The RealReal refinances 2029 notes with $150M loan, $25M credit line

The RealReal (REAL) stock rose 11.5% after announcing debt restructuring. The company secured a $175 million loan at 5.75% interest to replace higher-rate debt. Management aims to reduce total debt to $150 million. Despite annual GAAP losses, free cash flow turned positive in 2024 and is expected to double next year.

The RealReal (REAL) secured a $150 million loan and a $25 million revolving credit facility to refinance debt. The company plans to use the funds to redeem existing 2029 notes, reducing annual interest costs by $4 million and extending debt maturity to 2033. The refinancing is expected to boost earnings per share, excluding one-time costs. REAL shares rose 1.65% in pre-market trading.

The RealReal secured $175 million in senior secured term loans and a revolver from Fortress Credit to refinance 2029 notes and support corporate purposes. The facilities, maturing in 7 years, carry interest at adjusted Term SOFR plus 5.75% and include leverage covenants and prepayment terms. Funding is expected by Oct 19, 2026.

The RealReal refinanced its 2029 senior secured notes with a $150M term loan and $25M revolving credit facility from Fortress Investment Group, extending debt maturity to 2033 and reducing interest expense by $4M annually. The company aims to reduce leverage and target 15% Adjusted EBITDA margins.

The RealReal (REAL) reported Q2 gross merchandise value of $617M, up 22% YoY, and raised full-year guidance. Revenue grew 17% to $193M, but net loss widened to $27M. Management attributed the loss to non-cash adjustments and expects Adjusted EBITDA margin to improve.

RealReal (REAL) reported Q2 2026 revenue of $192.57M versus $165.19M, while its net loss widened to $27.23M. The company opened a larger West Palm Beach boutique, its 18th U.S. retail location, and raised full-year 2026 revenue guidance to $788M-$797M and Q3 guidance to $194M-$198M, citing AI-driven efficiencies and margin improvement efforts.