TheRealReal, Inc. (REAL): THE REALREAL ANNOUNCES THIRD QUARTER 2026 RESULTS
TheRealReal, Inc. (REAL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 THE REALREAL ANNOUNCES THIRD QUARTER 2026 RESULTS Third Quarter Delivers Record Revenue, GMV and Orders as Active Buyer Growth Accelerates and Margins Expand; Company Raises Full Year Outlook SAN FRANCISCO, October 29, 2026 - The RealReal, Inc. (Nasdaq: REAL)—the wor
How this was made
The 30-second read
Why it matters
The earnings beat and raised outlook provide fresh material for traders to adjust positions.
Market read
Strong quarterly results and upgraded guidance may drive the stock higher in the short term.
What to watch
Potential headwinds from macro‑economic slowdown and inventory costs could temper growth.
Third Quarter Delivers Record Revenue, GMV and Orders as Active Buyer Growth Accelerates and Margins Expand; Company Raises Full Year Outlook
Third-quarter GMV increased 23%, total revenue increased 19%, gross margin expanded 64 basis points, and Adjusted EBITDA margin increased 290 basis points. The company also raised full-year 2026 GMV, Total Revenue and Adjusted EBITDA guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 GMVother | $641.5M | – | 23% |
| Q3 2026 NMVother | $490.5M | – | – |
| Q3 2026 Total revenueGAAP | $206.1M | – | 19% |
| Q3 2026 Consignment revenueGAAP | $159.1M | – | 18% |
| Q3 2026 Direct revenueGAAP | $27.38M | – | 19% |
| Q3 2026 Shipping services revenueGAAP | $19.59M | – | – |
| Q3 2026 Total cost of revenueGAAP | $51.71M | – | – |
| Q3 2026 Gross profitGAAP | $154.4M | – | an increase of $25 million |
| Q3 2026 Gross marginGAAP | 74.9% | – | an increase of 64 basis points |
| Q3 2026 Marketing expenseGAAP | $18.20M | – | – |
| Q3 2026 Operations and technology expenseGAAP | $78.51M | – | – |
| Q3 2026 Selling, general and administrative expenseGAAP | $56.22M | – | – |
| Q3 2026 Total operating expensesGAAP | $152.9M | – | – |
| Q3 2026 Income (loss) from operationsGAAP | $1.47M | – | – |
| Q3 2026 Change in fair value of warrant liabilityGAAP | $21.22M | – | – |
| Q3 2026 Interest expenseGAAP | −$7.48M | – | – |
| Q3 2026 Net income (loss) attributable to common stockholdersGAAP | $16.01M | – | – |
| Q3 2026 Net income (loss) as a percentage of revenueGAAP | 7.8% | – | – |
| Q3 2026 Basic net income (loss) per share attributable to common stockholdersGAAP | $ 0.13 | – | – |
| Q3 2026 Diluted net income (loss) per share attributable to common stockholdersGAAP | $ (0.04) | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $17.01M | – | – |
| Q3 2026 Adjusted EBITDA marginnon-GAAP | 8.3% | – | an increase of 290 basis points |
| Q3 2026 Non-GAAP net income (loss) attributable to common stockholdersnon-GAAP | $2.30M | – | – |
| Q3 2026 Non-GAAP net income (loss) attributable to common stockholders per share, basic and dilutednon-GAAP | $ 0.02 | – | – |
| Q3 2026 Net cash provided by operating activitiesGAAP | $24.98M | – | – |
| Q3 2026 Free cash flownon-GAAP | $11.27M | – | – |
| Q3 2026 Number of Ordersother | 1.02M | – | 15% |
| September 30, 2026 Active Buyersother | 1.15M | – | 13% |
| Q3 2026 AOVother | $ 629 | – | 8% |
| Q3 2026 Take Rateother | 36.8% | – | – |
| Nine months ended September 30, 2026 Total revenueGAAP | $588.4M | – | – |
| Nine months ended September 30, 2026 Gross profitGAAP | $438.9M | – | – |
| Nine months ended September 30, 2026 Income (loss) from operationsGAAP | −$3.08M | – | – |
| Nine months ended September 30, 2026 Net income (loss) attributable to common stockholdersGAAP | $27.71M | – | – |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $43.61M | – | – |
