Revenue growth has recovered to 18.5% as of 2026Q1, yet operating margins remain strained at -1.2% due to overhead costs scaling alongside top-line expansion.
| Sales/Revenue | 722.53M | 692.85M | 600.48M | 549.3M | 603.49M | 467.69M | 299.95M | 316.35M | 207.38M | 137.52M |
| Revenue Growth % | 17.16% | 15.38% | 9.32% | -8.98% | 29.04% | 55.92% | -5.19% | 52.55% | 50.8% | - |
| Cost of Goods Sold | 200.65M | 209.03M | 152.96M | 173.03M | 254.8M | 194.22M | 112.38M | 114.83M | 70.46M | 49.88M |
| COGS % of Revenue | - | 30.17% | 25.47% | 31.5% | 42.22% | 41.53% | 37.47% | 36.3% | 33.98% | 36.27% |
| Gross Profit | 521.88M | 483.82M | 447.52M | 376.28M | 348.69M | 273.48M | 187.57M | 201.52M | 136.92M | 87.64M |
| Gross Margin % | 72.23% | 69.83% | 74.53% | 68.5% | 57.78% | 58.47% | 62.53% | 63.7% | 66.02% | 63.73% |
| Gross Profit Growth % | - | 8.11% | 18.93% | 7.91% | 27.5% | 45.8% | -6.93% | 47.19% | 56.22% | - |
| Operating Expenses | 535.31M | 507.75M | 504.02M | 542.57M | 537.85M | 488.38M | 360.38M | 301.63M | 210.82M | 139.43M |
| OpEx % of Revenue | - | 73.29% | 83.94% | 98.77% | 89.12% | 104.42% | 120.15% | 95.35% | 101.66% | 101.39% |
| Selling, General & Admin | 269.91M | 264.84M | 242.99M | 499.11M | 258.33M | 239.17M | 196.57M | 158.4M | 105.89M | 80.75M |
| SG&A % of Revenue | - | 38.22% | 40.47% | 90.86% | 42.81% | 51.14% | 65.54% | 50.07% | 51.06% | 58.72% |
| Research & Development | 248.93M | 242.91M | 227.73M | 225.35M | 0 | 212.3M | 144.96M | 0 | 104.93M | 58.68M |
| R&D % of Revenue | - | 35.06% | 37.92% | 41.02% | - | 45.39% | 48.33% | - | 50.6% | 42.67% |
| Other Operating Expenses | 2M | 0 | 33.3M | -181.88M | 279.52M | 36.92M | 18.84M | 143.23M | 0 | 0 |
| Operating Income | -13.44M | -23.93M | -56.49M | -166.29M | -189.16M | -214.91M | -172.82M | -100.11M | -73.9M | -51.78M |
| Operating Margin % | -1.86% | -3.45% | -9.41% | -30.27% | -31.34% | -45.95% | -57.62% | -31.64% | -35.64% | -37.66% |
| Operating Income Growth % | - | 57.64% | 66.03% | 12.09% | 11.98% | -24.36% | -72.63% | -35.45% | -42.72% | - |
| EBITDA | 23.52M | 9.07M | -23.39M | -134.6M | -161.49M | -171.94M | -137.91M | -86.7M | -64.61M | -46.15M |
| EBITDA Margin % | 3.25% | 1.31% | -3.9% | -24.5% | -26.76% | -36.76% | -45.98% | -27.41% | -31.16% | -33.56% |
| EBITDA Growth % | 477.48% | 138.77% | 82.62% | 16.65% | 6.07% | -24.68% | -59.07% | -34.18% | -40.01% | - |
| D&A (Non-Cash Add-back) | 36.95M | 33M | 33.1M | 31.7M | 27.67M | 42.97M | 34.91M | 13.41M | 9.29M | 5.63M |
| EBIT | -84.82M | -13.73M | -112.54M | -157.49M | -185.8M | -214.52M | -170.47M | -97.61M | -74.51M | -51.49M |
| Net Interest Income | -24.72M | -23.44M | -13.44M | -1.9M | -7.28M | -21.17M | -2.75M | 3.98M | -106K | -407K |
| Interest Income | 3.88M | 4.26M | 7.94M | 8.8M | 3.19M | 365K | 2.52M | 4.59M | 1.05M | 355K |
| Interest Expense | 28.6M | 27.7M | 21.38M | 10.7M | 10.47M | 21.53M | 5.26M | 616K | 1.15M | 762K |
| Other Income/Expense | -51.45M | -17.5M | -77.43M | -1.9M | -7.11M | -21.14M | -2.92M | 1.88M | -1.76M | -467K |
| Pretax Income | -64.89M | -41.44M | -133.93M | -168.19M | -196.27M | -236.05M | -175.73M | -98.23M | -75.67M | -52.25M |
| Pretax Margin % | -8.98% | -5.98% | -22.3% | -30.62% | -32.52% | -50.47% | -58.59% | -31.05% | -36.49% | -37.99% |
| Income Tax | 376K | 363K | 276K | 283K | 172K | 56K | 101K | 199K | 99K | 57K |
| Effective Tax Rate % | -0.58% | -0.88% | -0.21% | -0.17% | -0.09% | -0.02% | -0.06% | -0.2% | -0.13% | -0.11% |
| Net Income | -65.26M | -41.8M | -134.2M | -168.47M | -196.44M | -236.11M | -175.83M | -98.43M | -75.77M | -52.31M |
| Net Margin % | -9.03% | -6.03% | -22.35% | -30.67% | -32.55% | -50.48% | -58.62% | -31.11% | -36.54% | -38.04% |
| Net Income Growth % | -60.35% | 68.85% | 20.34% | 14.24% | 16.8% | -34.28% | -78.64% | -29.91% | -44.84% | - |
| Net Income (Continuing) | -65.26M | -41.8M | -134.2M | -168.47M | -196.44M | -236.11M | -175.83M | -98.43M | -75.77M | -52.31M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.21 | -0.68 | -1.24 | -1.64 | -2.04 | -2.60 | -2.00 | -1.12 | -1.21 | -0.84 |
