The RealReal, Inc.
- Open
- 10.13
- Day high
- 10.24
- Day low
- 9.96
- Prev close
- 10.01
- Volume
- 2.1M
- Mkt cap
- $1.2B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- -3.3
- P/S
- 1.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$1.9M over the last 3 months (0 open-market buys, 16 sales)
- 🏛Institutions accumulating (13F)
The RealReal, Inc. (REAL) is a Consumer Cyclical company listed on NASDAQ. The stock is up 21% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 16 sales (SEC Form 4). Drillr has 1 published research article covering REAL.
The RealReal, Inc. (REAL) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
REAL earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $-0.02 | $-0.01 | +43.2% | $193M | +2.4% |
| May 7, 2026 | $-0.01 | $-0.01 | +0.0% | $190M | +1.0% |
| Aug 7, 2025 | $-0.15 | $-0.13 | +13.3% | $165M | -2.5% |
| May 8, 2025 | $-0.13 | $-0.14 | -7.7% | $160M | +0.2% |
| Feb 20, 2025 | $-0.10 | $-0.62 | -520.0% | $164M | -0.1% |
| Feb 29, 2024 | $-0.11 | $-0.07 | +36.4% | $143M | +0.7% |
| Feb 28, 2023 | $-0.36 | $-0.29 | +19.4% | $160M | +1.2% |
| Feb 23, 2022 | $-0.38 | $-0.42 | -10.5% | $145M | +7.5% |
| Feb 22, 2021 | $-0.38 | $-0.49 | -28.9% | $85M | +21.8% |
| Aug 6, 2020 | $-0.37 | $-0.42 | -13.5% | $57M | +16.7% |
| May 6, 2020 | $-0.41 | $-0.39 | +4.9% | $78M | -7.1% |
| Feb 25, 2020 | $-0.18 | $-0.17 | +5.6% | $97M | -10.5% |
REAL insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 24, 2026 | Lo Steve Mingofficer: Chief Accounting Officer | Sell | 8,985 | $10.97 |
| Aug 24, 2026 | Suko Todd Aofficer: Chief Legal Officer and Secret | Sell | 4,193 | $10.98 |
| Aug 24, 2026 | Lo Steve Mingofficer: Chief Accounting Officer | Sell | 2,167 | $10.97 |
| Aug 24, 2026 | Friang Luke Thomasofficer: Chief Product & Tech Officer | Sell | 2,501 | $10.98 |
| Aug 24, 2026 | Friang Luke Thomasofficer: Chief Product & Tech Officer | Sell | 2,514 | $10.98 |
| Aug 24, 2026 | Lo Steve Mingofficer: Chief Accounting Officer | Sell | 1,407 | $10.98 |
| Aug 24, 2026 | Suko Todd Aofficer: Chief Legal Officer and Secret | Sell | 2,479 | $10.98 |
| Aug 24, 2026 | Friang Luke Thomasofficer: Chief Product & Tech Officer | Sell | 8,485 | $10.98 |
| Aug 24, 2026 | Madan Gopal Ajayofficer: Chief Financial Officer | Sell | 23,581 | $10.98 |
| Aug 24, 2026 | Friang Luke Thomasofficer: Chief Product & Tech Officer | Sell | 8,528 | $10.98 |
| Aug 24, 2026 | Madan Gopal Ajayofficer: Chief Financial Officer | Sell | 8,067 | $10.98 |
| Aug 24, 2026 | Sahi Levesque Ratiofficer: Chief Executive Officer | Sell | 56,145 | $10.98 |
| Aug 24, 2026 | Sahi Levesque Ratiofficer: Chief Executive Officer | Sell | 20,216 | $10.98 |
| Aug 24, 2026 | Madan Gopal Ajayofficer: Chief Financial Officer | Sell | 4,770 | $10.98 |
| Aug 24, 2026 | Sahi Levesque Ratiofficer: Chief Executive Officer | Sell | 8,071 | $10.98 |
Source: REAL SEC Form 4 filings, latest Aug 24, 2026. For informational purposes only — not investment advice.
See the full REAL insider & 13F page →The RealReal, Inc. company profile
Overview
The RealReal, Inc. (NASDAQ:REAL) is a San Francisco-based online marketplace for authenticated luxury consignment goods, founded in 2011 and going public in 2019. The company operates as an intermediary between luxury goods owners looking to sell their items and buyers seeking authenticated pre-owned luxury products. After years of losses, the company achieved its first full year of positive adjusted EBITDA in 2024, marking a significant operational milestone in its journey toward profitability.
