RealReal (REAL) AI Stock Analysis

• Market Cap: $645.77M
• Dividend Yield: N/A
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.19
• Revenue Growth: 11.89%
• EPS Growth: 66.22%
• Country: US
• Employees: 3,011
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Luxury Goods
• EPS (TTM): N/A
• Shares Outstanding: 113,095,330
• 10 Day Avg. Volume: 2,365,833
• 30 Day Avg. Volume: 2,495,780
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 2.29
• Enterprise Value/Ebitda: 35.46
• 1Y Price Target: $9.67
• Price Target Upside: 69.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 54 Neutral
• Price Target: $6.00 ▲(5.08% Upside)

RealReal's stock score is bolstered by a positive earnings call indicating strong growth and operational improvements. However, financial challenges, negative valuation metrics, and a mixed technical outlook limit the overall score.

Positive Factors

Balance Sheet Improvement

Over the last year, REAL has strengthened its balance sheet by reducing total debt by $54 million and pushing out maturity risk to 2028 and beyond, smoothing out its maturity cycle.

Revenue Growth

REAL has returned to +DD top-line growth for the first time in over two years, with compelling implied margin flow-throughs that suggest significant incremental margins on the revamped business model.

Technological Advancements

AI advancements in authentication, photography, pricing, and cataloguing are expected to help reduce lead times and increase profitability for REAL.

Negative Factors

Moderate Performance Outlook

The first quarter results were only in line with expectations and the fiscal year plan was reiterated, viewed as a 'good...not great, print.'

Potential Liquidity Risk

REAL has taken steps to reduce liquidity risk by exchanging a significant portion of its outstanding notes, but this indicates a need to manage debt load and liquidity carefully.

Shareholder Dilution

Existing shareholders may face a dilution of approximately 9% if the 2031 Notes rise above the conversion price.

RealReal Business Overview & Revenue Model

Company Description

RealReal (REAL) is a leading online marketplace for authenticated, luxury consignment goods. The company operates in the e-commerce sector, providing a platform where individuals can buy and sell pre-owned, high-end fashion items, fine jewelry, watches, home decor, and art. RealReal ensures the authenticity of each item through a rigorous verification process conducted by a team of experts, offering a trustworthy marketplace for luxury goods.

How the Company Makes Money

RealReal primarily makes money through consignment sales on its platform. The company earns revenue by taking a commission on each sale, which varies depending on the category of the item and the consignment agreement. Sellers send their luxury items to RealReal, where they are authenticated, photographed, and listed for sale. Once an item is sold, RealReal takes its commission and pays the remaining amount to the consignor. Additionally, the company may generate revenue through partnerships and collaborations with luxury brands, offering them a channel for selling excess inventory or exclusive products. RealReal's revenue model is supported by its investment in technology and logistics, which enhances the buying and selling experience for its users.

RealReal Financial Statement Overview

Summary

The RealReal faces significant financial challenges with negative margins and equity, indicating sustainability issues. Although there are slight improvements in gross margins and cash flow efficiency, the high debt levels and negative free cash flow highlight ongoing financial instability.

Income Statement

The company shows a decline in revenue growth with a recent TTM increase of 2.7% overshadowed by past volatility. Gross profit margins have improved, but negative EBIT and net profit margins indicate ongoing operational challenges.

Balance Sheet

High debt-to-equity ratio and negative stockholders' equity demonstrate financial instability. The equity ratio is negative, highlighting reliance on debt financing.

Cash Flow

The company struggles with negative free cash flow and fluctuating operating cash flow, though there is a slight improvement in cash flow efficiency relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	600.48M	549.30M	603.49M	467.69M	298.27M
Gross Profit	447.52M	376.28M	348.69M	273.48M	185.88M
EBITDA	-79.44M	-109.05M	-138.53M	-171.55M	-135.56M
Net Income	-134.20M	-168.47M	-196.44M	-236.11M	-177.51M
Balance Sheet
Total Assets	423.10M	446.92M	615.64M	754.94M	605.11M
Cash, Cash Equivalents and Short-Term Investments	172.21M	175.71M	293.79M	418.17M	354.86M
Total Debt	546.55M	577.37M	595.74M	509.79M	279.27M
Total Liabilities	830.47M	750.22M	785.73M	681.82M	413.82M
Stockholders Equity	-407.38M	-303.30M	-170.09M	73.13M	191.29M
Cash Flow
Free Cash Flow	798.00K	-103.40M	-128.48M	-189.59M	-161.35M
Operating Cash Flow	21.55M	-61.27M	-91.56M	-142.15M	-132.76M
Investing Cash Flow	-25.59M	-42.13M	-36.92M	-43.44M	176.35M
Financing Cash Flow	-4.76M	226.00K	4.10M	252.91M	152.81M

RealReal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REAL, the sentiment is Positive. The current price of 5.71 is above the 20-day moving average (MA) of 5.61, above the 50-day MA of 5.41, and below the 200-day MA of 6.20, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 39.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REAL.

RealReal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOV	64 Neutral	$245.04M	19.21	3.67%	9.27%	-1.36%	-54.97%
SIG	63 Neutral	$3.13B	82.29	2.04%	1.62%	-3.98%	-93.50%
LUXE	63 Neutral	$691.51M	―	-8.75%	―	7.08%	-42.22%
Sector *	60 Neutral	kr10.10B	16.98	8.94%	3.12%	-0.68%	-21.31%
REAL	54 Neutral	$645.77M	―	32.94%	―	11.89%	66.22%
LANV	49 Neutral	$287.21M	―	-195.94%	―	-22.86%	-38.76%
BRLT	49 Neutral	$144.00M	―	-0.45%	―	-6.12%	-105.56%

RealReal Corporate Events

Carol Melton Resigns from RealReal Board

On July 17, 2025, Carol Melton resigned from the Board of Directors of The RealReal, Inc. due to her expanded professional and personal responsibilities. The company expressed gratitude for her valued service during her tenure.

The most recent analyst rating on (REAL) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on RealReal stock, see the REAL Stock Forecast page.

RealReal Holds Annual Stockholders Meeting on June 11

On June 11, 2025, The RealReal, Inc. held its annual stockholders meeting where several key proposals were voted on. Stockholders elected Class III directors for a three-year term and ratified KPMG LLP as the independent accounting firm for 2025. They approved executive compensation but did not pass proposals to amend the company’s certificate of incorporation regarding board declassification and officer liability limits.

The most recent analyst rating on (REAL) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on RealReal stock, see the REAL Stock Forecast page.