THE REALREAL ANNOUNCES THIRD QUARTER 2026 RESULTS
Trailing twelve-month active buyers increased 13% to 1,152,000, while average order value rose 8% to $629.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
The RealReal (REAL) reported third-quarter 2026 revenue of $206 million, up 19% year over year, and raised its full-year outlook. Gross merchandise value (GMV) rose 23% to $642 million, while orders increased 15%. Gross margin reached 74.9%, up 64 basis points.
Net income was $16 million versus a $54 million loss, including a $21.2 million non-cash warrant valuation adjustment. Diluted loss per share narrowed to $0.04 from $0.49. Adjusted EBITDA, a non-GAAP profit measure, reached $17.0 million versus $9.3 million.
The company expects full-year revenue of $806–$810 million and adjusted EBITDA of $71.1–$72.6 million; fourth-quarter guidance is $218–$222 million and $27.5–$29.0 million, respectively. A refinancing completed in October extended debt maturities. Cash and equivalents fell to $130.405 million from $151.231 million at year-end, while nine-month operating cash flow turned positive.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 guidance raised: revenue of $806–$810 million, GMV of $2.585–$2.600 billion.
- Moderate pointQ3 revenue increased 19% year over year to $206 million.
- Moderate pointQ3 GMV increased 23% year over year to $642 million.
- Moderate pointQ3 net income reached $16 million versus a $54 million loss a year earlier.
- Moderate pointQ3 adjusted EBITDA rose to $17.0 million from $9.3 million; margin increased to 8.3% from 5.4%.
- Moderate pointQ3 gross profit rose to $154.402 million from $128.920 million a year earlier.
- Moderate pointQ3 orders increased 15% year over year.
- Moderate pointTrailing twelve-month active buyers increased 13% year over year to 1,152,000.
- Moderate pointOctober refinancing completed, extending the company's debt maturity profile.
- Moderate pointNine-month operating cash flow reached positive $9.968 million versus negative $12.510 million.
11 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted EBITDA guidance is $71.1–$72.6 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.Q4 guidance targets revenue of $218–$222 million and GMV of $720–$735 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.Q4 adjusted EBITDA guidance is $27.5–$29.0 million.
- Minor pointQ3 operating income reached $1.472 million versus a $7.550 million operating loss.
- Minor pointQ3 gross margin increased 64 basis points year over year to 74.9%.
- Minor pointQ3 consignment revenue increased 18% year over year; direct revenue increased 19%.
- Minor pointQ3 shipping services revenue rose to $19.590 million from $16.216 million a year earlier.
- Minor pointQ3 average order value increased 8% year over year to $629.
- Minor pointNine-month revenue increased to $588.402 million from $498.794 million a year earlier.
- Minor pointNine-month net income reached $27.709 million versus a $3.017 million loss.
- Minor pointNine-month operating loss narrowed to $3.085 million from $30.206 million.
Negative
- Moderate pointCash and equivalents declined to $130.405 million at September 30 from $151.231 million at December 31, 2025.
- Moderate pointQ3 net income included a $21.2 million non-cash warrant valuation adjustment. 1.6% of market cap
- Minor pointQ3 diluted loss per share remained $0.04, versus $0.49 a year earlier.
- Minor pointNine-month diluted loss per share was $0.18, versus $0.38 a year earlier.
- Minor pointQ3 operating expenses increased to $152.930 million from $136.470 million a year earlier.
5 minor points
- Minor pointQ3 interest expense increased to $7.483 million from $7.085 million a year earlier.
- Minor pointNine-month property and equipment purchases increased to $21.158 million from $14.955 million.
- Minor pointNine-month capitalized software development costs increased to $10.889 million from $9.658 million.
- Minor pointShares outstanding increased to 122,650,017 at September 30 from 118,318,917 at December 31, 2025.
- Minor pointSeptember 30 stockholders' deficit remained $354.426 million, versus $415.518 million at December 31, 2025.
News Explained
The RealReal lists 122,650,017 shares outstanding at
Details
Market move: REAL +5.64% vs previous close. 3Q26 earnings report
On Oct 29, the day this news came out, the latest delayed price for REAL is 5.64% above the previous close. Our momentum scanner has recorded 17 alerts for this stock so far that day. The latest delayed price is $11.99. Relative volume is very high at 3.4x the average.
