Highlights:
- The RealReal (REAL, Financial) shows robust financial performance with a 9% increase in GMV and 11% revenue growth.
- Positive adjusted EBITDA of $4 million achieved, largely due to AI efficiency initiatives.
- Wall Street analysts predict a potential upside of 35.80% with an average target price of $9.90.
The RealReal Inc. (REAL) has demonstrated impressive growth in the first quarter of 2025, reporting a significant 9% increase in Gross Merchandise Value (GMV) and an 11% surge in revenue. The company attributes its financial success to innovative AI initiatives that have streamlined operational efficiency and contributed to a positive adjusted EBITDA of $4 million. Additionally, The RealReal's gross margin has improved by 40 basis points, now standing at a robust 75%, supported by a remarkable 61% year-over-year growth in direct revenue.
Wall Street Analysts Forecast
In the realm of stock performance, The RealReal Inc. (REAL, Financial) is catching the attention of Wall Street analysts. With five professionals offering a one-year price target, the average is set at $9.90. This suggests a notable upside potential of 35.80% from the current trading price of $7.29. The highest estimate reaches $15.00, while the lowest is at $6.00. For further details, visit the The RealReal Inc (REAL) Forecast page.
Furthermore, the consensus recommendation from six brokerage firms gives The RealReal Inc. an "Outperform" status, with an average brokerage recommendation score of 2.3 on a scale where 1 represents a Strong Buy and 5 denotes a Sell.
Despite optimistic analyst projections, GuruFocus provides a contrasting perspective with its estimated GF Value. The GF Value calculates The RealReal's fair trading value at $2.67, implying a potential downside of 63.37% from the current price point of $7.29. This valuation incorporates historical trading multiples, business growth patterns, and future performance prospects. For a comprehensive view, consult the The RealReal Inc (REAL, Financial) Summary page.