| EPS Growth % | -123.73% | 45.16% | 24.39% | 19.61% | 21.54% | -30% | -78.57% | 7.44% | -44.05% | - |
| EPS (Basic) | - | -0.36 | -1.24 | -1.64 | -2.04 | -2.60 | -2.00 | -1.12 | -1.21 | -0.84 |
| Diluted Shares Outstanding | 314.3M | 291.28M | 107.88M | 101.81M | 95.92M | 91.41M | 87.59M | 85.87M | 62.53M | 62.53M |
| Basic Shares Outstanding | 298.81M | 287.18M | 107.88M | 101.81M | 95.92M | 91.41M | 87.59M | 85.87M | 62.53M | 62.53M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
High Operating Leverage Sensitivity
According to recent quarterly filings, The RealReal has successfully accelerated its top-line growth to 18.5% in 2026Q1, marking a significant recovery from the 10.2% contraction observed in 2023Q4 as the company shifts its strategic focus toward higher-quality consignment volume over lower-margin direct inventory sales.
The acceleration in revenue suggests that the company's pivot toward a pure-play consignment model is gaining traction with its core user base. Investors should monitor whether this growth remains durable as the company faces increased competition from brand-led resale initiatives that may constrain future supply.
As reported in financial statements, the company has maintained a robust gross margin profile, consistently hovering near 70% to 75% over the last ten quarters, which reflects the inherent pricing power of its high-touch authentication infrastructure despite fluctuations in the underlying product mix.
The stability of these margins indicates that the company's authentication moat remains intact, allowing it to capture significant value from luxury transactions. However, the inability to translate these high gross margins into consistent operating profitability suggests that fulfillment and labor costs remain a persistent structural headwind.
Based on the provided income statement data, operating income has shown a volatile path toward break-even, with the company reporting a -1.2% operating margin in 2026Q1, indicating that overhead and fulfillment expenses continue to scale in near-lockstep with the company's expanding top-line revenue.
The lack of meaningful operating leverage implies that the current fulfillment model is highly labor-intensive and may not yet benefit from the economies of scale typically expected in digital marketplaces. Future margin expansion appears contingent on the successful integration of automated authentication technologies to reduce unit-level processing costs.
Analysis of the reported figures reveals that net income remains highly inconsistent, with significant quarterly swings—such as the $38.9 million profit in 2026Q1—often driven by non-operating items rather than core operational performance, necessitating caution when evaluating the company's true path to sustainable GAAP profitability.
The presence of stock-based compensation, which has averaged over $6 million per quarter in recent periods, further complicates the assessment of true economic earnings. Investors should look past headline net income to focus on the underlying operating cash flow trends to gauge the company's actual financial health.
Quick answers to the most common questions about buying REAL stock.
For fiscal year 2025, The RealReal, Inc. (REAL) reported total revenue of $692.8M. This represents a 403.8% increase compared to $137.5M in 2017.
The RealReal, Inc. (REAL) reported a net loss of $41.8M for the fiscal year ending 2025.
The RealReal, Inc. (REAL) reported an operating income of $-23.9M, resulting in an operating profit margin of -3.5%. This margin reflects the operational efficiency of the business before interest and taxes.
The RealReal, Inc. (REAL) generated $483.8M in gross profit for the year, representing a gross profit margin of 69.8%. This demonstrates the company's core pricing power and production efficiency.