The RealReal (REAL) Q4 2025 earnings summary

Executive summary

• Achieved $2.13B in GMV for 2025, up 16% year-over-year, and $616M GMV in Q4, up 22% year-over-year, marking a milestone and demonstrating strong growth momentum.

• Delivered positive adjusted EBITDA in every quarter of 2025, totaling $42M (6.1% margin), with Q4 adjusted EBITDA at $22M (11.3% margin).

• Accelerated active buyer growth to 9% year-over-year in Q4, reaching 1,056,000 active buyers, with 40% of new consignors coming from the existing buyer base.

• Leveraged AI and automation, notably Athena and Smart Sales, to drive operational efficiency, reduce costs, and improve cycle times.

• Generated $43M in Q4 free cash flow, a $23M improvement year-over-year.

Financial highlights

• Q4 revenue reached $194M, up 18% year-over-year; consignment revenue grew 16% to $149M, and direct revenue rose 39% to $27.2M.

• Q4 gross profit was $145M, up 19% year-over-year, with gross margin at 74.8% (+40bps); consignment gross margin improved to 89.6% (+60bps), and direct gross margin rose to 26% (+1,200bps).

• Q4 adjusted EBITDA was $22M (11.3% margin), up $11M year-over-year, with 450bps margin expansion.

• Q4 net loss was $39M, improved from $68M loss in Q4 2024; full year net loss was $42M, improved from $134M loss in 2024.

• Ended Q4 with $166M in cash and equivalents; Q4 free cash flow was $43M, up $23M year-over-year.

Outlook and guidance

• 2026 GMV guidance: $2.39B–$2.45B (12%-15% growth); revenue: $765M–$780M (10%-13% growth); adjusted EBITDA: $57M–$65M (approx. 8% margin), targeting 15%-20% margins medium-term.

• Q1 2026 GMV guidance: $585M–$600M (19%-22% growth); revenue: $185M–$189M (16%-18% growth); adjusted EBITDA: $11M–$13M (6%-7% margin).

• Capital expenditures to remain at 2%-3% of revenue.