The RealReal (REAL) investor relations material

Executive summary

• Q3 GMV reached $641.5M, up 23% YoY; revenue was $206.1M, up 19%, with record orders up 15%.

• Adjusted EBITDA was $17.0M, or 8.3% of revenue, with margin up 290 bps YoY and above the prior guidance range.

• TTM active buyers reached 1.152M, up 13% YoY; positive year-to-date operating cash flow and results above expectations supported higher FY 2026 guidance.

Financial highlights

• Gross profit was $154.4M versus $128.9M YoY; gross margin was 74.9%, up 64 bps.

• Operating income was $1.5M versus a $7.6M loss; net income was $16.0M versus a $54.1M loss, including a $21.2M non-cash warrant-liability gain.

• Q3 free cash flow was $11.3M; operating cash flow was $25.0M, offset by $13.7M in property, equipment and software investment.

• Nine-month revenue was $588.4M versus $498.8M; net income was $27.7M versus a $3.0M loss, and Adjusted EBITDA was $43.6M versus $20.2M.

Outlook and guidance

• Q4 guidance: GMV $720M–$735M, revenue $218M–$222M and Adjusted EBITDA $27.5M–$29.0M, with ~12.8% margin at midpoint.

• FY 2026 guidance: GMV $2.585B–$2.600B, revenue $806M–$810M and Adjusted EBITDA $71.1M–$72.6M, with ~8.9% margin at midpoint.

• FY Adjusted EBITDA margin is expected to expand ~280 bps versus 2025; medium-term target remains 15%–20%, with 200–300 bps annual expansion expected.

• Q4 is seasonally strongest for revenue and cash generation, with higher AOV and faster sell-through; holiday marketing and staffing costs may also rise.

• Full-year PP&E capex is expected at 2%–3% of revenue; ongoing gross margin expectation is 73%–75%.