| Nine months ended September 30, 2026 Net cash provided by (used in) operating activitiesGAAP | $9.97M | – | – |
| Nine months ended September 30, 2026 Free (negative) cash flownon-GAAP | −$22.08M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Consignment revenueConsignment revenue grew 18% compared to the prior year period. | $159.1M | – | 18% |
| Direct revenueDirect Revenue grew 19% year-over-year in the third quarter. | $27.38M | – | 19% |
| Shipping services revenueNot provided. | $19.59M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 and Full Year 2026 outlook
- RevenueQ4 2026: $218 - $222 million; Full Year 2026: $806 - $810 million
- NoteGMV: Q4 2026: $720 - $735 million; Full Year 2026: $2.585 - $2.600 billion
- NoteAdjusted EBITDA: Q4 2026: $27.5 - $29.0 million; Full Year 2026: $71.1 - $72.6 million
What drove it
- GMV increased 23% and total revenue increased 19% compared to the third quarter of 2025.
- The company reported quarterly all-time highs in GMV, revenue and orders, with order growth of 15% versus last year.
- Trailing twelve months active buyers were 1,152,000, an increase of 13% compared to the same period in 2025.
- AOV was $629, an increase of 8% versus the same period in 2025.
- Gross margin was 74.9%, an increase of 64 basis points compared to the same period in 2025.
- Adjusted EBITDA margin was 8.3%, an increase of 290 basis points versus the prior year period.
Concerns
- Q3 2026 net income includes a $21.2 million non-cash adjustment resulting from the change in fair value of warrant liability.
- Nine-month free cash flow was $ (22,079) (in thousands).
- AOV was $629 at September 30, 2026, compared with $659 at June 30, 2026.
- Convertible Senior Notes, net, and Non-convertible notes, net, were $ 231,898 (in thousands) and $ 147,665 (in thousands), respectively, as of September 30, 2026.
- The company had a total stockholders’ deficit of $ (354,426) (in thousands) as of September 30, 2026.
What to watch
- Delivery against Q4 2026 GMV guidance of $720 - $735 million.
- Delivery against Q4 2026 Total Revenue guidance of $218 - $222 million.
- Delivery against Q4 2026 Adjusted EBITDA guidance of $27.5 - $29.0 million.
- Whether active buyer growth, order growth, AOV and take rate sustain the reported top-line growth.
- Cash flow after purchases of property and equipment and capitalized proprietary software development costs.
- Progress in extending the debt maturity profile and deleveraging, as described by the CEO.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 130,405 (in thousands); December 31, 2025: $ 151,231 (in thousands).
- Restricted cash as of September 30, 2026: $ 14,777 (in thousands); December 31, 2025: $ 14,808 (in thousands).
- Convertible Senior Notes, net, as of September 30, 2026: $ 231,898 (in thousands); December 31, 2025: $ 230,833 (in thousands).
- Non-convertible notes, net, as of September 30, 2026: $ 147,665 (in thousands); December 31, 2025: $ 140,980 (in thousands).
- Total liabilities as of September 30, 2026: $ 758,102 (in thousands); December 31, 2025: $ 824,551 (in thousands).
- Total stockholders’ deficit as of September 30, 2026: $ (354,426) (in thousands); December 31, 2025: $ (415,518) (in thousands).
- Nine months ended September 30, 2026 purchases of property and equipment: $ (21,158) (in thousands); capitalized proprietary software development costs: $ (10,889) (in thousands).
- Nine months ended September 30, 2026 net decrease in cash, cash equivalents and restricted cash: $ (20,857) (in thousands).
