Q2 2026 RealReal Inc Earnings Call Transcript
Key Points
- The RealReal Inc (REAL) delivered record GMV of $617 million in Q2 2026, up 22% year-over-year, marking the fourth consecutive quarter of growth above 20%.
- Adjusted EBITDA margin expanded significantly to 7%, up nearly 300 basis points year-over-year, driven by operational leverage and the scaling of its AI-enabled Athena intake system.
- The company is successfully executing its growth playbook, with supply per sales rep up 15% year-to-date and the Real Partners program generating consignors with 4 times the average value.
- The flywheel effect is strengthening, with 44% of new consignors coming from the active buyer base (up from 40% two quarters ago), and trailing 12-month active buyers surpassing 1.1 million, up 11%.
- Management raised its full-year 2026 guidance, now expecting GMV growth of 19-20% and adjusted EBITDA margin of approximately 8.5% at the midpoint, reflecting strong confidence in the business outlook.
- The company is making strategic progress on new initiatives, including onboarding two large Japanese vendors for its dropship program and testing an AI-powered conversational shopping agent with Google.
- The take rate decreased by 200 basis points year-over-year to 35.9%, driven by a favorable shift in product mix towards higher-value items that carry a lower percentage take rate.
- The company is making strategic investments in marketing, increasing spend in both brand and performance channels, which could pressure near-term profitability if the ROI does not materialize as expected.
- The company faces potential risks from macroeconomic uncertainty and consumer confidence fluctuations, although management noted the platform's value proposition may strengthen in such environments.
- The growth in GMV is increasingly dependent on higher-value items (above $1,000), which could limit the addressable buyer population if price points continue to rise.
- While the company is expanding its store footprint, the pace of expansion is modest (one to three new stores per year), which may limit the potential for rapid supply growth from physical locations.
- The company's international supply network via dropship is still in early 'test and learn' phase, with no guarantee that these partnerships will scale to become significant contributors to supply.
Good afternoon, everyone. My name is Kate and I will be your conference operator today. At this time, I would like to welcome you to the RealReal second quarter 2026 earnings call. (Operator Instructions)
At this time, I would like to turn the call over to Emily Gacka, Senior Director of Investor Relations.
Thank you, operator. Joining me today to discuss our results for the period ended June 30, 2026, are Chief Executive Officer and President, Rati Levesque; and Chief Financial Officer, Ajay Gopal.
Before we begin, I would like to remind you that during today's call, we will make forward-looking statements which involve known and unknown risks and uncertainties. Our actual results may differ materially from those suggested in such statements.
You can find more information about these risks, uncertainties, and other factors that could affect our operating results in the company's most recent Form 10-K and subsequent quarterly reports on Form 10-Q.
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