The RealReal (REAL) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of $164M, up 14% year-over-year, and full-year revenue of $600M, up 9% year-over-year.

• Returned to profitable growth in 2024 with first full year of positive Adjusted EBITDA ($9M) and positive Free Cash Flow ($1M), marking a $64M–$65M improvement YoY.

• Strategic focus on unlocking supply, operational efficiency, and service excellence, leveraging AI and process improvements.

• Active buyers increased 5% YoY to 972,000, with high engagement and retention metrics.

• Operating cash flow turned positive at $27M for the year, up $88M YoY.

Financial highlights

• Q4 GMV reached $504M, up 12% YoY; Q4 gross profit was $122M, gross margin 74.4%.

• Full-year GMV was $1.83B (+6%), revenue $600M (+9%), and gross profit $448M (+$71M YoY).

• Adjusted EBITDA for 2024 was $9M (1.6% margin), a $64M–$65M improvement YoY.

• Free Cash Flow was positive $1M for the year, up $104M YoY.

• Ended 2024 with $187M in cash, cash equivalents, and restricted cash.

Outlook and guidance

• 2025 GMV projected at $1.96–$1.99B (+8% at midpoint); revenue expected at $645–$660M (+9% at midpoint); Adjusted EBITDA guidance for 2025 is $20–$30M.

• Q1 2025 GMV expected at $484–$492M (+8% YoY); revenue at $157–$161M (+11% YoY); Adjusted EBITDA $3.0–$4.5M.

• Operating and free cash flow expected to be weighted to the second half of 2025.