The RealReal 2025 Q2 Earnings Strong Performance as Net Loss Narrows by 32%

The RealReal reported mixed yet encouraging results for its second-quarter fiscal 2025 earnings on August 7, 2025. The company not only narrowed its net loss but also raised full-year revenue and Adjusted EBITDA guidance, signaling improved operational performance and market confidence.

The company’s performance in 2025 Q2 exceeded expectations by reducing its net loss year-over-year and beating its revenue forecast. The RealReal raised its full-year guidance to reflect stronger-than-anticipated demand and a successful execution of its strategic initiatives.

Revenue
The RealReal’s total revenue surged 14.0% to $165.19 million in Q2 2025, up from $144.93 million in the same period last year. The company’s consignment segment led the way with $128.62 million in revenue, while direct and shipping services contributed $20.50 million and $16.07 million, respectively. This growth reflects the strength of the luxury resale market and the company’s ability to leverage its platform to capture a broader share of that demand.

Earnings/Net Income
The RealReal significantly improved its profitability in the second quarter of 2025, narrowing its net loss to $-11.37 million, or $0.10 per share, compared to $-16.71 million, or $0.16 per share, in 2024 Q2—a 32.0% reduction in losses. This marks a positive trend in the company’s financial performance, with the net loss improving by 37.5% per share. The company achieved a record high for net income in Q2, the highest in eight years, which highlights its progress toward profitability.

Price Action
The RealReal’s stock price experienced mixed performance in the days following the earnings report. The stock dropped 7.08% during the latest trading day, but it managed to climb 4.75% during the most recent full trading week and 3.96% month-to-date. The volatility is likely influenced by both market conditions and investor sentiment toward the company’s long-term growth potential.

Post-Earnings Price Action Review
A strategy of buying The RealReal shares on the day after its revenue raise announcement and holding for 30 days has shown favorable returns over the past three years. The approach yielded a total shareholder return (TSR) of 43% over one year, significantly outperforming the negative 10% annual TSR over five years. The 30-day holding period captured gains from the immediate post-announcement rally, a common trend for stocks that beat revenue estimates. Despite the long-term underperformance over five years, the strong one-year return indicates improving company fundamentals, particularly with the recent revenue raise and guidance increase. Broader market conditions, including a growing interest in the luxury resale sector, have also contributed to RealReal’s positive stock performance in the short term.

CEO Commentary
Rati Levesque, CEO of The RealReal, highlighted the company’s record-setting quarter, with gross merchandise value (GMV) and revenue growing 14% year-over-year and Adjusted EBITDA ahead of expectations. She attributed the performance to the company’s strategic roadmap, operational expertise, authentication capabilities, and AI-driven efficiency. Levesque expressed optimism about the rising luxury resale market and The RealReal’s leadership role in the circular economy, calling this a pivotal moment for the company and the category.

Guidance
The RealReal has raised its full-year 2025 guidance, now projecting total revenue of $667–$674 million and Adjusted EBITDA of $29–$32 million. For Q3 2025, the company expects GMV of $495–$502 million, total revenue of $167–$170 million, and Adjusted EBITDA of $6.1–$7.1 million. The guidance is subject to limitations related to certain non-GAAP adjustments that cannot be predicted with certainty.

Additional News
In Nigeria, the Punch newspaper reported that Governor Eno was named Governor of the Year 2025 by the National Governors’ Forum. Meanwhile, Cristiano Ronaldo denied any role in Al-Nassr’s pursuit of Joao Felix and celebrated a hat-trick in a 4–0 win over Rio Ave. Additionally, Wizkid’s latest collaboration, “The Last Wun,” has sparked a global buzz among fans. The Nigerian Education News Foundation also highlighted the WAEC result glitch crisis as it continues to impact students nationwide.