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- **Record Growth**: Q3 GMV $520M (+20% YoY), EBITDA $9.3M (5.4% margin)
- **AI Efficiency**: Athena processing 27% of items, saving $2+/unit
- **2025 Outlook**: $2.1B GMV (+15%), $38M EBITDA
- **Customer Flywheel**: Flywheelers transact 2x more, LTV+20%
- **Cash Flow**: $14M free cash, $123M liquidity

**【CEO Summary Section】**
- Q3 GMV reached $520 million, up 20% YoY, driven by fine jewelry and handbag growth. 
- Adjusted EBITDA expanded to $9.3 million (5.4% of revenue), up 380 bps YoY.
- Strategic pillars: 
  1. Growth playbook (AI-enabled sales, 12% productivity gain)
  2. Operational efficiency (Athena AI processing 27% of items, targeting 30-40% by end-2025)
  3. Customer service (8pt increase in trust metrics, My Closet tool development)

**【CFO Financial Commentary】**
- Revenue $174 million (+17% YoY), Direct Revenue $14 million (+47% YoY)
- Gross margin 74.3% (up 60 bps YoY)
- OpEx leverage 620 bps YoY, free cash flow $14 million
- 2025 full year GMV guidance $2.1-2.11 billion (+15% YoY)
- 2025 EBITDA $37.7-38.7 million (+400 bps margin)

**【Q&A Key Highlights】**
- 4Q GMV guide $585-595 million (+17% YoY), driven by Athena scale
- Drop shipping pilot in watches/jewelry shows 20%+ ASP gains
- Marketing spend focused on social media (25% new consignors from stores)
- Athena cost savings $2+/item, targeting 15% EBITDA by 2026
- 2026 growth rate 10-12%, balancing supply/consumer demand

The RealReal, Inc. (REAL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

REAL

REAL fundamentals

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