RealReal (NASDAQ:REAL) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

RealReal (NASDAQ:REAL) issued its earnings results on Thursday. The company reported $0.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.04 by $0.02, FiscalAI reports. The company had revenue of $194.05 million during the quarter, compared to analyst estimates of $190.62 million. The company’s quarterly revenue was up 51.4% on a year-over-year basis. During the same period in the previous year, the company posted ($0.01) earnings per share.

Here are the key takeaways from RealReal’s conference call:

• The company reported strong results with Q4 GMV of $616 million (+22%) and full-year GMV of $2.13 billion (+16%), delivered quarterly Adjusted EBITDA margin of ~11%, and generated positive free cash flow ($43M in Q4; $5M for FY), showing profitable scale.
• AI and automation drove meaningful operating leverage—35% of units processed through Athena at year-end, shortening intake-to-listing cycle times and reducing O&T costs, with plans to expand Athena into mid and higher-value items.
• Supply engine and marketing momentum strengthened growth—tools like Smart Sales and a real-time valuation tool plus a buyer-to-consignor flywheel (?40% of new consignors from existing buyers) helped active buyer growth accelerate to ~9% TTM and lift AOVs, especially in fine jewelry and watches.
• Management guided to continued expansion—2026 outlook calls for GMV growth of 12–15%, revenue growth of 10–13%, and Adjusted EBITDA of $57–65M (?8% midpoint), with Q1 guidance showing near-term acceleration, signaling confidence in further margin improvement.
• Margin and revenue mix risk—Q4 take rate fell ~120 bps as mix shifted to higher-value items with lower percentage fees, and revenue growth is guided slightly below GMV growth, creating variability in revenue and direct-channel margins.

RealReal Stock Performance

REAL stock traded up $0.37 during midday trading on Thursday, hitting $12.39. 7,473,963 shares of the company’s stock were exchanged, compared to its average volume of 3,003,449. RealReal has a one year low of $4.61 and a one year high of $17.39. The company has a market cap of $1.45 billion, a PE ratio of -8.98 and a beta of 2.65. The stock’s fifty day moving average price is $14.56 and its 200-day moving average price is $12.33.

Wall Street Analysts Forecast Growth

REAL has been the topic of several research reports. William Blair initiated coverage on RealReal in a research note on Monday, December 15th. They set an “outperform” rating on the stock. Northland Securities set a $20.00 target price on shares of RealReal in a research report on Wednesday, January 14th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of RealReal in a research note on Thursday, January 22nd. Roth Mkm set a $17.50 price target on shares of RealReal and gave the stock a “buy” rating in a research report on Wednesday, October 29th. Finally, KeyCorp boosted their price target on shares of RealReal from $16.00 to $20.00 and gave the stock an “overweight” rating in a research note on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $17.94.

RealReal News Summary

Here are the key news stories impacting RealReal this week:

• Positive Sentiment: Q4 beat — REAL reported EPS of $0.06 vs. consensus $0.04 and revenue of $194.05M vs. $190.62M, with revenue up ~51% year-over-year, signaling stronger top?line recovery and margin progress. Q4 beat article
• Positive Sentiment: Guidance slightly raised — management issued Q1 and FY2026 revenue ranges above consensus (Q1: $185M–$189M vs. ~$183M consensus; FY: $765M–$780M vs. ~$763M consensus), which supports expectations for continued growth this year. Earnings press release
• Positive Sentiment: Operational momentum & GMV milestone — company reported accelerating active buyer growth and surpassed $2B in GMV for the year, supporting marketplace scale and fee revenue potential. GlobeNewswire release
• Positive Sentiment: AI initiative could lift throughput and margins — management emphasized expanding AI across sourcing, authentication and pricing to scale listings and reduce handling time, a potential multi-quarter margin tailwind if execution follows. PYMNTS AI article
• Neutral Sentiment: Third?party comparisons and analyst views are mixed — outside analyses and a range of analyst price targets (consensus moderate buy) may add volatility but don’t directly change fundamentals. Third?party analysis
• Negative Sentiment: Insider selling — several executives (CEO, CFO, CAO and others) disclosed material sales in late Feb, which could concern investors about insider sentiment or create selling pressure despite company-level positives. Insider sale report

Insider Buying and Selling at RealReal

In other RealReal news, CAO Steve Ming Lo sold 16,962 shares of the stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $10.72, for a total transaction of $181,832.64. Following the completion of the transaction, the chief accounting officer owned 170,236 shares in the company, valued at approximately $1,824,929.92. This represents a 9.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Levesque Rati Sahi sold 121,399 shares of RealReal stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $10.72, for a total value of $1,301,397.28. Following the completion of the sale, the chief executive officer directly owned 1,482,779 shares in the company, valued at $15,895,390.88. This represents a 7.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 235,298 shares of company stock worth $2,522,395 over the last three months. Company insiders own 9.00% of the company’s stock.

Institutional Investors Weigh In On RealReal

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Quarry LP acquired a new position in shares of RealReal during the 3rd quarter worth approximately $28,000. Larson Financial Group LLC bought a new position in RealReal during the third quarter worth $31,000. Kemnay Advisory Services Inc. bought a new position in RealReal during the fourth quarter worth $104,000. CIBC Bancorp USA Inc. acquired a new position in shares of RealReal in the third quarter valued at $108,000. Finally, Holocene Advisors LP bought a new position in shares of RealReal in the third quarter valued at about $125,000. 64.73% of the stock is owned by institutional investors.

About RealReal

The RealReal, Inc (NASDAQ: REAL) operates an online marketplace specializing in the authenticated resale of luxury goods. Since its founding in 2011 by entrepreneur Julie Wainwright, the company has positioned itself as a leading platform for consignors and shoppers seeking designer fashion, fine jewelry, watches, art, and home décor. Headquartered in San Francisco, The RealReal combines e-commerce technology with an in-house team of experts to offer a seamless buying and selling experience for secondhand luxury items.

At the core of The RealReal’s business model is its consignment service, which enables individuals to sell pre-owned luxury products through a fully managed process.