RealReal (NASDAQ:REAL) Issues Quarterly Earnings Results

RealReal (NASDAQ:REAL) released its quarterly earnings results on Thursday. The company reported ($0.01) earnings per share for the quarter, meeting the consensus estimate of ($0.01), FiscalAI reports. The firm had revenue of $189.72 million for the quarter, compared to analysts’ expectations of $185.98 million. The business’s quarterly revenue was up 18.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.08) EPS.

Here are the key takeaways from RealReal’s conference call:

• Q1 results meaningfully beat expectations — GMV +24% to $606M, revenue +$19% to $190M, and adjusted EBITDA of $13.1M (6.9% margin); management raised full?year guidance to GMV $2.42–2.47B, revenue $770–784M, adj. EBITDA $59–67M.
• Management highlighted AI and automation as key margin levers — Athena intake aims to process ~50% of items by year?end, AI image?embedding for pricing is rolling out, and an automated storage/retrieval system will add ~35% capacity at a key center.
• Supply and network effects are accelerating the flywheel — 43% of new consignors are active buyers, stores (expanding to San Francisco and Boston), referral partners, drop?ship, and international vendor channels are broadening high?quality supply.
• Mix dynamics are shifting — average order value rose ~15% to $646 while blended take rate declined ~220 bps to 36.4%; management expects take?rate pressure in H1 with normalization in H2 as mix evolves.
• Cash flow remains a near?term concern — quarter?end cash and restricted cash were $139M and operating cash flow was negative $16.6M, with expected seasonally back?half weighted cash generation.

RealReal Trading Down 17.3%

Shares of REAL stock traded down $2.14 on Friday, reaching $10.26. 14,366,468 shares of the company’s stock were exchanged, compared to its average volume of 3,213,178. RealReal has a 52 week low of $4.70 and a 52 week high of $17.39. The stock has a market capitalization of $1.24 billion, a PE ratio of -10.06 and a beta of 2.84. The company’s fifty day simple moving average is $10.63 and its 200 day simple moving average is $12.84.

Analysts Set New Price Targets

Several research firms have weighed in on REAL. KeyCorp raised their price target on RealReal from $16.00 to $20.00 and gave the company an “overweight” rating in a report on Thursday, January 22nd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of RealReal in a research note on Tuesday, April 21st. Wall Street Zen lowered RealReal from a “buy” rating to a “hold” rating in a research note on Saturday, April 18th. UBS Group lowered their price objective on RealReal from $16.00 to $14.00 and set a “neutral” rating for the company in a research note on Friday. Finally, Northland Securities set a $20.00 price objective on RealReal in a research note on Wednesday, January 14th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $17.25.

More RealReal News

Here are the key news stories impacting RealReal this week:

• Positive Sentiment: The RealReal reported first-quarter 2026 results showing strong growth, with GMV up 24% and revenue up 19% year over year, while also improving operating cash flow and growing active buyers. The RealReal Announces First Quarter 2026 Results
• Positive Sentiment: Adjusted earnings came in in line with expectations at a loss of $0.01 per share, and revenue of $189.7 million slightly topped estimates, suggesting the company is performing better than feared. Earnings report and conference call
• Positive Sentiment: BTIG Research lowered its price target on RealReal to $17 from $18 but kept a Buy rating, which still signals confidence in the stock’s upside potential. BTIG price target update
• Neutral Sentiment: Coverage pieces and earnings snapshots highlighted the quarter and consumer interest in luxury resale, but they do not appear to materially change the investment case on their own. Zacks earnings article

Insider Activity

In related news, CFO Gopal Ajay Madan sold 51,585 shares of the firm’s stock in a transaction that occurred on Thursday, March 19th. The stock was sold at an average price of $9.29, for a total transaction of $479,224.65. Following the completion of the sale, the chief financial officer directly owned 1,179,307 shares of the company’s stock, valued at approximately $10,955,762.03. This trade represents a 4.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Steve Ming Lo sold 16,962 shares of the firm’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $10.72, for a total value of $181,832.64. Following the sale, the chief accounting officer directly owned 170,236 shares of the company’s stock, valued at $1,824,929.92. This represents a 9.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 286,883 shares of company stock worth $3,001,619 in the last three months. Corporate insiders own 9.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of REAL. AQR Capital Management LLC increased its holdings in RealReal by 589.2% during the 1st quarter. AQR Capital Management LLC now owns 887,997 shares of the company’s stock worth $4,786,000 after purchasing an additional 759,160 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in RealReal by 6.1% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,437 shares of the company’s stock worth $326,000 after purchasing an additional 3,500 shares during the period. Millennium Management LLC increased its holdings in RealReal by 1.9% during the 1st quarter. Millennium Management LLC now owns 883,690 shares of the company’s stock worth $4,763,000 after purchasing an additional 16,136 shares during the period. Legal & General Group Plc increased its holdings in RealReal by 14.1% during the 2nd quarter. Legal & General Group Plc now owns 81,292 shares of the company’s stock worth $389,000 after purchasing an additional 10,052 shares during the period. Finally, Amundi purchased a new position in RealReal during the 2nd quarter worth $197,000. 64.73% of the stock is currently owned by hedge funds and other institutional investors.

About RealReal

The RealReal, Inc (NASDAQ: REAL) operates an online marketplace specializing in the authenticated resale of luxury goods. Since its founding in 2011 by entrepreneur Julie Wainwright, the company has positioned itself as a leading platform for consignors and shoppers seeking designer fashion, fine jewelry, watches, art, and home décor. Headquartered in San Francisco, The RealReal combines e-commerce technology with an in-house team of experts to offer a seamless buying and selling experience for secondhand luxury items.

At the core of The RealReal’s business model is its consignment service, which enables individuals to sell pre-owned luxury products through a fully managed process.