The RealReal (REAL) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of $164M, up 14% year-over-year, and full-year revenue of $600M, up 9% year-over-year.

• Returned to profitable growth in 2024 with first full year of positive Adjusted EBITDA ($9M) and positive Free Cash Flow ($1M), a $64M improvement from 2023.

• Strategic focus on unlocking supply, operational efficiency, and service excellence, leveraging AI and process improvements.

• Operating cash flow turned positive at $27M for the year, up $88M year-over-year.

• Strategic debt transaction reduced indebtedness and improved capital flexibility.

Financial highlights

• Q4 GMV was $504M, up 12% year-over-year; full-year GMV was $1.83B, up 6%.

• Q4 gross profit was $122M, with a 74.4% margin; full-year gross margin was 74.5%.

• Q4 Adjusted EBITDA was $11M (6.7% margin); full-year Adjusted EBITDA was $9M (1.6% margin).

• Q4 operating cash flow was $28M; free cash flow was $19M; year-end cash and equivalents totaled $187M.

• Full-year net loss was $(134)M, including a $68M warrant liability adjustment; non-GAAP net loss per share was $(0.35).

Outlook and guidance

• 2025 GMV projected at $1.96–$1.99B, up 8% at midpoint; revenue expected at $645–$660M, up 9%.

• Adjusted EBITDA guidance for 2025 is $20–$30M, with 200–300 basis points margin expansion.

• Q1 2025 GMV expected at $484–$492M (8% growth); revenue at $157–$161M (11% growth); Adjusted EBITDA $3.0–$4.5M.

• Capital expenditures expected at 2–3% of revenue; operating and free cash flow to be back half-weighted.