Company Raises Full Year Guidance Following Second Quarter Results Above the High End of Outlook with Record Quarterly GMV and Meaningful Margin Expansion
SAN FRANCISCO, Aug. 6, 2026 /PRNewswire/ — The RealReal, Inc. (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today reported financial results for its second quarter ended June 30, 2026. Second quarter 2026 gross merchandise value (GMV) and total revenue increased 22% and 17% compared to the second quarter of 2025, respectively. Consignment revenue grew 15% compared to the prior year period, and Direct Revenue grew 26% year-over-year in the second quarter. During the quarter, gross margin of 74.4% improved 10 basis points compared to the same period in 2025. Second quarter Adjusted EBITDA margin was 7.0%, an increase of 290 basis points versus the prior year period.
“The RealReal delivered a standout second quarter, with an all-time high quarterly GMV of $617 million, up 22% year-over-year. That marks our fourth consecutive quarter of GMV growth above 20%. Revenue grew 17% and we delivered nearly 300 basis points of Adjusted EBITDA margin expansion versus last year,” said Rati Levesque, Chief Executive Officer of The RealReal. “We’re upleveling the customer experience, deepening trust and compounding our advantages. Our buyers are spending more, our sellers are more engaged, and the platform connecting them gets smarter every quarter.”
Levesque continued, “Entering the year, we said 2026 would be the year our advantages begin to compound, and we’re delivering on that commitment. Given the continued strength in our supply trends and the durability of our growth, we are confidently raising our full-year outlook. We are entering the second half of the year from a position of strength, with a flywheel that is gaining real momentum.”
Second Quarter Highlights
GMV was $617 million, an increase of 22% compared to the same period in 2025Total Revenue was $193 million, an increase of 17% compared to the same period in 2025Gross Profit was $143 million, an increase of $21 million compared to the same period in 2025Gross Margin was 74.4%, an increase of 10 basis points compared to the same period in 2025 Net Loss was $(27) million or (14.1)% of total revenue, compared to $(11) million or (6.9)% of total revenue in the same period in 2025. Second Quarter 2026 Net Loss includes a $(18.6) million non-cash adjustment as a result of the change in fair value of warrant liability.Adjusted EBITDA was $13.5 million or 7.0% of total revenue compared to $6.8 million or 4.1% of total revenue in the same period in 2025GAAP basic net loss per share was $(0.23) compared to $(0.10) in the prior year period and GAAP diluted net loss per share was $(0.23) compared to $(0.13) in the prior year periodNon-GAAP basic and diluted net loss attributable to common stockholders per share was $(0.01) compared to $(0.06) in the prior year periodTop-line-related MetricsTrailing twelve months active buyers was 1,107,000, an increase of 11% compared to the same period in 2025Average order value (AOV) was $659, an increase of 13% versus the same period in 2025
Q3 and Full Year 2026 Guidance
Based on market conditions as of August 6, 2026, we are raising our full year guidance. Additionally, we are providing guidance for third quarter 2026 GMV, Total Revenue and Adjusted EBITDA, which is a Non-GAAP financial measure.
We have not reconciled forward-looking Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure, because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations including payroll tax expense on employee stock transactions that are not within our control, or other components that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income (loss).
Q3 2026
Full Year 2026
GMV
$610 – $620 million
$2.535 – $2.565 billion
Total Revenue
$194 – $198 million
$788 – $797 million
Adjusted EBITDA
$13.5 – $14.5 million
$66.0 – $69.0 million
Webcast and Conference Call
The RealReal will host a conference call to review the company’s second quarter results beginning at approximately 2:00 p.m. Pacific Time today (5:00 p.m. Eastern Time). A live webcast of the conference call and accompanying materials will be available online at investor.therealreal.com. A replay of the webcast will be available at the same location. To access the conference please register using this link:
https://the-realreal-earnings-call-q2-2026.open-exchange.net/registration.
About The RealReal, Inc.
The RealReal is the world’s largest online marketplace for authenticated, resale luxury goods, trusted by more than 40 million members. Our full-service consignment model—offering virtual appointments, in-home pickup, drop-off, and direct shipping—enables consumers to buy and sell luxury across fashion, fine jewelry and watches, art, and home categories with ease. The company combines a rigorous, expert-led authentication process with proprietary technology, including AI and machine learning, to power optimal pricing and processing for our members and to help scale the business. By extending the life of millions of luxury goods, the company is leading a more circular economy, all the while delivering a seamless experience for buyers and sellers.
