The RealReal (REAL) Q4 2025 earnings summary

Executive summary

• Achieved $2.13B in GMV for FY25, up 16% year-over-year, and $616M GMV in Q4, up 22% year-over-year.

• Surpassed $2B GMV milestone and delivered positive Adjusted EBITDA in every quarter for the first time, totaling $42M for FY25.

• Growth driven by a balanced mix of unit volume and higher average selling prices, especially in fine jewelry and watches.

• Trailing 12-month active buyers grew 9% year-over-year to 1,056,000.

• Strategic focus on AI-driven operational excellence, supply unlocking, and customer experience enhancements.

Financial highlights

• Q4 revenue reached $194M, up 18% year-over-year; consignment revenue rose 16%, direct revenue up 39%.

• Q4 gross profit was $145M (+19% YoY), with gross margin at 74.8% (+40bps YoY).

• Adjusted EBITDA for Q4 was $22M (11.3% margin), up $11M YoY; full-year adjusted EBITDA was $42M (6.1% margin), up $33M YoY.

• Q4 net loss was $39M, improved from $68M loss in Q4 2024; full year net loss was $42M, improved from $134M loss in 2024.

• Free cash flow in Q4 was $43M, up $23M YoY; ended year with $166M in cash and equivalents.

Outlook and guidance

• 2026 GMV growth projected at 12%-15% (guidance: $2.39B–$2.45B); revenue growth at 10%-13% (guidance: $765M–$780M).

• 2026 adjusted EBITDA expected between $57M-$65M (approx. 8% margin), targeting 15%-20% margins medium-term.

• Q1 2026 GMV guidance: $585M–$600M; revenue: $185M–$189M; adjusted EBITDA: $11M–$13M.

• Capital expenditures to remain 2%-3% of revenue; cash flow benefits expected in the second half.