Realreal ( (REAL) ) has released its Q1 earnings. Here is a breakdown of the information Realreal presented to its investors.
The RealReal, Inc. is the world’s largest online marketplace for authenticated, resale luxury goods, offering a platform for buying and selling high-end items across various categories, including fashion, jewelry, and art, with a focus on sustainability and the circular economy.
In its first quarter of 2025, The RealReal reported a revenue of $160 million, marking an 11% increase from the previous year. The company also achieved a net income of $62 million, which included $80 million of non-cash gains, and an adjusted EBITDA of $4.1 million, reflecting a year-over-year improvement of $6.4 million.
Key financial highlights include a 9% increase in gross merchandise value (GMV) to $490 million and a gross margin improvement to 75.0%. The company’s net income represented 39.0% of total revenue, a significant turnaround from a net loss in the previous year. The RealReal also saw growth in its active buyer count and average order value, indicating strong consumer engagement.
Looking ahead, The RealReal’s management remains confident in its strategic direction, reaffirming its full-year 2025 guidance despite external uncertainties. The company continues to focus on operational efficiency and leveraging AI to enhance its marketplace, aiming to maintain its position at the intersection of luxury and value.