The RealReal Exceeds Q2 Expectations with 14% YoY Revenue Growth, Stock Jumps 27.1%

The RealReal, a secondhand luxury marketplace, exceeded Q2 expectations with revenue up 14% YoY to $165.2 million, beating analyst estimates by 3.6%. The company lifted its full-year revenue guidance to $670.5 million and EBITDA guidance to $30.5 million, both above analyst estimates. The stock jumped 27.1% after the announcement.

The RealReal Inc (NASDAQ:REAL), a leading online marketplace for authenticated luxury resale goods, reported robust financial results for the second quarter of 2025. The company exceeded analyst expectations with a 14% year-over-year (YoY) increase in revenue to $165.2 million, surpassing estimates by 3.6%. This strong performance was driven by a 14% YoY growth in both Gross Merchandise Volume (GMV) and total revenue, reaching $504 million and $165 million, respectively [1].

Key highlights of the quarter include a 74.3% gross margin, up 20 basis points YoY, and an adjusted EBITDA margin of 4.1%, representing a 530 basis point improvement from the prior year. The company also reported a reduced net loss of $11 million, an improvement of $5 million YoY. These figures underscore The RealReal's strategic roadmap, which is gaining traction and improving profitability faster than revenue growth [2].

The RealReal's active buyer base increased by 6% to exceed 1 million, while the average order value rose by 8% to $581. The company's operational efficiency initiatives, such as the AI-driven platform Athena, are expected to cover 30% to 40% of product intake by year-end [1].

In response to these strong results, the company lifted its full-year 2025 revenue guidance to $670.5 million and adjusted EBITDA guidance to $30.5 million, both above analyst estimates. The stock price surged 27.1% after the announcement, reflecting market confidence in the company's growth prospects and strategic initiatives [3].

However, the company faces challenges such as a decrease in take rate due to a shift towards higher average order value products, which could impact future revenue growth. Additionally, the expansion of AI initiatives is still in early stages, and the luxury resale market is subject to external factors such as tariffs and primary market pricing [1].

References:
[1] https://au.finance.yahoo.com/news/realreal-inc-real-q2-2025-074240350.html
[2] https://www.inkl.com/news/realreal-stock-surges-21-after-hours-what-s-driving-the-rally
[3] https://www.stocktitan.net/news/REAL/the-real-real-announces-second-quarter-2025-m9udrnwtusvt.html