Realreal ( (REAL) ) has released its Q3 earnings. Here is a breakdown of the information Realreal presented to its investors.
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The RealReal, Inc. is the world’s largest online marketplace for authenticated, resale luxury goods, providing a platform for buying and selling luxury items with a focus on sustainability and the circular economy.
In its third quarter of 2025, The RealReal reported a record high in quarterly revenue and gross merchandise value, showcasing its profitable growth and reinforcing its position in the luxury resale market. The company experienced a 20% year-over-year increase in gross merchandise value and a 17% rise in total revenue compared to the previous year.
Key financial highlights from the quarter include a gross merchandise value of $520 million and total revenue of $174 million. The company also reported a gross profit of $129 million, although it faced a net loss of $54 million, primarily due to a $44 million adjustment related to the change in fair value of warrant liability. Despite this, the adjusted EBITDA margin improved to 5.4%, up from 1.6% in the previous year.
Looking ahead, The RealReal is optimistic about its future, raising its full-year guidance based on current market conditions. The company plans to continue building trust with sellers and enhancing the customer experience through deeper consignor relationships and AI initiatives, aiming for sustained profitable growth in the luxury resale industry.