The RealReal (REAL) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 GMV of $617 million, up 22% year-over-year, marking the fourth consecutive quarter of 20%+ GMV growth.

• Revenue rose 17% to $193 million, driven by growth in consignment, direct, and shipping services revenue.

• Adjusted EBITDA margin reached 7%, up nearly 290 basis points year-over-year, with adjusted EBITDA of $13.5 million.

• Active buyers surpassed 1.1 million, growing 11% year-over-year, with average order value up 13% to $659.

• AI-driven operational improvements and automation contributed to margin expansion and operating expense leverage.

Financial highlights

• GMV: $617 million (+22% year-over-year); revenue: $193 million (+17% year-over-year).

• Gross profit rose 17% to $143 million; gross margin expanded to 74.4%, up 10 basis points year-over-year.

• Adjusted EBITDA was $13.5 million (7% of revenue), up from $6.8 million (4.1%) in Q2 2025.

• Net loss widened to $27.2 million, primarily due to a $18.6 million negative change in warrant liability.

• Free cash flow improved year-over-year but remained negative; cash and equivalents at quarter end were $119.1 million.

Outlook and guidance

• Q3 2026 GMV expected at $610–$620 million; revenue $194–$198 million; adjusted EBITDA $13.5–$14.5 million.

• Full-year 2026 GMV guidance raised to $2.535–$2.565 billion; revenue $788–$797 million; adjusted EBITDA $66–$69 million.

• Adjusted EBITDA margin for the year expected at 8.5% midpoint, up 240 basis points from 2025.

• Management expects continued operating losses in the near term but current liquidity is sufficient for at least the next 12 months.

• Targeting 15–20% adjusted EBITDA margins over the medium term.