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Key Figures
- GMV
- $642 million; +23%
- Q3 2026 year over year
- Total revenue
- $206 million; +19%
- Q3 2026 year over year
- Gross margin
- 74.9%; +64 basis points
- Q3 2026 year over year
- Adjusted EBITDA
- $17.0 million; 8.3% margin
- Q3 2026, versus $9.3 million and 5.4% in Q3 2025
- Net income
- $16 million
- Q3 2026; includes a $21.2 million non-cash warrant-liability adjustment
- FY2026 GMV guidance
- $2.585–$2.600 billion
- Raised full-year outlook
- FY2026 revenue guidance
- $806–$810 million
- Raised full-year outlook
- FY2026 Adjusted EBITDA guidance
- $71.1–$72.6 million
- Raised full-year outlook
Previous Earnings Reports
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Q2 growth and raised FY26 outlook provide the prior-quarter earnings and guidance baseline.
-
Prior-year Q3 record growth and profitability figures establish the year-over-year comparison base.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gross merchandise value financial
adjusted ebitda financial
non-gaap financial
warrant liability financial
convertible senior notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Third Quarter Delivers Record Revenue, GMV and Orders as Active Buyer Growth Accelerates and Margins Expand; Company Raises Full Year Outlook
"Q3 was another record quarter for The RealReal, with quarterly all-time highs in GMV, revenue and orders, with our strongest quarterly order growth since 2022, up
Levesque continued, "Underlying those results is a fundamental change in how people shop for luxury fashion, and our purpose-built platform is helping to drive it. Customers increasingly start their journey with us and engage well beyond the transaction, to discover what to buy, to track what they own, and to decide when to sell. That is the new operating system for luxury fashion ownership, and that is what we are building. Our performance this quarter reinforces our conviction in the direction of the business and our ability to execute, and we are raising our full-year outlook."
Third Quarter Highlights
- GMV was
$642 million 23% compared to the same period in 2025 - Total Revenue was
$206 million 19% compared to the same period in 2025 - Gross Profit was
$154 million $25 million - Gross Margin was
74.9% , an increase of 64 basis points compared to the same period in 2025 - Net Income (Loss) was
$16 million 7.8% of total revenue, compared to$(54) million $21.2 million - Adjusted EBITDA was
$17.0 million 8.3% of total revenue compared to$9.3 million 5.4% of total revenue in the same period in 2025 - GAAP basic net income (loss) per share was
$0.13 $(0.47) $(0.04) $(0.49) - Non-GAAP basic and diluted net income (loss) attributable to common stockholders per share was
$0.02 $(0.04) - Top-line-related Metrics
- Trailing twelve months active buyers was 1,152,000, an increase of
13% compared to the same period in 2025 - Average order value (AOV) was
$629 8% versus the same period in 2025
- Trailing twelve months active buyers was 1,152,000, an increase of
Q4 and Full Year 2026 Guidance
Based on market conditions as of October 29, 2026, we are raising our full year guidance. Additionally, we are providing guidance for fourth quarter 2026 GMV, Total Revenue 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).
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Q4 2026 |
Full Year 2026 |
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GMV |
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Total Revenue |
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Adjusted EBITDA |
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Webcast and Conference Call
The RealReal will host a conference call to review the company's third quarter 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. To access the conference please register using this link:
https://the-realreal-earnings-call-q3-2026.open-exchange.net/registration.
About The RealReal, Inc.
The RealReal is the world's largest online marketplace for authenticated resale luxury goods, trusted by a community of 45 million members. Its full-service consignment model across fashion, fine jewelry and watches, art and home, makes it easy for customers to buy and sell luxury wherever they are. The Company combines rigorous, expert-led authentication with AI and proprietary technology to optimize operations and pricing while streamlining the customer experience. Backed by 15 years of proprietary data and more than 55 million items sold, The RealReal has become the preferred destination for modern luxury resale, redefining the luxury lifecycle.
