The RealReal (REAL) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 GMV of $520 million, up 20% year-over-year, and revenue of $174 million, up 17% year-over-year, with active buyers reaching an all-time high of 1,024,000, a 7% increase year-over-year.

• Consignment revenue grew 15% and direct revenue surged 47% year-over-year.

• Adjusted EBITDA reached $9.3 million (5.4% margin), up 380 basis points year-over-year.

• Net loss widened to $54.1 million, primarily due to a $43.9–$44 million non-cash warrant liability revaluation.

• Free cash flow for the quarter was $13.7 million, a significant increase from $2.1 million in the prior year period.

Financial highlights

• Gross profit was $129 million (+16% YoY); gross margin was 74.3%, down 60 basis points year-over-year.

• Operating expenses as a percentage of revenue improved by 620 basis points year-over-year, driven by operational efficiencies, AI, automation, and fixed cost leverage.

• Take rate was 37.9%, slightly down from 38.6% year-over-year due to higher-value item mix.

• Ended Q3 with $108–$123 million in cash and equivalents.

• Free cash flow margin improved significantly, with $13.7 million generated in Q3 2025.

Outlook and guidance

• Q4 2025 GMV expected at $585–$595 million; revenue at $188–$191 million; Adjusted EBITDA at $17.5–$18.5 million.

• Full-year 2025 guidance raised: GMV of $2.099–$2.109 billion, revenue of $687–$690 million, and Adjusted EBITDA of $37.7–$38.7 million, reflecting ~400 basis points margin expansion versus 2024 at the guidance midpoint.

• Medium-term growth targeted at high single to low double digits, with margin expansion focus.

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

• Focus remains on profitable supply growth, operational efficiency, and new revenue streams.