Forward Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of The RealReal that are based on the company’s current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “target,” “contemplate,” “project,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. These statements include, but are not limited to, statements about future operating and financial results, including our strategies, plans, commitments, objectives and goals, in particular in the context of the recent geopolitical events, and uncertainty surrounding macro-economic trends, financial guidance, anticipated growth in 2026, the anticipated impact of generative AI, and financial targets, goals and projections. Actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Other factors that could cause or contribute to such differences include, but are not limited to, inflation, macroeconomic uncertainty, geopolitical instability, any failure to generate a supply of consigned goods, pricing pressure on the consignment market resulting from discounting in the market for new goods, failure to efficiently and effectively operate our merchandising and fulfillment operations, labor shortages and other reasons.
More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company’s Investor Relations website at https://investor.therealreal.com or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.
Non-GAAP Financial Measures
To supplement our unaudited and condensed financial statements presented in accordance with generally accepted accounting principles (“GAAP”), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA as a percentage of total revenue (“Adjusted EBITDA Margin”), free cash flow, non-GAAP net loss attributable to common stockholders, and non-GAAP net loss per share attributable to common stockholders, basic and diluted. We have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures in this earnings release.
We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors should also note that non-GAAP financial measures we use may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies, including other companies in our industry.
Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure as an overall assessment of our performance, to evaluate the effectiveness of our business strategies and for business planning purposes. Adjusted EBITDA may not be comparable to similarly titled metrics of other companies.
We calculate Adjusted EBITDA as net income (loss) before interest income, interest expense, provision (benefit) for income taxes, depreciation and amortization, further adjusted to exclude stock-based compensation, employer payroll tax expense on employee stock transactions, gain on extinguishment of debt, change in fair value of warrant liabilities and certain one-time expenses. The employer payroll tax expense related to employee stock transactions are tied to the vesting or exercise of underlying equity awards and the price of our common stock at the time of vesting, which may vary from period to period independent of the operating performance of our business. Adjusted EBITDA has certain limitations as the measure excludes the impact of certain expenses that are included in our statements of operations that are necessary to run our business and should not be considered as an alternative to net income (loss) or any other measure of financial performance calculated and presented in accordance with GAAP.
In particular, the exclusion of certain expenses in calculating Adjusted EBITDA and Adjusted EBITDA Margin facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of stock-based compensation and the related employer payroll tax expense on employee stock transactions, excludes an item that we do not consider to be indicative of our core operating performance. Investors should, however, understand that stock-based compensation and the related employer payroll tax expense will be a significant recurring expense in our business and an important part of the compensation provided to our employees. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
Free cash flow is a non-GAAP financial measure that is calculated as net cash (used in) provided by operating activities less net cash used to purchase property and equipment and capitalized proprietary software development costs. We believe free cash flow is an important indicator of our business performance, as it measures the amount of cash we generate. Accordingly, we believe that free cash flow provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.
Non-GAAP net loss per share attributable to common stockholders, basic and diluted is a non-GAAP financial measure that is calculated as GAAP net loss plus stock-based compensation expense, provision (benefit) for income taxes, payroll tax expense on employee stock transactions, gain on extinguishment of debt, change in fair value of warrant liabilities and certain one-time expenses divided by weighted average shares outstanding. We believe that making these adjustments before calculating per share amounts for all periods presented provides a more meaningful comparison between our operating results from period to period.
THE REALREAL, INC.
Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue:
Consignment revenue
$ 148,216
$ 128,620
$ 294,109
$ 252,434
Direct revenue
25,787
20,495
51,595
40,949
Shipping services revenue
18,568
16,073
36,582
31,838
Total revenue
192,571
165,188
382,286
325,221
Cost of revenue:
Cost of consignment revenue
16,075
13,761
31,522
26,715
Cost of direct revenue
20,407
17,185
40,691
32,420
Cost of shipping services revenue
12,887
11,566
25,537
23,387
Total cost of revenue
49,369
42,512
97,750
82,522
Gross profit
143,202
122,676
284,536
242,699
Operating expenses:
Marketing
18,382
15,548
36,939
31,403
Operations and technology
74,706
68,986
147,425
135,964
Selling, general and administrative
52,397
48,027
104,729
97,988
Total operating expenses (1)
145,485
132,561
289,093
265,355
Loss from operations
(2,283)
(9,885)
(4,557)
(22,656)
Change in fair value of warrant liability
(18,583)
4,537
28,752
47,040
Gain on extinguishment of debt
—
—
—
37,101
Interest income
902
1,109
1,903
2,483
Interest expense
(7,322)
(7,038)
(14,543)
(13,358)
Other income, net
154
—
357
608
Income (loss) before provision for income taxes
(27,132)
(11,277)
11,912
51,218
Provision for income taxes
101
89
209
184
Net income (loss) attributable to common stockholders
$ (27,233)
$ (11,366)
$ 11,703
$ 51,034
Net income (loss) per share attributable to common
stockholders
Basic
$ (0.23)
$ (0.10)
$ 0.10
$ 0.45
Diluted
$ (0.23)
$ (0.13)
$ (0.13)
$ (0.27)
Weighted average shares used to compute net income (loss)
per share attributable to common stockholders
Basic
121,023,931
114,044,057
120,277,907
113,046,607
Diluted
121,023,931
119,484,716
126,390,826
120,178,570
(1) Includes stock-based compensation as follows:
Marketing
$ 422
$ 424
$ 767
$ 727
Operations and technology
2,580
2,677
4,557
4,901
Selling, general and administrative
4,573
5,107
8,524
9,939
Total
$ 7,575
$ 8,208
$ 13,848
$ 15,567
THE REALREAL, INC.