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, in particular in the context of uncertainty surrounding macro-economic trends, financial guidance, anticipated growth in 2026, the anticipated impact of generative AI, and financial targets, goals 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, our ability to successfully complete, and realize the anticipated benefits of, our plans to strengthen our balance sheet, 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, 2025 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 income (loss) attributable to common stockholders, and non-GAAP net income (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 income (loss) before interest income, interest expense, provision (benefit) for income taxes, depreciation and amortization, further adjusted to exclude stock-based compensation, employer payroll tax expense on employee stock transactions, gain on extinguishment of debt, change in fair value of warrant liabilities and certain one-time expenses. The employer payroll tax expense related to employee stock transactions is 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 income (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 expense 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 expense 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 income (loss) per share attributable to common stockholders, basic and diluted is a non-GAAP financial measure that is calculated as GAAP net income (loss) plus stock-based compensation expense, provision (benefit) for income taxes, payroll tax expense on employee stock transactions, gain on extinguishment of debt, change in fair value of warrant liabilities and certain one-time expenses divided by weighted average shares outstanding. We believe that making these adjustments before calculating per share amounts for all periods presented provides a more meaningful comparison between our operating results from period to period.
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THE REALREAL, INC. Statements of Operations (In thousands, except share and per share data) (Unaudited)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenue: |
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|
|
|
|
|
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Consignment revenue |
$ 159,145 |
|
$ 134,429 |
|
$ 453,254 |
|
$ 386,863 |
|
Direct revenue |
27,381 |
|
22,928 |
|
78,976 |
|
63,877 |
|
Shipping services revenue |
19,590 |
|
16,216 |
|
56,172 |
|
48,054 |
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Total revenue |
206,116 |
|
173,573 |
|
588,402 |
|
498,794 |
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Cost of revenue: |
|
|
|
|
|
|
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Cost of consignment revenue |
17,042 |
|
14,318 |
|
48,564 |
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41,033 |
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Cost of direct revenue |
22,245 |
|
18,130 |
|
62,936 |
|
50,550 |
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Cost of shipping services revenue |
12,427 |
|
12,205 |
|
37,964 |
|
35,592 |
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Total cost of revenue |
51,714 |
|
44,653 |
|
149,464 |
|
127,175 |
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Gross profit |
154,402 |
|
128,920 |
|
438,938 |
|
371,619 |
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Operating expenses: |
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|
|
|
|
|
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Marketing |
18,204 |
|
14,146 |
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55,143 |
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45,549 |
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Operations and technology |
78,510 |
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70,703 |
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225,935 |
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206,667 |
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Selling, general and administrative |
56,216 |
|
51,621 |
|
160,945 |
|
149,609 |
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Total operating expenses (1) |
152,930 |
|
136,470 |
|
442,023 |
|
401,825 |
|
Income (loss) from operations |
1,472 |
|
(7,550) |
|
(3,085) |
|
(30,206) |
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Change in fair value of warrant liability |
