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THE REALREAL ANNOUNCES THIRD QUARTER 2025 RESULTS
Company delivers profitable growth with record high quarterly Revenue and Gross Merchandise Value,
strengthening its leadership position in luxury resale

SAN FRANCISCO, November 10, 2025 -The RealReal, Inc. (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today reported financial results for its third quarter ended September 30, 2025. Third quarter 2025 gross merchandise value (GMV) increased 20% year-over-year and total revenue increased 17% compared to the third quarter of 2024. Consignment revenue grew 15% compared to the prior year period, and direct revenue grew 47% year-over-year in the third quarter. Third quarter Adjusted EBITDA margin was 5.4%, an increase of 380 basis points versus the prior year period.

“We delivered another quarter of accelerating growth and expanded margins, with GMV up 20% and Adjusted EBITDA ahead of expectations,” said Rati Levesque, CEO of The RealReal. “Through execution against our strategic pillars — unlock supply through our growth playbook, drive operational efficiency, and obsess over service — we are changing the way people shop. Given this continued momentum, we are raising our full-year outlook.”

Levesque continued, "Going forward, we see an opportunity to continue to build trust with our sellers and improve the customer experience through deeper consignor relationships, enhanced tools and insights, and ongoing AI initiatives. We are at the leading edge of a growing industry, which fuels our ability to shape the evolution of luxury resale and drive sustained profitable growth."

Third Quarter Highlights
•GMV was $520 million, an increase of 20% compared to the same period in 2024
•Total Revenue was $174 million, an increase of 17% compared to the same period in 2024
•Gross Profit was $129 million, an increase of $18 million compared to the same period in 2024
•Gross Margin was 74.3%, a decrease of 60 basis points compared to the same period in 2024
•Net Loss was $(54) million or (31.1)% of total revenue, compared to $(18) million or (12.1)% of total revenue in the same period in 2024. Third Quarter 2025 Net Loss includes a $(44) million adjustment as a result of the change in fair value of warrant liability.
•Adjusted EBITDA was $9.3 million or 5.4% of total revenue compared to $2.3 million or 1.6% of total revenue in the same period in 2024
•GAAP basic net loss per share was $(0.47) compared to $(0.16) in the prior year period and GAAP diluted net loss per share was $(0.49) compared to $(0.17) in the prior year period
•Non-GAAP basic and diluted net loss attributable to common shareholders per share was $(0.04) compared to $(0.09) in the prior year period
•Top-line-related Metrics
◦Trailing twelve months active buyers was 1,024,000, an increase of 7% compared to the same period in 2024
◦Average order value (AOV) was $584, an increase of 12% versus the same period in 2024

Q4 and Full Year 2025 Guidance
Based on market conditions as of November 10, 2025, we are raising our full year guidance. Additionally, we are providing guidance for fourth quarter 2025 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
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probable significance of the unavailable information, which could materially impact the amount of future net income (loss).
Q4 2025
Full Year 2025
GMV$585 - $595 million $2.099 - $2.109 billion
Total Revenue$188 - $191 million $687 - $690 million
Adjusted EBITDA$17.5 - $18.5 million
$37.7 - $38.7 million