Condensed Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
June 30,
2026
December 31,
2025
Assets
Current assets
Cash and cash equivalents
$ 119,132
$ 151,231
Accounts receivable, net
20,073
23,822
Inventory, net
35,431
30,843
Prepaid expenses and other current assets
18,682
21,595
Total current assets
193,318
227,491
Property and equipment, net
100,558
96,148
Operating lease right-of-use assets
63,240
64,641
Restricted cash
14,777
14,808
Other assets
6,394
5,945
Total assets
$ 378,287
$ 409,033
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable
$ 15,049
$ 14,565
Accrued consignor payable
95,062
111,497
Operating lease liabilities, current portion
23,095
24,645
Other accrued and current liabilities
100,274
113,533
Total current liabilities
233,480
264,240
Operating lease liabilities, net of current portion
64,404
66,793
Convertible Senior Notes, net
231,516
230,833
Non-convertible notes, net
144,293
140,980
Warrant liability
74,688
114,353
Other noncurrent liabilities
7,636
7,352
Total liabilities
756,017
824,551
Stockholders’ deficit:
Common stock, $0.00001 par value; 500,000,000 shares authorized as of June 30,
2026, and December 31, 2025; 121,666,258 and 118,318,917 shares issued and
outstanding as of June 30, 2026, and December 31, 2025, respectively
1
1
Additional paid-in capital
906,192
880,107
Accumulated deficit
(1,283,923)
(1,295,626)
Total stockholders’ deficit
(377,730)
(415,518)
Total liabilities and stockholders’ deficit
$ 378,287
$ 409,033
THE REALREAL, INC.
Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
2026
2025
Cash flows from operating activities:
Net income
$ 11,703
$ 51,034
Adjustments to reconcile net income to cash used in operating activities:
Depreciation and amortization
15,917
16,631
Stock-based compensation expense
13,848
15,567
Reduction of operating lease right-of-use assets
8,562
7,943
Bad debt expense
1,342
1,214
Non-cash interest expense
3,227
5,483
Accretion of debt discounts and issuance costs
940
1,060
Provision for inventory write-downs and shrinkage
1,810
1,485
Gain on debt extinguishment
—
(37,101)
Change in fair value of warrant liability
(28,752)
(47,040)
Loss (gain) related to warehouse fire, net
—
(353)
Other adjustments
78
(36)
Changes in operating assets and liabilities:
Accounts receivable, net
2,407
(10,020)
Inventory, net
(6,398)
(6,678)
Prepaid expenses and other current assets
2,913
6,595
Other assets
(479)
(501)
Operating lease liability
(11,100)
(10,876)
Accounts payable
(266)
2,357
Accrued consignor payable
(16,435)
(13,709)
Other accrued and current liabilities
(14,538)
(14,743)
Other noncurrent liabilities
213
(152)
Net cash used in operating activities
(15,008)
(31,840)
Cash flow from investing activities:
Insurance proceeds related to warehouse fire
—
2,309
Capitalized proprietary software development costs
(6,837)
(6,483)
Purchases of property and equipment
(11,502)
(12,518)
Net cash used in investing activities
(18,339)
(16,692)
Cash flow from financing activities:
Proceeds from exercise of stock options
308
114
Taxes paid related to restricted stock vesting
(109)
(83)
Repayment of 2025 Notes
—
(26,749)
Proceeds from issuance of stock in connection with the Employee Stock Purchase
Program
1,018
838
Cash received from settlement of capped calls in conjunction with the 2025 Note
Exchanges
—
1,499
Issuance costs paid related to the 2025 Note Exchanges
—
(5,006)
Net cash provided by (used in) financing activities
1,217
(29,387)
Net decrease in cash, cash equivalents and restricted cash
(32,130)
(77,919)
Cash, cash equivalents and restricted cash
Beginning of period
166,039
187,123
End of period
$ 133,909
$ 109,204
The following table reflects the reconciliation of net income (loss) to Adjusted EBITDA for each of the periods indicated
(in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Adjusted EBITDA Reconciliation:
Net income (loss)
$ (27,233)
$ (11,366)
$ 11,703
$ 51,034
Net income (loss) (% of revenue)
(14.1) %
(6.9) %
3.1 %
15.7 %
Depreciation and amortization
7,823
8,256
15,917
16,631
Interest income
(902)
(1,109)
(1,903)
(2,483)
Interest expense
7,322
7,038
14,543
13,358
Provision for income taxes
101
89
209
184
EBITDA
(12,889)
2,908
40,469
78,724
Stock-based compensation
7,575
8,208
13,848
15,567
Payroll tax expense on employee stock transactions
263
260
1,036
799
Gain on extinguishment of debt (1)
—
—
—
(37,101)
Change in fair value of warrant liability (2)
18,583
(4,537)
(28,752)
(47,040)
Adjusted EBITDA
$ 13,532
$ 6,839
$ 26,601
$ 10,949
Adjusted EBITDA (% of revenue)
7.0 %
4.1 %
7.0 %
3.4 %
(1) The gain on extinguishment of debt for the six months ended June 30, 2025 reflects the difference between the carrying value of the February 2025
Exchanged Notes and the fair value of the 2031 Notes.