21,224 |
|
(43,928) |
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49,976 |
|
3,112 |
|
Gain on extinguishment of debt |
— |
|
3,684 |
|
— |
|
40,785 |
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Interest income |
846 |
|
818 |
|
2,749 |
|
3,301 |
|
Interest expense |
(7,483) |
|
(7,085) |
|
(22,026) |
|
(20,443) |
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Other income, net |
58 |
|
34 |
|
415 |
|
642 |
|
Income (loss) before provision for income taxes |
16,117 |
|
(54,027) |
|
28,029 |
|
(2,809) |
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Provision for income taxes |
111 |
|
24 |
|
320 |
|
208 |
|
Net income (loss) attributable to common stockholders |
$ 16,006 |
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$ (54,051) |
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$ 27,709 |
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$ (3,017) |
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Net income (loss) per share attributable to common stockholders |
|
|
|
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Basic |
$ 0.13 |
|
$ (0.47) |
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$ 0.23 |
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$ (0.03) |
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Diluted |
$ (0.04) |
|
$ (0.49) |
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$ (0.18) |
|
$ (0.38) |
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Weighted average shares used to compute net income (loss) per share attributable to common stockholders |
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Basic |
122,116,628 |
|
115,893,232 |
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120,897,549 |
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113,793,229 |
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Diluted |
128,147,178 |
|
116,772,661 |
|
126,983,659 |
|
121,904,021 |
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|
|
|
|
|
|
|
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(1) Includes stock-based compensation as follows: |
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|
|
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Marketing |
$ 403 |
|
$ 27 |
|
$ 1,170 |
|
$ 754 |
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Operations and technology |
2,354 |
|
2,294 |
|
6,911 |
|
7,195 |
|
Selling, general and administrative |
4,415 |
|
4,284 |
|
12,939 |
|
14,223 |
|
Total |
$ 7,172 |
|
$ 6,605 |
|
$ 21,020 |
|
$ 22,172 |
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THE REALREAL, INC. Condensed Balance Sheets (In thousands, except share and per share data) (Unaudited)
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|
September 30, |
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December 31, |
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Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
$ 130,405 |
|
$ 151,231 |
|
Accounts receivable, net |
27,870 |
|
23,822 |
|
Inventory, net |
37,449 |
|
30,843 |
|
Prepaid expenses and other current assets |
22,480 |
|
21,595 |
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Total current assets |
218,204 |
|
227,491 |
|
Property and equipment, net |
104,204 |
|
96,148 |
|
Operating lease right-of-use assets |
59,835 |
|
64,641 |
|
Restricted cash |
14,777 |
|
14,808 |
|
Other assets |
6,656 |
|
5,945 |
|
Total assets |
$ 403,676 |
|
$ 409,033 |
|
Liabilities and Stockholders' Deficit |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
$ 13,822 |
|
$ 14,565 |
|
Accrued consignor payable |
108,887 |
|
111,497 |
|
Operating lease liabilities, current portion |
23,172 |
|
24,645 |
|
Other accrued and current liabilities |
115,032 |
|
113,533 |
|
Total current liabilities |
260,913 |
|
264,240 |
|
Operating lease liabilities, net of current portion |
60,120 |
|
66,793 |
|
Convertible Senior Notes, net |
231,898 |
|
230,833 |
|
Non-convertible notes, net |
147,665 |
|
140,980 |
|
Warrant liability |
53,464 |
|
114,353 |
|
Other noncurrent liabilities |
4,042 |
|
7,352 |
|
Total liabilities |
758,102 |
|
824,551 |
|
Stockholders' deficit: |
|
|
|
|
Common stock, |
1 |
|
1 |
|
Additional paid-in capital |
913,490 |
|
880,107 |
|
Accumulated deficit |
(1,267,917) |
|
(1,295,626) |
|
Total stockholders' deficit |
(354,426) |
|
(415,518) |
|
Total liabilities and stockholders' deficit |
$ 403,676 |
|
