The RealRealREAL -0.93%58 Gross Margin % is 74.50% as of Mar. 2026, which is 17% above its 10-year median of 63.73. GuruFocus rates REAL with a GF Score™ of 58/100 and a GF Value™ of $4.91 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,117 Retail - Cyclical companies, The RealReal ranks better than 95.79% on this metric.
The historical rank and industry rank for The RealReal's Gross Margin % or its related term are showing as below:
REAL'
s Gross Margin % Range Over the Past 10 Years
Min: 57.78 Med: 63.73 Max: 74.59
Current: 74.48
During the past 9 years, the highestGross Margin % of The RealReal was 74.59%. The lowest was 57.78%. And the median was 63.73%.
REAL's Gross Margin % is ranked better than 95.79% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs REAL: 74.48
The RealReal had a gross margin of 74.50% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for The RealReal was 5.20% per year.
The RealReal (NAS:REAL) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The RealReal had a gross margin of 74.50% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The RealReal Gross Margin % Related Terms
The RealReal Gross Margin % Historical Data
* Premium members only.
The historical data trend for The RealReal's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Luxury Goods subindustry, The RealReal's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The RealReal Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The RealReal's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The RealReal's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The RealReal (REAL) has a Gross Margin % of 74.50% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The RealReal and its competitors. This is 17% above median its historical median of 63.73. Over the past decade, The RealReal's Gross Margin % has ranged from 57.78 to 74.59. According to the industry distribution chart, The RealReal ranks #47 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 4.2%.
Is The RealReal's Gross Margin % too high?
The RealReal's current Gross Margin % of 74.50% is 17% above median its 10-year median of 63.73. Over the past 10 years, this metric has ranged from a low of 57.78 to a high of 74.59. The Retail - Cyclical industry median Gross Margin % is 36.23. The RealReal's value of 74.50% is 105.6% above this industry median. Based on the distribution chart, The RealReal ranks #47 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, The RealReal has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The RealReal's Gross Margin % compare to MOV and ELA?
According to the Retail - Cyclical industry distribution chart, The RealReal ranks #47 out of 1117 companies for Gross Margin %. This places The RealReal in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.23. The RealReal's value of 74.50% is 105.6% above this benchmark. Historically, The RealReal's own Gross Margin % has ranged from 57.78 to 74.59 over the past decade. While the company's 10-year median is 63.73 vs. the industry median of 36.23, The RealReal has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The RealReal's current Gross Margin % of 74.50% is 105.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The RealReal and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The RealReal's current Gross Margin % is 74.50%, which is 17% above median its own 10-year median of 63.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The RealReal stock overvalued right now?
Based on GuruFocus' analysis, The RealReal (REAL) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.91, compared to a current price of $12.32 — trading 150.8% above its estimated fair value. The current Gross Margin % is 74.50%, which is 17% above median its 10-year median of 63.73 and 105.6% above the Retail - Cyclical industry median of 36.23. The RealReal's overall GF Score™ is 58/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The RealReal (REAL), the current Gross Margin % is 74.50% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The RealReal (REAL) Overvalued in 2026?
Based on GuruFocus' analysis, The RealReal stock appears to be overvalued.
The current stock price of $12.32 is trading 150.8% above its estimated GF Value™ of $4.91.
GuruFocus considers The RealReal to be Significantly Overvalued.
Key valuation signals for REAL:
Gross Margin %: 74.50% (17% above median its 10-year median of 63.73)
GF Value™: $4.91 vs. price of $12.32 (150.8% above fair value)
Industry Position: 105.6% above the Retail - Cyclical median (#47 of 1117)
No single metric tells the full story. See the REAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The RealReal Inc is an online marketplace for authenticated, resale luxury goods, providing an end-to-end service that unlocks supply and creates a trusted, curated marketplace for buyers globally. Since its inception, the company has cultivated a loyal and engaged consignor and buyer base through continuous investment in its technology platform, logistics infrastructure, brand and people. It offers a wide selection of authenticated, mainly pre-owned luxury goods bearing the brands of thousands of luxury and premium designers, including Cartier, Chanel, Christian Dior, Gucci, Hermes, Louis Vuitton and Rolex. The company offers products across women's fashion, men's fashion, jewelry, and watches, promoting the recirculation of luxury goods and contributing to a more sustainable world.
58GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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