(2) The change in fair value of warrant liability for the three and six months ended June 30, 2026 and June 30, 2025 reflects the remeasurement of the Warrants
issued by the Company in connection with the 2024 Note Exchange in February 2024.
A reconciliation of GAAP net income (loss) to non-GAAP net loss attributable to common stockholders, the most directly
comparable GAAP financial measure, in order to calculate non-GAAP net loss attributable to common stockholders per share,
basic and diluted, is as follows (in thousands, except share and per share data):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net income (loss)
$ (27,233)
$ (11,366)
$ 11,703
$ 51,034
Stock-based compensation
7,575
8,208
13,848
15,567
Payroll tax expense on employee stock transactions
263
260
1,036
799
Provision for income taxes
101
89
209
184
Gain on extinguishment of debt
—
—
—
(37,101)
Change in fair value of warrant liability
18,583
(4,537)
(28,752)
(47,040)
Non-GAAP net loss attributable to common stockholders
$ (711)
$ (7,346)
$ (1,956)
$ (16,557)
Weighted-average common shares outstanding to calculate
Non-GAAP net loss attributable to common stockholders
per share, basic and diluted
121,023,931
114,044,057
120,277,907
113,046,607
Non-GAAP net loss attributable to common stockholders
per share, basic and diluted
$ (0.01)
$ (0.06)
$ (0.02)
$ (0.15)
The following table presents a reconciliation of net cash provided for (used in) operating activities to free (negative) cash flow
for each of the periods indicated (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net cash provided by (used in) operating activities
$ 1,615
$ (3,570)
$ (15,008)
$ (31,840)
Purchase of property and equipment and capitalized
proprietary software development costs
(7,699)
(11,423)
(18,339)
(19,001)
Free (negative) cash flow
$ (6,084)
$ (14,993)
$ (33,347)
$ (50,841)
Key Financial and Operating Metrics:
June 30,
2024
September 30,
2024
December 31,
2024
March 31,
2025
June 30,
2025
September 30,
2025
December 31,
2025
March 31,
2026
June 30,
2026
(In thousands, except AOV and percentages)
GMV
$440,914
$433,074
$503,534
$490,405
$504,105
$519,814
$615,683
$606,359
$617,260
NMV
$329,422
$335,191
$383,447
$370,757
$379,377
$397,062
$466,924
$458,747
$470,392
Consignment
Revenue
$112,714
$116,908
$128,126
$123,814
$128,620
$134,429
$149,014
$145,893
$148,216
Direct Revenue
$ 16,724
$ 15,623
$ 19,524
$ 20,454
$ 20,495
$ 22,928
$ 27,214
$ 25,808
$ 25,787
Shipping Services
Revenue
$ 15,496
$ 15,224
$ 16,345
$ 15,765
$ 16,073
$ 16,216
$ 17,823
$ 18,014
$ 18,568
Number of Orders
820
829
870
869
868
890
960
938
937
Take Rate
38.5 %
38.6 %
37.7 %
38.6 %
37.9 %
37.9 %
36.5 %
36.4 %
35.9 %
Active Buyers
942
958
972
985
1,001
1,024
1,056
1,083
1,107
AOV
$ 538
$ 522
$ 579
$ 564
$ 581
$ 584
$ 641
$ 646
$ 659
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SOURCE The RealReal
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