The RealReal Reports Q2 2025 Revenue Growth, Raises Full-Year Guidance

The RealReal reported Q2 2025 revenue of $165 million, a 14% YoY increase. The company achieved a record high in gross merchandise value and total revenue, with adjusted EBITDA rising to $6.8 million, a $8.6 million improvement from last year. Gross merchandise value reached $504 million, with a gross profit of $123 million and gross margin of 74.3%. Net loss was reduced to $11 million from $17 million last year. Active buyers increased by 6% and average order value rose by 8%. The company raised its full-year guidance, citing confidence in sustained growth and improved profitability.

The RealReal, Inc. (Nasdaq: REAL), the world's largest online marketplace for authenticated, resale luxury goods, announced its second-quarter 2025 financial results. The company reported a significant increase in revenue and gross merchandise value (GMV), while also improving its financial metrics. Here are the key highlights:

- Revenue Growth: The RealReal's revenue for Q2 2025 was $165 million, representing a 14% year-over-year (YoY) increase. This growth was driven by a 14% increase in consignment revenue and a 23% increase in direct revenue [1].

- Gross Merchandise Value (GMV): The company's GMV reached $504 million, a 14% increase from the same period in 2024. This record high GMV underscores the company's strong market position in the luxury resale sector.

- Adjusted EBITDA: The RealReal's adjusted EBITDA for Q2 2025 was $6.8 million, a substantial $8.6 million improvement from the same period in 2024. This improvement was driven by operational efficiencies and margin expansion [1].

- Financial Metrics: The company's gross profit was $123 million, up $15 million from the previous year, and the gross margin increased to 74.3% from 72.3% in 2024. The net loss was reduced to $11 million from $17 million in 2024, representing a 6.9% of total revenue compared to 11.5% in 2024 [1].

- Customer Engagement: The number of active buyers increased by 6% to 1,001,000, while the average order value (AOV) rose by 8% to $581. These metrics indicate a growing customer base and increased spending per transaction [1].

- Full-Year Guidance: The RealReal raised its full-year guidance, citing confidence in sustained growth and improved profitability. The company expects GMV to be between $2.030 billion and $2.045 billion for the full year, with total revenue projected between $667 million and $674 million. Adjusted EBITDA is expected to range from $29.0 million to $32.0 million [1].

- Board Update: The RealReal announced the appointment of Mark McCaffrey, Chief Financial Officer of GoDaddy, Inc. (NYSE: GDDY), to its Board of Directors. McCaffrey brings extensive financial and technology expertise to the board [1].

The RealReal's Q2 2025 results demonstrate strong financial performance and growth momentum, positioning the company as a leader in the luxury resale market. Investors should closely monitor the company's progress as it continues to execute its strategic roadmap and drive profitability.

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