TheRealReal Inc (REAL)
🔔 Watch stock
The RealReal checks every Hermes bag with gemologists, micro-photography and its own AI before it is sold — and the stock has gained about 162 percent in twelve months (data as of July 8, 2026). We put the annual reports (10-K) for 2024 and 2025 and the quarterly report (10-Q) as of March 31, 2026 through the same inspection: revenue grows at a double-digit clip and adjusted EBITDA is clearly positive for the first time — but no fiscal year since the 2019 IPO has ever ended in profit, stockholders' equity stands at minus $415.5 million, part of the debt costs 13 percent interest, and the reported quarterly profit appears precisely when the share price falls. Not investment advice — just an authentication report for the numbers behind the turnaround story.
Appears in These Scanners
This stock currently matches 5 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. Scanners marked in red are red-flag signals (risk/short scanners) — appearing there is not a seal of approval. View all scanners
Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
Uses AIThe RealReal setzt KI laut Geschäftsbericht (10-K) 2025 operativ im Kern-Workflow ein — eigenentwickelte KI (u. a. die hauseigene Initiative „Athena“) unterstützt Echtheitsprüfung, Artikel-Attributierung, Preisfindung, Texterstellung und Foto-Retusche des Konsignationsgeschäfts —, erzielt aber keine KI-Umsätze: KI ist dokumentiertes Werkzeug, nicht Produkt; die KI-Risikopassagen (Item 1A) betreffen den eigenen KI-Einsatz und generische Wettbewerbs-Floskeln, keinen konkreten Bedrohungsbefund.
View the full file — quotes, sources, reviewed filings
„We use proprietary artificial intelligence ("AI") to assist in identifying and authenticating multiple categories. For instance, we use AI and microphotography to assist in authenticating high-end handbags."
Wir setzen eigenentwickelte Künstliche Intelligenz („KI“) ein, um die Identifizierung und Echtheitsprüfung in mehreren Kategorien zu unterstützen. Beispielsweise nutzen wir KI und Mikrofotografie zur Unterstützung der Echtheitsprüfung hochwertiger Handtaschen.
„We increasingly use AI in our technology platform to automate item attribution, authentication, pricing, copywriting and photo retouching for goods sold through our online marketplace."
Wir setzen KI in unserer Technologieplattform zunehmend ein, um Artikel-Attributierung, Echtheitsprüfung, Preisfindung, Texterstellung und Foto-Retusche für die über unseren Online-Marktplatz verkauften Waren zu automatisieren.
„We use artificial intelligence to make initial assessments on authenticity, to identify product characteristics, and to help predict consignor preferences, and we plan to expand our use of artificial intelligence into other areas of our business."
Wir nutzen Künstliche Intelligenz für erste Einschätzungen zur Echtheit, zur Erkennung von Produktmerkmalen und zur Unterstützung bei der Vorhersage von Einlieferer-Präferenzen, und wir planen, den Einsatz Künstlicher Intelligenz auf weitere Bereiche unseres Geschäfts auszuweiten.
Filings Reviewed: 10-Q 2026-05-07 · 10-Q 2025-11-10 · 10-Q 2025-08-07 · 10-Q 2025-05-08 · 10-K 2026-02-26 · 10-K 2025-02-21
Rated on July 16, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.62 | – | 164 | 14.40 | -41.70 | 28 | 23 |
| 2025: Q1 | 0.57 | – | 160 | 11.30 | 39.00 | -28 | -36 |
| 2025: Q2 | -0.04 | – | 165 | 14.00 | -6.90 | -9 | -20 |
| 2025: Q3 | -0.19 | – | 174 | 17.50 | -31.10 | 19 | 14 |
| 2025: Q4 | -0.13 | – | 194 | 18.30 | -20.00 | 50 | 43 |
| 2026: Q1 | 0.12 | -78.10 | 190 | 18.50 | 20.50 | -17 | -24 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
A consignment marketplace with a real moat: authentication at industrial scale (two inspection centers, gemologists, horologists, home-built AI), more than 1 million active buyers, over 80 percent of volume from repeat customers, roughly half of all items sold within 30 days; gross margin around 74.6 percent (annual report 10-K for 2025).