$ 409,033 |
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THE REALREAL, INC. Condensed Statements of Cash Flows (In thousands) (Unaudited)
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|
|
Nine Months Ended September 30, |
||
|
|
2026 |
|
2025 |
|
Cash flows from operating activities: |
|
|
|
|
Net income (loss) |
$ 27,709 |
|
$ (3,017) |
|
Adjustments to reconcile net income (loss) to cash used in operating activities: |
|
|
|
|
Depreciation and amortization |
23,991 |
|
24,840 |
|
Stock-based compensation expense |
21,020 |
|
22,172 |
|
Reduction of operating lease right-of-use assets |
12,997 |
|
11,957 |
|
Bad debt expense |
1,922 |
|
2,045 |
|
Non-cash interest expense |
(414) |
|
1,483 |
|
Accretion of debt discounts and issuance costs |
1,573 |
|
1,663 |
|
Provision for inventory write-downs and shrinkage |
3,073 |
|
2,228 |
|
Gain on debt extinguishment |
— |
|
(40,785) |
|
Change in fair value of warrant liability |
(49,976) |
|
(3,112) |
|
Loss (gain) related to warehouse fire, net |
— |
|
(362) |
|
Other adjustments |
15 |
|
(29) |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable, net |
(5,970) |
|
(12,426) |
|
Inventory, net |
(9,679) |
|
(8,343) |
|
Prepaid expenses and other current assets |
(885) |
|
1,079 |
|
Other assets |
(770) |
|
(499) |
|
Operating lease liability |
(16,337) |
|
(16,369) |
|
Accounts payable |
235 |
|
663 |
|
Accrued consignor payable |
(2,610) |
|
(2,915) |
|
Other accrued and current liabilities |
5,851 |
|
7,201 |
|
Other noncurrent liabilities |
(1,777) |
|
16 |
|
Net cash provided by (used in) operating activities |
9,968 |
|
(12,510) |
|
Cash flow from investing activities: |
|
|
|
|
Insurance proceeds related to warehouse fire |
— |
|
2,309 |
|
Capitalized proprietary software development costs |
(10,889) |
|
(9,658) |
|
Purchases of property and equipment |
(21,158) |
|
(14,955) |
|
Net cash used in investing activities |
(32,047) |
|
(22,304) |
|
Cash flow from financing activities: |
|
|
|
|
Proceeds from exercise of stock options |
322 |
|
310 |
|
Taxes paid related to restricted stock vesting |
(118) |
|
(120) |
|
Repayment of 2025 Notes |
— |
|
(26,749) |
|
Proceeds from issuance of stock in connection with the Employee Stock Purchase Program |
1,018 |
|
838 |
|
Cash received from settlement of capped calls in conjunction with the 2025 Note Exchanges |
— |
|
1,907 |
|
Issuance costs paid related to the 2025 Note Exchanges |
— |
|
(5,214) |
|
Net cash provided by (used in) financing activities |
1,222 |
|
(29,028) |
|
Net decrease in cash, cash equivalents and restricted cash |
(20,857) |
|
(63,842) |
|
Cash, cash equivalents and restricted cash |
|
|
|
|
Beginning of period |
166,039 |
|
187,123 |
|
End of period |
$ 145,182 |
|
$ 123,281 |
The following table reflects the reconciliation of net income (loss) to Adjusted EBITDA for each of the periods indicated (in thousands):
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Adjusted EBITDA Reconciliation: |
|
|
|
|
|
|
|
|
Net income (loss) |
$ 16,006 |
|
$ (54,051) |
|
$ 27,709 |
|
$ (3,017) |
|
Net income (loss) (% of revenue) |
7.8 % |
|
(31.1) % |
|
4.7 % |
|
(0.6) % |
|
Depreciation and amortization |
8,074 |
|
8,209 |
|
23,991 |
|
24,840 |
|
Interest income |
(846) |
|
(818) |
|
(2,749) |
|
(3,301) |
|
Interest expense |
7,483 |
|
7,085 |
|
22,026 |
|
20,443 |
|
Provision for income taxes |
111 |
|
24 |
|
320 |
|
208 |
|
EBITDA |
30,828 |
|
(39,551) |
|
71,297 |
|
39,173 |
|
Stock-based compensation |
7,172 |
|
6,605 |
|
21,020 |
|
22,172 |
|
Payroll tax expense on employee stock transactions |
234 |
|
285 |
|
1,270 |
|
1,084 |
|
Gain on extinguishment of debt (1) |
— |
|
(3,684) |
|
— |
|
(40,785) |
|
Change in fair value of warrant liability (2) |
(21,224) |
|
43,928 |
|
(49,976) |
|
(3,112) |
|
One-time expenses (3) |
— |
|
1,711 |
|
— |
|
1,711 |
|
Adjusted EBITDA |
$ 17,010 |
|
$ 9,294 |
|
$ 43,611 |
|
$ 20,243 |
|
Adjusted EBITDA (% of revenue) |
8.3 % |
|
5.4 % |
|
7.4 % |
|
4.1 % |
|
|
|
(1) The gain on extinguishment of debt for the three and nine months ended September 30, 2025 reflects the difference between the carrying value of the 2025 Exchanged Notes and the fair value of the 2031 Notes. |
|
|
|
(2) The change in fair value of warrant liability for the three and nine months ended September 30, 2026 and September 30, 2025 reflects the remeasurement of the Warrants issued by the Company in connection with the 2024 Note Exchange in February 2024. |
