal (REAL) surpass $2 billion in GMV for 2025?
What guidance did The RealReal (REAL) give for full year 2026?
How did The RealReal (REAL) perform on cash flow and liquidity in 2025?
What drove The RealReal's (REAL) margin and profitability improvement in 2025?