Adjusted EBITDA from minus $55.2 million (2023) via plus $9.3 million (2024) to plus $42.1 million (2025), operating cash flow positive two years in a row, revenue up 15 percent in 2025 and 18.5 percent in Q1 2026, operating loss of just $2.3 million in Q1 2026 — the direction is right, but a break-even fiscal year is still outstanding.
The GAAP quarterly profits arise from remeasuring the company's own warrants (Q1 2026: +$47.3 million because the price fell; in 2025 the same mechanics cost $35.8 million); on a diluted basis Q1 2026 showed a loss of $0.07 per share, and the quarter's operating cash flow was negative. No profitable year since the 2019 IPO; accumulated deficit of $1,295.6 million.
Stockholders' equity of minus $415.5 million (December 31, 2025); $382.1 million of notes after three exchanges instead of repayment, of which $143.8 million secured at 13.00 percent with a self-compounding PIK portion and an acceleration clause as of December 1, 2027; 2025 interest expense up 30 percent to $27.7 million; warrants on 7.89 million shares struck at $1.71.
A market value of roughly $1.5 billion — about 2.1 times 2025 revenue and, including debt, more than 40 times adjusted EBITDA — after plus 162 percent in twelve months; against that, 4 scanner hits exclusively in warning lists, a Piotroski score of 3 of 9 and zero insider purchases against 20 sales; 98 percent institutional ownership and an analyst consensus leaning toward buy (data as of July 8, 2026).
The RealReal is two stories in one stock: a consignment marketplace whose operating turn is measurably real (adjusted EBITDA of +$42.1 million in 2025, positive operating cash flow, double-digit revenue growth) — and a balance sheet still marked by six loss-making years: not a single profitable year since 2019, equity of minus $415.5 million, debt exchanged three times up to 13 percent notes, and quarterly profits that stem from warrant remeasurement rather than the business. At plus 162 percent in twelve months, the price has front-run much of the hoped-for break-even. Not investment advice.
- REAL reached our research list via the Reddit hype scanner (ApeWisdom, 2 mentions in 24 hours, as of July 15, 2026) — what stood out here was the silence: the 162 percent rally ran without forum hype. The 4 hits in our in-house stock scanner carry the July 8, 2026 data cut-off and rotate daily.
- Scanner metrics (Altman Z, Piotroski, interest coverage) are computed from trailing twelve-month figures and reflect the young EBITDA turn only with a lag; the deeply negative Altman Z follows above all from negative equity.
- Price and valuation figures are dated to July 8, 2026 (about $12.40, market value roughly $1.5 billion); analyses are evergreen, daily prices are not a buy argument.
About the Company
The RealReal, Inc. betreibt weltweit einen Online-Marktplatz für den Wiederverkauf von Luxusgütern.
| CEO Insider Trades (12 Mo.) | selling own stock |
|---|---|
| Employees | 3,140 |
| Headquarters | San Francisco, CA |
| Website | therealreal.com |
| IPO Date | 28. Jun 2019 |
| Next Earnings | 6. Aug 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Rati Sahi Levesque | President, CEO & Director | 1981 |
| Ajay Madan Gopal | Chief Financial Officer | 1975 |
| Luke T. Friang | Chief Technology & Product Officer | 1971 |
| Todd A. Suko J.D. | Chief Legal Officer & Secretary | 1967 |
| Gilbert Lochrie Baird III | Consultant | 1972 |
| Ming Lo | Senior VP, Chief Accounting Officer & Corporate Controller | – |
| Tiffany Stevenson | Chief People Officer | – |
| Frank Zhu | Chief Analytics Officer | – |
| Caitlin Howe J.D. | Senior VP of Finance | – |
| Jessica Fortier | Senior Vice President of Operations | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.