Business
The RealReal operates in the luxury resale market, functioning as an online consignment marketplace that connects sellers of high-end goods with buyers seeking authenticated pre-owned luxury items. The company's core service involves accepting luxury goods from consigners, authenticating these items through expert evaluation, photographing and listing them on their platform, and facilitating sales to buyers. The business model centers around consignment, where item owners send their luxury goods to The RealReal, which then handles the entire sales process. When items sell, the company takes a commission and pays the remainder to the consigner. This differs from traditional retail in that The RealReal doesn't purchase inventory upfront but rather acts as an intermediary. The company operates two primary revenue streams. Consignment revenue represents approximately 90% of total revenue and comes from commission fees on sold items, typically ranging from 15% to 70% depending on item value and consigner status. Direct revenue accounts for roughly 10% of revenue and includes items purchased outright by the company, vendor partnerships, and their "Get Paid Now" program where consigners receive immediate payment. Product categories span women's fashion (the largest segment), men's fashion, jewelry and watches, handbags and accessories, kids' items, and home and art. The company focuses particularly on mid-to-high value items, typically priced between $200-$750, as these provide optimal margins while maintaining broad market appeal. The authentication process is central to the value proposition. The RealReal employs gemologists, horologists, and fashion experts who physically examine each item to verify authenticity, condition, and proper attribution. This expertise addresses the primary concern in luxury resale: counterfeit goods.
Competitive moat
The RealReal's competitive moat is moderate but strengthening, built primarily around its authentication expertise and operational scale. The company has developed significant domain expertise in luxury goods authentication, employing specialists across multiple categories who can identify subtle authenticity markers that general consumers cannot. This expertise, accumulated over 13 years of operation, creates a barrier for new entrants who would need to build similar capabilities. The company benefits from network effects where more consigners attract more buyers and vice versa, though this moat is not insurmountable. Their data advantages from processing millions of luxury items provide insights into pricing, demand patterns, and authentication that competitors cannot easily replicate. The company leverages this data through AI-powered pricing algorithms and operational improvements. Operational scale provides cost advantages in authentication, logistics, and marketing that smaller competitors struggle to match. The company's investment in technology infrastructure, including AI systems for authentication and pricing, creates efficiency barriers for competitors. However, the moat faces significant challenges. Competition comes from established players like Vestiaire Collective, Fashionphile, and newer entrants backed by significant capital. Brand partnerships where luxury brands develop their own resale channels could bypass third-party platforms entirely. Technology disruption through improved authentication methods or blockchain-based verification could commoditize the authentication advantage. The consignment model itself provides limited switching costs - consigners can easily move to competing platforms for future sales. Unlike subscription businesses, The RealReal must continuously compete for each individual consignment, limiting customer stickiness. The company's moat is defendable but not dominant. Success depends on continuous investment in authentication capabilities, technology, and operational efficiency to maintain competitive advantages in a market with relatively low barriers to entry for well-funded competitors.
Risks & safety
The margin of safety appears moderate to concerning based on current financial metrics and operational trends. Liquidity and Solvency: • Cash position: $140 million as of Q1 2025 • Current ratio: 0.87 (below 1.0 indicates potential liquidity concerns) • Free cash flow: -$36 million in Q1 2025, though showed positive $19 million in Q4 2024 • Debt-to-equity ratio: -1.5 (negative equity of $336 million creates structural concerns) Valuation Metrics: • Price-to-earnings: 0.60 (appears cheap but earnings quality questionable) • Enterprise value-to-EBITDA: -19x (negative EBITDA makes metric less meaningful) • Price-to-book: -0.45 (negative book value indicates balance sheet stress) Other Considerations: • Recently achieved first full year of positive adjusted EBITDA ($9.3 million in 2024) • Revenue growth trending positively (11% in Q1 2025) • Negative stockholders' equity creates going concern risks • Burn rate has improved significantly but remains negative on free cash flow basis
Recent development
Over the past few years, The RealReal has undergone a significant strategic transformation focused on achieving profitability while maintaining growth. The company implemented a comprehensive "Growth Playbook" strategy centered on three pillars: unlocking supply, operational efficiency, and service obsession. In the supply generation area, the company optimized its sales team compensation structure and launched the "Real Partners" referral program to incentivize existing consigners to bring new sellers. They introduced the "Get Paid Now" program allowing consigners to receive immediate payment rather than waiting for items to sell, addressing a key friction point. The company also expanded its neighborhood store strategy and refined its marketing to target mid-to-high value consigners more effectively. Operational efficiency improvements have been driven heavily by AI implementation. The company launched "Athena AI" for enhanced authentication and item processing, reducing processing time by 20%. They deployed "SmartSales AI" to help sales teams target potential consigners more effectively. Algorithmic pricing now covers approximately 85% of inventory, compared to 25% in 2022, improving pricing accuracy and speed to market. The company has also strategically shifted its business mix, moving away from low-value items and direct purchases toward higher-margin consignment revenue. This resulted in direct revenue declining from significant levels in 2022-2023 to approximately 10% of total revenue, while consignment revenue grew substantially and now represents about 90% of total revenue. Service improvements include launching "obsession counts" on product listings to build community engagement and implementing enhanced personalization features. The company has also invested in improving the overall user experience for both consigners and buyers. These strategic initiatives culminated in the company achieving its first full year of positive adjusted EBITDA in 2024 ($9.3 million) after years of losses, while maintaining revenue growth momentum.
REAL company profile · for informational purposes only — not investment advice.
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