Q4 2025 RealReal Inc Earnings Call Transcript
Key Points
- The RealReal Inc (REAL) achieved a significant milestone by surpassing $2 billion in GMV for the year, demonstrating strong growth and market leadership.
- The company reported a 22% increase in GMV for Q4 2025, driven by both unit volume and higher average selling prices.
- The RealReal Inc (REAL) delivered its first year of positive adjusted EBITDA in every quarter, showcasing its ability to scale profitably.
- The introduction of AI-enabled tools like Smart Sales and Athena has improved operational efficiency and sales team productivity.
- The company generated $43 million in free cash flow in Q4 2025, reflecting favorable cash dynamics and strong financial performance.
- The take-rate declined by 120 basis points year over year in Q4 2025, due to a shift towards higher-value items that carry a lower percentage take-rate.
- Despite strong growth, the revenue growth rate was slightly below GMV growth, influenced by the take-rate structure.
- The company faces challenges in expanding Athena's penetration across low-, mid-, and high-value items, which will take multiple quarters.
- There is a need to continue testing and expanding dropshipping initiatives, which are not yet a major driver of growth.
- The RealReal Inc (REAL) must navigate mixed signals in the luxury market, which could impact its business dynamics.
Good afternoon, everyone. My name is [Lennius]. I will be your conference operator today.
At this time, I would like to welcome you to the RealReal fourth-quarter 2025 earnings call.
(Operator Instructions)
At this time, I would like to turn the call over to Caitlin Howe, Senior Vice President of Finance.
Thank you, operator. Joining me today to discuss our results for the period ended December 31, 2025, 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 your operating results in the company's most recent Form 10-K and subsequent
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