The RealReal, Inc. reported fourth‑quarter and full‑year 2025 results that exceeded analyst expectations across the board. Gross merchandise value rose 22% to $616 million, while total revenue climbed 18% to $194 million, a figure that beats the consensus estimate of $190.29 million by $3.71 million.
Adjusted EBITDA for the quarter reached $22 million, or 11.3% of revenue, an $11 million improvement over the same period in 2024. The full‑year adjusted EBITDA climbed to $42 million, up $33 million from 2024, representing 6.1% of revenue. The company’s margin expansion—EBITDA margin of 11.3% in Q4 versus 6.7% in Q4 2024, and a full‑year margin of 6.1% versus 1.6% in 2024—reflects the combined impact of higher‑value inventory, AI‑driven pricing, and operational leverage.
Earnings per share for the quarter were $0.06, beating the consensus estimate of $0.02 (or $0.03 in some reports) by $0.04. The EPS beat is largely attributable to disciplined cost management and the scale of AI‑enabled automation, which have reduced per‑unit operating expenses while the company continues to capture higher average selling prices.
The company’s guidance for full‑year 2026 projects gross merchandise value between $2.39 billion and $2.45 billion, revenue between $765 million and $780 million, and adjusted EBITDA between $57 million and $65 million. The upward revision signals management’s confidence in sustained demand for luxury resale and the continued effectiveness of its automation strategy.
CEO Rati Levesque described 2025 as a “year of transformation,” noting that the company surpassed $2 billion in GMV and achieved positive adjusted EBITDA in every quarter for the first time. CFO Ajay Gopal highlighted that operating expenses leveraged 600 basis points year‑over‑year, attributing the improvement to AI and automation, sales team productivity, and fixed‑cost leverage.
The results underscore The RealReal’s ability to grow top‑line revenue while expanding margins, positioning the company for continued leadership in the luxury resale market.
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