TheRealReal, Inc. Q4 FY2025 earnings call

2025 was a transformative year. They accelerated top-line growth throughout the year. Strategic pillars include growth playbook (sales team with AI tools), operational excellence (Athena automation), and obsessing over service (My Closet and AI search). Growth playbook involves sales team with deep relationships and AI tools. Operational excellence includes Athena for intake optimization. Obsessing over service includes My Closet evolution and AI search enhancements.

In the fourth quarter, GMV was $616 million, up 22% year-over-year. Full-year GMV was $2.13 billion, up 16% year-over-year. Fourth-quarter total revenue was $194 million, up 18% year-over-year. Full-year revenue was $693 million, up 15% year-over-year. Fourth-quarter adjusted EBITDA was $22 million, or 11.3% of total revenue. Full-year adjusted EBITDA was $42 million, or 6.1% of total revenue.

Full-year 2026 GMV growth expected in range of 12% - 15%, revenue growth 10% - 13%, adjusted EBITDA 57 - 65 million. First-quarter 2026 GMV growth expected in range of 19% - 22%, revenue growth 16% - 18%, adjusted EBITDA 11 - 13 million.

Involve known and unknown risks and uncertainties where actual results may differ materially from forward-looking statements. More info in company's Form 10-K and subsequent quarterly reports on Form 10-Q.

Q: Ashley Owens asked about Athena's unit processing and expansion.

A: Ended 2025 with 35% of units processed through Athena, will extend to mid and high value items.

Q: Ike Beruccio asked about Q1 guide.

A: Seeing buyer and seller resilience, growth playbook working.

Q: Bobby Brooks asked about dropshipping and other supply initiatives.

A: Dropshipping testing in categories, other initiatives like referrals and flywheel.

Q: Anna Glaston asked about Athena contribution and agentic search.

A: Athena to continue increasing, agentic search in scaling.

Q: Marvin Fong asked about ASP, product mix, and direct margin.

A: Higher value items driving mix, direct margin from product mix.

Q: Mark Altschweger asked about revenue mix and sales team hiring.

A: Take rate shift influencing revenue mix, sales team hiring with efficiency focus.

Q: Dylan Cardin asked about My Closet and AI in supply.

A: My Closet evolving, AI helping supply procurement.

Q: J Sol asked about OpEx margin expansion.

A: Operations and tech driving margin expansion.

Q: Matt Caranda asked about AI in supply and margin sources.

A: AI helping supply, operations and tech leading margin expansion from OpEx