Webcast and Conference Call
The RealReal will host a conference call to review the company’s third quarter 2025 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.
About The RealReal, Inc.
The RealReal is the world’s largest online marketplace for authenticated, resale luxury goods, with over 40 million members. With a rigorous authentication process overseen by experts, The RealReal provides a safe and reliable platform for consumers to buy and sell their luxury items. We have hundreds of in-house gemologists, horologists and brand authenticators who inspect thousands of items each day. As a sustainable company, we give new life to pieces by thousands of brands across numerous categories—including women's and men's fashion, fine jewelry and watches, art and home—in support of the circular economy. We make selling effortless with free virtual appointments, in-home pickup, drop-off and direct shipping. We handle all of the work for consignors, including authenticating, using AI and machine learning to determine optimal pricing, photographing and listing their items, as well as shipping and customer service.
Investor Relations Contact:
IR@therealreal.com
Press Contact:
PR@therealreal.com
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 2025, 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, 2024 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
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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, legal settlement charges, restructuring, 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 expenses on employee stock transactions, legal settlement charges, gain on extinguishment of debt, change in fair value of warrant liabilities and restructuring and other expenses divided by weighted average
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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.
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THE REALREAL, INC.
Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Revenue:
Consignment revenue$134,429 $116,908 $386,863 $345,270 
Direct revenue22,928 15,623 63,877 45,056 
Shipping services revenue16,216 15,224 48,054 46,163 
Total revenue173,573 147,755 498,794 436,489 
Cost of revenue:
Cost of consignment revenue14,318 13,326 41,033 39,714 
Cost of direct revenue18,130 12,925 50,550 38,970 
Cost of shipping services revenue12,205 10,791 35,592 32,347 
Total cost of revenue44,653 37,042 127,175 111,031 
Gross profit128,920 110,713 371,619 325,458 
Operating expenses:
Marketing14,146 11,604 45,549 40,646 
Operations and technology70,703 66,199 206,667 194,593 
Selling, general and administrative51,621 47,512 149,609 141,364 
Restructuring charges— — — 196 
Total operating expenses (1)
136,470 125,315 401,825 376,799 
Loss from operations(7,550)(14,602)(30,206)(51,341)
Change in fair value of warrant liability(43,928)744 3,112 (9,209)
Gain on extinguishment of debt3,684 — 40,785 4,177 
Interest income818 1,940 3,301 6,272 
Interest expense(7,085)(5,948)(20,443)(15,468)
Other income, net34 — 642 — 
Loss before provision for income taxes(54,027)(17,866)(2,809)(65,569)
Provision for income taxes24 72 208 178 
Net loss attributable to common stockholders$(54,051)$(17,938)$(3,017)$(65,747)
Net loss per share attributable to common stockholders
Basic$(0.47)$(0.16)$(0.03)$(0.61)
Diluted$(0.49)$(0.17)$(0.38)$(0.61)
Weighted average shares used to compute net loss per share attributable to common stockholders
Basic115,893,232 109,016,060 113,793,229 107,043,946 
Diluted116,772,661 112,418,751 121,904,021 107,043,946 
(1) Includes stock-based compensation as follows:
Marketing$27 $225 $754 $707 
Operations and technology2,294 2,533 7,195 7,527 
Selling, general and administrative4,284 5,000 14,223 14,346 
Total$6,605 $7,758 $22,172 $22,580 
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THE REALREAL, INC.
Condensed Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
 September 30,
2025		December 31,
2024
Assets
Current assets
Cash and cash equivalents$108,422 $172,212 
Accounts receivable, net24,342 13,961 
Inventory, net29,698 23,583 
Prepaid expenses and other current assets19,961 22,913 
Total current assets182,423 232,669 
Property and equipment, net94,709 94,443 
Operating lease right-of-use assets68,465 75,714 
Restricted cash14,859 14,911 
Other assets5,756 5,358 
Total assets$366,212 $423,095 
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable$11,121 $11,004 
Accrued consignor payable86,803 89,718 
Operating lease liabilities, current portion24,077 22,835 
Convertible Senior Notes, net, current portion— 26,653 
Other accrued and current liabilities104,087 98,466 
Total current liabilities226,088 248,676 
Operating lease liabilities, net of current portion72,887 85,790 
Convertible Senior Notes, net230,463 276,807 
Non-convertible notes, net140,807 134,470 
Warrant liability75,472 78,584 
Other noncurrent liabilities5,547 6,144 
Total liabilities751,264 830,471 
Stockholders’ deficit:
Common stock, $0.00001 par value; 500,000,000 shares authorized as of September 30, 2025, and December 31, 2024; 116,674,739 and 111,242,479 shares issued and outstanding as of September 30, 2025, and December 31, 2024, respectively
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Additional paid-in capital871,791 846,450 
Accumulated deficit(1,256,844)(1,253,827)
Total stockholders’ deficit(385,052)(407,376)
Total liabilities and stockholders’ deficit$366,212 $423,095 
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THE REALREAL, INC.
Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September 30,
2025
2024
Cash flows from operating activities:
Net loss$(3,017)$(65,747)
Adjustments to reconcile net loss to cash used in operating activities: 
Depreciation and amortization24,840 24,806 
Stock-based compensation expense22,172 22,580 
Reduction of operating lease right-of-use assets11,957 11,280 
Bad debt expense2,045 1,844 
Non-cash interest expense1,483 3,761 
Issuance costs allocated to liability classified warrants— 374 
Accretion of debt discounts and issuance costs1,663 1,607 
Provision for inventory write-downs and shrinkage2,228 2,479 
Gain on debt extinguishment(40,785)(4,177)
Change in fair value of warrant liability(3,112)9,209 
Loss (gain) related to warehouse fire, net(362)279 
Other adjustments(29)(628)
Changes in operating assets and liabilities:
Accounts receivable, net(12,426)(571)
Inventory, net(8,343)96 
Prepaid expenses and other current assets1,079 990 
Other assets(499)229 
Operating lease liability(16,369)(15,263)
Accounts payable663 837 
Accrued consignor payable(2,915)(5,006)
Other accrued and current liabilities7,201 10,036 
Other noncurrent liabilities16 (163)
Net cash used in operating activities(12,510)(1,148)
Cash flow from investing activities: 
Insurance proceeds related to warehouse fire2,309 461 
Capitalized proprietary software development costs(9,658)(8,051)
Purchases of property and equipment(14,955)(9,168)
Net cash used in investing activities(22,304)(16,758)
Cash flow from financing activities:
Proceeds from exercise of stock options310 118 
Taxes paid related to restricted stock vesting(120)(467)
Repayment of 2025 Notes(26,749)— 
Proceeds from issuance of stock in connection with the Employee Stock Purchase Program838 624 
Cash received from settlement of capped calls in conjunction with the Note Exchanges1,907 396 
Issuance costs paid related to the Note Exchanges(5,214)(5,298)
Net cash used in financing activities(29,028)(4,627)
Net decrease in cash, cash equivalents and restricted cash(63,842)(22,533)
Cash, cash equivalents and restricted cash
Beginning of period187,123 190,623 
End of period$123,281 $168,090 
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The following table reflects the reconciliation of net loss to Adjusted EBITDA for each of the periods indicated (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Adjusted EBITDA Reconciliation:
Net loss$(54,051)$(17,938)$(3,017)$(65,747)
Net loss (% of revenue)(31.1)%(12.1)%(0.6)%(15.1)%
Depreciation and amortization8,209 8,270 24,840 24,806 
Interest income(818)(1,940)(3,301)(6,272)
Interest expense7,085 5,948 20,443 15,468 
Provision for income taxes24 72 208 178 
EBITDA(39,551)(5,588)39,173 (31,567)
Stock-based compensation6,605 7,758 22,172 22,580 
Payroll taxes expense on employee stock transactions285 76 1,084 250 
Legal settlement— — — 600 
Gain on extinguishment of debt (1)
(3,684)— (40,785)(4,177)
Change in fair value of warrant liability (2)
43,928 (744)(3,112)9,209 
Restructuring and other (3)
1,711 822 1,711 1,407 
Adjusted EBITDA$9,294 $2,324 $20,243 $(1,698)
Adjusted EBITDA (% of revenue)5.4 %1.6 %4.1 %(0.4)%

