The RealReal (REAL) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked the fourth consecutive quarter of double-digit top-line growth, with GMV up 24% to $606.4 million and total revenue up 19% to $190 million, driven by strong consignment and direct sales.

• Adjusted EBITDA margin expanded by over 400 basis points year-over-year to 6.9%, reaching $13.1 million, reflecting strong operational execution and improved profitability.

• Trailing 12-month active buyers grew 10% year-over-year to 1.08 million, led by Gen Z and millennials, with increased trust and engagement.

• Net income for Q1 2026 was $38.9 million, down from $62.4 million in Q1 2025, reflecting lower gains from warrant liability remeasurement and no debt extinguishment gains this quarter.

• The business is focused on compounding growth, leveraging customer relationships, data, brand, and scale, with resale becoming mainstream among younger consumers.

Financial highlights

• Q1 2026 GMV reached $606.4 million, up 24% year-over-year; total revenue was $189.7 million, up 19%; consignment revenue grew 18% to $145.9 million, direct revenue increased 26% to $25.8 million, and shipping services revenue was $18.0 million.

• Gross profit was $141.3 million, up 18% year-over-year, with gross margin at 74.5%, down 50 basis points due to a mix shift to higher-value items.

• Adjusted EBITDA was $13.1 million (6.9% of revenue), up from $4.1 million (2.6%) in Q1 2025.

• Operating expenses as a percentage of revenue improved by 730 basis points year-over-year, with marketing at 9.8%, operations & technology at 27.6%, and SG&A at 38.3%.

• Ended Q1 with $124 million in cash and cash equivalents, $14.8 million in restricted cash, and operating cash flow of -$16.6 million, an improvement year-over-year.

Outlook and guidance

• Full-year 2026 GMV guidance raised to $2.42–$2.47 billion (14–16% growth year-over-year); revenue expected between $770–$784 million (11–13% growth); adjusted EBITDA forecasted at $59–$67 million (8.1% margin at midpoint), targeting 15–20% margins medium-term.

• Q2 2026 GMV expected at $590–$600 million (17–19% growth); revenue at $186–$189 million (13–14% growth); adjusted EBITDA at $11–$12 million (6.1% margin).

• Management expects continued revenue growth, supported by investments in technology, automation, and supply acquisition.

• The company believes existing cash balances are sufficient to meet working capital and capital expenditure needs for at least the next 12 months.