Q3 2025 RealReal Inc Earnings Call Transcript
Key Points
- The RealReal Inc (REAL) reported a record quarterly GMV of $520 million, marking a 20% increase compared to the previous year.
- The company achieved an adjusted EBITDA of $9.3 million, representing 5.4% of total revenue and a 380 basis point improvement year over year.
- The RealReal Inc (REAL) has seen significant growth in its active buyer base, reaching over 1 million active buyers, a new all-time high.
- The company's proprietary AI-enabled product intake process, Athena, is improving efficiency and reducing costs, with plans to expand its reach to 30-40% of items by year-end.
- The RealReal Inc (REAL) is experiencing strong momentum in its marketing efforts, with double-digit growth in new and repeat consignors and a focus on high-value events and retail stores to drive supply.
- The company's take rate declined by 70 basis points year over year due to a mix into higher-value items and categories.
- Gross margin decreased by 60 basis points compared to the prior-year period, attributed to a higher mix of direct revenue.
- Despite strong growth, The RealReal Inc (REAL) remains a supply-constrained business, which could limit future expansion if not addressed.
- The company faces competitive pressures as the resale market becomes more mainstream, with new entrants potentially impacting market share.
- The RealReal Inc (REAL) has increased its marketing investment, which, while driving growth, could impact profitability if not managed carefully.
Hello, and welcome to The RealReal Q3 earnings call. (Operator Instructions) Also, as a reminder, this conference is being recorded. If you have any objections, please disconnect at this time.
With that, 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 September 30, 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 our operating results in the company's most recent Form 10-K and subsequent quarterly reports on Form 10-Q.
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