|
|
|
(3) One time expenses for the three and nine months ended September 30, 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 condensed statements of operations. |
A reconciliation of GAAP net income (loss) to non-GAAP net income (loss) attributable to common stockholders, the most directly comparable GAAP financial measure, in order to calculate non-GAAP net income (loss) attributable to common stockholders per share, basic and diluted, is as follows (in thousands, except share and per share data):
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Net income (loss) |
$ 16,006 |
|
$ (54,051) |
|
$ 27,709 |
|
$ (3,017) |
|
Stock-based compensation |
7,172 |
|
6,605 |
|
21,020 |
|
22,172 |
|
Payroll tax expense on employee stock transactions |
234 |
|
285 |
|
1,270 |
|
1,084 |
|
Provision for income taxes |
111 |
|
24 |
|
320 |
|
208 |
|
Gain on extinguishment of debt |
— |
|
(3,684) |
|
— |
|
(40,785) |
|
Change in fair value of warrant liability |
(21,224) |
|
43,928 |
|
(49,976) |
|
(3,112) |
|
One-time expenses |
— |
|
1,711 |
|
— |
|
1,711 |
|
Non-GAAP net income (loss) attributable to common stockholders |
$ 2,299 |
|
$ (5,182) |
|
$ 343 |
|
$ (21,739) |
|
Weighted-average common shares outstanding to calculate Non-GAAP net income (loss) attributable to common stockholders per share, basic and diluted |
122,116,628 |
|
115,893,232 |
|
120,897,549 |
|
113,793,229 |
|
Non-GAAP net income (loss) attributable to common stockholders per share, basic and diluted |
$ 0.02 |
|
$ (0.04) |
|
$ 0.00 |
|
$ (0.19) |
The following table presents a reconciliation of net cash provided for (used in) operating activities to free (negative) cash flow for each of the periods indicated (in thousands):
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Net cash provided by (used in) operating activities |
$ 24,976 |
|
$ 19,330 |
|
$ 9,968 |
|
$ (12,510) |
|
Purchase of property and equipment and capitalized proprietary software development costs |
(13,708) |
|
(5,612) |
|
(32,047) |
|
(24,613) |
|
Free (negative) cash flow |
$ 11,268 |
|
$ 13,718 |
|
$ (22,079) |
|
$ (37,123) |
Key Financial and Operating Metrics:
|
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
|
|
(In thousands, except AOV and percentages) |
||||||||||||||||
|
GMV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NMV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consignment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Revenue |
$ 15,623 |
|
$ 19,524 |
|
$ 20,454 |
|
$ 20,495 |
|
$ 22,928 |
|
$ 27,214 |
|
$ 25,808 |
|
$ 25,787 |
|
$ 27,381 |
|
Shipping Services |
$ 15,224 |
|
$ 16,345 |
|
$ 15,765 |
|
$ 16,073 |
|
$ 16,216 |
|
$ 17,823 |
|
$ 18,014 |
|
$ 18,568 |
|
$ 19,590 |
|
Number of Orders |
829 |
|
870 |
|
869 |
|
868 |
|
890 |
|
960 |
|
938 |
|
937 |
|
1,020 |
|
Take Rate |
38.6 % |
|
37.7 % |
|
38.6 % |
|
37.9 % |
|
37.9 % |
|
36.5 % |
|
36.4 % |
|
35.9 % |
|
36.8 % |
|
Active Buyers |
958 |
|
972 |
|
985 |
|
1,001 |
|
1,024 |
|
1,056 |
|
1,083 |
|
1,107 |
|
1,152 |
|
AOV |
$ 522 |
|
$ 579 |
|
$ 564 |
|
$ 581 |
|
$ 584 |
|
$ 641 |
|
$ 646 |
|
$ 659 |
|
$ 629 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/the-realreal-announces-third-quarter-2026-results-302924177.html
SOURCE The RealReal
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were The RealReal's third-quarter 2026 earnings results?
The RealReal reported $206 million in revenue and $16 million in net income, compared with a $54 million net loss a year earlier. Revenue increased 19% year over year. Net income included a $21.2 million non-cash warrant valuation adjustment, while diluted loss per share was $0.04 versus $0.49.
What is The RealReal's updated full-year 2026 guidance?
The RealReal raised its full-year outlook to $806–$810 million in revenue, $2.585–$2.600 billion in GMV and $71.1–$72.6 million in adjusted EBITDA. The outlook reflects market conditions as of October 29, 2026.
Why does The RealReal not provide a GAAP reconciliation for its adjusted EBITDA guidance?
The company cannot predict certain reconciliation components with reasonable certainty without unreasonable effort, including payroll taxes on employee stock transactions outside its control. Those unavailable components could materially affect future net income or loss, so the adjusted EBITDA outlook is not reconciled to that GAAP measure.