The RealReal Exceeds Expectations with Record Q2 Earnings, Sets Optimistic Full-Year Guidance

The RealReal reported record Q2 GMV of $504m and revenue of $165m, up 14% YoY. Adjusted EBITDA reached $6.8m, exceeding expectations. The company experienced its highest number of new consignors ever, indicating growing trust in its platform. The integration of AI is contributing to operational efficiency and improved profitability. However, operating cash flow was negative $4m, and direct revenue gross margin fluctuations were noted. Despite this, The RealReal raised its full-year guidance, projecting GMV between $2.03bn and $2.045bn and revenue between $667m and $674m.

Title: The RealReal Reports Record Q2 Revenue Growth, Raises Full-Year Guidance

The RealReal Inc. (Nasdaq: REAL) reported a robust performance for the second quarter of 2025, with a 14% year-over-year (YoY) increase in gross merchandise value (GMV) and total revenue. The company's second-quarter results, released on August 7, 2025, indicate a strong pipeline of consigned goods and a record number of new consigners [1].

Key financial highlights include:
- GMV: $504 million, up 14% YoY.
- Total Revenue: $165 million, up 14% YoY.
- Adjusted EBITDA: $6.8 million, an improvement of $8.6 million YoY.

The company's adjusted EBITDA margin of 4.1% marked a significant improvement over the prior year's 1.2%. This was driven by a strong gross margin of 74.3%, which was up by 20 basis points compared to the same period in 2024 [1].

The RealReal's Chief Executive Officer, Rati Levesque, commented on the quarter's performance, stating, "The second quarter was a breakout performance for The RealReal, further validating the success of our strategic roadmap as strong execution fueled top-line momentum and margin expansion. We delivered record GMV and total revenue, both up 14% year-over-year, alongside Adjusted EBITDA ahead of expectations" [1].

The company also raised its full-year outlook, projecting GMV and total revenue to be between $2.030 billion and $2.045 billion, and Adjusted EBITDA to be between $29.0 million and $32.0 million for 2025 [1].

However, The RealReal faces challenges in maintaining gross margins and relies heavily on marketing reinvestment and new consigner acquisition for growth. The company's success in driving the circular economy and luxury resale market continues to be a key driver for its growth prospects [1].

Reference List
[1] https://investor.therealreal.com/news-releases/news-release-details/realreal-announces-second-quarter-2025-results