(1) The gain on extinguishment of debt for the three and nine months ended September 30, 2025 reflects the difference between the carrying value of the 2025 Exchanged Notes and the fair value of the 2031 Notes. The gain on extinguishment of debt for the nine months ended September 30, 2024 reflects the difference between the carrying value of the 2024 Exchanged Notes and the fair value of the 2029 Notes.
(2) The change in fair value of warrant liability for the three and nine months ended September 30, 2025 and September 30, 2024 reflects the remeasurement of the Warrants issued by the Company in connection with the 2024 Note Exchange in February 2024.
(3) Restructuring and other expenses for the three and nine months ended September 30, 2025 consist of employee severance costs associated with a departmental reorganization, including certain executives, recorded within Marketing and Selling, General and Administrative expenses on the condensed statements of operations. Restructuring and other expenses for the three and nine months ended September 30, 2024 reflect estimated losses related to the fire at one of our New Jersey authentication centers, net of estimated insurance recoveries and employee severance related charges related to the 2023 savings plan, which included the closure of certain retail and office locations and a workforce reduction.
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A reconciliation of GAAP net 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 September 30,Nine Months Ended September 30,
2025202420252024
Net loss$(54,051)$(17,938)$(3,017)$(65,747)
Stock-based compensation6,605 7,758 22,172 22,580 
Payroll tax expense on employee stock transactions285 76 1,084 250 
Legal settlement— — — 600 
Provision for income taxes24 72 208 178 
Gain on extinguishment of debt(3,684)— (40,785)(4,177)
Change in fair value of warrant liability43,928 (744)(3,112)9,209 
Restructuring and other1,711 822 1,711 1,407 
Non-GAAP net loss attributable to common stockholders$(5,182)$(9,954)$(21,739)$(35,700)
Weighted-average common shares outstanding to calculate Non-GAAP net loss attributable to common stockholders per share, basic and diluted115,893,232 109,016,060 113,793,229 107,043,946 
Non-GAAP net loss attributable to common stockholders per share, basic and diluted$(0.04)$(0.09)$(0.19)$(0.33)
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 September 30,Nine Months Ended September 30,
2025202420252024
Net cash provided by (used in) operating activities$19,330 $9,073 $(12,510)$(1,148)
Purchase of property and equipment and capitalized proprietary software development costs(5,612)(6,939)(24,613)(17,219)
Free (negative) cash flow$13,718 $2,134 $(37,123)$(18,367)

Key Financial and Operating Metrics:
September 30,
2023		December 31,
2023		March 30,
2024		June 30,
2024		September 30,
2024		December 31,
2024		March 31,
2025		June 30,
2025		September 30,
2025
(In thousands, except AOV and percentages)
GMV$407,608 $450,668 $451,941 $440,914 $433,074 $503,534 $490,405 $504,105 $519,814 
NMV$302,912 $335,245 $334,815 $329,422 $335,191 $383,447 $370,757 $379,377 $397,062 
Consignment Revenue$102,852 $113,500 $115,648 $112,714 $116,908 $128,126 $123,814 $128,620 $134,429 
Direct Revenue$17,356 $15,964 $12,709 $16,724 $15,623 $19,524 $20,454 $20,495 $22,928 
Shipping Services Revenue$12,964 $13,909 $15,443 $15,496 $15,224 $16,345 $15,765 $16,073 $16,216 
Number of Orders794 826 840 820 829 870 869 868 890 
Take Rate38.1 %37.7 %38.4 %38.5 %38.6 %37.7 %38.6 %37.9 %37.9 %
Active Buyers954 922 922 942 958 972 985 1,001 1,024 
AOV$513 $545 $538 $538 $522 $579 $564 $581 $584 

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