Analysis
TheRealReal reported record third-quarter GMV, revenue and orders. GMV was $642 million, up 23% compared to the third quarter of 2025, while total revenue was $206 million, up 19%. Growth was broad across reported revenue streams: consignment revenue grew 18% and Direct Revenue grew 19% year-over-year. Number of Orders was 1,020 (in thousands), up 15%, while trailing twelve months active buyers reached 1,152,000, up 13%.
Margin performance improved materially. Gross profit was $154 million, an increase of $25 million, and gross margin was 74.9%, up 64 basis points. Income from operations was $ 1,472 (in thousands), compared with a loss from operations of $ (7,550) (in thousands) in the prior-year quarter. Adjusted EBITDA was $17.0 million, versus $9.3 million, and Adjusted EBITDA margin expanded to 8.3% from 5.4%.
GAAP net income was $16 million, compared to a net loss of $(54) million. The reported result included a $21.2 million non-cash adjustment resulting from the change in fair value of warrant liability. Non-GAAP net income attributable to common stockholders was $ 2,299 (in thousands), or $0.02 per basic and diluted share. Q3 free cash flow was $ 11,268 (in thousands), while free cash flow for the nine months ended September 30, 2026 was $ (22,079) (in thousands).
The balance sheet showed $ 130,405 (in thousands) of cash and cash equivalents and $ 14,777 (in thousands) of restricted cash at September 30, 2026. Convertible Senior Notes, net, were $ 231,898 (in thousands), and Non-convertible notes, net, were $ 147,665 (in thousands). The company reported that it completed a refinancing earlier in October that extended its debt maturity profile and said it is positioned to continue deleveraging.
Management raised full-year guidance and introduced Q4 guidance for GMV, Total Revenue and Adjusted EBITDA. Q4 guidance calls for GMV of $720 - $735 million, Total Revenue of $218 - $222 million and Adjusted EBITDA of $27.5 - $29.0 million. Full-year guidance calls for GMV of $2.585 - $2.600 billion, Total Revenue of $806 - $810 million and Adjusted EBITDA of $71.1 - $72.6 million. AOV was $629 in the third quarter, compared with $659 at June 30, 2026, while take rate was 36.8%, compared with 35.9% at June 30, 2026.
Management, verbatim
Q3 was another record quarter for The RealReal, with quarterly all-time highs in GMV, revenue and orders, with our strongest quarterly order growth since 2022, up 15% versus last year,
Rati Levesque, CEO of The RealReal
Alongside that growth we expanded adjusted EBITDA margin by 290 basis points, and earlier this month we completed a key refinancing extending our debt maturity profile and positioning the business to continue deleveraging in the years ahead.
Rati Levesque, CEO of The RealReal
Not in the filing
stated, not guessed- Prior outlook was not provided; therefore, no comparison of actual results with prior guidance is available.
- No Q4 2026 or Full Year 2026 guidance was provided for gross margin, operating expenses or tax rate.
- No share repurchases or dividends were disclosed.
- No quarterly balance sheet comparison with the prior quarter was provided.
- No explicit year-over-year or sequential percentage change was provided for shipping services revenue, NMV, take rate, total cost of revenue, operating expenses, operating income, cash flow or free cash flow.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a standard 8‑K earnings release for a US‑listed company.
Ticker impact
The RealReal reported Q3 2026 results with record revenue, GMV and raised full-year guidance.
likely upward pressure as investors price in higher revenue and guidance
Record growth and a raised outlook indicate improved fundamentals, prompting buying interest.
Market effects
Luxury resale sector may see broader optimism from RealReal's strong performance.
US consumer discretionary sentiment could improve.
Limited to niche luxury resale market.
Counterpoint
If the raised guidance is already priced in, the stock could face a short-term pullback.
Key entities
- companyThe RealReal, Inc.
Online marketplace for authenticated luxury resale.
